On the lookout for a Large Cap Blend fund? Starting with American Funds Investor Company of America A (AIVSX) is one possibility. AIVSX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

AIVSX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.

History of Fund/Manager

American Funds is based in Los Angeles, CA, and is the manager of AIVSX. American Funds Investor Company of America A debuted in December of 1933. Since then, AIVSX has accumulated assets of about $93.12 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 15.76%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 14.74%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 14.29%, the standard deviation of AIVSX over the past three years is 15.1%. Over the past 5 years, the standard deviation of the fund is 14.96% compared to the category average of 15.28%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.9, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. AIVSX's 5-year performance has produced a positive alpha of 1.19, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.