american funds

7/29/2019 american funds

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MF PROJECT BY :

Mausam Shah 9Mahipal Jain 20Shivangi Jain 29

Samyak Jain 40Romit Shah 49Mani Parmar 53Richi Savla 54


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American Funds is a family of 33 mutualfunds that invest in securities from the UnitedStates and around the world and are

managed by Capital Research andManagement, part of the Capital GroupCompanies.

American Funds is the third largestbehind Fidelity and The Vanguard Group.

They base their decisions on a long-termperspective because they believe it is thebest way to achieve superior long-terminvestment results.


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1) American Balanced Fund (balanced

fund)

Fund ObjectiveDistinguishing CharacteristicsTypes of InvestmentsNon-U.S. Holdings


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2)AMCAP FUNDIts main objective is to provide long term growth ofcapital

It ws started on may1,1967


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3)AMERICAN MONEY MARKET FUNDS

Its main objective is to provide a way toearn income, by maintaining liquidityand preserving capital

It was started on may 1,2009


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4) AMERICAN FUNDS BALANACED

PORTFOLIO SERIES

Its main objective is to provide a wayto earn income and provide long termgrowth of capital and current income

It was started on may 18,2012


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Growth funds Growth-and-income funds

Equity-income funds Balanced funds Bond funds Tax-exempt bond funds Money market funds Portfolio Series funds College target date funds Retirement target date funds


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American Funds offers the followinggrowth funds:

AMCAP Fund

EuroPacific Growth FundThe Growth Fund of America

The New Economy Fund

New Perspective FundNew World Fund

SMALLCAP World Fund


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American Mutual Fund

Capital World Growth and Income Fund

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America

Washington Mutual Investors FundSM


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Capital Income Builder

The Income Fund of America


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American Balanced Fund

American Funds Global Balanced FundSM


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American Funds offers the following bondfunds:American Funds Mortgage Fund

American High-Income Trust

The Bond Fund of America

Capital World Bond Fund

Intermediate Bond Fund of America

Short-Term Bond Fund of America

U.S. Government Securities Fund


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American Funds offers the following tax-exemptbond funds:American Funds Short-Term Tax-Exempt Bond

Fund

American Funds Tax-Exempt Fund of New YorkAmerican High-Income Municipal Bond FundLimited Term Tax-Exempt Bond Fund of America

The Tax-Exempt Bond Fund of America

The Tax-Exempt Fund of CaliforniaThe Tax-Exempt Fund of MarylandThe Tax-Exempt Fund of Virginia


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American Funds offers the following moneymarket fund:

American Funds Money Market Fund


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They offer the following Portfolio Series funds:American Funds Balanced PortfolioSMAmerican Funds Global Growth PortfolioSM

American Funds Growth and Income PortfolioSMAmerican Funds Growth PortfolioSMAmerican Funds Income PortfolioSMAmerican Funds Preservation PortfolioSM

American Funds Tax-Advantaged IncomePortfolioSMAmerican Funds Tax-Exempt Preservation

PortfolioSM


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Based on the target enrollment date, the funds incorporate

varying degrees of risk and diversification.

American Funds College 2030 FundSM





American Funds College 2015 FundSM American Funds College Enrollment FundSM


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Based on their target retirement date, the portfolios incorporate varying

degrees of risk and are diversified among growth, growth-and-income,equity-income/balanced and bond funds:

American Funds 2055 Target Date Retirement Fund











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Class A and 529-A sharesClass B and 529-B sharesClass C and 529-C sharesClass 529-E shares

Class F-1, F-2 and 529-F-1 shares

1.Classes of shares.

Some investors prefer to pay an ongoing fee for thefinancial advice they receive, while others favor a more

traditional, transaction-based approach. That is why our

regular mutual fund and CollegeAmerica 529 shares offer

different pricing options:


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College America 529 Savings PlanAs the countrys largest 529 plan, College America ishelping nearly 1 million families from all 50 statespursue their college savings goals.

Benefits of College America savings plan are : Experienced investment management Low expenses Diverse investment options Tax benefits Flexibility Control


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OVERVIEW OF EMPLOYEE SPONSOREDPLANS

Employer-sponsored retirement plans provide value

to employers and their employees. They give employers a distinct advantage in

attracting and retaining quality employees, andthey provide employees with a convenient way to

invest for retirement. More importantly, employer-sponsored plans offer

employers and employees who participatesignificant tax advantages.


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Qualified retirement plansRetirement plans that meet certain requirements undersection 401(a) of the Internal Revenue Code are consideredqualified retirement plans.

Employer contributions are tax-deductible and may besubject to vesting schedules.

Participant contributions are always immediately vested. Contributions (employer and participant) and earnings are

tax-deferred until theyre withdrawn. However, if the plan

offers a Roth option, employees Roth contributions aretaxed upfront; these contributions grow tax-deferred and aretax and penalty free when taken in a qualified withdrawal.

Employers offering qualified plans also take onspecific fiduciary responsibilities.


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Money purchase plansA money purchase plan is a pension plan that hasa mandatory annual contribution.

Company contributions can be as high as 25% ofcovered pay (the contribution formula is set by theplan terms).

Contributions can be subjected to a vesting

schedule. In-service distributions are generally not available

until a participant reaches the plans normalretirement age, or age 62, if later.


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Profit-sharing plansA profit-sharing plan, which features discretionary

contributions, can be tied to company profits

(meaning the employer during a difficult businessyear may decide to make no contributions to the

plan at all).

In-service distributions can be made available afterfive years of participation or when the participant

reaches age 591/2.

Hardship withdrawals are also available.


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401(k) plansA 401(k) plan allows employees to contribute a portion of

their pretax salary to a tax-deferred retirement plan. Some companies provide a matching contribution as an

extra incentive for the participants to contribute.

In-service distributions for certain hardships can be allowed. Matching contributions may be subjected to a vesting

schedule. Employer contributions and match (if any) are deductible

business expenses. If youre self-employed, a Solo 401(k) is an option.


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Other Retirement Plans1)Simplified Employee Pension plans (SEPs)

Available to any employer or sole proprietor,

though suited for smaller businesses, a SEPoffers many of the tax benefits of the qualifiedplans with fewer administrative expenses.

2)Savings Incentive Match Plans for Employees

(SIMPLE) IRAsA SIMPLE IRA is a retirement plan for smallbusinesses with fewer than 100 employees.


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Thank You

american funds

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