Series One Letter

Dear Shareholders:

I am pleased to deliver to you the American Growth Fund Series One Semi-Annual Report for the six months ending January 31, 2017.

Since our last letter to you, our government has seen major change as the Grand Old Party's candidate, President Trump, and his staff transition into their new positions. For many of us as outsiders to this process, this transition seems to be rather rough. However, one area that has been enjoying the new leadership team is the securities market. Following President Trump's address to Congress, the Dow Jones Industrial Market topped 21,000 for the first time ever1.

Investment Strategy
Your Investment Committee uses a fundamental top down approach to manage your portfolio. First, we look at the general economic outlook, then we look at the industries that we feel have the biggest growth potential in the current and upcoming economies. From that, our objective is to choose the best companies in those industries. Many of these companies are established, large cap (defined as companies with a market capitalization of $5 billion or more) securities many of which are household names that you will easily recognize.

Performance Overview
Series One is invested primarily in large cap, growth-oriented domestic common stocks. When you examine the portfolio on the following pages you will note while the largest investment sector is Diversified Company Industry at 11.98% of your portfolio, the largest security in your portfolio is Time Warner, Inc. at $1,107,480 who is a leading internet/media provider.

Your American Growth Fund Series One Class A Shares delivered you a 12.77% return since January 31, 2016 through close of business on January 31, 2017. The Dow Jones Industrial Average posted a gain of 23.89 while the S&P 500 posted a gain of 20.04% for the same time period as listed above. Of the stocks in your Series One portfolio, most of them contributed to the growth of the Fund. The top three active performing investments were Lincoln National Corp whose market value rose 54.59% (a total portfolio gain of 2.06%), Teradyne Inc. whose market value rose 43.56% (a total portfolio gain of 2.01%) and Time Warner, Inc. whose market value rose 25.90% (a total portfolio gain of 1.99%).

Unfortunately, not all investments fared as well. Amgen, Inc.'s market value fell 8.98% (a total portfolio loss of 0.58%), Dollar Tree, Inc.'s market value fell 19.75% (a total portfolio loss of 0.49%) and Bristol Myers' market value fell 35.77% (a total portfolio loss of 0.78%).

The investment sectors that had the most positive influence on your Series One portfolio were Insurance (Life), Semiconductor Capital Equipment and Entertainment industries. The investment sectors that had the most adverse effect on your portfolio were Retail Store, Drug and Biotechnology industries.

Additional data, including long-term performance data, can be located on page 32 of this report. Past performance is no guarantee of future results.

Manager's Discussion
One of the more important political topics in front of us that may affect your portfolio's performance is Tax Reform. The White House is indicating that the overhaul of the U.S. tax code may begin as early as this spring. President Trump has vowed to deliver major tax cuts to both the middle class and business community2. President Trump stated, "Well we're going to get a big reduction, we're going to bring business down to 15% to 20% from 36% and 38% and higher in some instances. We are the highest taxed nation in the world. And we are going to bring taxes way down" 3. Generally, tax cuts to the business community may result in increased profits.

The American economy continues to improve, evidenced by the real gross domestic product (GDP) increase of 1.9% in the fourth quarter of 2016. In the third quarter, real GDP increased 3.5%. This is according to the second estimate released by the Bureau of Economic Analysis. "The general picture of economic growth remains the same; the increase in personal consumption expenditures was larger and increases in state and local government spending and in nonresidential fixed investment were smaller than previously estimated4". Additionally, unemployment has remained stable 4.7% in February of 2017. In the past ten months unemployment rates have varied between 4.7% and 4.9%5.

Over the next six months we will see some new changes to the world. Most interesting is Brexit which indications show may be initiated March 29, 20176. Other items that our Investment Committee will be monitoring include; the dollar's value against the world currency, the price of oil and how it effects the world economy, the European economy and how Brexit may affect it, as well as the Chinese economy.
As we look at these indicators of how our economy is doing, we generally continue to be bullish. It is our hope that we will see continued growth in the gross domestic product in the upcoming months.

My staff and I are always available to discuss your account or answer any question you might have. Please call our toll free number, 800 525-2406 or, within Colorado, 303-626-0600.

American Growth Fund wishes you A Good Future!

Sincerely,

Timothy Taggart
President and Investment Committee Member
American Growth Fund, Inc.

1. http://www.nbcnews.com/storyline/trumps-address-to-congress/dow-jones-hits-record-21-000-wall-street-cheers-trump-n727581
2. http://www.cnbc.com/2017/03/19/white-house-tax-reform-may-begin-in-late-spring-spicer-says.html
3 http://www.westernjournalism.com/trump-promises-tax-reform-will-reaganesque-scope/
4. http://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
5. http://data.bls.gov/timeseries/LNS14000000
6. http://www.cnn.com/2017/03/20/europe/brexit-eu-juncker-uk/


Underwriter: World Capital Brokerage, Inc.

On 3/1/96, the Fund adopted a multi-class distribution arrangement to issue additional classes of shares, designated as Class A, Class B and Class C shares. Shares existing prior to 3/1/96 became Class D shares. Class A and Class D shares are subject to a maximum front-end sales charge of 5.75%, Class B shares are subject to a maximum contingent deferred sales charge of 5% and Class C shares are subject to a 1% contingent deferred sales charge within the first year of purchase. The Fund may incur 12b-1 expenses up to an annual maximum of .30 of 1% on its average daily net assets of its Class A shares, 1% of its average daily net assets of its Class B shares, and 1% of its average daily net assets of its Class C shares. Class D shares have no 12b-1 fees. Performance figures for Class D shares include the 5.75% initial sales charge and assume the reinvestment of income dividends and capital gain distributions. Performance quoted represents past performance. The investment return and principal value of an investment will fluctuate so that the investors shares, when redeemed, may be worth more or less than their original cost. This material must be preceded or accompanied by a current prospectus. If you have not received, or need a current prospectus, please feel free to call for one at 1-800-525-2406. Please read the prospectus carefully before investing. Period ending 01/31/2017. For current performance figures please call 1-800-525-2406.

Series One

Class D without load
Class D with load*
Class A without load
Class A with load*
Class B without load
Class C without load

1 year
19.85%
13.01%
19.69%
12.77%
18.88%
18.64%
5 years
annualized
12.31%
10.98%
11.96%
10.66%
11.20%
11.19%
10 years
annualized
3.32%
2.71%
3.01%
2.41%
2.33%
2.31%
*Includes a 5.75% sales charge based on a $10,000 initial purchase.