American Funds by Capital Group

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edvest
Posts: 13
Joined: Sat Oct 06, 2018 3:27 pm

American Funds by Capital Group

Post by edvest » Mon Oct 08, 2018 6:46 pm

My company just changed our 401k over to American Funds by Capital Group

I never heard of them before that, and 15 out of the thirty or so choices we get are target funds.
Do you think they are a good company?

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vineviz
Posts: 1719
Joined: Tue May 15, 2018 1:55 pm

Re: American Funds by Capital Group

Post by vineviz » Mon Oct 08, 2018 7:23 pm

I'd say most people consider them to be a reputable company, with mostly decent actively managed funds that have relatively high expenses compared to similar index funds.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

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sometimesinvestor
Posts: 1207
Joined: Wed May 13, 2009 6:54 am

Re: American Funds by Capital Group

Post by sometimesinvestor » Mon Oct 08, 2018 7:46 pm

Their expense ration while not as low as Vanguards is not high compared to many other fund families and some of their funds have outperformed the indices over time

Freefallin
Posts: 21
Joined: Thu Oct 04, 2018 1:12 pm

Re: American Funds by Capital Group

Post by Freefallin » Mon Oct 08, 2018 8:23 pm

They are a solid company. I had them with my previous employer. Their target date funds are ok if they are "R" class funds with a .41 expense ratio. Does your 401k offer any index fund options? If not, I would just contribute everything to the target date fund.
Last edited by Freefallin on Mon Oct 08, 2018 8:36 pm, edited 1 time in total.
"Pain is the touchstone of all growth." - Bill W.

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Toons
Posts: 12965
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: American Funds by Capital Group

Post by Toons » Mon Oct 08, 2018 8:33 pm

Excellent Company
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Dulocracy
Posts: 2288
Joined: Wed Feb 27, 2013 1:03 pm
Location: Atlanta, GA

Re: American Funds by Capital Group

Post by Dulocracy » Thu Oct 11, 2018 11:06 pm

I have been very happy with that company and with their funds.
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.

TigerNest
Posts: 308
Joined: Mon May 10, 2010 12:58 pm

Re: American Funds by Capital Group

Post by TigerNest » Thu Oct 11, 2018 11:13 pm

They're one of the most reputable and respected active managers in the US.

They have $1.7 trillion in assets under management, which puts them in the top 10 of asset managers by size, larger than Wellington and T. Rowe Price but smaller than Fidelity.

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