WASHINGTON MUTUAL INVESTORS FUND INC, 485BPOS, 2000-03-09

WASHINGTON MUTUAL INVESTORS FUND INC
485BPOS, 2000-03-09

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=====================================================
SEC File Nos. 2-11051
811-604
=====================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-1A
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 102
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 30

WASHINGTON MUTUAL INVESTORS FUND, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
1101 VERMONT AVENUE, N.W.
WASHINGTON, D.C. 20005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(202) 842-5665

STEPHEN HARTWELL
WASHINGTON MANAGEMENT CORPORATION
1101 VERMONT AVENUE, N.W.
WASHINGTON, D.C. 20005
(NAME AND ADDRESS OF AGENT FOR SERVICE)

COPIES TO:
JOHN JUDE O'DONNELL, ESQ.
THOMPSON, O'DONNELL, MARKHAM, NORTON & HANNON
805 FIFTEENTH STREET, N.W.
WASHINGTON, D.C. 20005
(COUNSEL FOR THE REGISTRANT)

THE REGISTRANT FILED ITS 24F-2 NOTICE FOR FISCAL 1999 ON JULY 22, 1999.
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
/x/ IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE ON MARCH 15, 2000,
PURSUANT TO PARAGRAPH (B) OF RULE 485.
===============================================
<PAGE>

THE AMERICAN FUNDS GROUP LOGO

- --------------------------------------------------------------------------------

WASHINGTON MUTUAL
INVESTORS FUND -SM-

PROSPECTUS

MARCH 15, 2000

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE
SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS TRUTHFUL OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
WASHINGTON MUTUAL INVESTORS FUND, INC.

1101 Vermont Avenue, NW
Washington, DC 20005

- -------------------------------------------------------------------

TABLE OF CONTENTS

Risk/Return Summary 1
..................................................................
Fees and Expenses of the Fund 4
..................................................................
Investment Objective, Strategies and Risks 6
..................................................................
Management and Organization 9
..................................................................
Shareholder Information 11
..................................................................
Choosing a Share Class 12
..................................................................
Purchase and Exchange of Shares 13
..................................................................
Sales Charges 14
..................................................................
Sales Charge Reductions and Waivers 16
..................................................................
Plans of Distribution 18
..................................................................
How to Sell Shares 18
..................................................................
Distributions and Taxes 20
..................................................................
Financial Highlights 21
</TABLE>

- -------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------

RISK/RETURN SUMMARY

The fund seeks to produce current income and to provide an opportunity for
growth of principal consistent with sound common stock investing. The fund
invests primarily in common stocks of larger, more established companies that
are listed on the New York Stock Exchange and have a strong record of earnings
and dividends.

The fund is designed to provide fiduciaries, organizations, institutions and
individuals with a convenient and prudent medium of investment in high quality
common stocks and securities convertible into common stocks. It is especially
designed to serve those individuals who are charged with the responsibility of
investing retirement plan trusts, other fiduciary type reserves, or family
funds, but who are reluctant to undertake the selection and supervision of
individual stocks.

The fund strives to maintain a fully invested, diversified portfolio, primarily
of high-quality stocks and securities convertible into common stocks. The fund
has stringent Investment Standards based upon criteria originally established by
the United States District Court for the District of Columbia for determining
eligibility under the Court's Legal List procedure which was in effect for many
years. Applying these Investment Standards, the fund's Investment Adviser
compiles an "Eligible List" of investments considered appropriate for a prudent
investor seeking opportunities for income and growth of principal consistent
with common stock investing. The Investment Adviser is required to select the
fund's investments exclusively from the Eligible List. The Investment Adviser
monitors the Eligible List and makes recommendations to the Board of Directors
of additions to, or deletions from, the List to comply with the fund's
Investment Standards.

An investment in the fund is subject to risks, including the possibility that
the fund may decline in value in response to economic, social or political
events in the U.S. or abroad. In addition, the prices of equity securities are
also affected by events specifically involving the companies whose securities
are owned by the fund.

Your investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency, entity or person.

YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS IS GREATER
IF YOU INVEST FOR A SHORTER PERIOD OF TIME.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 1
<PAGE>
INVESTMENT RESULTS

The following information provides some indication of the risks of investing in
the fund by showing changes in the fund's investment results from year to year
and by showing how the fund's average annual returns for various periods compare
with those of a broad measure of market performance. Past results are not an
indication of future results.

CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES

(RESULTS DO NOT INCLUDE A SALES CHARGE; IF ONE WERE INCLUDED, RESULTS
WOULD BE LOWER.)

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

The fund's highest/lowest QUARTERLY results during this time period were:

HIGHEST 14.44% (quarter ended June 30, 1997)

LOWEST
- -13.13% (quarter ended September 30, 1990)

2 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
For periods ended December 31, 1999:

<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS LIFETIME
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------

Class A(1)
(with maximum sales charge deducted) -4.67% 20.82% 14.25% 13.58%
.....................................................................................
Class B(2) N/A N/A N/A N/A
.....................................................................................
S&P 500(3) 21.01% 28.49% 18.17% 12.96%
.....................................................................................

