Do You Have an Investment Strategy? | American Funds

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OCTOBER 24, 2016

Do You Have an Investment Strategy?

If you’re a mutual fund investor, chances are you value having an investment strategy.

In a recent survey, American Funds asked its “Voice of the Investor” panel, a group of nearly 8,000 mutual fund investors, many of whom hold American Funds, whether they have some type of investment strategy. Of the 1,783 investors who completed the study, a notably large number — 82% — said yes.

The results aren’t surprising when you consider that American Funds investors tend to work with a financial advisor: 69% of the Voice of the Investor panelists said an advisor purchases investment products on their behalf, while 61% meet in person with their advisor to discuss their investments.

“Ultimately, we believe investors are better served working with a financial professional,” said Chris Gies, advisor education and sales force development at American Funds.

So what is the group’s favored investment strategy? Six out of 10 of the Voice of the Investor panel cited “buy and hold” — a strategy that involves buying investments and holding them for long periods regardless of the ups and downs in the market.

“We know that investors who stay the course tend to achieve better results with their investments,” Gies said. “‘Buy and hold’ for an American Funds investor means having investments that are being actively managed by a team of portfolio managers and investment analysts. Every day the team is thinking about whether changes need to be made to guide the portfolio toward the funds’ objectives and ultimately, that investor’s goals.”

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

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