AMERICAN FUNDS SELECTION

2008-01-30T15:35:00.000-08:00

Types of mutual funds

American Funds offers 30 funds and the American Funds Target Date Retirement Series®.

Most financial professionals suggest that investors balance their portfolios by investing across several types of investments. Which mix is right for you? That depends on a number of things — including your investment time horizon, risk tolerance and financial circumstances.

American Funds offers 30 funds with an array of investment objectives to help you and your financial professional build a portfolio specifically tailored to your needs.

At the bottom of the list you’ll also find the American Funds Target Date Retirement Series. Please note that our target date funds are only available in certain tax-deferred retirement plans and in IRAs. Only Class A and R shares are available. Be sure to talk with your financial professional about whether or not target date funds make sense for your financial goals.

Growth funds
Growth-and-income funds
Equity-income funds
Balanced fund
Bond funds
Tax-exempt bond funds
Money market funds
Target date funds

Growth funds
Growth funds seek growth of capital over the long term by investing in companies with a history of rapidly growing earnings and generally higher price-to-earnings ratios. Growth funds are more volatile than bond or money market funds, rising faster in bull (advancing) markets and dropping more sharply in bear (falling) markets. American Funds offers the following growth funds. Click a fund to see all the details specific to that fund.

AMCAP Fund®
EuroPacific Growth Fund®
The Growth Fund of America®
The New Economy Fund®
New Perspective Fund®
New World FundSM
SMALLCAP World Fund®

Growth-and-income funds
Growth-and-income funds seek growth of capital as well as current income. These funds invest mainly in the common stock of companies with a history of solid growth and a record of consistent dividend payments. American Funds offers the following growth-and-income funds. Click a fund to see all the details specific to that fund.

American Mutual Fund®
Capital World Growth and Income FundSM
Fundamental InvestorsSM
The Investment Company of America®
Washington Mutual Investors FundSM

Equity-income funds
Equity-income funds invest in a mixture of dividend-paying stocks and bonds with an objective of current income and, as a secondary goal, growth of capital. American Funds offers the following equity-income funds. Click a fund to see all the details specific to that fund.

Capital Income Builder®
The Income Fund of America®

Balanced funds
Balanced funds seek to provide long-term growth of capital, preserve capital and provide income to shareholders by holding a mix of bonds, common stocks, preferred stocks and short-term securities. American Funds offers the following balanced fund. Click a fund to see all the details specific to that fund.

American Balanced Fund®

Bond funds
Bond funds are designed to produce current income for shareholders by investing in corporate and government securities or municipal bonds, which are issued by state or local government and provide tax-free income. American Funds offers the following bond funds. Click a fund to see all the details specific to that fund.

American High-Income TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund®
Intermediate Bond Fund of America®
Short-Term Bond Fund of AmericaSM
U.S. Government Securities FundSM

Tax-exempt bond funds
Tax-exempt bond funds invest in municipal bonds, which pay interest that is free from federal and/or state taxation. Certain other income, as well as capital gain distributions, may be taxable. American Funds offers the following tax-exempt bond funds. Click a fund to see all the details specific to that fund.

American High-Income Municipal Bond Fund®
Limited Term Tax-Exempt Bond Fund of AmericaSM
The Tax-Exempt Bond Fund of America®
The Tax-Exempt Fund of California®
The Tax-Exempt Fund of Maryland®
The Tax-Exempt Fund of Virginia®

Money market funds
Money market funds invest in securities such as commercial paper, certificates of deposit, Treasury bills and other highly liquid and stable securities. Money market funds typically have very low expense ratios and interest is credited monthly to shareholders. Although managed to maintain a $1.00 net asset value (NAV), there is no assurance the NAV will remain stable and the fund is not insured or guaranteed. American Funds offers the following money market funds. Click a fund to see all the details specific to that fund.

The Cash Management Trust of America®
The Tax-Exempt Money Fund of AmericaSM
The U.S. Treasury Money Fund of AmericaSM

Target date funds
The American Funds Target Date Retirement Series is designed to help shareholders saving for retirement through certain tax-deferred retirement plans and IRAs choose a single fund closest to their expected retirement date. Note: Tax-deferred plans only include target date funds if plan sponsors choose to include these funds in the plan. Each of the nine funds includes a different mix of the American Funds. Based on their target date, the funds incorporate varying degrees of risk and are diversified among growth, growth-and-income, equity-income/balanced and bond funds. Click a fund to see all the details specific to that fund.

American Funds 2050 Target Date Retirement Fund®
American Funds 2045 Target Date Retirement Fund®
American Funds 2040 Target Date Retirement Fund®
American Funds 2035 Target Date Retirement Fund®
American Funds 2030 Target Date Retirement Fund®
American Funds 2025 Target Date Retirement Fund®
American Funds 2020 Target Date Retirement Fund®
American Funds 2015 Target Date Retirement Fund®
American Funds 2010 Target Date Retirement Fund®

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the prospectuses, which can be obtained from your financial professional and should be read carefully before investing.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share price and return will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money. Most investments carry some degree of risk. For example, equity investments are subject to market fluctuations. Investing outside the U.S. (especially in developing countries) entails additional risks, such as currency fluctuations, as does investing in smaller companies, as more fully described in the prospectuses. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. Lower-rated bonds are subject to greater fluctuations in value and risk of loss of income and principal. The return of principal for the bond holdings in New World Fund, Capital Income Builder, The Income Fund of America, American Balanced Fund and funds in the Target Date Retirement Series is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund. Fund shares of the U.S. Government Securities Fund are not guaranteed by the U.S. government. Diversification does not eliminate the risk of investing; losses are possible in diversified portfolios.