10 American Funds Mutual Funds with Long Track Records

Investing

The Capital Group’s American Funds family has been offering mutual funds to investors since the early 1930s. It currently boasts more than 50 fund offerings, spanning a broad array of categories. Most of the funds are actively managed by professional analysts and managers. The following funds boast the longest track records.

Note: All financial data is current as of January 7, 2020.

1) American Funds Investment Company of America

The Investment Company of America fund (AIVSX) is an actively managed growth- and income-focused equity fund. Its average annual return since its 1930 inception is 12.04%, soundly outperforming the S&P 500’s 9.82% average annual return for the same time period. The fund has a five-year annualized return of 9.43%, an expense ratio of 0.57%, and a dividend yield of 1.5%.

2) American Mutual Fund

The American Mutual Fund (AMRMX) is a large-cap value fund that aims to preserve capital by selecting stocks offering strong fundamentals and sustainable dividends. Since its 1950 launch, the fund’s average annual return is 11.58%. The fund’s five-year annualized return is 9.82%, its expense ratio is 0.61%, with a 1.97% dividend yield.

3) AMCAP Fund

Launched in 1967, the AMCAP Fund (AMCPX) seeks long-term capital growth by targeting stocks that consistently demonstrate superior earnings. The fund’s average annual return over the past ten years is 12.96%, its five-year annualized return is 10.48%, and its expense ratio is 0.66%, well below the category average of 1.19%. There is currently no dividend yield.

4) New Perspective Fund

American Funds launched the New Perspective Fund (ANWPX) in March 1973, with an investment goal of seeking long-term capital appreciation. The fund manager chiefly invests in multinational blue-chip multinational companies, in the form of common stocks, preferred stocks, bonds, or convertible securities. The average annual return since inception is 12.16%. The fund’s five-year annualized return is 10.16%, and its expense ratio is 0.77%, with a 0.53% dividend yield.

5) The Growth Fund of America

Launched in December 1973, the Growth Fund of America (ANWPX) seeks long-term capital growth by investing in cyclical businesses, undervalued companies, and potential turnaround stories. The fund’s average annual return over the past 10 years is 10.80%, its five-year annualized return is 11.12%, and its expense ratio is 7.6%. It offers a 0.98% dividend yield.

6) The Income Fund of America

Introduced in December 1973, the Income Fund of America (AMECX) seeks to achieve capital growth by investing in a mix of stocks, convertible securities, and bonds. Its 10-year annualized return is 8.95%, its five-year annualized return is 8.96%, and the fund’s expense ratio is 0.58%. The fund boasts an attractive 2.78% dividend yield.

7) The Bond Fund of America

Launched in May 1974, the Bond Fund of America (ABNDX) maintains a diversified fixed income portfolio by adjusting to changing bond market conditions in pursuit of high income and capital preservation. The fund’s 10-year annualized return is 2.78%, and its five-year annualized return is 2.12%. Its expense ratio is 0.6%, with a 2.28% yield.

8) American Balanced Fund

Launched in July 1975, the American Balanced Fund (ABALX) seeks long-term capital and income growth by investing up to 75% of its assets in common stock, while allocating the remainder to bonds and other fixed-income securities. The fund’s five-year annualized return is 8.03%, the expense ratio is 0.57%, and the dividend yield is 1.87%.

9) Fundamental Investors Fund

Since its August 1978 inception, the Fundamental Investors Fund (ANCFX) has targeted value opportunities and stocks exhibiting superior sales and earnings potential. The fund’s 10-year annualized return of 12.38% has just eclipsed its five-year annualized return of 11.33%. The expense ratio is 0.59%, and the dividend yield is 1.53%.

10) The Tax-Exempt Bond Fund of America

Launched in October 1979, the Tax-Exempt Bond Fund of America (AFTEX) seeks to maximize tax-exempt income by investing primarily in municipal and public authority bonds. The fund boasts a 10-year annualized return of 4.43% and a five-year annualized return of 3.51%. The fund’s 12-month yield is 2.63%, and its expense ratio is 0.54%.

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