Active or Passive Index Funds? An Expert Weighs Opinion

The longstanding debate on the suitability of either the active or passive index funds as an investment option has elicited mixed reactions from various investors and experts alike. On one side of the debate is a group of experts and investors such as Warren Buffet who are of the school of thought that passive index funds offer stable and better returns on investment compared to active index funds. On the other side of the debate is a school of thought that views active hedge funds as the better investment option. Then there is Timothy Armour: the current chief executive officer at Capital Group. He believes that these investment options have inherent advantages and disadvantages. He challenges the common notion that passive index funds are safer. He notes that they are marked by 100 percent volatility risk in case of economic downturn. The returns are also low.

On the other hand, he argues that investors in active hedge funds can realize big returns over a short period of time. However, they are characterized by greater risks and volatility. Therefore, Timothy Armour argues that the debate misses the key to successful investment. He holds that the best investment option is characterized by low cost investment portfolio management and investment managers who are highly invested in the investment vehicle as the client. He believes that investment portfolio managers who have invested alongside their clients is more likely to ensure that the investment brings greater returns and learn more about Timothy.

Career and Education Profile

Timothy Armour has spent the whole of his professional career working at Capital Group where he started out over three decades ago. The Los Angeles-based financial advisory specialist joined the company under The Associates Program in 1983 after graduating with a Bachelor’s degree in economics from Middlebury College. In addition to serving as the company’s board of directors’ chairman, he also doubles up as an equity portfolio manager and more information click here.

Timothy Armour rose through the ranks of the company and was appointed to the chairmanship in 2015 following the death of the then chairman, Jim Rothenberg. At the time, he was serving as the director and chairman of Capital Research and Management Company. He still serves the Capital Group’s subsidiary in the same positions. He is also a director at the company and Tim’s lacrosse camp.

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