Our share classes mainly differ based on how you pay for the advice of your financial professional. Because different payment structures suit different investment needs, we offer several convenient pricing options for our mutual fund accounts as well as our CollegeAmerica® 529 savings plan.
Class A and 529-A shares
Class B and 529-B shares
Class C and 529-C shares
Class F-1, F-2 and 529-F-1 shares
Go to Share Class Pricing Details for additional information.
This depends on a number of factors, including the amount you have to invest and how long you expect to own your fund shares, among other things. We strongly encourage you to consult a financial professional for specific investment recommendations. Your financial professional can evaluate your needs to match your short- and long-term goals.
It depends on how you prefer to pay, how much you invest and how long you expect to own the shares.
Over shorter time frames, C and 529-C shares cost slightly less than A and 529-A shares, as long as you don’t sell shares that incur a contingent deferred sales charge.
With larger investments, Class A and 529-A shares work to your advantage, since up–front sales charges decline the more you invest.
The CDSC is assessed on shares sold within a specified period. It is also known as a back–end load.
Some exceptions may apply. Refer to Selling Shares to learn more or speak to your financial advisor.
There are a number of ways to reduce your sales charges on Class A and 529-A share purchases, including:
Go to Reducing Your Class A and 529-A Sales Charges to learn more.
A breakpoint is the total value that your American Funds account must have to qualify for a lower sales charge on Class A and Class 529-A shares. The amount of your current investment is taken into account when determining the breakpoint at which the investment will be priced. As long as the value of all of your accounts with the American Funds (excluding direct purchases to money market funds) exceeds a particular breakpoint, all subsequent investments will receive the reduced sales charge. See Share Class Pricing Details for additional breakpoint information.
Note: To receive a Class A and 529-A sales charge reduction, you must tell your financial professional or American Funds at the time you purchase shares that you qualify for such a reduction. If you fail to do so, you might not receive a sales charge reduction.
Yes. You may take into account the current value of all existing Class A, B, C, F-1 and F-2 share and Class 529-A, -B, -C and -F-1 share holdings in American Funds, as well as American Legacy® accounts established on or before March 31, 2007, to determine your Class A and Class 529-A sales charge. Direct purchases of the money market fund are excluded.
If you notify American Funds, you may reinvest money from a sale, dividend payment or capital gain distribution back into the same account from which the money came without a sales charge, provided the reinvestment occurs within 90 days after the date of the transaction.
If your original redemption exceeded $5,000 or more from a fund, our purchase block policy may apply. Please see Selling Shares for additional information. If you do not wish to wait the 30 days you may select a different fund.
Additionally, if the account from which the money came has been closed you may reinvest the money into another account without a sales charge, provided:
Proceeds from Class B and 529-B share redemptions where a contingent deferred sales charge (CDSC) was charged will be reinvested in Class A and 529-A shares, respectively, without an initial sales charge. Proceeds from any other type of redemption and all dividend and capital gain distributions will be reinvested in the same share class from which the original redemption or distribution was made. Any CDSC on Class A, 529-A, C or 529-C shares will be credited to your account.
If you are reinvesting money which represented a direct investment to a money market fund, into any of our other funds, a sales charge will apply.
See your financial professional or your fund’s prospectus for details.
Class B and Class 529-B shares automatically convert to Class A and Class 529-A shares, respectively, in the first month of the eight–year anniversary of the purchase date. This is a nontaxable event that reduces the annual expenses you pay going forward. The new Class A or Class 529-A share account will have the same registration as the Class B or Class 529-B share account. A proportionate amount of dividends will be exchanged into the Class A or Class 529-A share account.
Class C shares automatically convert to Class F-1 shares in the first month of the 10–year anniversary of the purchase date. This is a nontaxable event that reduces the annual expenses you pay going forward. The new F-1 share account will have the same registration as the C share account. A proportionate amount of dividends will be exchanged into the F-1 share account.
Class 529-C shares will not convert to Class 529-F-1.
To help ensure you are able to take advantage of Class A share sales charge discounts to reduce the cost of owning fund shares, American Funds does not allow purchases of Class C shares when Class A shares might be a more cost–effective option. Class C share investors will benefit from reduced sales charges available on Class A shares for investments of $500,000 or more, potentially making Class A shares a more cost–effective alternative for them.
Investors in Class 529-C shares may invest into their CollegeAmerica account until the balance (including any earnings) reach $350,000.
Investors with aggregated American Funds accounts of $1 million or more, however, can purchase Class A shares at net asset value and are ineligible for Class C and 529-C share purchases. Since the sales charge for Class A shares declines as investment purchases and/or account value increases, Class A shares become the better option for larger investments held over a longer period.
Exchanges are generally only allowed within the same share class. However, you can exchange Class A shares in American Funds U.S. Government Money Market Fund℠ to Class C shares of most other funds. You should also keep in mind that a sales charge may be applied if you are exchanging from Class A shares in American Funds U.S. Government Money Market Fund to another fund if those shares were not already subject to a sales charge.
For purposes of computing the CDSC, the length of time shares are owned will be measured from the date of the original purchase, and will not be affected by any exchanges.
“With sales charge” refers to the up-front sales charge applied to investments in Class A and 529-A shares when purchased. The average annual total return “with sales charge” is the gain or loss made on an investment if you paid the maximum 5.75% up–front sales charge.
CDSC, or “contingent deferred sales charge” is a declining back–end sales charge applied to shares sold within a specified period. The average annual compound return “with CDSC” is the gain or loss made on an investment if you paid the maximum back–end sales charge (5% for Class B and 529-B shares and 1% for Class C and 529-C shares).
NAV, or “net asset value,” is the value of a fund share. This is the price you would receive for each share sold. NAV is calculated daily.
The average annual total return at NAV is the gain or loss made on an investment if you did not pay an up–front sales charge or a contingent deferred sales charge (CDSC) on the investment.
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, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries.
Depending on your state of residence, there may be an in-state plan that offers tax and other benefits not available through CollegeAmerica.
Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.