Invest In AXP Mutual Funds

American Express Funds, with a financial history that goes back as far as 1940, offers 66 mutual funds that are distributed within the United States. As of 2005, American Express Funds (stock symbol AXP) managed mutual fund assets totaling $64 billion. Together with the American Express Financial Corporation and its affiliates, the manager for American Express Funds owned and managed in excess of $350 billion in assets as of 2005.

Understand AXP Mutual Fund Options

Understand that AXP income funds focus on producing regular dividends from preferred stocks and/or bonds. With income funds, share prices fluctuate with interest rates. Share prices tend to increase when interest rates fall and decrease when they rise.

Recognize that AXP growth and income mutual funds are aimed at the long-term growth of capital, as well as providing current income. Typically, growth and income funds invest chiefly in stocks and bonds that have a history of both capital appreciation and providing consistent dividends.

Realize that AXP growth mutual funds may suit your needs if you're interested in capital appreciation. These funds invest in securities that appreciate over time, rather than those that focus on providing current income.

Decide whether or not AXP international mutual funds interest you. These funds invest in non-domestic securities markets.

Understand that AXP tax-free income funds focus on maximizing current, federal tax-exempt investment income while preserving capital.

Consider that AXP index funds concentrate on minimizing the performance of one of the market indexes, such as the Standard & Poor's 500. These funds typically have low costs and fees.

Instructions for Investing in AXP Mutual Funds

Define or review your investment objectives. Remember these objectives as you begin researching AXP mutual funds.

Consider the type of funds that interest you. Research and compare AXP mutual funds at the Morningstar or Standard & Poor's websites.

Request prospectuses for the funds that best suit your objectives. Review them carefully.

Consult with your broker or financial advisor before you purchase shares. Evaluate risks and benefits and purchase shares of the AXP mutual funds that match your objectives.

Tips & Warnings

• As you research and compare AXP mutual funds, remember that past performance is not indicative of future performance. There is risk involved in any investment.
• Remember that mutual funds can help you to diversify your investments. Diversification can be key in lowering risk.