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American Balanced Fund: Everything You Need to Know

American Balanced Fund: Everything You Need to Know

The American Balanced Fund is one of the mutual fund options available through American Funds, one of the oldest familes of funds in the United States.  American Funds has been helping investors since 1931 and has more than 50 million shareholder accounts with over $900 billion dollars in investments.  The American Balanced Fund is a fund that aims to provide a long term growth that remains steady over time.  

The American Balanced Fund is made up of class A shares and some other assets, and capital is invested in a range of stocks, bonds, cash and other investments.  Only about 15% of the investments in the American Balanced Fund are in foreign markets, with the remaining 85% of capital invested in the United States.  The ticker symbol for this fund is ABALX.  

There is a minimum investment of $250 to start with the American Balanced Fund.  Investors who choose to invest $25,000 or more will get special discounts on their fund purchase.  The fund has associated fees for maintenance and management of the investment, as do most mutual funds.  These fees are generally determined by the turnover rate, with higer turnover usually resulting in higher fees.

The stocks, bonds, and other investments that are part of the American Balanced Fund are all chosen carefully for their history of steady returns on investment.  While this is not considered a high risk fund, it does carry the same risks that any investment will have, and investors may lose some or all of their money.  With the lower risk that attends a balanced fund like this one, there is also a lower return on investment expected.  Investors looking for the opportunity to make larger profits may want to choose funds with higher risk and also higher profits.  The American Balanced Fund is a good choice for those investors who do not have a high tolerance for risk and are looking to grow their investments over time and enjoy a strong and steady profit that is smaller but with less risk of loss.

There are nearly three million investors in the American Balanced Fund as of early 2011.  The fund pays dividends in March, June, September and December.  Since its inception in 1975 the American Balanced Fund has continued to offer investors a strong choice for a balanced fund that offers steady long-term growth.

The American Balanced Fund, like all American Funds mutual funds, is sold exclusively through approved financial advisors.  Your financial advisor can help you to determine whether this fund is the right selection for your portfolio and how much of your investment capital you should place in this fund.  Your financial advisor can also ensure that you have a diverse portfolio of funds in addition to the American Balanced Fund in order to ensure the right mix of risk and short and long term profits.  As with all investments, you should be aware of the risks involved in mutual funds and the expected return on investment and ensure that you are able to tolerate the potential loss of investment thatmay occur.

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