Invesco Funds: A Guide To Getting Started With Investing

Invesco Mutual Fund, a US-based independent investment management company, offers a wide range of investment opportunities, including equity funds, fixed income funds, and retirement plans. Invesco has a global presence, with ground operations in over 20 countries and a client base spanning 120 nations. The company provides investors with access to diverse investment products, such as mutual funds, exchange-traded funds (ETFs), and closed-end funds.

Invesco's mutual funds cater to various investment objectives and strategies, including equity-oriented, hybrid, and debt-oriented funds. Their ETF offerings provide investors with the ability to build customized portfolios, access innovative opportunities, and navigate volatile markets. Additionally, Invesco offers tools like the CollegeBound 529 portal for retirement planning and contribution management.

Investing in Invesco funds can be done through their official website, a distributor, or platforms like ET Money, which offer a direct investment option with a lower expense ratio. When investing, individuals should be mindful of the associated risks and consult relevant professionals for advice tailored to their specific circumstances.

Explore Invesco's ETF strategies

Invesco's ETF strategies offer a diverse range of solutions to meet your investment goals. With over 200 ETFs, Invesco helps you access a wide range of possibilities. Here are some key strategies to explore:

Broad Exposure and Diversification:

Invesco's ETFs offer broad exposure to different asset classes, sectors, and countries or regions. This allows you to diversify your portfolio and reduce risk. You can invest in various sectors, such as equity, fixed income, alternatives, commodities, and currencies.

Index-Based and Actively Managed ETFs:

Invesco provides a suite of index-based and actively managed ETFs. Passively managed ETFs track indexes like the S&P 500 or Nasdaq-100 Index, while active ETFs allow portfolio managers to pick individual securities based on their investment approach. This gives you the flexibility to choose between benchmark-driven and actively managed funds.

Tax Efficiency and Lower Costs:

Invesco's ETFs are known for their tax efficiency, providing higher tax benefits compared to mutual funds. Additionally, ETF management fees are generally lower than other investments. Invesco's management expense ratio (MER) includes management fees, operating expenses, and taxes, helping you understand the total cost of investing.

Innovation and Growth:

Invesco, in partnership with Nasdaq, provides access to some of the world's most innovative companies. Their ETFs focus on sectors driving long-term innovation, such as augmented reality, cloud computing, big data, electric vehicles, and more. This strategy combines growth potential with consistent income.

Smart Beta Investing:

Invesco offers smart beta investing, an alternative index-based methodology that seeks to outperform benchmarks or reduce portfolio risk. This strategy provides targeted factor exposure to drive returns in a transparent and cost-effective manner.

Sustainable and Responsible Investing:

Invesco is committed to building a sustainable future through responsible investing. Their sustainable product lineup allows you to discover investments that meet your portfolio needs while considering environmental and social impacts.

Invesco's ETF strategies provide a range of options to customize your portfolio and pursue your financial goals. By leveraging their global resources, expertise, and diverse solutions, Invesco helps you navigate the complex world of investing and make informed decisions to build a secure financial future.

Understand the difference between active, passive and semi-transparent ETFs

Exchange-traded funds (ETFs) are baskets of securities that trade on exchanges, such as individual stocks. They are known for their relatively low costs, tax efficiency, portfolio transparency, and trading flexibility.

Passively managed ETFs are designed to track indexes like the S&P 500 Index. Active ETFs, on the other hand, give portfolio managers the flexibility to pick individual securities based on their investment approach and usually seek to outperform a benchmark.

ETFs have varying levels of portfolio transparency, which depend on how much and how frequently they disclose their portfolio holdings. They can be fully transparent, semi-transparent, or non-transparent.

Fully transparent ETFs disclose their portfolio holdings daily, providing a clear view of their portfolio value. Semi-transparent ETFs, on the other hand, may use a "substitute basket" or "tracking basket" approach, disclosing only a portion of their holdings or certain key data metrics. This helps maintain the confidentiality of their strategy while still providing some information to market participants.

Non-transparent ETFs do not disclose their portfolio holdings, which can create additional risks for investors. For example, the lack of information may result in higher trading costs as traders tend to charge more when they have less information. Additionally, the price paid for ETF shares may not match the value of the ETF's portfolio, potentially resulting in greater price differences compared to other ETFs.

However, non-transparent ETFs may also have advantages. By keeping their investment strategies confidential, these ETFs reduce the risk of other traders predicting or copying their approach, which could improve their performance.

Invesco offers a range of ETFs, including passive and active options, with innovative features to meet diverse investment needs and goals.

Learn about Invesco's mutual fund schemes

Invesco offers a wide range of mutual funds with various investment objectives and strategies. It is part of Invesco Limited, a US-based independent investment management company with headquarters in Atlanta, Georgia. The company has operations in over 20 countries and a client base spanning 120 nations.

