AMERICAN MUTUAL FUND
Quarterly Report
for the three months
ended January 31, 1995
[The American Funds Group(R) LOGO]
Fellow Shareholders:
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During the three months ended January 31, 1995, the value of your investment
in American Mutual Fund increased 0.7% if you reinvested both the
21-cent-a-share dividend and the 87-cent capital gain distribution paid on
December 5 of last year. By comparison, the unmanaged Standard & Poor's 500
Composite Index rose 0.3% in the same period, with dividends similarly
reinvested.
The Federal Reserve continued its efforts to reduce inflationary pressures by
increasing short-term interest rates on November 15 and again on February 1.
Despite this further escalation, long-term rates have declined since November,
after 12 months of steep increases which had produced a precipitous decline in
bond prices. Your fund, with its income orientation, has benefited from this
most recent bond market recovery.
The growing evidence of slower pace of economic growth in the U.S. leaves us
encouraged that, for 1995, interest rates may not go substantially higher.
This expectation, as well as a shift in investor interest away from some
overseas markets, appears to provide a favorable outlook for American Mutual
Fund.
We look forward to reporting to you again in three months.
Cordially,
James K. Dunton
President
February 28, 1995
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Portfolio Summary - January 31, 1995
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INVESTMENT MIX
<TABLE>
<CAPTION>
Market Value Percent of
(in millions) Net Assets
<S> <C> <C>
Equity-Type Securities $3,952.796 73.12%
Bonds & Notes 673.938 12.46
Cash Equivalents 779.073 14.42
TOTAL $5,405.807 100.00%
</TABLE>
FIVE LARGEST INDUSTRY HOLDINGS IN EQUITIES
<TABLE>
<CAPTION>
Market Value Percent of
(in millions) Net Assets
<S> <C> <C>
Banking $637.140 11.79%
Telecommunications 575.842 10.65
Energy Sources 367.611 6.80
Health & Personal Care 322.036 5.96
Utilities: Electric & Gas 304.982 5.64
</TABLE>
TEN LARGEST INDIVIDUAL HOLDINGS
<TABLE>
Market Value Percent of
(in millions) Net Assets
<S> <C> <C>
AT&T $114.942 2.13%
GTE 101.625 1.88
Ameritech 94.331 1.74
International Business Machines 93.402 1.73
Amoco 92.800 1.72
Royal Dutch Petroleum 92.778 1.72
Monsanto 87.017 1.61
Merck 84.525 1.56
U S WEST 82.163 1.52
DuPont 77.745 1.44
</TABLE>
[SIDEBAR]
About our cover...
The Colorado River carves a path along the White Rim Trail in Canyonlands
National Park, Utah.
[END SIDEBAR]
AMERICAN MUTUAL FUND(R) strives for the balanced accomplishment of three
objectives - current income, capital growth and conservation of principal -
through investments in companies that participate in the growth of the American
economy.
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THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY,
THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. All investments are subject
to certain risks. For example, those which include common stocks are affected
by fluctuating stock prices, and those which include bonds are affected by
interest rate fluctuations. Accordingly, investors should maintain a long-term
perspective.
For information about your account or any of the fund's services, please
contact your securities dealer or financial planner, or call the fund's
transfer agent, toll-free, at 800/421-0180.
This report is for the information of shareholders of American Mutual Fund,
but it may also be used as sales literature when preceded or accompanied by the
current prospectus, which gives details about charges, expenses, investment
objectives and operating policies of the fund.
LITHO in USA BDA/GAC
(c)1995 American Funds Distributors, Inc.
Lit. No. AMF-012-0395
