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16 important things you should know about American Funds AMRMX mutual fund

Updated: September 09, 2020
N/A
Bull Case
  • No Bull case arguments for now!
Bear Case
  • 3-year return below the benchmark
  • 5-year return below the benchmark
  • 10-year return below the benchmark
  • 15-year return below the benchmark
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for AMRMX “stock” price, you can quickly find it out by visiting Finny and typing "AMRMX quote". If you’re looking for a quick scoop on AMRMX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "AMRMX". You’ll get all this info in one place.

Are you looking to buy or sell AMRMX? Or perhaps you’re looking for AMRMX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this AMRMX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: AMRMX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: AMRMX buy or sell; the pros and cons of investing in AMRMX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to AMRMX.

And here is the list of questions we’ll answer:

  1. Describe American Mutual Fund; Class A Shares (AMRMX).
  2. What are AMRMX holdings?
  3. What is AMRMX performance? What are AMRMX historical returns?
  4. How many up and down years did AMRMX have historically?
  5. What is AMRMX dividend yield?
  6. What is AMRMX minimum initial investment amount?
  7. What is AMRMX expense ratio?
  8. Does AMRMX have any sales loads or 12b-1 distribution expenses?
  9. What is AMRMX tax efficiency (tax-cost ratio)?
  10. What is AMRMX beta? How would you assess AMRMX risk?
  11. What is AMRMX Sharpe ratio?
  12. What is AMRMX Finny Score? AMRMX buy or sell?
  13. What are the pros of investing in AMRMX? What are AMRMX buy reasons?
  14. What are the cons of investing in AMRMX? What are AMRMX sell reasons?
  15. Compare and contrast: AMRMX vs AWSHX.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Mutual Fund; Class A Shares (AMRMX).

The Fund seeks current income, growth of capital and conservation of principal. The Fund seeks to invest primarily in common stocks of companies that are likely to participate in the growth of the American economy and whose dividends appear to be sustainable in the United States and Canada.

2. What are AMRMX top holdings?

AMRMX has 163 stock holdings and 3 bond holdings.

The top 10 holdings represent 22.55% of total assets. Here are the top holdings:

Name Symbol % Assets
Microsoft Corp MSFT 4.02%
Gilead Sciences Inc GILD 3.53%
Amgen Inc AMGN 2.46%
UnitedHealth Group Inc UNH 2.28%
Abbott Laboratories ABT 1.87%
Procter & Gamble Co PG 1.86%
The Home Depot Inc HD 1.72%
Verizon Communications Inc VZ 1.69%
AbbVie Inc ABBV 1.56%
Comcast Corp Class A CMCSA 1.56%

3. What is AMRMX performance? What are AMRMX historical returns?

AMRMX has generated the following returns:

  • 1-month return is 1.52%;
  • 3-month return is 4.42%;
  • 1-year return is 5.25%;
  • 3-year return is 8.05%;
  • 5-year return is 10.54%;
  • 10-year return is 11.14%;
  • 15-year return is 7.89%.

4. How many up and down years did AMRMX have historically?

In the last 10 years, AMRMX had 9 up years and 1 down year.

5. What is AMRMX dividend yield?

AMRMX yield is 2.02%.

6. What is AMRMX minimum initial investment amount?

AMRMX minimum initial investment amount is $1.00K.

7. What is AMRMX expense ratio?

AMRMX expense ratio is 0.61%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does AMRMX have any sales loads or 12b-1 distribution expenses?

AMRMX 12b-1 distribution fee is 0.24. AMRMX front-end sales load is 5.75. AMRMX back-end sales load is 0.

9. What is AMRMX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.35%;
  • 3-year ax cost ratio is 1.41%.

10. What is AMRMX beta? How would you assess AMRMX risk?

  • 3-year beta is 0.76;
  • 5-year beta is 0.78;
  • 10-year beta is 0.78.

11. What is AMRMX Sharpe ratio?

  • 3-year Sharpe ratio is 0.43;
  • 5-year Sharpe ratio is 0.59;
  • 10-year Sharpe ratio is 0.98.

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 6 reasons to sell it, resulting in the Finny Score of 0.

13. What are the pros of investing in AMRMX? What are AMRMX buy reasons?

We don't see any strong reasons to buy AMRMX.

14. What are the cons of investing in AMRMX? What are AMRMX negatives?

The following are AMRMX weaknesses from our perspective:

  • AMRMX 3-year return is 8.05%, which is lower than the 3-year return of the benchmark index (S&P 500 TR USD), 13.64%.
  • AMRMX 5-year return is 10.54%, which is lower than the 5-year return of the benchmark index (S&P 500 TR USD), 14.57%.
  • AMRMX 10-year return is 11.14%, which is lower than the 10-year return of the benchmark index (S&P 500 TR USD), 14.33%.
  • AMRMX 15-year return is 7.89%, which is lower than the 15-year return of the benchmark index (S&P 500 TR USD), 9.4%.
  • AMRMX expense ratio is 0.61%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.24%, while the maximum front-end sales load is 5.75%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.

Alternatives

15. Compare and contrast: AMRMX vs AWSHX.

Both AMRMX and AWSHX are mutual funds. AMRMX has a lower 5-year return than AWSHX (10.54% vs 11.86%). AMRMX has a higher expense ratio than AWSHX (0.61% vs 0.59%). Below is the comparison between AMRMX and AWSHX.

AMRMX AWSHX
Segment U.S. Equity: Large Value U.S. Equity: Large Value
Net Assets $29.41B $63.35B
Expense Ratio 0.61% 0.59%
Management Style active active
Underlying Index N/A N/A
YTD Return -2.01% -2.21%
1-Year Return 5.25% 6.62%
3-Year Return 8.05% 9.24%
5-Year Return 10.54% 11.86%
10-Year Return 11.14% 12.38%
Dividend Yield 2.02% 1.82%

AWSHX profile: The Fund seeks to produce income and to provide an opportunity for growth of principal consistent with sound common stock investing. The Fund invests primarily in common stocks of established companies that are listed on the New York Stock Exchange and have a strong record of earnings and dividends.

For further information, check out AMRMX vs AWSHX comparison details.

In the AMRMX review, we covered AMRMX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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