About CTAKX
American Funds College 2036 Fund 529-F-3 is a target date mutual fund designed to help investors save for future college costs. Its primary function is to offer a diversified portfolio that automatically adjusts over time, aiming for asset growth, income, and eventual capital preservation as the designated target year—2036—approaches. The fund invests in a combination of American Funds, spanning growth, growth-and-income, equity-income, balanced, and bond funds. This broad allocation allows exposure to both U.S. and international equities, as well as fixed income instruments, enabling a balance between potential appreciation and risk mitigation.
With approximately 70% to 85% of its assets in equities during its early years, the fund gradually becomes more conservative by increasing its fixed income allocation as the target date nears. The portfolio is diversified across multiple sectors, including information technology, industrials, financials, healthcare, and consumer discretionary. Designed specifically for education-related savings, this fund is most relevant for families and individuals seeking a tax-advantaged way to prepare for anticipated tuition and associated expenses. Its glide path strategy and periodic rebalancing help address changing risk profiles and market conditions, making it a prominent choice in the education savings segment of the financial market.
Fund Family Capital Group
Category Mixed-Asset Target 2040
Performance Rating Above Average
Risk Rating Below Average
Stock Exchange Nasdaq
Ticker Symbol CTAKX
Share Class Class 529-f-3
Index S&P 500 TR
CTAKX had a total return of 9.74% in the past year, including dividends. Since the fund's
inception, the average annual return has been 8.80%.
