Tim Armour Explains the Passive Index Fund Investment Philosophy


Tim studied Economics at Middlebury College. He worked as an ‘equity portfolio manager’ then proceeded to work at Capital starting off as a member of Capital Associates Programme and later on served as an ‘equity portfolio. He has over 34 years’ experience in investment. Tim was elected Chairman of Capital Group on 28th July 2015 by the board of directors of the institution. This change was as a result of Capital Group’s leadership succession plan that had been in the pipeline for many years.

 

Tim Armour has come up with a philosophy that “investors need to find active managers who earn their keep.” He advises investors not to rely on index funds and researching companies so as to keep up with changing investment trends. According to Tim Armour; the Trump change in the market is real and big, following the change in assets prices after his victory. The systematic shift is huge and he observes that interest rates are declining and more information click here.

 

Tim Armour’s perspective of the market sell off is that it is not unexpected since the markets were fairly valued. Tim states that Capital Group and Samsung Asset based management partnership has an intention of designing investments solutions together to meet the retirement, insurance, and savings requirements of Korean investors.

 

According to Tim Armour, Warren Buffett is right when he claims that he can achieve higher investment returns by investing S&P 500 passive index fund. He believes so because there are very many expensive and mediocre funds that short change investors. Instead, there should be commitment to simple and low cost investment plans that are long term in nature and learn more about Tim.

 

Consumers should be very careful with the product labels and should distinguish whether they are active or passive to evaluate the returns. It is important to note that the opportunity cost and volatility risk of passive ‘index investments ‘are either unknown or underestimated. It is the right time to challenge the notion that ‘passive index returns ‘are the best investment for retirement. Tim compares Capital Group to Mr Buffett’s thoughts. The company has an average of 1.47% above the index benchmark and Tim’s lacrosse camp.

More visit: https://en.wikipedia.org/wiki/Capital_Group_Companies