PROFILE PROSPECTUS
THE BOND FUND OF AMERICA (SM)
MAY 15, 1996
[The American Funds Group (R)]
<PAGE>
THE BOND FUND OF AMERICA (R)
333 South Hope Street May 15, 1996
Los Angeles, CA 90071
1. GOALS
The fund seeks to provide you with high income while preserving your
investment.
2. INVESTMENT STRATEGIES
The fund will invest at least 60% of its assets in higher quality bonds
(rated "A" or better). The fund may also hold lower rated bonds (including
"junk bonds"). The fund may hold a variety of different types of securities
including U.S. Government securities, corporate securities, and asset-backed
securities. In addition, the fund may invest in non-U.S. bonds to a limited
degree and up to 1% of its assets in inverse floating rate notes (a type of
derivative instrument). The fund may purchase and sell various currencies and,
to hedge certain currency exposure, enter into forward currency contracts in
connection with these investments. The fund has no maturity limitations.
3. RISKS AND REWARDS
RISKS
Investing in bonds involves risk, including credit risk (the possibility that
the bond issuer will default on its obligation) and market risk (when interest
rates rise, bond prices fall and vice versa). Lower rated bonds are subject to
greater price fluctuations and risk of loss than higher rated bonds. Moreover,
investing outside the U.S. involves special risks, such as currency
fluctuations.
YOU CAN LOSE MONEY BY INVESTING IN THE FUND; YOUR INVESTMENT IS NOT GUARANTEED.
THE LIKELIHOOD OF LOSS IS GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME.
REWARDS
The fund's ability to pursue opportunities in a broad range of securities may
enhance its ability to accomplish its goals.
4. APPROPRIATENESS
If you are not a long-term investor seeking current income, this fund may not
be appropriate for you. Please consult your investment dealer.
5. FEES AND EXPENSES
Shareholder transaction expenses are charges you pay when you buy or sell
shares of a fund. Annual fund operating expenses are paid out of the fund's
assets. The fund's expenses are factored into its share price or dividends and
are not charged directly to shareholder accounts.
SHAREHOLDER TRANSACTION EXPENSES
Maximum sales charge on purchases
(as a percentage of offering price)..........4.75%*
Sales charges are reduced for purchases of $25,000 or more and eliminated
for certain purchases as described in the fund's prospectus.
ANNUAL FUND OPERATING EXPENSES
(based on a percentage of average net assets as of December 31, 1995)
Management fees..............................0.37%
12b-1 expenses...............................0.22%
Other expenses...............................0.10%
Total fund operating expenses................0.69%
EXAMPLE
You would pay the following cumulative expenses on a $1,000 investment,
assuming a 5% annual return. This example should not be considered a
representation of past or future expenses.
ONE YEAR $ 55
THREE YEARS $ 70
FIVE YEARS $ 87
TEN YEARS $ 135
*The fund has no sales charge on reinvested dividends, and no deferred sales
charge, redemption or exchange fees. A contingent deferred sales charge of 1%
applies to certain redemptions within 12 months following purchases without a
sales charge.
6. PAST RESULTS
Here are the fund's annual total returns for each of the past 10 calendar
years:
[chart]
1986 15.2%
1987 2.0
1988 10.7
1989 10.1
1990 3.3
1991 21.0
1992 11.3
1993 14.1
1994 -5.0
1995 18.3
[end chart]
Sales charges have not been deducted from fund results shown above.
PAST RESULTS ARE NOT A GUARANTEE OF FUTURE RESULTS
AVERAGE ANNUAL
COMPOUND RETURNS
FUND* LEHMAN INDEX**
One year +7.38% +10.79%
Five years +9.15% + 8.49%
Ten years +8.37% + 8.62
30-DAY YIELD*
+6.50%
* These results were calculated for periods ended March 31, 1996 in
accordance with Securities and Exchange Commission rules which require that the
maximum sales charge be deducted.
**Lehman Brothers Aggregate Bond Index as of March 31, 1996.
7. INVESTMENT ADVISER
Capital Research and Management Company, one of the world's largest and most
experienced investment advisers, manages the fund, which is a member of The
American Funds Group. Capital Research and Management Company manages this
diversified mutual fund using the multiple portfolio counselor system. Under
this system, the fund's assets are divided into several portions. Each portion
is independently managed by a portfolio counselor or a group of research
professionals, subject to oversight by the investment adviser's investment
committee.
8. PURCHASES
The fund's shares are sold through investment dealers. Your investment dealer
can help you with your account, or you may call American Funds Service Company
at 800/421-0180 with questions about your account. Generally, the minimum
initial investment is $1,000.
9. REDEMPTIONS
You may redeem your shares anytime at no cost by calling American
FundsLine(R) at 800/325-3590. (You will need the fund's number - 08 - if you
use this service.) Transactions will be processed as of the next close of the
New York Stock Exchange.
10. DISTRIBUTIONS
Dividends and capital gain distributions are automatically reinvested unless
you notify American Funds Service Company that you would like to invest them in
another of the American Funds or receive payment in cash. Dividends are paid
monthly. Capital gains, if any, are usually distributed in December.
All dividends and capital gains are taxable whether they are reinvested or
received in cash - unless you are exempt from taxation or entitled to tax
deferral. Early each year, you will be notified as to the amount and federal
tax status of all dividends and capital gains paid during the prior year. Such
dividends and capital gains may also be subject to state or local taxes.
11. OTHER SERVICES
You may exchange your shares for any of the other American Funds or obtain
information about your investment any time by calling American FundsLine(R).
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. IF YOU WOULD LIKE
MORE INFORMATION BEFORE YOU INVEST, PLEASE CONSULT THE FUND'S PROSPECTUS. FOR
DETAILS ABOUT THE FUND'S HOLDINGS OR RECENT INVESTMENT STRATEGIES, PLEASE
REVIEW THE FUND'S MOST RECENT ANNUAL OR SEMI-ANNUAL REPORT. THE PROSPECTUS AND
REPORTS MAY BE OBTAINED AT NO COST BY CALLING 800/421-0180.
This profile prospectus has been printed using soy ink on recycled
paper.
