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5 Best Performing American Funds Mutual Funds of Q1

Recently, American Funds announced that 13 of its funds have been selected for inclusion in the 2017 Q1 Schwab Mutual Fund OneSource Select List prepared by Charles Schwab Investment Advisory. The inclusion of some of the key mutual funds of American Funds in the OneSource Select List is likely to attract more investors with a long-term objective to the American Funds family.

Additionally, two American Funds' mutual funds belong to the top 10 biggest mutual funds category in terms of asset size. These are EuroPacific Growth Fund and American Funds’ Growth Fund of America.

In the first quarter of 2017, American Funds had about $1.43 trillion of assets under management. The minimum initial investment of the American Funds mutual funds is $250. As of Mar 31, 2017, the total return of the fund family was around 6%, which is more than the category average of 5.9%.

More About American Funds

The second-biggest fund family of the U.S. also drew attention from investors after three of its equity funds, New Perspective RNPGX, Smallcap World Fund RSLFX and EuroPacific Growth RERGX, and its target-date funds won 24 Lipper Fund Awards. American Funds’ target-date funds won in all the 3-year and 5-year categories. Further, American Funds 2030 Target Date Retirement Fund RFETX, which has strong exposure to all the three award-winning equity funds, has returned 5.6% year to date.

Additionally, the fund family generated outstanding returns from some of its key funds last year that was reflected in Morningstar’s 2016 “Fantastic 45” List. Of the 45 funds in the list, 11 belong to the American Funds’ family. Lower expenses, effective fund management and the resilience to survive market volatility have resulted in strong fund returns.

Buy These 5 American Mutual Funds

Founded in 1931, American Funds 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. Generally, American Funds focuses on providing long-term returns to investors. This family deals with more than 64 mutual funds.

We have selected five mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy). These funds have encouraging returns in the first quarter of 2017 and minimum initial investment is within $5000. Also, these funds have low expense ratios.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.

American Funds New Perspective A ANWPX seeks capital appreciation over the long run. ANWPX invests the lion’s share of its assets in equity securities of companies located and based in different parts of the world. The fund generally focuses on investing in those stocks, which have a strong dividend-paying potential.

ANWPX’s returned 9.5% in the first quarter. Annual expense ratio of 0.77% is lower than the category average of 1.09%.

American Funds Europacific Growth A AEPGX seeks capital appreciation for the long run. AEPGX invests a bulk of its assets in equity securities of companies that are based in the Europe and the Pacific Basin region, which are expected to have favorable growth potential. The fund may also invest in securities of companies from the emerging markets.

AEPGX’s returned 9.3% in the first quarter. Annual expense ratio of 0.83% is lower than the category average of 1.24%.

American Funds Growth Fund of America A AGTHX seeks appreciation of capital. AGTHX invests heavily in common stocks of those companies that have high growth potential. The fund may invest nearly one-fourth of its assets in companies based in foreign nations. Multiple fund managers are used in this fund.

AGTHX’s returned 8.1% in the first quarter. Annual expense ratio of 0.66% is lower than the category average of 1.21%.

American Century Mid Cap Value Investor ACMVX invests a major portion of its assets in securities of mid-cap companies. ACMVX aims to follow the capitalization range of the Russell 3000 Index in order to select medium-size companies. The fund seeks growth of income and capital as well as preservation of capital.

ACMVX’s returned 3.1% in the first quarter. Annual expense ratio of 1.00% is lower than the category average of 1.21%.

American Funds New Economy A ANEFX seeks capital appreciation over the long run. ANEFX primarily focuses on acquiring common stocks of growth-oriented companies. The fund invests in securities of companies that are believed to benefit from innovation and advancement of technologies. ANEFX is expected to allocate a notable portion of its assets in securities issued in foreign countries including developing countries.

ANEFX’s returned 10.5% in the first quarter. Annual expense ratio of 0.81% is lower than the category average of 1.21%.

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