Fund Evaluator:

Invesco Discovery Large Cap Y Overview

Invesco Discovery Large Cap Y (OTCYX) is an actively managed U.S. Equity Large Growth fund. Invesco launched the fund in 1997.

The investment seeks capital appreciation. The fund mainly invests in common stocks of "growth companies." Growth companies are companies that the portfolio managers expect to have above-average growth rates. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of “large-cap” issuers,and in derivatives and other instruments that have economic characteristics similar to such securities. It is non-diversified.

About Invesco Discovery Large Cap Y (OTCYX)

There are 3 members of the management team with an average tenure of 3.80 years: Asutosh (Ash) Shah (2020), Ido Cohen (2026), Ronald Zibelli (2020). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 1000 Growth TR USD index with a weighting of 100%. Invesco Discovery Large Cap Y has 54 securities in its portfolio. The top 10 holdings constitute 53.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Invesco Discovery Large Cap Y is part of the Equity global asset class and is within the U.S. Equity fund group. Invesco Discovery Large Cap Y has 5.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 93.8%. There is 5.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco Discovery Large Cap Y has 0.6% of the portfolio in cash.

Assets Under Management

The fund has $239 million in total assets, which is below the $2 billion average for the Large Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

OTCYX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco Discovery Large Cap Y expense ratio is above average compared to funds in the Large Growth category. Invesco Discovery Large Cap Y has an expense ratio of 0.70%, which is 27% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. A portfolio turnover rate cannot be currently calculated for Invesco Discovery Large Cap Y. By way of comparison, the average portfolio turnover is 54% for the Large Growth category.

Recently, in the month of June 2026, Invesco Discovery Large Cap Y returned 2.1%, which earned it a grade of A, as the Large Growth category had an average return of -1.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Invesco Discovery Large Cap Y has a trailing yield of 0.00%, which is below the 0.06% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco Discovery Large Cap Y Grades

Year to date, the fund has returned 12.0%, 4.9 percentage points better than the category, which translates into a grade of A. The fund has returned 19.7% over the past year (grade of B), 22.7% over the past three years (grade of B) and 11.6% per year over the past five years (grade of B) and 16.3% per year over the past 10 years (grade of C).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Invesco Discovery Large Cap Y, including its riskiness, submit your email to unlock the rest of the article.