Invesco Discovery Fund is a mutual fund that invests in small-cap growth stocks. The fund is managed by Invesco Ltd. and has been in operation since 1994. The fund’s objective is to provide long-term capital appreciation.
Invesco Discovery Fund has a long history of outperforming its benchmark, the Russell 2000 Growth Index. The fund has also been able to generate alpha, which is a measure of excess return over the benchmark. The fund’s success is due to its experienced management team and its focus on investing in high-quality growth companies.
If you are looking for a mutual fund that can provide you with long-term capital appreciation, then Invesco Discovery Fund is a good option to consider. The fund has a strong track record of success and is managed by an experienced team of investment professionals.
Invesco Discovery Fund
Invesco Discovery Fund is a mutual fund that invests primarily in small-cap growth stocks. The fund has a long history of outperformance and is managed by an experienced team of investment professionals.
Key aspects of Invesco Discovery Fund:
- Objective: Long-term capital appreciation
- Investment style: Small-cap growth
- Benchmark: Russell 2000 Growth Index
- Manager: Invesco Ltd.
- Inception date: 1994
- Expense ratio: 0.68%
- Minimum investment: $1,000
- Performance: Outperformed benchmark since inception
- Alpha: Positive alpha over benchmark
- Risk: Above-average risk due to small-cap focus
Invesco Discovery Fund is a good option for investors who are looking for a long-term growth investment. The fund has a strong track record of success and is managed by an experienced team of investment professionals. However, investors should be aware that the fund is above-average risk due to its small-cap focus.
Objective
Invesco Discovery Fund’s objective is long-term capital appreciation. This means that the fund is designed to grow your money over time. The fund invests in small-cap growth stocks, which have the potential to generate high returns over the long term. However, it is important to note that all investments carry some risk, and there is no guarantee that the fund will achieve its objective.
Long-term capital appreciation is an important component of Invesco Discovery Fund because it is the fund’s primary goal. The fund’s manager makes investment decisions with the goal of achieving long-term capital appreciation for shareholders. This means that the fund is not designed to generate short-term profits. If you are looking for a fund that can help you grow your money over time, then Invesco Discovery Fund is a good option to consider.
Here are some examples of how Invesco Discovery Fund has achieved its objective of long-term capital appreciation:
- Since its inception in 1994, the fund has outperformed its benchmark, the Russell 2000 Growth Index.
- The fund has generated alpha, which is a measure of excess return over the benchmark.
- The fund has a long history of providing positive returns for shareholders.
It is important to note that past performance is not a guarantee of future results. However, Invesco Discovery Fund’s track record of success suggests that it is a good option for investors who are looking for a fund that can help them achieve their long-term financial goals.
Investment style
Invesco Discovery Fund is a small-cap growth fund. This means that the fund invests in small companies that are expected to grow rapidly. Small-cap growth stocks have the potential to generate high returns over the long term, but they also come with higher risk than large-cap stocks. Invesco Discovery Fund’s investment style is a key component of its success. The fund has outperformed its benchmark, the Russell 2000 Growth Index, since its inception in 1994. This outperformance is due in part to the fund’s focus on investing in high-quality growth companies.
One of the key challenges of investing in small-cap growth stocks is identifying companies that have the potential to grow rapidly. Invesco Discovery Fund’s manager has a great deal of experience in investing in small-cap growth stocks. The manager uses a variety of factors to identify companies that have the potential to grow rapidly, including the company’s financial performance, its management team, and its competitive landscape.
Invesco Discovery Fund is a good option for investors who are looking for a fund that can provide them with long-term capital appreciation. The fund has a strong track record of success and is managed by an experienced team of investment professionals. However, investors should be aware that the fund is above-average risk due to its small-cap focus.
Benchmark
Invesco Discovery Fund is a small-cap growth fund that uses the Russell 2000 Growth Index as its benchmark. The Russell 2000 Growth Index is a market-capitalization-weighted index of the 2,000 smallest publicly traded companies in the United States that exhibit growth characteristics. The index is designed to measure the performance of the small-cap growth segment of the U.S. equity market.
Invesco Discovery Fund’s benchmark is important because it provides a standard against which the fund’s performance can be measured. The fund’s manager aims to outperform the benchmark over time. Outperforming the benchmark is a difficult task, but Invesco Discovery Fund has been able to do so since its inception in 1994.
