American Century Investments is more than just another asset management firm. With over six decades of experience and a strong reputation for consistent performance and innovation, this investment powerhouse is helping millions of investors grow their wealth responsibly.
In this guide, we’ll break down everything you need to know about American Century Investments in 2025—from its investment approach and fund offerings to its social impact, performance, and what makes it unique.
What Is American Century Investments?
American Century Investments is a privately-owned investment management company founded in 1958 by James E. Stowers Jr. Based in Kansas City, Missouri, the company manages over $230 billion in assets (as of early 2025) across mutual funds, ETFs, retirement plans, institutional portfolios, and more.
What sets American Century apart is its client-first philosophy, active management style, and significant dedication to medical research philanthropy.
Why American Century Investments Stands Out
Here are some key reasons investors choose American Century:
- Client-Centered Approach: Focused on long-term investor success.
- Active Management: Experienced fund managers make informed decisions based on research.
- Strong Track Record: Many funds have consistently outperformed benchmarks.
- Social Impact: More than 40% of company profits support medical research via the Stowers Institute.
Investment Offerings by American Century
Mutual Funds
American Century offers a wide range of mutual funds to match different goals and risk levels:
- Growth Funds – Ideal for long-term capital appreciation.
- Value Funds – Focus on undervalued stocks with strong fundamentals.
- International Funds – Diversification outside the U.S. market.
- Fixed Income Funds – For income and capital preservation.
- Asset Allocation Funds – Balanced portfolios tailored for goals like retirement.
ETFs (Exchange-Traded Funds)
Their ETF offerings are growing rapidly, with a focus on:
- Active Equity ETFs
- ESG-focused ETFs
- Fixed-income ETFs
Popular choices in 2025 include:
- American Century STOXX U.S. Quality Value ETF (VALQ)
- American Century Multisector Income ETF (MUSI)
Retirement and 401(k) Plans
They offer customized retirement solutions for both individuals and businesses, with features like:
- Target-date retirement funds
- Risk-based portfolio strategies
- Rollover IRA options
How American Century Investments Makes Money Work Smarter
Investment Philosophy
American Century believes in active investing grounded in disciplined research. Their strategy includes:
- Fundamental analysis of companies
- Macro-level insights for sector decisions
- Risk-managed portfolio construction
This strategy allows managers to make informed bets rather than simply tracking indexes.
Technology & Innovation in 2025
In 2025, American Century is using:
- AI-driven financial modeling
- Big data analytics
- ESG metrics tools for sustainability-focused investing
Social Responsibility & Philanthropy
One of the most unique aspects of American Century is its commitment to philanthropy. Over 40% of its profits go to the Stowers Institute for Medical Research, a world-class biomedical research center.
Why This Matters
Investors indirectly support life-changing scientific research by investing with American Century. This model is rare in the financial industry and appeals to socially conscious investors.
Performance Review: Are American Century Funds Worth It?
2025 Performance Snapshot
While performance varies by fund, many American Century funds have outperformed benchmarks in the last 1, 3, and 5-year periods.
Top-Performing Funds (YTD 2025):
- American Century Focused Dynamic Growth Fund – +18%
- American Century Inflation-Adjusted Bond Fund – +7.2%
- American Century Small Cap Value Fund – +15.4%
What Investors Are Saying
User reviews consistently praise:
- Easy-to-use digital platforms
- Helpful financial advisors
- Ethical mission
- Transparency in reporting
How to Start Investing with American Century
Step-by-Step Guide
- Visit the Official Website: americancentury.com
- Create an Account: Choose individual or retirement.
- Set Goals: Short-term, retirement, education, etc.
- Pick Your Funds: Based on risk and return objectives.
- Automate Investments: Set up recurring deposits.
- Monitor Performance: Use online dashboard or mobile app.
Minimum Investment
- Mutual funds: As low as $2,500
- Retirement IRAs: Often $1,000 or less
Comparing American Century to Other Investment Firms
| Feature | American Century | Vanguard | Fidelity |
|---|---|---|---|
| Active Management | ✔️ | Limited | ✔️ |
| Social Mission | ✔️ | ❌ | ❌ |
| Mutual Fund Variety | High | High | High |
| Tech & Innovation | Advanced | Basic | Advanced |
| Minimum Investments | Moderate | Low | Low |
American Century shines when you value active management and social impact.
Pros and Cons of American Century Investments
✅ Pros
- Strong long-term performance
- Transparent and ethical structure
- Excellent fund variety
- Impact-driven mission
- User-friendly digital tools
❌ Cons
- Higher expense ratios than passive funds
- Limited robo-advisory features
- Some funds may have high minimums
Who Should Consider American Century Investments?
American Century is ideal for:
- Long-term investors seeking active management
- Individuals who want their money to support a social cause
- Retirement planners needing stable growth options
- Intermediate investors looking for guidance but not full robo-advising
Latest News & Trends (2025)
- AI-Powered Portfolio Tools: In beta testing, offering predictive performance metrics.
- New ESG-Focused Funds: Rising demand among Gen Z and millennial investors.
- Partnerships with Fintech Apps: Making fund access easier on mobile.
- Growth in Asia-Pacific Markets: Expanding global investment opportunities.
These innovations are keeping American Century relevant in a fast-changing financial landscape.
FAQs About American Century Investments
1. Is American Century a good investment company?
Yes, it has a solid reputation, proven performance, and a unique philanthropic model that appeals to responsible investors.
2. What are the best American Century mutual funds?
Top choices in 2025 include:
- Focused Dynamic Growth Fund
- Small Cap Value Fund
- Multisector Income Fund
3. How do I open an account with American Century?
You can start online at their official site or call a representative to walk you through the process. Account setup is fast and easy.
4. Is American Century good for beginners?
Absolutely. Their tools, educational content, and customer support make it a beginner-friendly platform.
5. How are the fees at American Century?
Fees vary by fund but are generally in line with other actively managed funds. Passively managed ETFs offer lower fees.
6. Can I invest in American Century through my 401(k)?
Yes, many employers offer American Century funds in their 401(k) plans. You can also roll over existing plans into an IRA with them.
7. Are their investments socially responsible?
Yes. Many funds follow ESG criteria, and a portion of profits supports critical medical research.
Conclusion: Is American Century Right for You?
American Century Investments is more than just a traditional asset manager—it’s a forward-thinking, mission-driven company offering excellent investment options with real-world impact. Whether you’re a first-time investor or a seasoned financial planner, their services provide a mix of performance, ethics, and innovation.
If you’re looking to grow your wealth while supporting a good cause, American Century might be the right fit.
