Yahoo Finance 3 American Mutual Funds Worth Buying for Long-Term Investing
In 1931, Jonathan Bell Lovelace founded American Funds. Over the years, it has grown into one of the world's oldest and largest investment management organizations. Based in Los Angeles, CA, this company operates as a subsidiary of Capital Group, a renowned American financial service firm. With assets under management surpassing $2.2 trillion, American Funds holds an influential position within the industry.
American Funds stand out for its wide selection of funds, catering to the diverse needs of investors. With options ranging from growth funds and equity income funds to balanced funds, bond funds, cash-equivalent fundsand target date funds, the company offers an extensive range of choices. This expansive array empowers investors to discover investment vehicles that align perfectly with their objectives, risk appetiteand time horizon.
American Funds, as part of the Capital Group, derives substantial benefits from the wealth of experiences and resources offered by a highly esteemed financial services organization. The impressive track record and global presence of Capital Group contribute to the credibility and stability that American Funds enjoy. Additionally, the significant assets under management by the company serve as a testament to investors' trust in its ability to consistently deliver competitive returns.
The success of American Funds can be attributed to its discipline and research-driven investment approach. A dedicated team of investment professionals meticulously analyzes potential securities, always maintaining a long-term perspective. Their focus lies onselecting companies with strong fundamentals and prospects for long-term growth. This meticulous approach positions the funds for sustained success.
American Funds prioritizes diversification as a core principle in its investment strategy. The company fully recognizes the significance of spending investments across various asset classes and sectors. This approach aims to reduce risks and optimize returns for investors. American Funds constructs portfolios that are thoughtfully diversified, providing a comprehensive solution for investment objectives under different market conditions. Such an approach allows for consistent performance throughout time.
Nonetheless, investing in low-cost American Mutual Funds seems to be judicious 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 mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have 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 comparatively strong performance along with lower fees.
American Funds American Mutual Fund RMFEX aims to provide for the balanced accomplishment of three objectives current income, capital growth and conservation of principal. It invests primarily in common stocks, securities convertible into common stocks, non-convertible preferred stocks, U.S. government securities.
Brantley W. Thompson has been the lead manager of RMFEX since Dec 31, 2022. Most of the fund’s holdings were in companies like Microsoft Corp (3%), Abbvie Inc (3%), and Raytheon Technologies Corp (2.6%) as of Jan 31, 2023.
RMFEX’s 3-year and 5-year annualized returns are 10.2% and 8%, respectively. Its net expense ratio is 0.61% compared to the category average of 0.94%. RMFEX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
American Funds Washington Mutual Investors Fund WSHFX aims to provide current income and opportunity for growth of principal consistent with sound common-stock investing. It invests most of its assets in equity securities.
Alan J. Wilson has been the lead manager of WSHFX since Jun 30, 2013. Most of the fund’s holdings were in companies like Broadcom Inc (5.6%), Microsoft Corp (4.8%) and Unitedhealth Group Inc (3.6%) as of Jan 31, 2023.
WSHFX’s 3-year and 5-year returns are 12.2% and 9.2%, respectively. The annual expense ratio is 0.62% compared to the category average of 0.84%. WSHFX has a Zacks Mutual Fund Rank #1.
American Funds The Income Fund of America FIFAX invests in income-producing securities, which include dividend-paying common stocks and debt securities, such as interest-paying bonds.
Hilda L. Applbaum has been the lead manager of FIFAX since Sep 30, 1997. Most of the fund’s holdings were in companies like Philip Morris Internation (2.8%), Gilead Sciences Inc (2.2%) and Pfizer Inc (1.9%) as of Jan 31, 2023.
FIFAX’s 3-year and 5-year returns are 7.8% and 5.6%, respectively. The annual expense ratio is 0.26% compared to the category average of 0.71%. FIFAX has a Zacks Mutual Fund Rank #1.
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