With multiple share class options, our funds are designed to fit most investment goals, time horizons and other key considerations.
The American Funds are distributed through financial professionals because we believe that all investors benefit from ongoing professional advice. We recognize, though, that investors have different preferences for paying for that advice.
When you work with your financial professional to determine which share class to own, consider how long you expect to own the shares, your investment objective, how much you plan to invest and the expenses associated with each share class.
Several Share Class Options
We offer two types of share classes, one for our regular mutual funds and another for CollegeAmerica®, our 529 college savings plan:
Class F-1, F-2, F-3 and 529-F-1 shares
Class F-1 shares are primarily available through certain financial services platforms that support self-directed investors. Class F-2, F-3, 529-F-1, 529-F-2, 529-F-3 and ABLE-F-2 shares are available only through participating financial professionals. Class F-2, F-3, 529-F-1, 529-F-2, 529-F-3 and ABLE-F-2 share purchasers pay an annual asset-based fee charged by their financial professional. Class F-2, 529-F-2 and ABLE-F-2 shares do not carry a 12b-1 fee. Class F-3 and 529-F-3 shares do not carry 12b-1 or sub-transfer agency fees. See the prospectus for details.
Class A and 529-A shares
Class A and 529-A shares are sold with an up-front sales charge, which declines as the investment amount increases. For many shareholders — especially those with significant account balances — these shares are the most cost-effective way to own American Funds.
Class C and 529-C shares
Class C and 529-C shares do not have an up-front sales charge. However, if you sell (redeem) these shares before you hold them for 12 months, you will pay a 1% sales charge on the shares that you sell. This is called a contingent deferred sales charge, or CDSC. In addition, investors pay higher expenses than on Class A and 529-A shares. Class C shares convert to Class A shares after 8 years. Previously, Class C shares converted to Class F-1 shares in the month of the 10th anniversary of purchase through June 30, 2020. Class 529-C shares convert to Class 529-A shares after 5 years. Previously, Class 529-C shares converted to Class 529-A shares in the 10th anniversary of purchase through June 30, 2020.