Who can afford to invest in hundreds of different companies? When you buy a share of a mutual fund, you pool your money with thousands of other investors. So it’s more affordable to spread your money over many investment opportunities.
Invest in company stocks, also known as equities. Stocks typically carry a greater amount of risk than bonds, since share values go up and down with a company’s profits and losses.
hold more stable investments like Treasury bonds, municipal bonds or corporate bonds. These are called “fixed income” investments, and they are generally less risky than stocks. But they’re also less likely to grow as much.
invest in very short-term bonds and cash-like investments. These may be the least risky, but their investors don’t expect big returns.
A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a portfolio of securities such as stocks, bonds, and other assets 1. Mutual funds are operated by professional money managers who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors 1. The portfolio of a mutual fund is structured and maintained to match the investment objectives stated in its prospectus.
Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund 1. Mutual funds invest in a vast number of securities, and performance is usually tracked as the change in the total market cap of the fund—derived by aggregating performance of the underlying investments 1.
There are several types of mutual funds, including stock funds, bond funds, asset allocation funds, target-date funds, and more 2. Mutual funds charge annual fees, expense ratios, or commissions, which may affect their overall returns 1. Employer-sponsored retirement plans commonly invest in mutual funds.
The value of a mutual fund depends on the performance of the securities in which it invests. When buying a unit or share of a mutual fund, an investor is buying the performance of its portfolio or, more precisely, a part of the portfolio’s value. Investing in a share of a mutual fund is different from investing in shares of stock. Unlike stock, mutual fund shares do not give their holders any voting rights. A share of a mutual fund represents investments in many different stocks or other securities. The price of a mutual fund share is referred to as the net asset value (NAV) per share 1.
American Funds is a mutual fund company that has been in business for over 90 years and manages over $2.2 trillion in assets. The company is part of Capital Group, which offers a range of investment products and services. American Funds provides a variety of managed equity and fixed income mutual funds, including growth stock funds, equity-income funds, balanced funds, taxable bond funds, tax-exempt bond funds, and money market funds.
American Funds is known for its long-term focus and has something for everyone. The company’s investment philosophy is centered around the idea of investing in companies with strong fundamentals that are expected to perform well over the long term.
Between the due diligence, the financing, and a highly competitive market, identifying and securing a replacement property in such a short window of time can be difficult.
Purchase a diversified portfolio of American Funds in a single transaction.
Easily incorporate the funds into your investment portfolio based on common objectives.
Separate assets that you want to protect from those you’re willing to subject to more volatility to pursue long-term goals.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Allocations may not achieve investment objectives.