American Funds is engaging in clearly deceptive and misleading advertising when they emphasize and publish in their mutual fund literature that all (or most) their funds have only 30-day holding periods. The goal of their claim it to make them appear more attractive to mutual fund investors when compared to the competition that have many funds with published 60 and 90- day holds.

Most investors—especially those who wish to take a more active role in managing their account—desire that flexibility, and would view 30 day holding periods as attractive and, at least in my case, make buying decisions based on it.

However, when I exercised my right to buy and sell my fund holdings and reallocate my account according to my investing strategy of monthly review, I was told that I CANNOT do so, and that I must hold for 90-days.

THIS IS A BLACK-AND-WHITE DECEPTION AND MISDIRECTION. Essentially, American Funds is luring investors with the claim that their funds offer 30-day maximum holds and the accompanying increased flexibility. That is, unless you actually want to review and/or reallocate within the stated holding period rules; then the rules change to a 90-day hold.

American Funds should be forced to document these “unpublished” rules and clarify that any attempt to manage your money on a regular schedule (in my case, every 35 days) is NOT permitted. Or otherwise document—as have other mutual fund companies—specific rules related to holding periods and round trip restrictions and/or penalties.