Lipper Growth and Income Index(4) 11.86% 20.60% 14.38% N/A(5)
.....................................................................................
</TABLE>

Class A yield: 1.98%

(For current yield information call American
FundsLine-Registered Trademark- at 1-800-325-3590)

(1) THE FUND BEGAN INVESTMENT OPERATIONS FOR CLASS A SHARES ON JULY 31, 1952.

(2) THE FUND IS BEGINNING INVESTMENT OPERATIONS FOR CLASS B SHARES ON MARCH 15,
2000.

(3) THE STANDARD & POOR'S 500 COMPOSITE INDEX IS AN ASSET-WEIGHTED, BROAD-BASED
MEASUREMENT OF CHANGES IN STOCK MARKET CONDITIONS BASED ON THE AVERAGE
PERFORMANCE OF 500 WIDELY HELD COMMON STOCKS. THIS INDEX IS UNMANAGED AND
DOES NOT REFLECT SALES CHARGES, COMMISSIONS OR EXPENSES. THE LIFETIME FIGURE
IS FROM THE DATE THE FUND'S CLASS A SHARES BEGAN INVESTMENT OPERATIONS.

(4) THE LIPPER GROWTH AND INCOME FUNDS INDEX IS AN EQUALLY WEIGHTED PERFORMANCE
INDEX THAT REPRESENTS FUNDS THAT COMBINE A GROWTH-OF-EARNINGS ORIENTATION
AND AN INCOME REQUIREMENT FOR LEVEL AND/OR RISING DIVIDENDS. THE RESULTS OF
THE UNDERLYING FUNDS IN THE INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND
CAPITAL GAIN DISTRIBUTIONS BUT DO NOT REFLECT SALES CHARGES, COMMISSIONS OR
EXPENSES. THIS INDEX WAS NOT IN EXISTENCE AS OF THE DATE THE FUND BEGAN
INVESTMENT OPERATIONS, THEREFORE, LIFETIME RESULTS ARE NOT AVAILABLE.

Unlike the bar chart on the previous page, this table reflects the fund's
investment results with the maximum initial or deferred sales charge deducted,
as required by Securities and Exchange Commission rules. Class A share results
are shown with the maximum initial sales charge of 5.75% deducted. Sales charges
are reduced for purchases of $25,000 or more. Results would be higher if they
were calculated at net asset value. All fund results reflect the reinvestment of
dividend and capital gain distributions.

Class B shares are subject to a maximum deferred sales charge of 5.00% if shares
are redeemed within the first year of purchasing them. The deferred sales charge
declines thereafter until it reaches 0% after six years. Class B shares convert
to Class A shares after eight years. Since the fund's Class B shares begin
investment operations on March 15, 2000, no results are available as of the date
of this prospectus.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 3
<PAGE>
- -------------------------------------------------------------------

FEES AND EXPENSES OF THE FUND

<TABLE>
<CAPTION>
SHAREHOLDERS FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT) CLASS A CLASS B
<S> <C> <C>
- -----------------------------------------------------------
Maximum sales charge imposed on purchases
(AS A PERCENTAGE OF OFFERING PRICE) 5.75%(1) 0.00%
..........................................................
Maximum sales charge imposed on
reinvested dividends 0.00% 0.00%
..........................................................
Maximum deferred sales charge 0.00%(2) 5.00%(3)
..........................................................
Redemption or exchange fees 0.00% 0.00%
</TABLE>

(1) SALES CHARGES ARE REDUCED OR ELIMINATED FOR PURCHASES OF $25,000 OR MORE.

(2) A CONTINGENT DEFERRED SALES CHARGE OF 1% APPLIES ON CERTAIN REDEMPTIONS MADE
WITHIN 12 MONTHS FOLLOWING PURCHASES OF $1 MILLION OR MORE MADE WITHOUT A
SALES CHARGE.

(3) DEFERRED SALES CHARGES ARE REDUCED AFTER 12 MONTHS AND ELIMINATED AFTER SIX
YEARS.

<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) CLASS A CLASS B(1)
<S> <C> <C>
- --------------------------------------------------------------------------
Management Fees 0.29% 0.29%
.........................................................................
Distribution and/or Service (12b-1) Fees 0.23%(2) 1.00%(3)
.........................................................................
Other Expenses 0.09% 0.09%
.........................................................................
Total Annual Fund Operating Expenses 0.61% 1.38%
</TABLE>

(1) BASED ON ESTIMATED AMOUNTS FOR THE CURRENT FISCAL YEAR.

(2) CLASS A 12b-1 EXPENSES MAY NOT EXCEED 0.25% OF THE FUND'S AVERAGE NET ASSETS
ANNUALLY.

(3) CLASS B 12b-1 EXPENSES MAY NOT EXCEED 1.00% OF THE FUND'S AVERAGE NET ASSETS
ANNUALLY.