There are several reasons why Invesco Discovery Fund has been able to outperform its benchmark. First, the fund’s manager has a great deal of experience in investing in small-cap growth stocks. Second, the fund has a well-defined investment process that is designed to identify companies that have the potential to grow rapidly. Third, the fund has a long-term investment horizon, which allows the manager to invest in companies that may not be profitable in the short term but have the potential to generate strong returns over the long term.
Invesco Discovery Fund’s outperformance of its benchmark is a testament to the skill of the fund’s manager and the fund’s investment process. Investors who are looking for a fund that can provide them with long-term capital appreciation should consider Invesco Discovery Fund.
Manager
Invesco Discovery Fund is managed by Invesco Ltd., a global investment management firm with over $1 trillion in assets under management. Invesco Ltd. is a leading provider of investment products and services to institutional and individual investors worldwide. The firm has a long history of success in managing investment funds, and its experienced investment professionals are dedicated to providing superior returns for its clients.
- Investment Expertise: Invesco Ltd. has a deep understanding of the global investment markets and a proven track record of success in managing investment funds. The firm’s investment professionals have extensive experience in investing in a wide range of asset classes, including stocks, bonds, and commodities. This expertise is essential for managing Invesco Discovery Fund, which invests in small-cap growth stocks.
- Global Presence: Invesco Ltd. has a global presence with offices in over 20 countries. This global presence gives the firm a unique perspective on the global economy and allows it to identify investment opportunities that may not be available to other investment managers. This global reach is beneficial for Invesco Discovery Fund, which invests in companies all over the world.
- Long-Term Investment Horizon: Invesco Ltd. takes a long-term approach to investing. The firm believes that investing in high-quality companies with strong fundamentals is the best way to achieve long-term success. This long-term approach is evident in the management of Invesco Discovery Fund, which has a long history of outperforming its benchmark.
- Commitment to ESG: Invesco Ltd. is committed to ESG (environmental, social, and governance) investing. The firm believes that ESG factors can have a material impact on a company’s financial performance and long-term sustainability. This commitment to ESG is reflected in the management of Invesco Discovery Fund, which invests in companies with strong ESG profiles.
Invesco Ltd.’s management of Invesco Discovery Fund is a key factor in the fund’s success. The firm’s investment expertise, global presence, long-term investment horizon, and commitment to ESG investing have all contributed to the fund’s strong performance. Investors who are looking for a fund that can provide them with long-term capital appreciation should consider Invesco Discovery Fund.
Inception date
Invesco Discovery Fund was launched on June 30, 1994. The fund’s inception date is significant because it marks the beginning of the fund’s long history of success. Invesco Discovery Fund has outperformed its benchmark, the Russell 2000 Growth Index, since inception. The fund has also generated alpha, which is a measure of excess return over the benchmark. Invesco Discovery Fund’s success is due in part to its experienced management team and its focus on investing in high-quality growth companies.
The fund’s inception date is also significant because it provides investors with a long track record to evaluate the fund’s performance. Invesco Discovery Fund has a long history of providing positive returns for shareholders. This track record of success is an important consideration for investors when choosing a mutual fund.
Overall, Invesco Discovery Fund’s inception date is a significant factor in the fund’s success. The fund’s long history of success provides investors with confidence that the fund can continue to generate positive returns in the future.
Expense ratio
The expense ratio is a critical component of any mutual fund. It represents the annual percentage of a fund’s assets that are used to cover the fund’s operating expenses, such as management fees, marketing costs, and administrative expenses. A lower expense ratio means that more of the fund’s assets are available for investment, which can lead to higher returns for investors over time.
Invesco Discovery Fund has an expense ratio of 0.68%. This is a relatively low expense ratio for an actively managed small-cap growth fund. The fund’s low expense ratio is one of the reasons why it has been able to outperform its benchmark, the Russell 2000 Growth Index, since inception.
For example, if an investor invests $10,000 in Invesco Discovery Fund and the fund earns a 10% return over the year, the investor would pay $68 in expenses. This is significantly less than the expenses that would be paid on a fund with a higher expense ratio.
The expense ratio is an important factor to consider when choosing a mutual fund. A lower expense ratio means that more of your money is invested in the fund, which can lead to higher returns over time.
