American Funds is in second place amongst industry leaders, outdoing Fidelity and coming up close behind Vanguard. This repositioning of mutual fund giants illustrates a "seismic shift" that has been hitting the mutual fund industry, according to The Financial Times.

The surprising part of this whole shift is the fact that American Funds has managed to overcome its competitors while offering fewer funds than both Fidelity and Vanguard. By the end of 2005, American funds had a stable of 31 funds, while Fidelity had 329 and Vanguard 103.

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