The investment seeks growth of capital. The fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. It may invest up to 25% of its assets in securities of issuers domiciled outside the United States.
What is growth based on?
Growth is based on fast growth (high growth rates for earnings, sales, book value and cash flow) and high valuations (high price ratios and low dividend yields). Most of these portfolios focus on companies in rapidly expanding industries.
What is the Growth Fund of America?
The Growth Fund of America may be appropriate for: The fund's investment objective is to provide you with growth of capital. The fund is managed by Capital Research and Management Company, one of the nation’s oldest, largest investment management firms.
