The Growth Fund of America - A (2024)

FAQs

Is the Growth Fund of America a good investment? ›

Overall Rating. Morningstar has awarded this fund 3 stars based on its risk-adjusted performance compared to the 1083 funds within its Morningstar Category.

AGTHX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

AGTHX has an annual dividend of $4.67 per share, with a yield of 6.05%.

Compared with value or income funds, growth funds tend to have more risk and are more likely to have fluctuations in their stock price. However, with higher risk comes the potential for higher returns.

Average Price Target

Based on 315 Wall Street analysts offering 12 month price targets to The Growth Fund of America Class A Shares holdings in the last 3 months. The average price target is $86.40 with a high forecast of $100.72 and a low forecast of $70.46.

AGTHX - GROWTH FUND OF AMERICA Class A's top holdings are Microsoft Corporation (US:MSFT) , Meta Platforms, Inc. (US:META) , Amazon.com, Inc. (US:AMZN) , NVIDIA Corporation (US:NVDA) , and Broadcom Inc. (US:AVGO) .

General ROI: A positive ROI is generally considered good, with a normal ROI of 5-7% often seen as a reasonable expectation. However, a strong general ROI is something greater than 10%. Return on Stocks: On average, a ROI of 7% after inflation is often considered good, based on the historical returns of the market.

What is the expense ratio for the Growth fund of America? ›

American Funds Growth Fund of Amer has an expense ratio of 0.63 percent.

Historical studies show that as hedge funds tend to perform well during periods of high, stable interest rates, survey respondents have upgraded their return targets since 2022 to 9.06% from 7.45%, marking the highest such level in more than 10 years as they expect moving into a high stable rate environment.

American Funds Growth Fund of Amer A (AGTHX) is an actively managed U.S. Equity Large Growth fund.

You can retire on dividends. To do so, you generally need to start investing in dividend-paying assets early and reinvest the dividends until you retire.

The average price target for The Growth Fund of America Class A Shares is $86.70. This is based on 315 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $101.36 ,the lowest forecast is $70.96.

Growth funds are usually considered high-risk, high-reward funds and are hence suitable for investors who are seeking long-term investments and have an appetite for risk tolerance.

Growth funds are separated by market capitalization into small-, mid-, and large-cap. Most growth funds are high-risk, high-reward, and are therefore best suited to market participants with a long-term investment horizon and a healthy risk tolerance.