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Buy 3 American Funds Mutual Funds for Better Returns

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The American Funds are offered through Capital Group. With over 95 years of experience and over $3.3 trillion in assets under management, The Capital Group’s approach to investing in The American Funds is research-driven. In total, there are many different portfolios to choose from, including growth, growth-and-income, equity-income, balanced, as well as portfolios of taxable and tax-exempt bonds and money market funds. Each portfolio is managed by an experienced portfolio manager, who utilizes the research of a team of analysts, economists, and quantitative researchers in making investment decisions, making it a compelling investment option.

We have picked three American Funds mutual funds — American Funds Fundamental Invs (ANCFX - Free Report) , American Funds Growth Fd of Amer (AGTHX - Free Report) , and American Funds New Economy (ANEFX - Free Report) — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #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 Funds Fundamental Invs fund invests primarily in common stocks of companies that appear to offer superior capital growth opportunities, most of which have a history of paying dividends. It may also invest significantly outside the United States.

Brady L. Enright has been the lead manager of ANCFX since Dec. 3, 2010. Most of the fund’s holdings were in companies, such as Broadcom Inc. (9.4%), Microsoft Corp (4.6%) and Philip Morris International Inc. (4%) as of March 31, 2026.

ANCFX’s 3-year and 5-year annualized returns are 22.5% and 14%, respectively. Its net expense ratio is 0.57%. ANCFX has a Zacks Mutual Fund Rank #1.

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

American Funds Growth Fd of Amer fund invests primarily in common stocks and seeks companies that appear to offer superior opportunities for growth of capital. AGTHX adviser uses a multiple-portfolio manager system, dividing the portfolio into segments run by individual managers, and relies on professional judgment to select attractively valued companies viewed as good long-term opportunities.

J. Blair Frank has been the lead manager of AGTHX since Nov. 1, 2001. Most of the fund’s holdings were in companies, such as NVIDIA Corp (6.1%), Broadcom Inc. (5.1%) and Microsoft Corp (4.1%) as of May 31, 2026.

AGTHX’s 3-year and 5-year annualized returns are 20.3% and 10.5%, respectively. Its net expense ratio is 0.60%. AGTHX has a Zacks Mutual Fund Rank #1.

American Funds New Economy fund seeks to achieve its objective by investing in securities of companies that can benefit from innovation, exploit new technologies, or provide products and services that meet the demands of an evolving global economy.

Paul Benjamin has been the lead manager of ANEFX since May 1, 2023. Most of the fund’s holdings were in companies, such as Micron Technology, Inc. (6.2%), Broadcom Inc.  (5.8%) and SK hynix Inc. (5.1%) as of May 31, 2026.

ANEFX’s 3-year and 5-year annualized returns are 25.5% and 11.8%, respectively. Its net expense ratio is 0.73%. ANEFX has a Zacks Mutual Fund Rank #1.

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