Fundamental Investors Look to American Funds for Solid Returns

American Funds is a family of mutual funds that has been serving investors for over 80 years. The company offers a wide range of investment options, including stock funds, bond funds, and target-date retirement funds. American Funds is known for its conservative investment approach and its focus on long-term performance.

Why Fundamental Investors Choose American Funds

There are several reasons why fundamental investors choose to invest with American Funds.

• Long-term performance: American Funds has a long history of delivering solid returns for its investors. Over the past 10 years, the company's flagship fund, the American Funds Growth Fund of America, has returned an average of 10% per year.
• Conservative investment approach: American Funds takes a conservative approach to investing. The company's funds typically invest in large-cap stocks and high-quality bonds. This approach helps to reduce risk and preserve capital.
• Wide range of investment options: American Funds offers a wide range of investment options, so investors can find a fund that meets their specific needs. The company's funds include stock funds, bond funds, target-date retirement funds, and international funds.
• Low fees: American Funds has low fees compared to other mutual fund companies. This means that more of your investment goes towards growing your portfolio and less goes towards paying fees.

Top American Funds for Fundamental Investors

American Funds offers a number of funds that are suitable for fundamental investors. Some of the most popular funds include:

• American Funds Growth Fund of America: This is the company's flagship fund and it invests in large-cap growth stocks. The fund has a long history of delivering solid returns and it is a good choice for investors who are looking for long-term growth.
• American Funds Income Fund of America: This fund invests in high-quality bonds and it is a good choice for investors who are looking for income and stability. The fund has a low risk profile and it is a good choice for conservative investors.
• American Funds Target Date Retirement Funds: These funds are designed to help investors save for retirement. The funds invest in a mix of stocks and bonds and the asset allocation becomes more conservative as the investor gets closer to retirement.

How to Invest in American Funds

You can invest in American Funds through a variety of channels, including:

• Financial advisors: Financial advisors can help you choose the right American Funds for your investment goals. They can also provide you with ongoing advice and support.
• Online brokers: You can also invest in American Funds through online brokers. This is a convenient way to invest, but it is important to do your research before choosing a broker.
• Directly from American Funds: You can also invest in American Funds directly from the company. This is a good option if you are not comfortable investing through a financial advisor or online broker.

Conclusion

American Funds is a solid choice for fundamental investors. The company offers a wide range of investment options, its funds have a long history of delivering solid returns, and its fees are low. If you are looking for a conservative investment approach and long-term performance, American Funds is worth considering.

FAQs

1. What is the minimum investment required to open an account with American Funds?

There is no minimum investment required to open an account with American Funds. However, you may need to meet a minimum investment requirement for certain funds.

2. What are the fees associated with investing in American Funds?

The fees associated with investing in American Funds vary depending on the fund. However, the fees are typically low compared to other mutual fund companies.

3. How can I get started investing with American Funds?

You can get started investing with American Funds by contacting a financial advisor, opening an account with an online broker, or investing directly from the company.

4. What is the difference between a growth fund and an income fund?

Growth funds invest in stocks and are designed to provide long-term growth. Income funds invest in bonds and are designed to provide income and stability.

5. What is a target-date retirement fund?

A target-date retirement fund is a fund that is designed to help investors save for retirement. The fund invests in a mix of stocks and bonds and the asset allocation becomes more conservative as the investor gets closer to retirement.

Additional Resources

• American Funds website
• American Funds prospectus
• American Funds fee schedule