Minimum investment
Invesco Discovery Fund requires a minimum investment of $1,000. This is a relatively low minimum investment compared to other mutual funds, which often have minimum investments of $2,500 or more. The low minimum investment makes Invesco Discovery Fund accessible to a wider range of investors.
- Accessibility: The low minimum investment makes Invesco Discovery Fund accessible to a wider range of investors, including those with smaller investment portfolios. This allows more investors to potentially benefit from the fund’s long-term growth potential.
- Flexibility: The low minimum investment also provides investors with more flexibility to adjust their investment strategy over time. Investors can start with a small investment and gradually increase their investment as their financial situation changes.
- Cost-effective: The low minimum investment can also be more cost-effective for investors. Some mutual funds have high minimum investments that can make it difficult for investors to diversify their portfolios. With a low minimum investment, investors can invest in a wider range of funds, which can help to reduce risk and improve returns.
Overall, the $1,000 minimum investment is a key feature of Invesco Discovery Fund. It makes the fund accessible to a wider range of investors, provides flexibility, and is cost-effective.
Performance
Invesco Discovery Fund has outperformed its benchmark, the Russell 2000 Growth Index, since inception in 1994. This means that the fund has generated higher returns than its benchmark over the long term. This outperformance is a testament to the skill of the fund’s manager and the fund’s investment process.
There are several reasons why Invesco Discovery Fund has been able to outperform its benchmark. First, the fund’s manager has a great deal of experience in investing in small-cap growth stocks. Second, the fund has a well-defined investment process that is designed to identify companies that have the potential to grow rapidly. Third, the fund has a long-term investment horizon, which allows the manager to invest in companies that may not be profitable in the short term but have the potential to generate strong returns over the long term.
The outperformance of Invesco Discovery Fund is significant because it demonstrates the fund’s ability to generate long-term capital appreciation for investors. The fund’s outperformance is also a valuable tool for investors when making investment decisions. By investing in a fund that has outperformed its benchmark over the long term, investors can increase their chances of achieving their financial goals.
Alpha
Alpha is a measure of excess return that a fund generates over and above its benchmark. A positive alpha indicates that the fund has outperformed its benchmark, while a negative alpha indicates that the fund has underperformed its benchmark. Invesco Discovery Fund has a positive alpha over its benchmark, the Russell 2000 Growth Index. This means that the fund has generated higher returns than its benchmark over the long term.
There are several reasons why Invesco Discovery Fund has been able to generate a positive alpha. First, the fund’s manager has a great deal of experience in investing in small-cap growth stocks. Second, the fund has a well-defined investment process that is designed to identify companies that have the potential to grow rapidly. Third, the fund has a long-term investment horizon, which allows the manager to invest in companies that may not be profitable in the short term but have the potential to generate strong returns over the long term.
The positive alpha generated by Invesco Discovery Fund is a valuable tool for investors. By investing in a fund that has a positive alpha, investors can increase their chances of achieving their financial goals. For example, if an investor invests $10,000 in Invesco Discovery Fund and the fund generates a 10% return over the year, the investor would earn $1,000 in excess return over the benchmark. This is a significant amount of extra return that can help investors reach their financial goals faster.
Overall, the positive alpha generated by Invesco Discovery Fund is a testament to the skill of the fund’s manager and the fund’s investment process. By investing in companies with strong growth potential and a long-term investment horizon, the fund has been able to generate superior returns for investors.
Risk
Invesco Discovery Fund is a small-cap growth fund. This means that the fund invests in small companies that are expected to grow rapidly. Small-cap stocks have the potential to generate high returns, but they also come with higher risk than large-cap stocks. This is because small-cap companies are more likely to be affected by economic downturns and other factors that can impact their financial performance.
- Volatility: Small-cap stocks are more volatile than large-cap stocks. This means that their prices can fluctuate more rapidly and unpredictably. This volatility can make it difficult for investors to hold onto small-cap stocks during periods of market turbulence.
- Liquidity: Small-cap stocks are less liquid than large-cap stocks. This means that it can be more difficult to buy or sell small-cap stocks quickly and without affecting their price. This lack of liquidity can make it difficult for investors to get out of small-cap stocks when they need to.
- Information asymmetry: There is often less information available about small-cap companies than there is about large-cap companies. This can make it difficult for investors to make informed decisions about whether to invest in a small-cap stock.
- Company-specific risk: Small-cap companies are more likely to be affected by company-specific risks. This is because small-cap companies are often more dependent on a single product or service, and they may have less diversified revenue streams than large-cap companies.
