The investment company of America is the first mutual fund launched in the Capital Group’s American Funds series. Founded in 1931 in Los Angeles, Capital Group is now one of the largest independent investment research institutions and mutual fund management companies in the world. By 2016, Capital Group managed $1.48 trillion in assets, ranking it 9th in the global asset management industry. The investment company of America fund was started in 1934, and has grown to be Capital Group’s flagship mutual fund product over the decades.
The investment company of America pioneered the mutual fund industry
As one of the first mutual funds in the United States, the investment company of America fund helped pioneer the mutual fund industry. It gave ordinary investors access to professional investment management through pooled funds for the first time. The fund has maintained excellent long-term performance over its 80+ year history, delivering steady returns to investors across different market cycles. This established track record has helped cement its position as one of the largest and most trusted mutual funds in the industry.
The fund takes a long-term, diversified approach
The investment company of America fund invests across a wide range of sectors in both US and international equities. Its portfolio contains over 300 stocks, providing broad diversification. The fund takes a long-term perspective focused on finding high quality companies with durable competitive advantages and growth potential. Patient capital and low turnover lead to low trading costs. The fund also has a large team of experienced analysts providing bottom-up research on companies and industries globally.
The fund prioritizes financial advisors and individual investors
Since the 1950s, Capital Group has sold its American Funds products exclusively through financial advisors rather than directly to retail investors. This distribution strategy focuses on providing services tailored for long-term individual investors saving for retirement or other goals. In recent years, Capital Group has expanded digital access for investors through avenues like online accounts. But its core philosophy remains centered on advisors and individuals more so than institutions.
As the first fund of Capital Group’s American Funds series, the investment company of America established a long and successful track record over 80+ years based on a diversified, long-term investment approach focused on high quality companies. The fund helped pioneer the mutual fund industry and remains one of the largest and most trusted mutual funds for individual investors.