4 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
EXAMPLE

This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated, that your investment
has a 5% return each year and that the fund's operating expenses remain the same
as shown above. The Class A example reflects the maximum initial sales charge in
Year One. The Class B-assuming redemption example reflects applicable contingent
deferred sales charges through Year Six (after which time they are eliminated).
Both Class B examples reflect Class A expeneses for Years 9 and 10 since Class B
shares automatically convert to Class A after eight years. Although your actual
costs may be higher or lower, based on these assumptions your cumulative
expenses would be:

<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ONE THREE FIVE TEN
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------
Class A $634 $759 $896 $1,293
.................................................................
Class B - assuming redemption $640 $837 $955 $1,447
Class B - assuming no redemption $140 $437 $755 $1,447
</TABLE>

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 5
<PAGE>
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE, STRATEGIES AND RISKS

The fund's investment objective is to produce income and to provide an
opportunity for growth of principal consistent with sound common stock
investing. The fund strives to accomplish this objective through fundamental
research, careful selection, and broad diversification. In the selection of
securities for investment, current and potential yield as well as the potential
for long-term capital appreciation are considered. The fund strives in its
overall portfolio to achieve an above average yield and a below average price-
to-earnings ratio in relation to the Standard & Poor's 500 Composite Index (a
broad, unmanaged index). The fund's portfolio is limited to securities included
on its Eligible List, which is compiled to conform to the fund's Investment
Standards based on criteria that were established by the United States District
Court for the District of Columbia. The Investment Adviser monitors the Eligible
List and makes recommendations to the Board of Directors of changes necessary
for continued compliance with the fund's Investment Standards.

The prices of equity securities may decline in response to certain events,
including those directly involving the companies whose securities are owned in
the fund, adverse conditions affecting the general economy or overall market
declines.

The fund's policy is to maintain at all times for its shareholders a fully
invested and widely diversified portfolio of securities; however, the fund may
hold to a limited extent, short-term U.S. government securities, cash and cash
equivalents.

The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
securities. The basic philosophy of the investment adviser is to seek
undervalued securities that represent good long-term investment opportunities.
Securities may be sold when the investment adviser believes they no longer
represent good long-term value.

OTHER IMPORTANT INVESTMENT PRACTICES

In addition to the principal investment strategies described above, the fund has
other investment practices that are described in the statement of additional
information.

6 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
ADDITIONAL INVESTMENT RESULTS

For periods ended December 31, 1999:

<TABLE>
<CAPTION>
LIPPER
GROWTH
THE FUND'S CLASS A AND
AVERAGE ANNUAL SHARES WITH NO INCOME
TOTAL RETURN SALES CHARGE(1) INDEX(2)
<S> <C> <C>
- ------------------------------------------------------------------------
One Year 1.16% 11.86%

.......................................................................
Five Years 22.26% 20.60%

.......................................................................
Ten Years 14.93% 14.38%

.......................................................................
Lifetime(3) 13.72% N/A(4)
</TABLE>

THESE RESULTS DO NOT REFLECT SALES CHARGES. SALES CHARGES ARE REDUCED OR
ELIMINATED FOR LARGER PURCHASES AND PURCHASES BY CERTAIN RETIREMENT PLANS.

(1) (1) THESE FUND RESULTS WERE CALCULATED ACCORDING TO A FORMULA THAT IS
REQUIRED FOR ALL STOCK AND BOND FUNDS AND INCLUDE THE REINVESTMENT OF
DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS.

(2) THE LIPPER GROWTH AND INCOME FUNDS INDEX IS AN EQUALLY WEIGHTED PERFORMANCE
INDEX THAT REPRESENTS FUNDS THAT COMBINE A GROWTH-OF-EARNINGS ORIENTATION
AND AN INCOME REQUIREMENT FOR LEVEL AND/OR RISING DIVIDENDS. THE RESULTS OF
THE UNDERLYING FUNDS IN THE INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND
CAPITAL GAIN DISTRIBUTIONS BUT DO NOT REFLECT SALES CHARGES, COMMISSIONS OR
EXPENSES.

(3) THE FUND BEGAN INVESTMENT OPERATIONS FOR CLASS A SHARES ON JULY 31, 1952.

(4) THIS INDEX WAS NOT IN EXISTENCE AS OF THE DATE THE FUND BEGAN INVESTMENT
OPERATIONS, THEREFORE, LIFETIME RESULTS ARE NOT AVAILABLE.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 7
<PAGE>
THE FOLLOWING INFORMATION RELATING TO THE FUND'S INVESTMENT PORTFOLIO IS
AS OF THE END OF THE FUND'S FISCAL YEAR, APRIL 30, 1999.

<TABLE>
<CAPTION>
PERCENT OF
LARGEST INVESTMENT CATEGORIES NET ASSETS
<S> <C>
- ------------------------------------------
Finance 22.37%
.........................................
Services 19.57
.........................................
Energy 15.93
.........................................
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
LARGEST INDUSTRY HOLDINGS NET ASSETS
<S> <C>
- ------------------------------------------
Banking 14.12%
.........................................
Telecommunications 10.66
.........................................
Utilities: Electric & Gas 8.45
.........................................
Health & Personal Care 8.16
.........................................
Energy Sources 7.48
.........................................
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
LARGEST INDIVIDUAL HOLDINGS NET ASSETS
<S> <C>
- ------------------------------------------
Bank of America 3.14%
.........................................
Sprint FON Group 2.52
.........................................
Ameritech 2.28
.........................................
First Union 2.24
.........................................
Household International 2.12
.........................................
AT&T 1.94
.........................................
Wells Fargo 1.80
.........................................
US WEST 1.77
.........................................
GTE 1.74
.........................................
Monsanto 1.71
</TABLE>

BECAUSE THE FUND IS ACTIVELY MANAGED, ITS HOLDINGS WILL CHANGE FROM TIME TO
TIME.

