Best American Funds

2020 top American Funds mutual funds with highest Morningstar ratings. 4 best performing Vanguard mutual funds for IRA account, retirement, long term investors in the last 10 years: American Mutual Fund (AMRMX), American Funds Washington Mutual Fund (AWSHX), 2055 Target Date Retirement Fund (REKTX), and American Funds AMCAP Fund (RAFGX).

Best Performing Mutual Funds at American Funds

American Funds, a subsidiary of Capital Group, is one of the largest mutual fund families in the United States. Founded in 1931, it is also one of the oldest investment firms still in business today. It actively manages a large assortment of stock and bond mutual funds. Here's a selection with above average performance.

Read American Funds brokerage customer reviews.

American Mutual Fund (AMRMX)

The American Funds American Mutual Fund has over 25 billion in assets. This is just one fund in the company's lineup, which gives you an idea of just how large this firm is. AMRMX has an expense ratio of just 0.60%, which is great for an actively-managed fund. It has only a $250 minimum purchase amount, which is also better than its peers. AMRMX is a class A share fund, which means there is a front-end load. It is 5.75%, although American Funds does offer breakpoint pricing. Making a purchase of at least $100,000 reduces the load to 3.5%, and all investments above $1,000,000 eliminate the load completely. Other classes are available that have an entirely different load schedule, although some of these funds may only be available in certain types of education or retirement plans.

Morningstar ranks the fund four stars out of five for its past performance, and grades it gold, its highest ranking, for future potential. Even better, the analyst interprets the return potential of its holdings as above average, while the risk is considered low. More than 80% of the fund is invested in large-cap U.S. value stocks with an emphasis on health care and industrials.

The fund makes distributions quarterly and is currently yielding around 2%. Its total performance over a 15-year period has beat both its category (large value) and its benchmark (the S&P 500). Its annualized return over the past 5 years is 8.98%. Its worst year was 2008 when it returned -30%, while its best year was in 1954 (yes, the fund's that old) when it went up 51%.

American Mutual Fund (AMRMX) performance

American Funds Washington Mutual Fund (AWSHX)

As if AMRMX wasn't large enough, American Funds Washington Mutual Fund is even larger at 56 billion. It is also a class A fund with a 5.75% load for small purchases, although it too has multiple share classes that are available in different plans. The fund's expense ratio is 0.58%, giving shareholders a great value for an actively-managed fund.

Lipper ranks the fund 4 out of 5 across multiple time frames. The analyst does give the fund a 5 out of 5 for its expense ratio. The fund invests primarily in large cap U.S. stocks with a small holding in European equities. It has an overweight in industrials and an underweight in utilities.

AWSHX pays distributions every three months. Its current dividend yield is around 1.8%. The fund's total return has beat the category average over 1, 3, 5, 10, and 15-year periods. Its 5-year annualized return is a 7.87%.

American Funds Washington Mutual Fund (AWSHX) performance

2055 Target Date Retirement Fund (REKTX)

Retirement savers are well taken care of at American Funds. In particular, the company's 2055 Target Date Retirement Fund has done really well. This security is designed for people saving for retirement. The fund becomes more conservative as the target date approaches, which is the time retirement is expected to commence. The portfolio currently has over $1 billion in assets and has no load. Its expense ratio is 0.47%. The turnover ratio of the portfolio is only 6%, which suggests the fund doesn't buy and sell too frequently.

Morningstar ranks the fund 5 stars, its highest rating. The fund also has received a grade of silver, the second highest rank, for future prospects. The fund pays distributions on an annual basis. It yields around 1%. This figure is a little low, but its total return has been outstanding. RAFGX has beat its category every year it has been open. Its 5-year annualized return is 10.60%, more than 4% above its benchmark.

2055 Target Date Retirement Fund (REKTX) performance

American Funds AMCAP Fund (RAFGX)

The American Funds AMCAP Fund has over 13 billion in assets. It is a no-load fund and carries a very low 36 basis-point expense ratio. The fund is available in employer-sponsored retirement plans. It invests mostly in large-cap U.S. growth stocks. The portfolio also has a large cash position comprising more than 10% of the holdings. It has an overweight in health care and an underweight in real estate.

RAFGX has received 5 stars out of 5 from Morningstar for past performance and a rating of gold for its future ability. Both of these are the highest possible grades. Its performance has been excellent. It has beat its category over 1, 3, 5, and 10-year periods. Its annualized 5-year performance, 14.20%, is higher than the S&P 500.

American Funds AMCAP Fund (RAFGX) performance

Best American Mutual Funds Review

The one horrible sign for all American Funds is that they are loosing Net Assets in an alarming rate. For example, RAFGX went from 48 billion in assets in 2012 to just 13 billion in 2020.

Investors can find a wide variety of highly-rated mutual funds at American Funds, although the lack of ETF's from the company will probably turn away some traders. The firm markets its products mostly through financial advisors and retirement plans, but they can still be found in individual brokerage accounts.


Continue Reading

Best American Mutual Funds reviewed by TopRatedFirms.com. Rating: 4.5