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15 important things you should know about American Funds RFNAX mutual fund

Updated: September 24, 2020
N/A
Bull Case
  • No Bull case arguments for now!
Bear Case
  • Low net assets
  • 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 RFNAX “stock” price, you can quickly find it out by visiting Finny and typing "RFNAX quote". If you’re looking for a quick scoop on RFNAX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "RFNAX". You’ll get all this info in one place.

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

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

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

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

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

Fact Sheet

1. Describe American Funds Fundamental Investors; Class R-1 Shares (RFNAX).

The Fund seeks to provide income over time by investing primarily in common stocks of large, established companies that offer growth potential at reasonable prices. The Fund may also invest significantly in non-US securities.

2. What are RFNAX top holdings?

RFNAX has 284 stock holdings and 0 bond holdings.

The top 10 holdings represent 26.74% of total assets. Here are the top holdings:

Name Symbol % Assets
Microsoft Corp MSFT 5.63%
Amazon.com Inc AMZN 3.20%
UnitedHealth Group Inc UNH 3.08%
Broadcom Inc AVGO 3.02%
Facebook Inc A FB 2.60%
Berkshire Hathaway Inc A BRK.A 2.40%
JPMorgan Chase & Co JPM 2.25%
Taiwan Semiconductor Manufacturing Co Ltd 2330.TW 1.53%
Netflix Inc NFLX 1.52%
Alphabet Inc Class C GOOG 1.51%

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

RFNAX has generated the following returns:

  • 1-month return is -2.61%;
  • 3-month return is 4.54%;
  • 1-year return is 7.68%;
  • 3-year return is 7.37%;
  • 5-year return is 10.64%;
  • 10-year return is 11.04%;
  • 15-year return is 8.04%.

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

In the last 10 years, RFNAX had 8 up years and 2 down years. See Performances

5. What is RFNAX dividend yield?

RFNAX yield is 0.76%.

6. What is RFNAX minimum initial investment amount?

RFNAX minimum initial investment amount is N/A.

7. What is RFNAX expense ratio?

RFNAX expense ratio is 1.41%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses. See Expenses

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

RFNAX 12b-1 distribution fee is 1. RFNAX front-end sales load is 0. RFNAX back-end sales load is 0.

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

  • 1-year ax cost ratio is 1.66%;
  • 3-year ax cost ratio is 1.83%.

See Taxes

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

  • 3-year beta is 0.96;
  • 5-year beta is 0.97;
  • 10-year beta is 0.99;
  • 15-year beta is 1.00.

See Risks

11. What is RFNAX Sharpe ratio?

  • 3-year Sharpe ratio is 0.40;
  • 5-year Sharpe ratio is 0.55;
  • 10-year Sharpe ratio is 0.84;
  • 15-year Sharpe ratio is 0.53.

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 7 reasons to sell it, resulting in the Finny Score of 0.

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

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

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

The following are RFNAX weaknesses from our perspective:

  • <strong>RFNAX net assets</strong> are $133.90 million. This fund is not a popular choice with retail investors.
  • <strong>RFNAX 3-year return</strong> is 7.37%, which is lower than the 3-year return of the benchmark index (S&P 500 TR USD), 11.64%.
  • <strong>RFNAX 5-year return</strong> is 10.64%, which is lower than the 5-year return of the benchmark index (S&P 500 TR USD), 13.04%.
  • <strong>RFNAX 10-year return</strong> is 11.04%, which is lower than the 10-year return of the benchmark index (S&P 500 TR USD), 13.48%.
  • <strong>RFNAX 15-year return</strong> is 8.04%, which is lower than the 15-year return of the benchmark index (S&P 500 TR USD), 9.13%.
  • <strong>RFNAX expense ratio</strong> is 1.41%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 sales fee. The maximum 12b1 fee is 1%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund.
In the RFNAX review, we covered RFNAX 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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