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Got a nasty surprise on my American Funds Statement this month. They are charging me a 5.01% sales charge on each deposit I make into my IRA fund. I called them and they said this has always been the case, the sales fee was just not shown on my statement. Where the heck has this been hiding? I went through 4 years of statements and never saw no stinking sales charge, just my annual IRA filing charge?

American Funds are "front-loaded" which means there is a charge at the time you buy. The terms are spelled out here:

http://www.americanfunds.com/funds/classes/charges.htm?referrer=shhp_reg_breakpoints

At a guess you have more than $25,000 and less than $50,000 with them, so you pay a 5.00% sales charge.

I have a ton of American Funds, but I stopped buying it when I became Foolish. I keep the funds I have, as I have already paid the load, and the performance is satisfactory.

American Funds is one of the largest mutual fund companies. The preformance is steady, rarely spectacularly good or spectacularly bad.

You don't say which funds you have, but they do have some good ones, imo.

Hope this helps.

cliff
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