Founded in 1931, Capital Group - the parent company of American Funds - offers a wide range of financial services worldwide through its offices in different regions, including North America and Europe, and 7,000 associates. With around $1.4 trillion in assets, the company is considered one of the biggest investment management organizations in the world. American Funds currently has nearly $1 trillion assets under management widely invested in mutual fund categories, including equity, fixed income, balanced and money market. The company seeks to provide long-term returns to investors. American Funds has managers with an average of 27 years of investment experience.
Below we share with you four top-rated mutual funds from American Funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all American Funds mutual funds, investors can click here.
American Funds The New Economy Fund A (MUTF:ANEFX) seeks capital appreciation over the long run. It primarily focuses on acquiring common stocks of growth-oriented companies. The fund invests in securities of companies that are believed to benefit from the innovation and advancement of technologies. It is expected to allocate a notable portion of its assets in securities issued in foreign countries, including developing countries. The fund has a three-year annualized return of 8.9%.
As of December 2015, ANEFX held 199 issues, with 3.52% of its assets invested in Netflix Inc. (NASDAQ:NFLX).
American Funds Washington Mutual Investors Fund A (MUTF:AWSHX) maintains a diversified portfolio by investing in high-quality common stocks with an impressive earnings and dividend record. It is believed to invest in securities of well-known companies that are listed on the New York Stock Exchange. The fund has a three-year annualized return of 9.9%.
AWSHX has an expense ratio of 0.58%, compared to the category average of 1.11%.
American Funds U.S. Government Securities Fund Retirement (MUTF:RGVGX) seeks high current income through capital preservation. It invests the lion's share of its assets in securities that are backed by the U.S. government or its affiliates. The fund invests in bonds and other dollar-denominated debt securities. It may also show interest in mortgage-backed securities of federal agencies that are not guaranteed by the U.S. government. Moreover, RGVGX invests in securities irrespective of their maturity. The fund has a three-year annualized return of 2.2%.
Fergus N. MacDonald is the one of the fund managers of RGVGX since 2009.
American Funds American Balanced Fund A (MUTF:ABALX) invests in both common stocks and bonds that are rated investment grade. It also invests in securities that are issued by the U.S. government and its entities. Moreover, ABALX may invest in securities of issuers located in foreign lands. It primarily invests in common stocks of companies that are believed to provide dividend income. The fund has a three-year annualized return of 7.8%.
ABALX has an expense ratio of 0.59%, compared to the category average of 0.89%.