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Choosing an investment mix

Why the right mix of investments can help you meet your goals, plus a list of all American Funds and their objectives.

It’s not enough just to invest. You need to choose the right mix of investments to help you meet your goals. That means deciding how to spread your money among different:

  • Asset types — You can choose from stocks, bonds and cash. (Note that equity investments are subject to market fluctuations, while lower-rated bonds are subject to fluctuations in value and risk of loss of income and principal.)
  • Sizes and types of companies — You can opt for investments in large established companies or small cutting-edge companies. (Be aware that investing in smaller companies entails additional risks, as more fully described in the prospectus.)
  • Geographic regions — You can invest primarily in the United States, internationally or globally. (Be aware that investing outside the U.S. — especially in developing countries — entails risks, such as currency fluctuations, as more fully described in the prospectus.)

By diversifying — choosing a wide variety of investments — you can help reduce the volatility of your overall portfolio.

Diversifying with mutual funds

Mutual funds can take a lot of the guesswork out of choosing an investment mix because they’re already diversified. For example, some may invest in one asset type — such as bonds — but divide their money among different types (e.g., corporate bonds and U.S. Treasury bonds). Others may invest in a combination of asset types but focus on a particular industry or geographic region.

Your investment mix

Here’s a list of the American Funds you and your financial adviser can choose from to create an investment mix tailored to your financial goals.

At the bottom of the list you’ll also find the American Funds Target Date Retirement Series®. Be sure to talk with your financial adviser about whether or not target date funds make sense for your financial goals.

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.