American Funds – a segment of Capital Group – currently has nearly $1 trillion assets under management invested in mutual funds across a wide range of categories including both equity and fixed-income funds. The company generally focuses on providing long-term returns to investors. American Funds claims to have managers with an average of 27 years of investment experience.

Meanwhile, its parent company, Capital Group, which currently has around $1.4 trillion assets, is one of the biggest investment management organizations of the world. Founded in 1931, the company offers a wide range of financial services all over the world through its offices in different regions including North America and Europe, and 7,000 associates.

Below we share with you three top-rated American Funds mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all American Funds mutual funds, investors can click here to see the complete list of American Funds mutual funds.

American High-Income Municipal Bond A (AMHIX - MF report) invests a major portion of its assets that provide a federal income tax free return or that have a return subject to minimum alternative federal tax. AMHIX invests a minimum of half of its assets in debt instruments that are BBB+ or Baa1 or below. The American High-Income Municipal Bond A fund has a three-year annualized return of 5.5%.

As of March 2016, AMHIX held 1,444 issues, with 2.06% of its assets invested in Buckeye Ohio Tob Settlement Fi To 5.875%

American Funds American Balanced A (ABALX - MF report) seeks long-term growth of capital. ABALX invests in both common stocks and bonds that are rated investment grade. ABALX also invests in securities that are issued by the U.S. government and its entities. Moreover, ABALX may invest in securities of issuers located in foreign lands. The fund primarily invests in common stocks of companies that are believed to provide dividend income. The American Funds American Balanced A fund has a three-year annualized return of 8.1%.

ABALX has an expense ratio of 0.58% compared with the category average of 0.85%.

American Funds Tax-Advantaged Income C (TAICX - MF report) invests in underlying American Funds, returns from which may be exempted from regular federal income tax. These funds include both equity and fixed income funds. TAICX is expected to have significant exposure to dividend stocks by investing in these underlying funds. TAICX may also invest in funds that allocate a sizable portion of their assets in foreign securities, which also include those issued in emerging markets. American Funds Tax-Advantaged Income C has a three-year annualized return of 5.5%.

As of March 2016, TAICX held four issues, with 25.22% of its assets invested in American Funds Capital World Gr&Inc R6.