A flexible approach to U.S. growth investing
The Growth Fund of America®
INCEPTION DATE
December 1, 1973
IMPLEMENTATION
Consider for a large-cap growth allocation
OBJECTIVE
Seeks to provide growth of capital
VEHICLE
The Growth Fund of America
Everything moves in cycles, and the markets are no different. The overall uncertain economic environment and challenges of inflation are very real concerns. These volatile periods can showcase the advantages of The Growth Fund of America's flexibility, multiple manager perspectives and long-term horizon.
The fund’s portfolio managers and investment analysts seek to identify innovative companies across a broad range of sectors.
The emphasis is on a flexible approach to growth investing, relying on in-depth bottom-up research to find companies with attractive growth opportunities mainly in the U.S. but with flexibility to look abroad.
A FLEXIBLE APPROACH TO GROWTH
A flexible investment approach
For more than 49 years, The Growth Fund of America has invested across sectors and industries. Many of these investments are in the companies powering economic growth and developing new products and services. The strategy’s portfolio managers and analysts seek to identify companies with attractive prospects for appreciation, including those outside of traditional growth industries.
IDENTIFYING LONG-TERM LEADERS IN A BROAD RANGE OF SECTORS
Examples of top holdings in the portfolio*
Source: FactSet as of March 31, 2023.
A HISTORY OF RESEARCH AND RESOURCES
Investing in growth
The world is in need of more data than ever, which means semiconductors are in high demand. Like oil fueled the industrial era, these miniature powerhouses fuel our increasingly connected lives. The Growth Fund of America’s portfolio managers seek to capitalize on this need with research focused on investing long term in the companies that make them. The fund has benefited from holdings in a range of analog and digital semiconductor companies, as well as semicap equipment manufacturers.
DEMAND FOR SEMIS IS POSITIONED TO GROW OVER THE NEXT FEW YEARS
Semiconductor industry revenue ($US billions)
Sources: Capital Group, ASML, Statista, Inc., World Semiconductor Trade Statistics (WSTS). As of November 2022. 2022 estimate is provided by WSTS. 2025 and 2030 estimates are provided by ASML.
The Growth Fund of America
The Growth Fund of America is offered in various share classes designed for retirement plans, nonprofits, and other institutional and individual investors.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Portfolios are managed, so holdings will change. Certain fixed income and/or cash and equivalents holdings may be held through mutual funds managed by the investment adviser or its affiliates that are not offered to the public.
Totals may not reconcile due to rounding.
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American Funds Distributors, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
*Companies shown are among the top 20 holdings by weight in The Growth Fund of America as of 3/31/23: (Microsoft, Alphabet, Meta Platforms, Amazon, Broadcom, Tesla Inc, UnitedHealth Group, Netflix, ASML, Mastercard Inc, General Electric, Regeneron Pharmaceuticals, Eli Lilly, Carrier Global, Thermo Fisher Scientific, Airbnb, TransDigm Group, NVIDIA, TSMC, D.R. Horton).