The investment fund objective of American Funds’ Growth Fund of America
With 4.4 million shareholder accounts, the Growth Fund of America (AGTHX) is the largest actively managed stock mutual fund in the United States. According to American Funds prospectus, the investment objective of the Growth Fund of America “is to provide you with growth of capital.”
The Fund Authority Score for the Growth Fund of America – Class A Shares
Fund Authority Scores rate mutual funds and exchange traded funds (ETFs) on the most important economic factors that influence individual investors’ net long term diversified investment fund performance. The Skilled Investor developed the Fund Authority Score system to provide individual investors with concise and objective summaries of mutual funds and ETFs for comparisons within investment asset classes.
For a directory of the Fund Authority Score reports of other mutual funds and ETFs, go here. When you go to this Fund Authority Score directory, you can easily find a list of all fund reports at the bottom of each article for that particular investment asset class. For more information about how a Fund Authority Score is developed for each mutual fund or ETF, go here.
The table below presents the Fund Authority Score and other information for the Growth Fund of America – Class A Shares.
Using an integer scale ranging from -10 to +10, Fund Authority Scores measure five factors:
1) annualized management and investment sales expenses (40% weighting), 2) annual trading costs implied by investment fund portfolio turnover (30% weighting), 3) inferior and superior historical performance (20% weighting), 4) minimum fund maturity (5% weighting), and 5) minimum fund size for operating efficiency (5% weighting).
Fund Authority Summary for the American Funds – Growth Fund of America – Class A (AGTHX) Fund Authority Summary American Funds – Growth Fund of America – Class A Shares Fund Authority Score FUND AUTHORITY SCORE (scale of -10 to +10) 2 FUND AUTHORITY SCORING COMPONENTS A) Management expenses & sales loads (-4 to +4) — Annual expense ratio with 12b-1 fees 0.62% — Front-end sales load with 5 year amortization 1.15% —– Total annual direct costs 1.77% -3 B) Fund portfolio transactions costs (-3 to +3) — Annual turnover as a trading cost proxy 26.0% 2 C) Penalize very inferior historical performance and credit average and superior historical [...]