CTSFX

About CTSFX

American Funds College 2027 Fund 529-F-1 is a target date mutual fund specifically designed for education savings through 529 plans. Its primary function is to help families invest for anticipated college expenses around the year 2027 by dynamically adjusting its asset allocation as the target date approaches. The fund pursues a blend of growth, income, and capital preservation by investing in a diversified mix of U.S. and non-U.S. equities, as well as a significant allocation to U.S. and non-U.S. bonds, which together generally account for over 85% of the portfolio. This asset allocation gradually becomes more conservative over time, reducing equity exposure and increasing holdings in fixed income and cash equivalents as the fund nears the target date. The fund is managed by experienced portfolio managers and is recognized for its relatively low expense ratio compared to its peers, as well as prudent risk controls. It plays a significant role for individuals planning tax-advantaged college savings, providing a professionally managed, disciplined approach to funding higher education costs through diversified asset exposure and automatic rebalancing.