American growth funds: is Growth Fund of America worth the fees?

Growth Fund of America is a mutual fund: it pools money from many savers to buy shares of fast-growing companies.^[1] Its goal is to grow your money, not to pay you income.^[1] If you are comparing several funds, start with the best mutual funds to invest in.

• At least 80% of its money normally goes into growth investments, mostly large and mid-size companies.^[1]
• Up to 25% of its money can go into companies based outside the United States.^[1]
• 12 managers share the fund: each one manages part of the money.^[1]
• Its 3 largest holdings as of October 31, 2026: Microsoft (5.3%), NVIDIA (5.2%) and Meta Platforms (4.8%).^{[2] [7] [8] [9]}
• Example: of $5,000 invested in the fund, about $265 is in Microsoft ($5,000 × 5.3%).

Class A shares of Growth Fund of America take up to 5.75% of your money when you buy.^[1] This charge goes down when you invest larger amounts.^[3] The 0.58% annual expenses then come on top, every year.^[1]

### The math on $5,000 1. Sales charge: $5,000 × 5.75% = $287.50.^[3] 2. Money actually invested: $5,000 − $287.50 = $4,712.50. 3. Annual expenses: $4,712.50 × 0.58% = about $27 the first year.^[1]

Growth Fund of America comes in several versions, called share classes, that hold the same portfolio but have different fees.^[1] Class C and F shares have no sales charge when you buy, but they have other costs.^[4]

• Class C: 1.33% a year, and a 1% charge if you sell within 12 months.^{[1] [4]} It converts to Class A after 8 years.^[4]
• Class F-1: 0.65% a year, mostly sold on platforms where you invest on your own.^{[1] [4]}
• Class F-2: 0.40% a year, sold only through an advisor who charges you a yearly fee.^{[1] [4]}
• Example: on $10,000, Class C costs $133 a year, Class F-2 costs $40 a year, plus the advisor's fee.

Over 10 years, Class A shares of Growth Fund of America did slightly worse than the S&P 500: 14.47% a year versus 14.82%, as of December 31, 2025.^[1] Capital Group itself compares this fund with the S&P 500.^[2] The fund's figure includes its sales charge; the index figure includes no fees at all.^{[1] [6]}

This calculation is a simulation, not a promise: it extends the averages of the last 10 years.

• In the fund: $5,000 × 1.1447 each year for 10 years = about $19,300.
• At the S&P 500's pace: $5,000 × 1.1482 each year for 10 years = about $19,900.
• The gap: about $600 over 10 years, not counting the small fees of a fund that tracks the index.

To measure American growth, Donnie uses the Russell 1000 Growth: an index of large and mid-size US companies that grow fast, tracked by the iShares Russell 1000 Growth ETF (IWF).^[10] Some funds tracked by Donnie did better than the Russell 1000 Growth index over 7 years. These funds invest in North America among other places; they are not necessarily American growth funds.

• Purpose Global Resource Fund - Series F gained +36.1% a year over 7 years, versus +17% for Russell 1000 Growth.
• Example: $5,000 invested 7 years ago would be worth $43,183 in Purpose Global Resource Fund - Series F, versus $14,979 in Russell 1000 Growth.
• Fidelity Select Semiconductors Portfolio gained +35.8% a year: compare its curve in the tool.
• Columbia Seligman Technology and Information Fund Institutional Class gained +28.3% a year: compare its curve in the tool.
• What Donnie adds: you see the stocks these funds hold, line by line, and an alert tells you when their managers buy or sell.