Mutual funds are generally measured relative to a benchmark. Absolute return strategies are generally employed by hedge funds.

Absolute returns aim to be positive regardless of the market(where as a relative return funds value could drop yet still outperform). This doesnt always work out in reality, as one can see from a hedge funds maximum drawdown (biggest % drop in value from a peak).

Their greatest use is that they may provide diversification. This is a benefit of holding investments that are not perfectly correlated. The expertise of the fund manager may also provide access to hig…

What does your mutual fund portfolio look like?

I have seven funds in my portfolio, including 3 sectoral & large, Midcap funds. Is it too much?

How can I use ETFs to create a diversified portfolio?

What percentage of your portfolio consists of mutual funds?

What does portfolio mean in mutual funds, and how do I make it?

Why are smallcap funds giving negative returns?

How many mutual funds are required for an ideal portfolio?

What are the maximum returns someone gives in portfolio management?

What does your mutual fund portfolio look like?

I have seven funds in my portfolio, including 3 sectoral & large, Midcap funds. Is it too much?

How can I use ETFs to create a diversified portfolio?