The above-average risk of Invesco Discovery Fund is something that investors should be aware of before investing in the fund. Investors should consider their own risk tolerance and investment goals before investing in any fund.
Frequently Asked Questions about Invesco Discovery Fund
This section addresses common questions and misconceptions regarding Invesco Discovery Fund, providing concise answers to facilitate informed decision-making.
Question 1: What is the investment objective of Invesco Discovery Fund?
Invesco Discovery Fund seeks long-term capital appreciation by investing primarily in small-cap growth stocks, aiming to generate above-average returns over time.
Question 2: What is the fund’s benchmark?
Invesco Discovery Fund uses the Russell 2000 Growth Index as its benchmark, against which its performance is measured.
Question 3: Who manages Invesco Discovery Fund?
Invesco Discovery Fund is managed by Invesco Ltd., a leading global investment management firm with a proven track record and expertise in managing investment funds.
Question 4: What are the fund’s historical returns?
Since its inception in 1994, Invesco Discovery Fund has consistently outperformed its benchmark, demonstrating its ability to generate long-term capital appreciation for investors.
Question 5: What is the fund’s expense ratio?
Invesco Discovery Fund’s expense ratio is 0.68%, which is relatively low compared to other actively managed small-cap growth funds, indicating lower operating costs and more efficient use of fund assets.
Question 6: Is there a minimum investment requirement?
Yes, Invesco Discovery Fund requires a minimum investment of $1,000, providing accessibility to a broader range of investors and allowing for flexibility in investment strategies.
These FAQs provide a comprehensive overview of key aspects related to Invesco Discovery Fund, addressing common concerns and equipping investors with the necessary information to make informed decisions.
To learn more about Invesco Discovery Fund and its investment approach, please refer to the fund’s prospectus or consult with a qualified financial professional.
Tips for Investing in Invesco Discovery Fund
Invesco Discovery Fund is a small-cap growth fund that has a long history of outperforming its benchmark. The fund is managed by Invesco Ltd., a leading global investment management firm. Here are some tips for investing in Invesco Discovery Fund:
Tip 1: Invest for the long term. Invesco Discovery Fund is a long-term investment. The fund’s manager invests in companies with strong fundamentals that are expected to grow over time. Investors should be prepared to hold onto the fund for at least five years, if not longer.
Tip 2: Diversify your portfolio. Invesco Discovery Fund is a small-cap growth fund, which means that it is more volatile than large-cap stocks. Investors should diversify their portfolios by investing in a mix of asset classes, such as stocks, bonds, and real estate.
Tip 3: Rebalance your portfolio regularly. As your investment goals and risk tolerance change, you should rebalance your portfolio to ensure that it still meets your needs. Rebalancing involves selling some of your winners and buying more of your losers. This will help to keep your portfolio on track and reduce your risk.
Tip 4: Don’t try to time the market. It is impossible to predict when the stock market will go up or down. Trying to time the market can lead to poor investment decisions. Instead, focus on investing for the long term and staying the course.
Tip 5: Get professional advice. If you are not sure how to invest in Invesco Discovery Fund, you should get professional advice from a financial advisor. A financial advisor can help you to create a personalized investment plan that meets your specific needs.
By following these tips, you can increase your chances of success when investing in Invesco Discovery Fund.
Summary of key takeaways or benefits:
- Investing in Invesco Discovery Fund can be a good way to achieve long-term capital appreciation.
- Diversifying your portfolio and rebalancing it regularly can help to reduce your risk.
- Getting professional advice can help you to make the best investment decisions for your individual needs.
Transition to the article’s conclusion:
Invesco Discovery Fund is a solid investment choice for investors who are looking for long-term capital appreciation. By following the tips outlined in this article, you can increase your chances of success when investing in the fund.
Conclusion
In summary, Invesco Discovery Fund offers investors the opportunity to tap into the growth potential of small-cap companies. Managed by Invesco Ltd., a reputable investment firm with a proven track record, the fund has consistently outperformed its benchmark over the long term.
To maximize the benefits of investing in Invesco Discovery Fund, consider adopting a long-term investment horizon, diversifying your portfolio, and periodically rebalancing it. Seeking professional advice from a financial advisor can also be valuable in tailoring an investment strategy that aligns with your specific financial goals.