Invesco's product line includes equity-oriented funds, hybrid schemes, debt-oriented funds, and other schemes. As of September 2024, Invesco Mutual Fund offers 39 mutual fund schemes.

• Through the Invesco Mutual Funds' official website: You can register and invest directly on the company's website. However, an individual AMC's website only allows you to invest in the schemes of that particular AMC. Therefore, you would need to sign up on multiple fund house websites if you want to invest in different schemes, which can be time-consuming and inconvenient.
• Through a distributor: You can also invest through a distributor, but this option typically involves higher expense ratios since the distributor earns a commission on your investment. This will reduce your mutual fund investment gains.
• Through the ET Money platform: A simpler, more efficient, and effective way to invest in Invesco Mutual Fund schemes or any other fund house is through the ET Money platform. After signing up once, you can invest in various schemes from different AMCs. ET Money is a direct investment platform, so you can invest in Invesco Mutual Fund schemes at a lower expense ratio. The platform also allows you to track your existing portfolio, providing valuable information such as fund performance, returns consistency, fund history, expense ratio, exit load, and other essential details.

• Invesco India Arbitrage Fund, Invesco India Contra Fund, and Invesco India Liquid Fund are the company's three largest funds.
• Invesco Mutual Fund is a well-known name in India's mutual fund management industry, regulated by SEBI.
• While Invesco Mutual Fund cannot guarantee returns or capital safety, you can evaluate and choose a fund that aligns with your investment requirements and goals.
• Invesco Mutual Fund offers a range of schemes suitable for different investment horizons. For example, debt funds are recommended for short-term investments, while overnight funds are suitable for investments of a few days, and liquid funds are appropriate for up to three months.
• Mutual fund investments are subject to capital gains tax, which varies depending on your investment duration and scheme type (debt or equity).

In summary, Invesco Mutual Fund provides a diverse range of investment opportunities through its various schemes. You can invest directly through their website, via a distributor, or through the ET Money platform, which offers a more streamlined and informative investing experience.

Discover Invesco's investment products

Invesco offers a wide range of investment products to help investors build a secure financial future. The company has ground operations in over 20 countries and a client base spanning 120 nations.

Exchange-Traded Funds (ETFs)

Invesco's ETFs can help investors build customized portfolios with precision and confidence. Their ETFs can be used to achieve various financial goals, such as growth, income, diversification, volatile market navigation, or innovative opportunities. Invesco offers more than 200 ETFs, including:

• Invesco QQQ Income Advantage ETF (QQA)
• Invesco Nasdaq 100 ETF (QQQM)
• Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA)
• Invesco S&P 500 Equal Weight ETF (RSP)

Mutual Funds

Invesco Mutual Fund, a part of Invesco Limited, offers a wide range of mutual funds with various investment objectives and strategies. As of September 2024, Invesco Mutual Fund offered 39 mutual fund schemes, including:

• 20 equity-oriented funds
• 4 hybrid schemes
• 13 debt-oriented funds
• 2 other schemes

The three largest funds of the company are the Invesco India Arbitrage Fund, Invesco India Contra Fund, and Invesco India Liquid Fund.

Closed-End Funds

Invesco also offers access to strategies including municipal, corporate, investment-grade, and floating-rate bonds through their closed-end funds.

Money Market and Liquidity Funds

Invesco provides high-quality liquidity products, including US-based prime, government, Treasury, and municipal funds. They can also design customized products to meet specific investor needs.

Education Savings

Invesco offers education savings products to help meet education savings needs with flexible investment options and innovative program designs.

Find out how to buy and sell Invesco products

Buying and selling Invesco products is as straightforward as buying and selling ordinary stocks and shares. Invesco products trade throughout the day on one or more of the London Stock Exchange, the Deutsche Boerse (Xetra), the SIX Swiss Exchange or the Borsa Italiana.

To buy or sell Invesco products, you can contact a financial advisor, local broker, or an online trading platform. These Invesco products are bought and sold on the stock exchange, also known as the "secondary market". When you instruct your broker to buy or sell a particular ETP, they will place the order on the exchange and it will be executed at the best available price.

Invesco has an extensive network of trading firms that provide live prices for the ETP throughout the day. This broad array of "market makers" provides liquidity to all Invesco products. They work independently from one another and quote the best prices at which they will buy or sell shares in the ETP at a given time. This healthy competition encourages smaller differences between the buying and selling prices, otherwise known as the "bid-offer spread".

Invesco offers a wide range of financial products to help you meet your investment objectives. These include exchange-traded funds, actively managed mutual funds, separately managed accounts, closed-end funds, money market and liquidity funds, unit trusts, CollegeBound 529, and variable insurance funds.

Frequently asked questions