497K 1 gfa497k.htm THE GROWTH FUND OF AMERICA

The Growth Fund
of America®

Summary prospectus

November 1, 2013

 

 

 

 

 
Class A B C F-1 F-2 529-A 529-B 529-C
AGTHX AGRBX GFACX GFAFX GFFFX CGFAX CGFBX CGFCX
               
529-E 529-F-1 R-1 R-2 R-3 R-4 R-5 R-6
CGFEX CGFFX RGAAX RGABX RGACX RGAEX RGAFX RGAGX

 

 

Before you invest, you may want to review the fund’s prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information and other information about the fund online at americanfunds.com/prospectus. You can also get this information at no cost by calling (800) 421-4225 or by sending an e-mail request to prospectus@americanfunds.com. The current prospectus and statement of additional information, dated November 1, 2013, are incorporated by reference into this summary prospectus.
 
 

Investment objective

The fund’s investment objective is to provide you with growth of capital.

Fees and expenses of the fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the “Sales charge reductions and waivers” section on page 28 of the prospectus and on page 54 of the fund’s statement of additional information.

Shareholder fees

(fees paid directly from your investment)

  Share classes
  A and
529-A
B and
529-B
C and
529-C
529-E F-1, F-2
and
529-F-1
All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none none none none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 5.00% 1.00% none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none none
Redemption or exchange fees none none none none none none
Maximum annual account fee
(529 share classes only)
$10 $10 $10 $10 $10 N/A
               

 

Annual fund operating expenses

(expenses that you pay each year as a percentage of the value of your investment)

  Share classes
  A B C F-1 F-2 529-A 529-B 529-C
Management fees 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.28%
Distribution and/or service (12b-1) fees 0.24 1.00 1.00 0.25 none 0.22 0.99 0.99
Other expenses 0.18 0.18 0.22 0.18 0.16 0.27 0.29 0.29
Total annual fund operating expenses 0.70 1.46 1.50 0.71 0.44 0.77 1.56 1.56
                   

 

  529-E 529-F-1 R-1 R-2 R-3 R-4 R-5 R-6
Management fees 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.28%
Distribution and/or service (12b-1) fees 0.50 0.00 1.00 0.74 0.50 0.25 none none
Other expenses 0.24 0.28 0.16 0.382 0.20 0.15 0.11 0.06
Total annual fund operating expenses 1.02 0.56 1.44 1.40 0.98 0.68 0.39 0.34
1A contingent deferred sales charge of 1.00% applies on certain redemptions within one year following purchases of $1 million or more made without an initial sales charge.
2Estimated based on current fees.

 

The Growth Fund of America / Summary prospectus Page 1
 

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Share classes 1 year 3 years 5 years 10 years
A $642 $786 $  942 $1,395
B 649 862 997 1,540
C 253 474 818 1,791
F-1 73 227 395 883
F-2 45 141 246 555
529-A 669 846 1,037 1,579
529-B 678 931 1,107 1,745
529-C 278 531 907 1,956
529-E 124 364 621 1,351
529-F-1 77 219 372 808
R-1 147 456 787 1,724
R-2 143 443 766 1,680
R-3 100 312 542 1,201
R-4 69 218 379 847
R-5 40 125 219 493
R-6 35 109 191 431

For the share classes listed below, you would pay the following if you did not redeem your shares:

Share classes 1 year 3 years 5 years 10 years
B $149 $462 $797 $1,540
C 153 474 818 1,791
529-B 178 531 907 1,745
529-C 178 531 907 1,956

 

Portfolio turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 27% of the average value of its portfolio. 

The Growth Fund of America / Summary prospectus Page 2
 

Principal investment strategies

The fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. The fund may invest a portion of its assets in securities of issuers domiciled outside the United States.

The investment adviser uses a system of multiple portfolio managers in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers who decide how their respective segments will be invested.

The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

Principal risks

This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.

Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the United States. The risks of investing outside the United States may be heightened in connection with investments in emerging markets. 

The Growth Fund of America / Summary prospectus Page 3
 

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

Investment results

The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of market results. This information provides some indication of the risks of investing in the fund. Past investment results (before and after taxes) are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com.

