4 Best American Funds Mutual Funds To Buy In April

Last week, American Funds announced that 13 of its funds have been selected in the 2017 Q1 Schwab Mutual Fund OneSource Select List prepared by Charles Schwab Investment Advisory. The inclusion of some of the key mutual funds of American Funds in the OneSource Select List is likely to attract more investors with a long-term objective to the American Funds family.

Further, the second-biggest fund family of the U.S. drew more attention from investors after three of its equity funds, New Perspective (RNPGX - Free Report), Smallcap World Fund (RSLFX - Free Report) and EuroPacific Growth (RERGX - Free Report), along with its target-date funds won 24 Lipper Fund Awards. American Funds’ target-date funds won in all the 3-year and 5-year categories. Further, American Funds 2030 Target Date Retirement Fund (RFETX - Free Report), which has strong exposure to all the three award-winning equity funds, has returned 5.6% year to date.

Additionally, the fund family generated outstanding returns from some of its key funds last year that was reflected in Morningstar’s 2016 “Fantastic 45” List. Of the 45 funds enlisted, 11 belong to the American Funds’ family. Lower expenses, effective fund management and the resilience to survive market volatility have resulted in strong fund returns.

What Boosted American Fund’s Performance?

American Funds invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments are made in the technology sector. Among the cyclical sectors, the fund family invests in financial services. The company has also gained from investing in defensive sectors.

The Technology Select Sector SPDR (XLK) jumped 10.5% in the last six months. Consequently, mutual funds related to this sector registered stable returns. According to Morningstar, the technology mutual fund registered a year-to-date return of 11.8%. Additionally, Financials Select Sector SPDR (XLF) climbed 19% in the last six months and was the biggest gainer among the S&P 500 sectors.

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Disclosure: None.

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