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Thread: American Funds

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    God/dess greenidlady1's Avatar
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    Default American Funds

    I heard this is a good place to invest money, is that true?

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    Veteran Member leebay88's Avatar
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    Default Re: American Funds

    Very large fund family. Low expense ratio's. Generally their funds don't fit into any specific asset class because of their size. OK pretty boring investments. Great for 529 plans. Depends on what your goals and objectives are

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    Banned Melonie's Avatar
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    Default Re: American Funds

    disclaimer - from time to time I have owned shares in American's New Perspective 'global blue chip' stock fund (ANWPX) as part of my retirement portfolio.

    Like Vanguard or Janus or a plethora of other outfits, American offers a slew of different mutual funds. Some are rated very highly, while others are rated rather poorly. See for some idea of the diversity and ratings of funds offered by American.

    One of the 'nice' features about American is that it allows commission free 'exchanges' of shares from one American sector fund to another American sector fund, which comes in handy when market conditions favor say blue chip stocks over tech stocks, favor european/asian stocks over US stocks, favor bonds over stocks, or favor cash (money market) over stocks AND bonds.

    One of the 'bad' features about American is that it 'charges' a significant percentage of actual gains from stocks held in its funds as a 'management fee'. American's management fees are lower than some, but higher than others.

    American also seems to specialize in tax-exempt funds.

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    God/dess doc-catfish's Avatar
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    Default Re: American Funds

    Quote Originally Posted by leebay88
    Low expense ratio's.
    But high loads. 5.75% is a pretty massive hit.

    The one saving grace with American is that you don't need a big initial investment to get in. $250 will do it, compared to the $2500-3000 that is often required by the bigger no-load funds.
    Former SCJ now in rehab.

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    Senior Member DanMorris95156's Avatar
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    Default Re: American Funds

    I have clients (along with my children and my own investments) in the American Family of Funds - one of my high school classmates & college classmates (same lady) is one of their VP's - IMHO, the American Family of Funds is one of a small handfull of prermier large mutual fund companies - even considering their investment commissions (funny - in a restaurant to a complete stranger, people will leave 20% as a tip - and yet - for good money management - a 6% commission/tip - is well considered robbery) -

    They allow small investments and that is a great opportunity for early investors.

    Regards,

    Dan Morris
    Daniel D. Morris, CPA
    [email protected]

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    Veteran Member leebay88's Avatar
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    Default Re: American Funds

    Quote Originally Posted by doc-catfish
    But high loads. 5.75% is a pretty massive hit.

    The one saving grace with American is that you don't need a big initial investment to get in. $250 will do it, compared to the $2500-3000 that is often required by the bigger no-load funds.
    Compared to the comp. funds it is cheaper. MF are generally very expensive regardless if it is an A,B,C share or even no load sometimes. Lots of hidden shit people usually look over. I don't generally spend to much time on the Fee schedule initially.

    My pick for 2006 is PNEAX and RYTNX. Both were great perfomers for me in 2005

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