With multiple share class options, our funds are designed to fit most investment goals, time horizons and other key considerations.
The American Funds are distributed through financial advisers because we believe that all investors benefit from ongoing professional advice. We recognize, though, that investors have different preferences for paying for that advice. No matter which share class you choose, American Funds’ annual expenses are among the lowest for comparable funds, as measured by LipperSM Inc. Learn more about our commitment to low management fees.
When you work with your financial adviser to determine which share class to own, please consider: how long you expect to own the shares, your investment objective, how much you plan to invest and the expenses associated with each share class.
Several share class options
We offer two types of share classes, one for our regular mutual funds and another for CollegeAmerica®, our 529 college savings plan:
Class A and 529-A shares are sold with an up-front sales charge, which declines as the investment amount increases. For many shareholders — especially those with significant account balances — these shares are the most cost-effective way to own American Funds.
Class B and 529-B shares are no longer offered by American Funds. Shareholders currently invested in Class B or 529-B shares will be able to hold those shares until the shares convert to Class A or 529-A shares. In addition, shareholders invested in Class B or 529-B shares may exchange those shares for Class B or 529-B shares of other American Funds offering such shares until they convert. However, no additional investments into Class B or 529-B shares will be accepted. If you sell (redeem) shares before you have owned them for six years you will pay a sales charge (maximum 5%) on the shares that you sell. This charge is called a contingent deferred sales charge, or CDSC. Class B and 529-B shares convert to Class A and 529-A shares, respectively, after eight years. This conversion will lower your ongoing annual expenses.
Class C and 529-C shares do not have an up-front sales charge. However, if you sell (redeem) these shares before you hold them for 12 months, you will pay a 1% sales charge on the shares that you sell. This is called a contingent deferred sales charge, or CDSC. In addition, investors pay higher expenses than on Class A and 529-A shares. Class C shares convert to Class F-1 shares after 10 years. Class 529-C shares do not convert.
Class F-1, F-2 and 529-F-1 shares are available only through participating financial advisers. Class F-1, F-2 and 529-F-1 share purchasers pay an annual asset-based fee charged by their adviser. Class F-2 shares do not carry a 12b-1 fee.
Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica. Before investing in any state’s 529 plan, you should consult your tax adviser.