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3 Zacks Rank #1 American Funds Mutual Funds to Buy

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With 27 average years of investment experience, American Funds offers a wide range of mutual funds with an objective of providing long-term returns. The company currently manages nearly $1 trillion, allocated to a large number of mutual funds including equity as well as fixed-income funds. Moreover, its parent company, Capital Group, which has around $1.4 trillion assets, is considered one of the biggest investment management organizations in the world. It offers a wide range of financial services through its offices in different regions including North America and Europe, and 7,000 associates.

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. Investors can click here to see the complete list of American Funds mutual funds, their Zacks Rank and past performance.

American Funds New Economy R6 (RNGGX - Free Report) seeks growth of capital as well as income for the long run. RNGGX invests mainly in common stocks of those companies that have a strong growth potential. It focuses heavily on non-U.S. companies, which can take advantage of new technologies and innovations. American Funds New Economy R6 has three-year annualized returns of 11.7%.

As of September 2017, RNGGX held 195 issues with 3.93% of its assets invested in Netflix Inc.

American Funds Europacific Growth R5 (RERFX - Free Report) seeks capital appreciation for the long run. RERFX invests mainly in common stocks of companies based in Europe and the Pacific Basin region. These stocks are expected to have a strong growth potential. The fund may also invest in companies based in the emerging markets. American Funds Europacific Growth R5 has three-year annualized returns of 7.6%.

Jonathan Knowles has been one of the fund managers of RERFX since 2006.

American High-Income Municipal Bond Fund F-2 (AHMFX - Free Report) seeks high income free from federal income tax. AHMFX invests the lion’s share of its assets in securities that are free from federal income tax. The fund invests at least half of its portfolio in debt securities that are BBB+ or below or Baa1 or below rated. American High-Income Municipal Bond Fund F-2 has three-year annualized returns of 5.1%.

TAIAX has an expense ratio of 0.50% compared with the category average of 0.93%.

To view the Zacks Rank and past performance of all American Funds mutual funds, investors can click here to see the complete list of American Funds mutual funds.

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