American Funds Brokerage Reviews
American Funds customer reviews: complaints, positive feedback from clients, pros and cons.
Is the broker good/safe?
You can only open an American Funds account through a financial advisor. Your advisor will help you determine how much you would
like to invest, but please note that the minimum initial investment amount for most of their funds is $250. The money market fund
and state-specific tax-exempt funds, however, require a minimum initial investment of $1,000.
There is no initial sales charge on purchases of $1 million or more. A 1% contingent deferred sales charge (CDSC) may be assessed
if a redemption occurs within one year of purchase. Tax-exempt bond funds are not available
through the CollegeAmerica 529 plan. Please see the funds’ prospectuses for more information.
by Ruth Palmer,
Tried to transfer a fund to daughter. First told to write a letter of intention and have a signature guarantee. No one said it had to be two stamps because it's a joint account with my husband. Then they call and tell me I have to fill out a form. They'll want money I'm sure to process that. I'm totally disgusted with this fund. Told her to cash it in. I can't do that on the phone she replied. Smoke and mirrors.
I only used them for a few weeks as a contractor – it would have been longer but they're so bad at creating and verifying accounts that it took over a month to get my 401k opened. When I found another job and tried to close my account (less than $2000 in it) they charged me $50 to process the form to roll it over to my current account.
Tried to rollover my 401k funds, got ripped. They would not accept my Charles Schwab rollover paperwork even though EVERYBODY else does. Their rollover paperwork is cryptic at best so I had a professional fill it out for me AFTER HE CONSULTED WITH THEIR FINANCIAL ADVISORS. Even though we left the withholding section blank and made it clear we wanted to be issued a check for the purpose of rolling over the full amount to a taxable IRA they withheld taxes anyway and refused to change it back. Now I'm out $35k in capital and they say "Tough luck". This company is full of misinformation, stay clear they will rip you off.
"It hasn’t been an easy time in recent years as American Funds has seen cumulative outflows of $242 billion since 2007. Known for active rather than passive management,
American Funds historically has provided investors with above-average long-term performance in its mutual funds.
As a result, a total of 10 funds made Morningstar’s 2013 “Fantastic 51” list, a group of 51 actively managed mutual funds chosen using several criteria including
"The American funds, the nation’s largest actively managed fund group. I believe American is the best large fund family that specializes in actively managed funds.
It asserts that the American funds have, for the most part, beaten their indexes over the long term...The American funds have always been good about
touting their long-term record, not short-term performance. Their funds have always charged below-average fees. Of course, if you buy one of the funds
through an adviser or broker, you’ll also have to pay a sales charge or an asset-based management fee... In short, I believe American is the best large
fund family that specializes in actively managed funds."