Growth Fund of America Gains $30 Billion in 2004

Growth Fund of America, the flagship investment at Capital Research Group, gained $30 billion of new assets last year to become the largest actively traded U.S. stock fund, CBS MarketWatch reports.

The $95 billion fund, which trades in 14 share classes, is second in terms of assets under management among U.S. equity funds to Vanguard's $107 Vanguard 500 Index Fund.

Other Capital Group mutual funds also thrived in 2004. For example, Washington Mutual Fund and Investment Company of America each held $76 billion as of Dec. 31, making them the second- and the third-largest actively managed funds.

Although Capital officials were characteristically quiet about their successes last year, a mutual fund publication produced by Lipper trumpeted the news. Growth Fund of America first overtook Fidelity Investment's flagship Magellan mutual fund by Jan. 31, 2004, which then held $67.7 billion, and continued its upward climb throughout the year.

Investors are waiting to see if Capital Group will close Growth Fund of America this year, but so far company officials have not commented on the matter. Industry experts say the fund has room to accumulate more assets before its performance is compromised.