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Types of mutual funds

American Funds offers a broadly diversified family of mutual funds, including the American Funds Portfolio SeriesSM, the American Funds College Target Date SeriesSM and the American Funds Target Date Retirement Series®.

Most financial professionals suggest that investors balance their portfolios by investing across several types of investments. Which mix is right for you? That depends on a number of things — including your investment time horizon, risk tolerance and financial circumstances.

American Funds offers funds with an array of investment objectives to help you and your financial professional build a portfolio specifically tailored to your needs.

At the bottom of the list you’ll also find the American Funds Target Date Retirement Series. Be sure to talk with your financial professional 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.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share price and return will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

For funds of funds, investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund of funds expenses. The funds' risks are directly related to the risks of the underlying funds as described below.

For the Retirement Target Date Series, although the target date funds are managed for investors on a projected retirement date time frame, the fund's allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals actively manage the target date fund's portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date.

For the College Target Date Series, the target date is the year in which the beneficiary is expected to begin taking withdrawals. Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented. The funds' allocation strategy does not guarantee that investors' education savings goals will be met. Investors and their advisers should periodically evaluate their investment to determine whether it continues to meet their needs.

Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal for bond funds and funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.