Market Overview

3 Top-Ranked American Funds Mutual Funds To Pick Up


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 an average of 27 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 around $1.4 trillion assets under management.

Below we share with you three top-ranked 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.

American Funds The Growth Fund of America Class R-6 RGAGX invests a bulk of its assets in common stocks of companies, which generally offer capital appreciation. RGAGX may also invest around one-fourth of its assets in securities of foreign companies. The fund attains its investment objective by using the multiple portfolio manager system. American Funds The Growth Fund of America Class R-6 has five-year annualized returns of 16.5%.

As of September 2017, RGAGX held 399 issues with 6.19% of its assets invested in Inc.

American High-Income Municipal Bond Fund Class A AMHIX invests a major portion of its assets that provide federal income tax free returns or that have returns subject to minimum alternative federal tax. AMHIX invests a minimum of half of its assets in debt instruments that are rated Baa1 or BBB+ or lower. American High-Income Municipal Bond A has five-year annualized returns of 4.9%.

Chad Rach has been one of the fund managers of AMHIX since 2011.

American Funds Tax-Advantaged Income A TAIAX 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. American Funds Tax-Advantaged Income A has five-year annualized returns of 8.1%.

TAIAX has an expense ratio of 0.42% compared with the category average of 0.80%.

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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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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