American Funds generated outstanding returns from some of its key funds during the third quarter as reflected in the Morningstar FundInvestor “Great 38” list. According to the list, out of 38 funds, 11 are under the American Funds’ family. The inclusion of some key funds from the company in the Great 38 List is likely to attract more investors with a long-term investment objective to the American Funds’ family.
American Funds had about $1.61 trillion of assets under management till Oct 31, 2017. The minimum initial investment of the American Funds mutual funds is $250. As of Oct 31, 2017, the total return of the fund family was around 17.2%, which is more than the category average of 16.5%. Lower expenses, effective fund management and the resilience to survive market volatility have resulted in strong fund returns. Following the strong performance by American Funds, investing in funds from this family might be prudent at this time.
More About American Funds
The second-biggest fund family of the United States increased the dividend payment for its fundamental investors from 15.5 cents per share to 16 cents per share for the quarter ended September.
Additionally, in Morningstar’s 2017 “Fantastic 43” List, 13 are from the American Funds’ family. Factors like expenses, risk ratings, returns, manager ownership, and stewardship were considered while identifying the best-performing mutual funds of 2017. According to Morningstar, American Funds 2025 Target Date Retirement R5 (REDTX- Free Report) and American Funds 2030 Target Date Retirement R5 (REETX – Free Report) have come up with the best performance in the last five years among the key American Funds’ mutual funds.
What Boosted American Fund’s Performance?
American Fund invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in the technology. In the cyclical sectors, it invests in the financial sector. The fund family also gained from investing in defensive sectors like healthcare.
