10 American Mutual Funds: Invest in the Best MFs; Since the early 1930s, the Capital Group’s American Funds family has provided mutual funds to investors. It now has 54 fund offerings over a wide range of areas. Professional analysts and managers actively handle the majority of the funds. The funds listed here have the longest track records.
American Mutual Funds
1) American Funds Investment Company of America
The Investment Company of America fund (AIVSX) is a growth and income-oriented equity mutual fund that has been actively managed. Since its creation in 1934, the typical annual return has been 12.04%, surpassing the S&P 500’s 10.64% average yearly return for the same time period as of March of 2021. The fund has a five-year annualised return of 12.73%, a 0.58% cost ratio, and a 1.26% dividend yield.
2) American Mutual Fund
The American Mutual Fund (AMRMX) is a large-cap values fund and seeks to save money by choosing the companies with solid fundamentals and long-term dividends (American Mutual Funds). Since its inception in 1950, the fund has averaged an annual return of 11.53%. The fund’s five-year annualised return is 10.9%, with a 0.59% cost ratio and a 1.73% dividend yield.
3) New Perspective Fund
In March 1973, American Funds introduced the New Perspective Fund (ANWPX), with the investing aim of long-term capital appreciation. The fund management mostly invests in blue-chip international corporations through common stock, preferred stock, bonds, or convertible instruments. An average yearly returns since start is 12.61% as of May 2021. The fund’s five-year annualised return is 17.16%, with a 0.76% cost ratio and a 0.11% dividend yield.
4) AMCAP Fund
The AMCAP Fund (AMCPX), established in 1967, pursues long-term capital growth by choosing firms with consistently higher profits (American Mutual Funds). The fund’s ten-year average annual return is 12.43%, its five-year annualised return is 15.34%, and its cost ratio is 0.68%, which is substantially below the category average of 1.17%. The dividend yield is at 0.17%.
What is the AMCAP Fund?
The American Mutual Fund Capital Appreciation Portfolio, commonly known as the AMCAP Fund, is a mutual fund managed by the American Funds family. It is designed for investors seeking long-term capital appreciation. The fund primarily invests in stocks of large-cap companies with the potential for substantial growth.
How Does the AMCAP Fund Work?
The AMCAP Fund operates by pooling money from various investors and employing professional fund managers to make investment decisions. These managers strategically select stocks of companies they believe have the potential to appreciate significantly in value. Investors in the fund indirectly own a diversified portfolio of these growth-oriented stocks.
Historical Performance of the AMCAP Fund
One way to evaluate the potential of an investment is by examining its historical performance. The AMCAP Fund has a commendable track record of delivering impressive returns over the years. Past performance, however, is not indicative of future results, and investors should exercise caution.
Key Features of the AMCAP Fund
- Long-term Focus: The AMCAP Fund is designed for investors with a long-term investment horizon, making it ideal for individuals looking to build wealth over time.
- Diversification: The fund invests in a diversified portfolio of large-cap stocks, which can help spread risk.
- Professional Management: Experienced fund managers make investment decisions, saving investors the trouble of stock selection.
5) The Growth Fund of America
The Growth Fund of America (AGTHX), founded in December 1973, goes after long-term capital growth through investing in cyclical firms, undervalued companies, and possible turnaround stories. The average annual return of the fund is 13.44%, the five-year annualised return is 19.25%, and the cost ratio is 0.64%.
6) The Income Fund of America
The Income Fund of America (AMECX), which debuted in December 1973, pursues capital growth by investing (American Mutual Funds) in a mix of equities, convertible instruments, and bonds. It has a 10-year annualised return of 7.71%, a 5-year annualised return of 7.96%, and an expense ratio of 0.57%. The fund has an appealing dividend yield of 2.95%.
7) American Balanced Fund
The American Balanced Fund (ABALX), which debuted in July 1975, pursues long-term capital and income expansion by investing at least 60% of its financial holdings in shares of common stock and 40% in the bond market as a whole. The fund’s five-year annualised return is 9.81%, with a 0.58% expense ratio and a 1.6% dividend yield.
8) The Bond Fund of America
The Bond Fund of America (ABNDX) (American Mutual Funds), established in 1973, manages a diverse stable income assets by responding to evolving bond market circumstances in pursuit of high income and capital preservation. The fund’s 10-year annualised return is 3.08%, and its five-year annualised return is 3.00%. It has a 0.57% expenditure ratio and a 1.5% yield.
9) The Tax-Exempt Bond Fund of America
The Tax-Exempt Bond Fund of America (AFTEX), established in October 1979, intends to maximise tax-exempt income by investing largely in municipalities and government-issued bonds. The fund has a 4.07% annualised return over ten years and a 2.62% annualised return over five years. The fund’s 12-month yield is 2.14%, with a 0.52% cost ratio.
10) Fundamental Investors Fund
Since its creation in August 1978, the Fundamental Investors Fund (ANCFX) has sought for value-add opportunities and businesses with superior sales and profits prospects. The 10-year annualised return of 12.30% has been surpassed by the fund’s five-year annualised return of 14.33%. The dividend yield is 1.33%, while the expense ratio is 0.61%.
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