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3 Top-Ranked American Fund Mutual Funds

Founded in 1931, Capital Groupoffers 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 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 a year-to-date return of 7.9%.

TAIAX has an expense ratio of 0.78% compared with the category average of 0.89%.

American Funds New Economy R5 RNGFX seeks appreciation of capital and income for the long run. RNGFX invests mainly in common stocks of those companies thatare expected to have strong growth potential. All these companies have strong exposure to new technologies and latest innovations. American Funds New Economy R5 has a year-to-date return of 21.4%.

As of June 2017, RNGFX held 179 issues, with 3.75% of its assets invested in Netflix Inc.

American Funds American Mutual R5 RMFFX invests a bulk of its assets in common stocks of companies that are expected to contribute to the growth of the U.S. economy and offer stable dividends. The fund seeks growth of income and capital as well as preservation of capital. RMFFX may also invest in several kinds of debt securities including government bonds.American Funds American Mutual R5 has a year-to-date return of 8%.

Joyce Gordon is one of the fund managers of RMFFX since 2006.

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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