American Funds Has Helped Investors Prevail Through Market Declines | American Funds

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Market Fluctuations

American Funds Has Helped Investors Prevail Through Market Declines

PROBLEM: Market indexes don’t tell the whole story and can needlessly alarm investors.
SOLUTION: Consider investing in funds run by professional investment managers who have proven long-term track records.

 


American Funds is a proven investment manager with a long history of success. We believe our success stems in part from our long-term perspective and our emphasis on producing results that are less volatile than the broad market.

Our funds have beaten their Lipper® peer indexes in 81% of 10-year periods (90% for equity funds and 61% for fixed-income funds).* These periods include good times and bad. 

 


The Bottom Line?  

Talk to your financial advisor about investing for the long term with an investment manager that has a proven track record of success — in downturns as well as in bull markets.

 

In Good Times and Bad, a Track Record of Success in Equity Funds

American Funds Equity Funds, 10-Calendar-Year Periods

When the value of an investment...

Number of 10-calendar-year periods

When the total return was positive

(annualized return greater than 0.00%)

at least doubled

(annualized return 7.18% or greater)

at least tripled

(annualized return 11.61% or greater)

AMCAP FUND®

40

40

34

24

EuroPacific Growth Fund®

23

23

16

8

Growth Fund of America®

34

34

29

24

New Economy Fund®

24

22

19

9

New Perspective Fund®

34

34

29

23

New World Fund®

8

8

6

2

smallcap world fund®

17

17

10

2

american mutual fund®

57

57

45

28

capital world growth and income fund®

14

14

10

5

fundamental investors®

29

29

24

16

the investment company of america®

74

74

61

41

washington mutual investors fundSM

55

55

44

28

capital income builder®

20

20

14

5

the income fund of america®

34

34

27

18

american balanced fund®

32

32

23

18

total

398

396

312

195

PERCENT OF TIME

99.5%

78.4%

49.0%

Based on results calculated at net asset value with all distributions reinvested. Reflects applicable fees and expenses.

Only American Funds with a track record of at least 10 years are included in this table.

* Based on Class A share results for rolling periods through December 31, 2015. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used).

Past results are not predictive of results in future periods.

Strategies to Get Through Turbulent Times

It’s difficult to see the value of your investments fall. But during challenging times, try to keep some fundamental investing principles in mind:

  • Look beyond the headlines. Sensational news headlines are meant to grab your attention, but it can be dangerous to let the media influence your investment decisions. Ignore the noise and stay focused on your goals.
  • Don’t forget history. Market declines are part of the economic cycle. Historically, recoveries have followed downturns.
  • Maintain a diversified portfolio. Different investments may go up and down at different times. Spreading your money over a variety of investment types and regions can help reduce volatility in your overall portfolio.
  • Don’t try to time the market. No one knows the perfect times to get in and out of the market. Consider holding quality investments with the potential to rise in value over the long term.
  • Invest regularly, even when the market is falling. Instead of fearing down markets, think of them as opportunities to invest at lower prices.
  • Keep in touch with your financial professional. Your financial advisor can help you avoid making decisions that could jeopardize your long-term investment goals, which often remain unchanged during market declines.

ABOUT AMERICAN FUNDS

Our Proprietary Approach

Our time-tested investment process sets us apart.


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. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice.