In a year where headlines scream AI and crypto, one of the oldest mutual funds in the world is keeping things calm, classic, and quietly crushing it.
The Investment Company of America fund by Capital Group, managing over $200 billion since 1934, is up ahead of the S&P 500 in 2025, and it didn’t need any PR hype to get there.
Anita Patel, one of the strategy leads at Capital Group, says their edge comes from sticking to strong fundamentals. With eight managers running the show, they focus on picking solid U.S. companies that pay dividends and ride out market noise.
In fact, 80% of their holdings are dividend payers. That’s not just for income, it’s a signal that these companies know how to manage money and survive tough times.
GE Aerospace, Microsoft, and Carrier Are the Quiet Stars
Capital Group is putting its weight behind the industrial sector this year. They’re betting big on GE Aerospace as air travel makes a strong comeback post-COVID. With new planes in short supply, GE’s aftermarket services are seeing booming demand, which means consistent revenue.
Carrier Global is another favorite. It’s making HVAC systems smarter and more energy-efficient, something that’s crucial since 40% of building emissions come from heating and cooling. As green tech takes over, Capital sees this as a long-term winner.
And then there’s Microsoft. They’ve held the stock since 1993 and still believe in its growth story. Microsoft’s grip on cloud, AI (thanks to OpenAI), and subscription-based models keeps them leading.
Patel points out its 20-year streak of dividend growth as another reason the fund won’t let go of this tech giant.
Uber’s In, Tesla’s Not (Really)
The fund also recently picked up Uber in 2023, calling it a smarter way to tap into the driverless car market. They believe Uber already has the network, and it doesn’t need to build cars from scratch.
Tesla, on the other hand, is capital-heavy and too volatile for the fund’s taste. It’s there, but in a very small way.
Through all this, Patel’s advice is simple: block out the noise, stay invested, and think long-term. Because even in a year full of chaos, old-school investing still works, if you know where to look.