 

The Growth Fund of America / Summary prospectus Page 4
 

 

Average annual total returns

For the periods ended December 31, 2012 (with maximum sales charge):

Share class Inception date 1 year 5 years 10 years Lifetime
A − Before taxes 12/1/1973 13.62% –0.12% 7.59% 13.20%
− After taxes on distributions   13.48 –0.25 7.32 N/A
− After taxes on distributions and sale of fund shares 9.04 –0.12 6.69 N/A

 

Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
B 3/15/2000 14.61% –0.09% 7.59% 2.50%
C 3/15/2001 18.58 0.29 7.38 3.94
F-1 3/15/2001 20.52 1.10 8.24 4.65
F-2 8/1/2008 20.85 N/A N/A 4.07
529-A 2/15/2002 13.53 –0.16 7.55 4.96
529-B 2/15/2002 14.50 –0.18 7.46 4.88
529-C 2/15/2002 18.47 0.22 7.30 4.66
529-E 3/1/2002 20.15 0.74 7.86 5.09
529-F-1 9/16/2002 20.70 1.23 8.32 8.14
R-1 6/6/2002 19.67 0.33 7.40 5.63
R-2 5/21/2002 19.72 0.36 7.43 5.15
R-3 5/21/2002 20.19 0.79 7.90 5.61
R-4 5/28/2002 20.55 1.09 8.23 5.99
R-5 5/15/2002 20.92 1.39 8.55 6.11
R-6 5/1/2009 20.98 N/A N/A 14.76

 

Index 1 year 5 years 10 years Lifetime
(from Class A inception)
S&P 500 (reflects no deductions for sales charges,
account fees, expenses or U.S. federal income taxes)
15.99% 1.66% 7.10% 10.51%

 

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-favored arrangement, such as a 401(k) plan, individual retirement account (IRA) or 529 college savings plan. 

The Growth Fund of America / Summary prospectus Page 5
 

Management

Investment adviser Capital Research and Management CompanySM

Portfolio managers The individuals primarily responsible for the portfolio management of the fund are:

Portfolio manager/
Fund title (if applicable)
Portfolio manager
experience in this fund
Primary title
with investment adviser
Donnalisa Parks Barnum 12 years Senior Vice President –
Capital World Investors
Barry S. Crosthwaite
Vice President
6 years Senior Vice President –
Capital Research Global Investors
J. Blair Frank 12 years Senior Vice President –
Capital Research Global Investors
Gregg E. Ireland
Senior Vice President
9 years Senior Vice President –
Capital World Investors
Carl M. Kawaja 3 years Senior Vice President –
Capital World Investors
Michael T. Kerr
Executive Vice President
15 years Senior Vice President –
Capital World Investors
Ronald B. Morrow 9 years Senior Vice President –
Capital World Investors
Donald D. O’Neal
President and Trustee
20 years Senior Vice President –
Capital Research Global Investors
Martin Romo
Vice President
3 years Senior Vice President –
Capital World Investors
James F. Rothenberg
Vice Chairman of the Board
25 years Director,
Capital Research and Management Company
James Terrile 5 years Senior Vice President –
Capital Research Global Investors
Bradley J. Vogt
Senior Vice President
5 years Senior Vice President –
Capital Research Global Investors
The Growth Fund of America / Summary prospectus Page 6
 

Purchase and sale of fund shares

The minimum amount to establish an account for all share classes is $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account, payroll deduction savings plan account or employer-sponsored 529 account, the minimum is $25 to establish or add to an account.

If you are a retail investor, you may sell (redeem) shares through your dealer or financial advisor or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at americanfunds.com. Please contact your plan administrator or recordkeeper to sell (redeem) shares from your retirement plan.

Tax information

Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries

If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information.

 

 

 

 

 

MFGEIPX-005-1113P Litho in USA CGD/RRD/8009 Investment Company File No. 811-00862

 

 
 

THE FUND PROVIDES A SPANISH TRANSLATION OF THE ABOVE SUMMARY PROSPECTUS IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE SUMMARY PROSPECTUS ABOVE IS A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.

 

/s/ PATRICK F. QUAN
  PATRICK F. QUAN
  SECRETARY