American Balanced Funds

American Balanced Fund is an American Fund Mutual Fund. The symbol is ABALX. American Balanced Fund is a current income and long-term growth of capital and income which is created by investing in a balanced mix of stocks, bonds and other fixed income securities.

The balanced mix is set up by the experts at American Funds. The fund frequently invests 10-12% of the assets in securities of issuers located outside the United States.

The fund`s fixed income investments are required to be investment grade at the time of purchase. The fund is also set up with restrictions that include investing no more than 75% of the assets in common stocks.

American Balanced Fund primarily invests in common stocks, preferred stocks, high yield bonds, convertibles and cash. Due to the way the various vehicles are invested, this fund tends to remain balanced and profitable.

Over the last 10 years, American Balanced Fund has had a rate of return in excess of 10%. Needless to say that is much better than the rates paid by banks on CDs and savings accounts.

Dividend reinvestment is one of the more popular ways to help this fund grow. You have the option of having the dividends that are paid quarterly reinvested into the American Balanced Fund, thereby increasing the number of shares owned without having any more out of pocket expense.