American Century Investments is an investment management company that has been catering to clients for over six decades. Founded by James E. Stowers Jr., the firm currently manages assets worth $230 billion. American Century is focused on financial success and societal impact. With a team of more than 1,400 employees spread across nine locations worldwide, the company not only prioritizes client satisfaction but also contributes to medical research initiatives.

American Century mutual funds have an average expense ratio of 0.89%, and 76.52% of these are no-load funds, allowing investors to access them without incurring sales charges. This emphasis on transparency and cost efficiency reflects the firm’s core belief in serving clients.

Investing in American Century mutual funds seems prudent as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have, thus, chosen three American Century mutual funds that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

American Century Sustainable Equity Fund (AFYDX Quick QuoteAFYDX - Free Report) invests in large-cap companies exhibiting sustainable business growth, utilizing a proprietary multi-factor model that integrates fundamental value and growth metrics with ESG considerations.

Robert J Bove has been the lead manager of AFYDX since Dec 30, 2008. Most of the fund's holdings were in companies like Microsoft Corp (8.9%), Apple Inc. (5.3%) and Alphabet Inc. (4.5%) as of Oct 31, 2023.

AFYDX's 3-year and 5-year annualized returns are 11.3% and 15.1%, respectively. Its net expense ratio is 0.44% compared with the category average of 0.84%. AFYDX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

American Century Growth Fund (AGYWX Quick QuoteAGYWX - Free Report) invests in stocks of companies expected to grow in value, and focuses on larger-sized companies through analytical research. AGYWX advisors invest in U.S. securities that demonstrate business improvement.

C. Frank Feng has been the lead manager of AGYWX since Jun 28, 2013. Most of the fund's holdings were in companies like Microsoft Corp (14.2%), Apple Inc. (10.3%) and Alphabet Inc. (7.5%) as of Oct 31, 2023.

AGYWX's 3-year and 5-year annualized returns are 9.2% and 16.9%, respectively. Its net expense ratio is 0.58% compared with the category average of 0.99%. AGYWX has a Zacks Mutual Fund Rank #1.

American Century Focused Lg Cap Val Fund (ALVDX Quick QuoteALVDX - Free Report) invests its assets in large-capitalization companies that fall within the capitalization range of the Russell 1000 Index.

Michael Liss has been the lead manager of ALVDX since Dec 9, 2020. Most of the fund's holdings were in companies like Johnson & Johnson (6.2%), Berkshire Hathaway Inc. (5.5%) and Medtronic plc (4.4%) as of Jun 30, 2023.

ALVDX's 3-year and 5-year annualized returns are 10% and 10%, respectively. Its net expense ratio is 0.49% compared to the category average of 0.94%. ALVDX has a Zacks Mutual Fund Rank #1.

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 >>