8 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- -------------------------------------------------------------------

MANAGEMENT AND ORGANIZATION

BUSINESS MANAGER

Washington Management Corporation provides the services necessary to carry on
the fund's general administrative and corporate affairs. These services
encompass general corporate governance, regulatory compliance and oversight of
each of the fund's contractual service providers including custodian operations,
shareholder services and fund share distribution functions. Washington
Management Corporation, a wholly owned subsidiary of The Johnston-Lemon Group,
Incorporated, maintains its principal business address at 1101 Vermont Avenue,
NW, Washington, DC 20005.

INVESTMENT ADVISER

Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and other
funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio of the fund.
Total management fees paid by the fund to its business manager and investment
adviser, as a percentage of average net assets, for the previous fiscal year are
discussed earlier under "Fees and Expenses of the Fund."

Capital Research and Management Company and its affiliated companies have
adopted a personal investing policy that is consistent with the recommendations
contained in the May 9, 1994 report issued by the Investment Company Institute's
Advisory Group on Personal Investing.

MULTIPLE PORTFOLIO COUNSELOR SYSTEM

Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach the portfolio of
a fund is divided into segments which are managed by individual counselors.
Counselors decide how their respective segments will be invested within the
limits provided by a fund's objective(s) and policies and by Capital Research
and Management Company's investment committee. In addition, Capital Research and
Management Company's research professionals may make investment decisions with
respect to a portion of a fund's portfolio.
The primary individual portfolio counselors for Washington Mutual Investors Fund
are listed on the following page.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 9
<PAGE>

<TABLE>
<CAPTION>
APPROXIMATE
YEARS OF EXPERIENCE AS
INVESTMENT PROFESSIONAL
(INCLUDING THE
YEARS OF EXPERIENCE LAST FIVE YEARS)
AS PORTFOLIO COUNSELOR WITH CAPITAL
PORTFOLIO COUNSELORS (AND RESEARCH PROFESSIONAL, RESEARCH AND
FOR IF APPLICABLE) FOR MANAGEMENT
WASHINGTON MUTUAL WASHINGTON MUTUAL INVESTORS COMPANY OR
INVESTORS FUND PRIMARY TITLE(S) FUND (APPROXIMATE) ITS AFFILIATES TOTAL YEARS
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
TIMOTHY D. ARMOUR Chairman and Chief Executive 9 years (plus 4 years as a research 17 years 17 years
Officer, Capital Research Company* professional prior to becoming a
portfolio counselor for the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
STEPHEN E. Senior Vice President, Capital 19 years (plus 8 years as a 27 years 34 years
BEPLER Research Company* research professional prior to
becoming a portfolio counselor for
the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
JAMES K. Senior Vice President and Director, 22 years (plus 7 years as a 38 years 38 years
DUNTON Capital Research and Management research professional prior to
Company becoming a portfolio counselor for
the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
J. DALE Vice President and Director, 3 years (plus 4 years as a research 9 years 11 years
HARVEY Capital Research Company* professional prior to becoming a
portfolio counselor for the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
GREGG E. Senior Vice President, Capital 9 years (plus 7 years as a research 27 years 27 years
IRELAND Research and Management Company professional prior to becoming a
portfolio counselor for the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
JAMES B. Senior Vice President, Capital 9 years (plus 2 years as a research 18 years 18 years
LOVELACE Research and Management Company professional prior to becoming a
portfolio counselor for the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT G. O'DONNELL Senior Vice President and Director, 6 years (plus 17 years as a 25 years 28 years
Capital Research and Management research professional prior to
Company becoming a portfolio counselor for
the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
JAMES F. ROTHENBERG President and Director, Capital 6 years (plus 9 years as a research 30 years 30 years
Research and Management Company professional -- 1971-1979--prior to
becoming a portfolio counselor for
the fund)
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* COMPANY AFFILIATED WITH CAPITAL RESEARCH AND MANAGEMENT COMPANY

10 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------

SHAREHOLDER INFORMATION

SHAREHOLDER SERVICES

American Funds Service Company, the fund's transfer agent, offers you a wide
range of services you can use to alter your investment program should your needs
and circumstances change. These services may be terminated or modified at any
time upon 60 days' written notice. For your convenience, American Funds Service
Company has four service centers across the country.

AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
CALL TOLL-FREE FROM ANYWHERE IN THE U.S.
(8 A.M. TO 8 P.M. ET):
800/421-0180

[MAP]

<TABLE>
<S> <C> <C> <C>
WESTERN WESTERN CENTRAL EASTERN CENTRAL EASTERN
SERVICE CENTER SERVICE CENTER SERVICE CENTER SERVICE CENTER
American Funds American Funds American Funds American Funds
Service Company Service Company Service Company Service Company
P.O. Box 2205 P.O. Box 659522 P.O. Box 6007 P.O. Box 2280
Brea, California San Antonio, Texas Indianapolis, Norfolk, Virginia
92822-2205 78265-9522 Indiana 23501-2280
Fax: 714/671-7080 Fax: 210/474-4050 46206-6007 Fax: 757/670-4773
Fax: 317/735-6620
</TABLE>

A COMPLETE DESCRIPTION OF THE SERVICES WE OFFER IS INCLUDED IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION. In addition, an easy-to-read guide to
owning a fund in The American Funds Group titled "Welcome to the Family" is sent
to new shareholders and is available by writing or calling American Funds
Service Company.

