American Funds??

What are some fund families that the advisors out there really like to put there clients in for long term investing?

I currently have all American Funds for my Trad. and Roth. My wife has it for her TSA and Roth as well. I have really done well with them over the years (I realize the market has been good lately to help this fact) so I am happy but am curious what other funds people like. We're in all class A shares btw.

American Funds are good, I looked into them, but I really like Fidelity's Roth IRA. I am putting my retirement money into there, and my father is very happy with his account, but I may still open an American Funds account too.

I love American Funds. The one we have that's done the best is Capital World Growth and Income (CWGIX) and the reason I picked it in the first place is that it didn't tank as badly as everything else in 2000-2002 . One thing I really like is their team approach, which Fidelity is now copying- there are always 3-4 people managing a Fund, so if one person leaves there's continuity of management.

If you're buying it through an advisor the front-end load can be pretty steep (5.75% if you invest less than $25K in all of their funds). In the opinion of many people, this is excessive. I like my advisor so I don't mind paying for him, and I pay only 2% on new investments, so the front-end load doesn't bother me.

The class A fee is actually 5.95 for less than $25,000 and 5.75 from $25-$100,000 I think. Anyway, I've run the darn numbers so many times it is sick but we're still doing well with our returns so I won't let myself worry about the front end fee.

Fidelity is one that has been thrown out anyone else have a favorite company?

This is exactly the cost:

Class A and 529-A share sales charges and breakpoints (on gross amount invested)

Amount of sale/account valueGrowth, growth-and-income, equity-income and balanced fundsBond and tax-exempt bond funds. First number is growth equities, second number are bonds and fixed income. Money Market has no up front charge.

-Less than $25,000 - 5.75%3.75%†

-$25,000 but less than $50,000 - 5.00%3.75%†

-$50,000 but less than $100,000 - 4.50%3.75%†

-$100,000 but less than $250,000 - 3.50%3.50%†

-$250,000 but less than $500,000 - 2.50%2.50%

-$500,000 but less than $750,000 - 2.00%2.00%

-$750,000 but less than $1 million1.50%1.50%

-$1 million and above0.00%‡0.00%‡

You will also find that in the long run, their low expense ratios allow them to surpass many popular no-load funds despite the initial charge. Use the NASD calculator...don't take my word for it.

So we have a few that like American Funds and Fidelity fan. Anyone else have a fund company they really like? I have a friend that talks up Vanguard.?.?

joe, dingo, 1MO............anyone else? This might be too boring of a question since a little research will answer which ones a person should like but I thought it would be fun to see the diverse pool of funds we all use and like.

How about Russell funds??? I think NWM sells those?? Don't hold me to it b/c I'm just trying to spark conversation.

I am more "fund-specific," rather than "fund family-specific." I used to be strictly a Vanguard and Fidelity guy when I was in my late teens/early twenties, because they were the first I was introduced to. Nowadays, I have more of a "UN family" of funds from various companies, including: T. Rowe Price, Vanguard, Dreyfus, Royce, and Selected American.

What are some fund families that the advisors out there really like to put there clients in for long term investing?

I currently have all American Funds for my Trad. and Roth. My wife has it for her TSA and Roth as well. I have really done well with them over the years (I realize the market has been good lately to help this fact) so I am happy but am curious what other funds people like. We're in all class A shares btw.

American funds is very popular with financial advisors. Some other fund families that are popular would include: Hartford, Van Kampen, Putnam, Eaton Vance, AIM, PIMCO. Each of which charge up front fees for their retail customers.

A more recent trend is for advisors to use no-load and fee-waived funds & ETFs, but to charge an annual maintenance fee (approximately 1% per year). These are often called "managed" accounts or "wrap" accounts or "fee-based" accounts.

Does anyone have experience with and/or recommendations regarding American Century Funds (no relation)?

American Funds are good, I looked into them, but I really like Fidelity's Roth IRA. I am putting my retirement money into there, and my father is very happy with his account, but I may still open an American Funds account too.
Okay - I'm not picking on the poster, I just want to make sure this is clear: Fidelity doesn't have the market cornered on a wonderful investment called the Roth IRA. You can open a Roth IRA at Fidelity just like you could at Vanguard, Oppenheimer, T. Rowe, or any of hundreds of companies. How you choose to allocate those funds in your Roth IRA is what's important.

In other words, what the poster hasn't mentioned is what fund or funds at Fidelity she has chosen for her investment of her Roth IRA account at Fidelity... this would be helpful and germaine to the conversation.

Blank, good point. I've been a big, okay, huge American Funds guy in the past and still am but have considered opening a second Roth account that I will manage with no load funds. Two questions, 1) who do you guys like (i.e. Fidelity, Vanguard, etc.) and 2) are there specific funds you like for someone in there early 30's that has historically been aggressively allocated.

I noticed with American Funds, among others, there are different classes. Can some tell me what's the difference between Classes (A, B, C...ect)? What's the benefit of each and are certain age groups better to invest in different classes?

From their website:

http://www.americanfunds.com/funds/classes/pricing.htm

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 A and 529-A shares are sold with an up-front sales charge, which declines as the investment amount increases (http://www.americanfunds.com/funds/classes/details.htm#breakpoints). For many shareholders — especially those with significant account balances — these shares are the most cost-effective way to own American Funds.

Class B and 529-B shares have no up-front sales charge but have higher annual expenses than Class A shares. However, if you sell (redeem) shares before you have owned them for six years you will pay a sales charge (maximum 5%) on the shares that you sell. This charge is called a contingent deferred sales charge, or CDSC. Class B and 529-B shares convert to Class A and 529-A shares, respectively, after eight years. This conversion will lower your ongoing annual expenses.

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 F shares after 10 years. Class 529-C shares do not convert.

Class F and 529-F shares are available only through participating financial professionals. Class F and 529-F share purchasers pay an annual asset-based fee charged by their adviser, as well as slightly higher annual expenses than Class A shares.

Okay - I'm not picking on the poster, I just want to make sure this is clear: Fidelity doesn't have the market cornered on a wonderful investment called the Roth IRA. You can open a Roth IRA at Fidelity just like you could at Vanguard, Oppenheimer, T. Rowe, or any of hundreds of companies. How you choose to allocate those funds in your Roth IRA is what's important.

In other words, what the poster hasn't mentioned is what fund or funds at Fidelity she has chosen for her investment of her Roth IRA account at Fidelity... this would be helpful and germaine to the conversation.
I'm glad you said it and not me ;)

C-funds can typically be viewed as an Assets Under Management (AUM) arrangement. There is no load up front, but the advisor is paid annually based on the assets they are managing. It could be viewed exactly the same as a full service brokerage account.

As an aside, American funds are unusual in their cost structure because they are one of the very few fund families that convert C-shares into a share similar to a A-share after 10 years (F-shares). In other words, the additional annual expense of the C-shares are not a permanent condition like other fund families.