Value investors seek equities with a low perceived value reflected in market prices. Mutual funds for value investors have fund managers who make purchase decisions based on the expectation that holdings experience a price increase due to market corrections. The volatile stock market of 2015 has provided value investors with additional purchasing opportunities.

American Funds Mortgage Fund (MFAAX)

The issuers of fixed-income products held within the Mortgage Fund include Government National Mortgage Association at 51.7%, the U.S. Treasury at 16.1%, Fannie Mae at 15.4%, Hertz Vehicle Financing II LP at 1.1% and Freddie Mac at 0.9%. The lifetime return since the fund’s inception in November 2010 is 1.62%. The one-year return is -2.01%, while the five-year annualized return is 2.05%, and the 30-day SEC yield is 0.69%. Mortgage-backed securities compose a majority of the fund at 66.5%, with 16.1% in U.S. Treasury bonds and notes, 10.1% in asset-based obligations and 5.2% in federal agency bonds and notes. The minimum investment for the fund is $250. The Mortgage Fund is a bond fund that focuses on high-quality, fixed-income instruments with moderate interest rate sensitivity.

American Funds Fundamental Investors (ANCFX)

The top sectors of the holdings for Fundamental Investors are consumer discretionary at 18.8%, information technology at 18% and the financial sector at 14.9%. An initial investment of $10,000 when the fund was introduced to investors in 1978 would have grown to about $60,000 by December 2015. The one-year return is -2.58%, the five-year annualized return is 9.91% and the 10-year annualized return is 7.14%. The top equities held within the fund are Microsoft at 4.8%, Amazon at 4.6%, Philip Morris at 3.2%, Home Depot at 2.5% and Comcast at 2.4%. The minimum investment for the fund is $250. Fundamental Investors describes its holding selections as undervalued and out-of-favor equities.

American Funds The Tax-Exempt Bond Fund of America (AFTEX)

The Tax-Exempt Bond Fund of America purchases medium-quality revenue bonds of various states in the United States and general obligation bonds with moderate interest rate sensitivity. Revenue bonds account for 86.7% of net asset value, while general obligation bonds are 4.1% of net asset value. An initial investment of $10,000 on the date of inception in 1979 would have grown to about $28,000 by December 2015. The one-year return is -0.75%, while the five-year return is 4.91% and the 10-year return is 4%. The 30-day SEC yield is 1.66%. Issuers are diversified to an extent that no holding as of December 2015 accounts for more than 1.5% of fund weight. The top issuers are North Texas Tollway Authority at 1.5% of net assets, The Illinois State Toll Highway Authority at 1.2% and Metropolitan Transportation Authority at 1.1%. The minimum investment for the fund is $250. The Tax-Exempt Bond Fund of America combines interest-rate sensitivity with tax-advantaged holdings.

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