You may invest in the fund through various retirement plans. However, Class B
shares generally are not available to certain retirement plans (for example,
group retirement plans such as 401(k) plans, employer-sponsored 403(b) plans,
and money purchase pension and profit sharing plans). Some retirement plans or
accounts held by investment dealers may not offer certain services. If you have
any questions, please contact American Funds Service Company, your plan
administrator/trustee or dealer.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 11
<PAGE>
- --------------------------------------------------------------------------------

CHOOSING A SHARE CLASS

The fund offers both Class A and Class B shares. Each share class has its own
sales charge and expense structure, allowing you to choose the class that best
meets your situation.

Factors you should consider in choosing a class of shares include:

- How long you expect to own the shares

- How much you intend to invest

- The expenses associated with owning shares of each class

- Whether you qualify for any reduction or waiver of sales charges (for
example, Class A shares may be a less expensive option over time if you
qualify for a sales charge reduction or waiver)

EACH INVESTOR'S FINANCIAL CONSIDERATIONS ARE DIFFERENT. YOU SHOULD SPEAK WITH
YOUR FINANCIAL ADVISER TO HELP YOU DECIDE WHICH SHARE CLASS IS BEST FOR YOU.

Differences between Class A and Class B shares include:

<TABLE>
<CAPTION>
CLASS A CLASS B
<S> <C>
- ------------------------------------------------------------------------
Initial sales charge of up to 5.75%. No initial sales charge.
Sales charges are reduced for purchases
of $25,000 or more
(see "Sales Charges -- Class A").
.......................................................................
Distribution and service (12b-1) Distribution and service
fees of up to 0.25% annually. (12b-1) fees of up to 1.00%
annually.
.......................................................................
Higher dividends than Class B shares Lower dividends than Class A
due to lower annual expenses. shares due to higher
distribution fees and other
expenses.
.......................................................................
No contingent deferred sales charge A contingent deferred sales
(except on certain redemptions on charge
purchases of $1 million or more bought if you sell shares within six
without an initial sales charge). years of buying them. The
charge starts at 5% and
declines thereafter until it
reaches 0% after six years.
(see "Sales Charges --
Class B").
.......................................................................
No purchase maximum. Maximum purchase of $100,000.
.......................................................................
Automatic conversion to
Class A shares after eight
years, reducing future annual
expenses.
</TABLE>

12 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------

PURCHASE AND EXCHANGE OF SHARES

PURCHASE

Generally, you may open an account by contacting any investment dealer (who may
impose transaction charges in addition to those described in this prospectus)
authorized to sell the fund's shares. You may purchase additional shares using
various options described in the statement of additional information and
"Welcome to the Family."

EXCHANGE

You may exchange your shares into shares of the same class of other funds in The
American Funds Group generally without a sales charge. For purposes of computing
the contingent deferred sales charge on Class B shares, the length of time you
have owned your shares will be measured from the date of original purchase and
will not be affected by any exchange.

Exchange of shares from the money market funds initially purchased without a
sales charge generally will be subject to the appropriate sales charge.
Exchanges have the same tax consequences as ordinary sales and purchases. See
"Transactions by Telephone..." for information regarding electronic exchanges.

THE FUND AND AMERICAN FUNDS DISTRIBUTORS, THE FUND'S PRINCIPAL UNDERWRITER,
RESERVE THE RIGHT TO REJECT ANY PURCHASE ORDER FOR ANY REASON. ALTHOUGH THERE IS
CURRENTLY NO SPECIFIC LIMIT ON THE NUMBER OF EXCHANGES YOU CAN MAKE IN A PERIOD
OF TIME, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO REJECT
ANY PURCHASE ORDER AND MAY TERMINATE THE EXCHANGE PRIVILEGE OF ANY INVESTOR
WHOSE PATTERN OF EXCHANGE ACTIVITY THEY HAVE DETERMINED INVOLVES ACTUAL OR
POTENTIAL HARM TO THE FUND.

PURCHASE MINIMUMS FOR CLASS A AND B SHARES

<TABLE>
<S> <C>
- ----------------------------------------------------------------------
To establish an account (including retirement plan accounts) $ 250
For a retirement plan account through payroll deduction $ 25
To add to an account $ 50
For a retirement plan account through payroll deduction $ 25
PURCHASE MAXIMUM FOR CLASS B SHARES $100,000
</TABLE>

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 13
<PAGE>
SHARE PRICE

The fund calculates its share price, also called net asset value, as of
approximately 4:00 p.m. New York time, which is the normal close of trading on
the New York Stock Exchange, every day the Exchange is open. In calculating net
asset value, market prices are used when available. If a market price for a
particular security is not available, the fund will determine the appropriate
price for the security.

