Buying shares
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Buying shares
You can open an American Funds account only through a financial professional.
The minimum initial investment amount for most of our funds is $250. However, the minimum initial investment amount for The Tax-Exempt Fund of California®, The Tax-Exempt Fund of Maryland®, The Tax-Exempt Fund of Virginia®, The Cash Management Trust of America®, The Tax-Exempt Money Fund of AmericaSM and The U.S. Treasury Money Fund of AmericaSM is $1,000.
American Funds offers two types of share classes, one for our regular shares (Class A, B, C and F shares) and another for CollegeAmerica®, our 529 college savings plan (Class 529-A, 529-B, 529-C and 529-F shares). Please read Share class pricing details for more information.
CollegeAmerica is sponsored by Virginia College Savings Plan. But you can invest no matter where you live, and your beneficiary can go to school in any state. However, if you reside in a state other than Virginia, there may be an in-state plan that offers tax and other benefits not available through CollegeAmerica. Before investing in any state’s 529 plan, you should consult your tax adviser.
Buying additional shares
Your financial professional is also your best resource for additional share purchases and other account transactions. He or she can offer advice and ensure your decisions fit your long-term financial plan.
However, you can also buy shares here on our website, by phone, by mail or by bank wire. See Options for managing your account for details.
To purchase additional shares by mail, please follow these instructions:
- Send a check made payable to either American Funds Service Company or the fund in which you are investing.
- For retirement plan accounts for which Capital Bank and Trust Company (CB&T) is the custodian, please make your check payable to Capital Bank and Trust Company.
- Include the investment coupon from your account statement or a letter providing your account number(s) with your check, and mail it to the American Funds Service Company address in your region.
To transfer money from your bank account to buy shares of the American Fund(s) of your choice, you first need to enroll in FundsLink®. This free service links your American Funds account(s) to your checking or savings account.
You can sign up online and purchase fund shares immediately. If you prefer, you can download the FundsLink form for non-retirement accounts (
PDF*) or retirement accounts ( PDF), fill it out and mail it to us. If you are already enrolled in FundsLink, you can buy shares now.
You can invest up to $100,000 per day. (Class B and 529-B share investment maximum is $50,000 per day.) After we receive and accept your purchase request, either by phone or computer, the shares will be credited to your American Funds account(s), generally the same business day. Your predesignated checking or savings account will be debited for the investment amount. Investments may not be redeemed for 10 business days after purchase. Requests received after the close of the New York Stock Exchange (4 p.m. Eastern time) will be invested at the next business day’s applicable offering price. Please note that some financial institutions may charge a fee for electronic transactions.
Requests sent or received after the close of the New York Stock Exchange (4 p.m. Eastern time) will be processed the next business day.
For more information, you can call a Shareholder Services Representative.
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Establishing an automatic investment plan
Also known as dollar cost averaging, an automatic investment plan authorizes us to deduct a specified sum from your bank account as often as you choose.
Investing small amounts regularly keeps you from investing all your money during market peaks.
Market volatility can be an ally to shareholders who dollar cost average over the long term. Suppose you invest $200 a month. When the market is down, you buy more shares than when the market is up — and vice versa.
Keep in mind, however, that dollar cost averaging doesn’t ensure a profit or protect against loss, and its success depends largely on your willingness to keep investing when share prices are falling.
To establish an automatic investment plan you need to enroll in FundsLink. This service links your American Funds account(s) to your checking or savings account. Learn more about FundsLink, sign up online, or download the FundsLink form for non-retirement accounts ( PDF*) or retirement accounts ( PDF).
Once you have enrolled in FundsLink, you can contact your financial professional to set up an automatic investment plan. You can also go to your Account Summary page and click Services for this account. Then select “set up” next to “auto invest” under “Automatic plans.” Or call a Shareholder Services Representative to establish a plan.
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Reinvesting dividends and capital gain distributions
A majority of our shareholders automatically reinvest their dividends and capital gain distributions, allowing them to add more shares without a sales charge.
Cross-reinvestment
Many shareholders reinvest dividends or dividends and capital gain distributions from one fund into another (within the same class) — with no sales charge. This service allows you to use income from your funds to help create a more diversified investment program. For example, you could use dividends from a bond or balanced fund to diversify into a global or international fund.
You must have a balance of at least $5,000 in the fund originating the dividends and capital gain distributions or meet the receiving fund’s minimum initial investment amount, which is $250 for most of our funds. However, the minimum initial investment amount is $1,000 for The Tax-Exempt Fund of California, The Tax-Exempt Fund of Maryland, The Tax-Exempt Fund of Virginia, The Cash Management Trust of America, The Tax-Exempt Money Fund of America and The U.S. Treasury Money Fund of America.
You should talk to your financial professional before setting up a cross-reinvesting program.
For more information
If you have questions about buying shares, please contact your financial professional. You can also call a Shareholder Services Representative at 800/421-0180, from 8 a.m. to 8 p.m. Eastern time, Monday through Friday. If you are outside the U.S., contact your operator to call us collect at 757/670-4900 between 8 a.m. and 5 p.m. Eastern time, or 949/975-5000 between 11 a.m. and 8 p.m., Monday through Friday.