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4 American Funds Mutual Funds You Must Add to Your Portfolio
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Founded in 1931, Capital Group offers a wide range of financial services all over the world through its offices in different regions including North America and Europe, and 7,000 associates. With years of investment experience, American Funds, a segment of Capital Group, offers a wide range of mutual funds with an objective of providing long-term returns.
American Funds currently manages nearly $1 trillion, allocated to a large number of mutual funds including equity as well as fixed-income funds. Moreover, one of the biggest investment management organizations in the world, Capital Group, has more than $1.3 trillion assets under management.
The fund house invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 52.7% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
We have highlighted four American Funds mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
American Funds Global Growth Portfolio Class F-2 (PGWFX - Free Report) seeks long-term capital growth. PGWFX invests in a mix of American Funds in different combinations and weightings. These underlying American Funds primarily consist of growth funds. PGFWX is expected to have significant exposure to growth-oriented common stocks by investing in these underlying funds. The fund also invests a sizable portion of its assets in foreign companies.
This Zacks Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PGWFX carries a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.56%. The fund has one and three-year returns of 28.8% and 11.8%, respectively.
American Funds Tax-Aware Conservative Growth and Income Portfolio Class A (TAIAX - Free Report) invests in underlying American Funds, whose returns may be exempted from regular federal income tax. These funds include both equity and fixed income funds. TAIAX is expected to have significant exposure to dividend stocks by investing in these underlying funds. It may also invest in funds that allocate a sizable portion of their assets in foreign securities, which also include those issued in emerging markets.
This Muni-Bonds product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 7.4% and 6.8%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.66%.
American Funds The New Economy Fund Class F-2 (NEFFX - Free Report) seeks growth of capital in the long term. NEFFX invests primarily in common stocks that its investment adviser believes have the potential for growth. It invests in securities of companies that are likely to benefit from innovation, exploitation of new technologies or provide products and services that meet the demands of an evolving global economy. The fund also invests a sizable portion of its assets in foreign companies, including those based in developing countries.
This Zacks Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
NEFFX sports a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.52%. The fund has one and three-year returns of 32.5% and 14.3%, respectively.
American Funds New Perspective Fund Class 529-A (CNPAX - Free Report) seeks long-term growth of capital, future income being the secondary objective. CNPAX seeks to take advantage of the investment opportunities that arise due to changes in international trade patterns and economic and political relationships, by investing in common stocks of companies from around the world.
This Zacks Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
CNPAX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.79%. The fund has one and three-year returns of 32.9% and 15%, respectively.
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4 American Funds Mutual Funds You Must Add to Your Portfolio
Founded in 1931, Capital Group offers a wide range of financial services all over the world through its offices in different regions including North America and Europe, and 7,000 associates. With years of investment experience, American Funds, a segment of Capital Group, offers a wide range of mutual funds with an objective of providing long-term returns.
American Funds currently manages nearly $1 trillion, allocated to a large number of mutual funds including equity as well as fixed-income funds. Moreover, one of the biggest investment management organizations in the world, Capital Group, has more than $1.3 trillion assets under management.
The fund house invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 52.7% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
We have highlighted four American Funds mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
American Funds Global Growth Portfolio Class F-2 (PGWFX - Free Report) seeks long-term capital growth. PGWFX invests in a mix of American Funds in different combinations and weightings. These underlying American Funds primarily consist of growth funds. PGFWX is expected to have significant exposure to growth-oriented common stocks by investing in these underlying funds. The fund also invests a sizable portion of its assets in foreign companies.
This Zacks Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PGWFX carries a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.56%. The fund has one and three-year returns of 28.8% and 11.8%, respectively.
American Funds Tax-Aware Conservative Growth and Income Portfolio Class A (TAIAX - Free Report) invests in underlying American Funds, whose returns may be exempted from regular federal income tax. These funds include both equity and fixed income funds. TAIAX is expected to have significant exposure to dividend stocks by investing in these underlying funds. It may also invest in funds that allocate a sizable portion of their assets in foreign securities, which also include those issued in emerging markets.
This Muni-Bonds product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 7.4% and 6.8%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.66%.
American Funds The New Economy Fund Class F-2 (NEFFX - Free Report) seeks growth of capital in the long term. NEFFX invests primarily in common stocks that its investment adviser believes have the potential for growth. It invests in securities of companies that are likely to benefit from innovation, exploitation of new technologies or provide products and services that meet the demands of an evolving global economy. The fund also invests a sizable portion of its assets in foreign companies, including those based in developing countries.
This Zacks Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
NEFFX sports a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.52%. The fund has one and three-year returns of 32.5% and 14.3%, respectively.
American Funds New Perspective Fund Class 529-A (CNPAX - Free Report) seeks long-term growth of capital, future income being the secondary objective. CNPAX seeks to take advantage of the investment opportunities that arise due to changes in international trade patterns and economic and political relationships, by investing in common stocks of companies from around the world.
This Zacks Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
CNPAX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.79%. The fund has one and three-year returns of 32.9% and 15%, respectively.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>