Your shares will be purchased at the net asset value plus any applicable sales
charge in the case of Class A shares, or sold at the net asset value next
determined after American Funds Service Company receives and accepts your
request. Sales of certain Class A and B shares may be subject to contingent
deferred sales charges.

- --------------------------------------------------------------------------------

SALES CHARGES

CLASS A

The initial sales charge you pay when you buy Class A shares differs depending
upon the amount you invest and may be reduced for large purchases as indicated
below.

<TABLE>
<CAPTION>
SALES CHARGE AS A PERCENTAGE OF
.............................................
NET DEALER COMMISSION
OFFERING AMOUNT AS % OF
INVESTMENT PRICE INVESTED OFFERING PRICE
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Less than $25,000 5.75% 6.10% 5.00%
.............................................................................................................................
$25,000 but less than $50,000 5.00% 5.26% 4.25%
.............................................................................................................................
$50,000 but less than $100,000 4.50% 4.71% 3.75%
.............................................................................................................................
$100,000 but less than $250,000 3.50% 3.63% 2.75%
.............................................................................................................................
$250,000 but less than $500,000 2.50% 2.56% 2.00%
.............................................................................................................................
$500,000 but less than $750,000 2.00% 2.04% 1.60%
.............................................................................................................................
$750,000 but less than $1 million 1.50% 1.52% 1.20%
.............................................................................................................................
$1 million or more and certain other investments
described below see below see below see below
</TABLE>

CLASS A PURCHASES NOT SUBJECT TO SALES CHARGE

Investments of $1 million or more are sold with no initial sales charge.
HOWEVER, A 1% CONTINGENT DEFERRED SALES CHARGE MAY BE IMPOSED IF REDEMPTIONS ARE
MADE WITHIN ONE YEAR OF PURCHASE. Employer-sponsored defined contribution-type
plans investing $1 million or more or with 100 or more eligible employees, and
Individual Retirement Account rollovers involving retirement plan assets
invested in the American Funds, may invest with no sales charge and are not
subject to a contingent deferred sales

14 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
charge. Investments made through retirement plans, endowments or foundations
with $50 million or more in assets, or through certain qualified fee-based
programs, may also be made with no sales charge and are not subject to a
contingent deferred sales charge. The fund may pay a dealer concession of up to
1% under its Plan of Distribution on investments made with no initial sales
charge.

CLASS B

Class B shares are sold without any initial sales charge. However, a contingent
deferred sales charge may be applied to shares you redeem within six years of
purchase, as shown in the table below.

<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES CHARGE
ON SHARES SOLD WITHIN YEAR AS A % OF SHARES BEING SOLD
<S> <C>
- --------------------------------------------------------------------------
1 5.00%
2 4.00%
3 4.00%
4 3.00%
5 2.00%
6 1.00%
</TABLE>

Shares acquired through reinvestment of dividends or capital gain distributions
are not subject to a contingent deferred sales charge. In addition, the
contingent deferred sales charge may be waived in certain circumstances. See
"Contingent Deferred Sales Charge Waivers for Class B Shares" below. The
contingent deferred sales charge is based on the original purchase cost or the
current market value of the shares being sold, whichever is less. For purposes
of determining the contingent deferred sales charge, if you sell only some of
your shares, shares that are not subject to any contingent deferred sales charge
will be sold first and then shares that you have owned the longest.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 15
<PAGE>
CLASS B CONVERSION TO A SHARES

Class B shares automatically convert to Class A shares in the month of the
eight-year anniversary of the purchase date. The Internal Revenue Service
currently takes the position that this automatic conversion is not taxable.
Should their position change, shareholders would still have the option of
converting but may face certain tax consequences. Please see the statement of
additional information for more information.

- --------------------------------------------------------------------------------

SALES CHARGE REDUCTIONS AND WAIVERS

You must let your investment dealer or American Funds Service Company know if
you qualify for a reduction in your Class A sales charge or waiver of your
Class B contingent deferred sales charge using one or any combination of the
methods described below, in the statement of additional information and "Welcome
to the Family."

REDUCING YOUR CLASS A SALES CHARGE

You and your "immediate family" (your spouse and your children under the age of
21) may combine investments to reduce your Class A sales charge.

AGGREGATING ACCOUNTS

To receive a reduced Class A sales charge, investments made by you and your
immediate family (see above) may be aggregated if made for their own account(s)
and/or:

- trust accounts established by the above individuals. However, if the
person(s) who established the trust is deceased, the trust account may be
aggregated with accounts of the person who is the primary beneficiary of
the trust.

- solely controlled business accounts.

- single-participant retirement plans.

Other types of accounts may also be aggregated. You should check with your
financial adviser or consult the statement of additional information or "Welcome
to the Family" for more information.

16 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
CONCURRENT PURCHASES

You may combine simultaneous purchases of Class A and/or B shares of two or more
American Funds, as well as individual holdings in various American Legacy
variable annuities or variable life insurance policies, to qualify for a reduced
Class A sales charge. Direct purchases of money market funds are excluded.

RIGHTS OF ACCUMULATION

You may take into account the current value of your existing Class A and B
holdings in the American Funds, as well as individual holdings in various
American Legacy variable annuities or variable life insurance policies to
determine your Class A sales charge. Direct purchases of money market funds are
excluded.

STATEMENT OF INTENTION

You can reduce the sales charge you pay on your Class A share purchases by
establishing a Statement of Intention. A Statement of Intention allows you to
combine all Class A and B share non-money market fund purchases, as well as
individual American Legacy variable annuity and life insurance policies you
intend to make over a 13-month period, to determine the applicable sales
interest charge. At your request purchases made during the previous 90 days may
be included; however, capital appreciation and reinvested dividends and capital
gains do not apply toward these combined purchases. A portion of your account
may be held in escrow to cover additional Class A sales charges which may be due
if your total investments over the 13-month period do not qualify for the
applicable sales charge reduction.

CONTINGENT DEFERRED SALES CHARGE WAIVERS FOR CLASS B SHARES

The contingent deferred sales charge on Class B shares may be waived in the
following cases:

- to receive payments through systematic withdrawal plans (up to 12% of the
value of your account);

- to receive certain distributions, such as required minimum distributions
from retirement accounts; or

- for redemptions due to death or post-purchase disability of the
shareholder.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 17
<PAGE>
For more information, please consult your financial adviser, the statement of
additional information and "Welcome to the Family."

- --------------------------------------------------------------------------------

PLANS OF DISTRIBUTION

The fund has Plans of Distribution or "12b-1 Plans" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board of directors. The plans
provide for annual expenses of up to 0.25% for Class A shares and up to 1.00%
for Class B shares. Up to 0.25% of these payments are used to pay service fees
to qualified dealers for providing certain shareholder services. The remaining
0.75% expense for Class B shares is used for financing commissions paid to your
dealer. The 12b-1 fees paid by the fund, as a percentage of average net assets,
for the previous fiscal year is indicated above under "Fees and Expenses of the
Fund." Since these fees are paid out of the fund's assets or income on an
ongoing basis, over time they will increase the cost and reduce the return of an
investment. The higher fees for Class B shares may cost you more over time than
paying the initial sales charge for Class A shares.

OTHER COMPENSATION TO DEALERS

American Funds Distributors may provide additional compensation to, or sponsor
informational meetings for, dealers as described in the statement of additional
information.

- --------------------------------------------------------------------------------

HOW TO SELL SHARES

Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:

THROUGH YOUR DEALER (CERTAIN CHARGES MAY APPLY)

- Shares held for you in your dealer's name must be sold through the dealer.

18 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
WRITING TO AMERICAN FUNDS SERVICE COMPANY

- Requests must be signed by the registered shareholder(s).

- A signature guarantee is required if the redemption is:

-- Over $50,000;

-- Made payable to someone other than the registered shareholder(s); or

-- Sent to an address other than the address of record, or an address of
record which has been changed within the last 10 days.

- Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.

TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE-REGISTERED TRADEMARK- OR AMERICAN FUNDSLINE ONLINE-REGISTERED
TRADEMARK-:

- Redemptions by telephone or fax (including American FundsLine and American
FundsLine OnLine) are limited to $50,000 per shareholder each day.

- Checks must be made payable to the registered shareholder.

- Checks must be mailed to an address of record that has been used with the
account for at least 10 days.

TRANSACTIONS BY TELEPHONE, FAX, AMERICAN FUNDSLINE, OR AMERICAN FUNDSLINE ONLINE

Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all of
these services. You may reinstate these services at any time.

Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold the fund, American Funds Service Company, any of
its affiliates or mutual funds managed by such affiliates, the fund's business
manager, and each of their respective directors, trustees, officers, employees
and agents harmless from any losses, expenses, costs or liabilities (including
attorney fees) which may be incurred in connection with the exercise of these
privileges, provided American Funds Service Company employs reasonable
procedures to confirm that the instructions received from any person with
appropriate account information are genuine. If reasonable procedures are not
employed, it and/or the fund may be liable for losses due to unauthorized or
fraudulent instructions.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 19
<PAGE>
- --------------------------------------------------------------------------------

DISTRIBUTIONS AND TAXES

DIVIDENDS AND DISTRIBUTIONS

The fund intends to distribute dividends to you, usually in March, June,
September and December. Capital gains, if any, are usually distributed in
December. When a dividend or capital gain is distributed, the net asset value
per share is reduced by the amount of the payment.

You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of this fund or any other fund in The American Funds
Group or you may elect to receive them in cash. Most shareholders do not elect
to take capital gain distributions in cash because these distributions reduce
principal value.

TAXES ON DISTRIBUTIONS

Distributions you receive from the fund are subject to income tax and may also
be subject to state or local taxes -- unless you are exempt from taxation.

For federal tax purposes, any taxable dividends and distributions of short-term
capital gains are treated as ordinary income. The fund's distributions of net
long-term capital gains are taxable to you as long-term capital gains. Any
taxable distributions you receive from the fund will normally be taxable to you
when made, regardless of whether you reinvest distributions or receive them in
cash.

TAXES ON TRANSACTIONS

Your redemptions, including exchanges, may result in a capital gain or loss for
federal tax purposes. A capital gain or loss on your investment in the fund is
the difference between the cost of your shares, including any sales charges, and
the price you receive when you sell them.

Please see the statement of additional information, the "Welcome to the Family"
guide, and your tax adviser for further information.

20 WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the fund's
results for the past five years and is currently only shown for Class A shares.
A similar table will be shown for Class B shares beginning with the fund's 2000
fiscal year end. Certain information reflects financial results for a single
fund share. The total returns in the table represent the rate that an investor
would have earned or lost on an investment in the fund (assuming reinvestment of
all dividends and distributions). This information has been audited by
PricewaterhouseCoopers LLP, whose report, along with the fund's financial
statements, is included in the statement of additional information, which is
available upon request.

<TABLE>
<CAPTION>
YEAR ENDED APRIL 30
Six months ended ----------------------------------------------
10/31/99(1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
------------------ ----------------------------------------------
Net asset value,
beginning of period $35.31 $33.92 $25.93 $22.77 $18.87 $17.11
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income .30 .60 .62 .62 .63 .63
Net gains or losses on securities
(both realized and unrealized) (1.23) 3.99 9.65 4.36 4.98 2.16
- --------------------------------------------------------------------------------------------------------------
Total from investment operations (.93) 4.59 10.27 4.98 5.61 2.79
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends (from net investment income) (.29) (.61) (.62) (.62) (.62) (.62)
Distributions (from capital gains) -- (2.59) (1.66) (1.20) (1.09) (.41)
- --------------------------------------------------------------------------------------------------------------
Total distributions (.29) (3.20) (2.28) (1.82) (1.71) (1.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $34.09 $35.31 $33.92 $25.93 $22.77 $18.87
- --------------------------------------------------------------------------------------------------------------
Total return(2) (2.65)%(3) 14.61% 40.80% 22.43% 30.40% 17.01%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 56,449 $57,018 $45,764 $28,165 $20,689 $14,426
- --------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets .31%(3) .61% .62% .64% .66% .69%
- --------------------------------------------------------------------------------------------------------------
Ratio of net income to average net
assets .88%(3) 1.84% 2.08% 2.56% 2.98% 3.57%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12.38%(3) 27.93% 17.61% 20.41% 23.41% 25.45%
</TABLE>

(1)UNAUDITED.
(2)EXCLUDES SALES CHARGE.
(3)BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, NOT REPRESENTATIVE
OF A FULL YEAR.

WASHINGTON MUTUAL INVESTORS FUND / PROSPECTUS 21
<PAGE>

<TABLE>
<S> <C>
FOR SHAREHOLDER SERVICES American Funds Service Company
800/421-0180
FOR RETIREMENT PLAN SERVICES Call your employer or plan administrator
FOR DEALER SERVICES American Funds Distributors
800/421-9900 Ext.11
FOR 24-HOUR INFORMATION American FundsLine-Registered Trademark-
800/325-3590
American FundsLine OnLine-Registered Trademark-
http://www.americanfunds.com
</TABLE>

Telephone conversations may be recorded or monitored for
verification, recordkeeping and quality assurance purposes.

* * * * *

MULTIPLE TRANSLATIONS This prospectus may be translated into other languages. If
there is any inconsistency or ambiguity as to the meaning of any word or phrase
in a translation, the English text will prevail.

ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS Contains additional information about
the fund including financial statements, investment results, portfolio holdings,
a statement from portfolio management discussing market conditions and the
fund's investment strategies, and the independent accountants' report (in the
annual report).

STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODE OF ETHICS The SAI contains
more detailed information on all aspects of the fund, including the fund's
financial statements and is incorporated by reference into this prospectus. The
investment adviser's code of ethics describes the personal investing policy
adopted by the fund's investment adviser and its affiliated companies.

The code of ethics and current SAI have been filed with the Securities and
Exchange Commission ("SEC"). These and other related materials about the fund
are available for review or to be copied at the SEC's Public Reference Room in
Washington, D.C. (202/942-8090) or on the EDGAR database on the SEC's Internet
Web site at http:// www.sec.gov, or, after payment of a duplicating fee, via
e-mail request to public [email protected] or by writing the SEC's Public Reference
Section, Washington, D.C. 20549-0102.

HOUSEHOLD MAILINGS Each year you are automatically sent an updated prospectus,
annual and semi-annual report for the fund. In order to reduce the volume of
mail you receive, when possible, only one copy of these documents will be sent
to shareholders that are part of the same family and share the same residential
address.

If you would like to receive individual copies of these documents, or a free
copy of the SAI or Codes of Ethics, please call American Funds Service Company
at 800/421-0180 or write to the Secretary of the fund at 1101 Vermont Avenue,
NW, Washington, D.C. 20005.

Investment Company File No. 811-604
[LOGO]
Printed on recycled paper

THE FUND PROVIDES SPANISH TRANSLATIONS IN CONNECTION
WITH THE PUBLIC OFFERING AND SALES OF ITS SHARES. THE
FOLLOWING IS A FAIR AND ACCURATE TRANSLATION PF A SPANISH
LANGUAGE PROSPECTUS FOR THE FUND.
Howard L. Kitzmiller, Senior Vice President and Secretary

<PAGE>