bsolute return funds, those that attempt to make money no matter the market conditions, have been extremely popular among cautious investors ever since the financial crisis as people have sought protection froma repeat of history.
But these investments did not live up to expectation in 2018, with the average absolute return fund failing to make money last year, according to data provider FE Analytics.
In a similar way to gold and cash, absolute return funds are supposed to anchor a portfolio otherwise invested in riskier funds. Their job is to make money regardless of whether stock markets rise or fall.
There is no one way that this type of fund aims to achieve this objective. Some use complicated…
Register for free to read this article, or log in to your Telegraph account
If you would like to add a comment, please register or log in
The Telegraph values your comments but kindly requests all posts are on topic, constructive and respectful. Read our community guidelines in fullhere.
Why boarding schools are helping to boost house prices
The new fake whiplash that could hike up your car insurance premium
Questor: even at 30 times earnings Rightmove is a buy for its market dominance
General election imminent: what would a Corbyn government mean for your finances?
What Jeremy Corbyns tax plan means for you and what youll pay
How do you find the best Help to Buy Isa rates?
Grenfell-style cladding: how to tell if your property might be unsafe
Could low air quality pull down your house price?
What would Corbyn in power mean for savings and mortgage rates?
Should you invest in BrewDog? Three better ways to invest in beer
What would happen to stamp duty under a Corbyn government?
What would a Labour government under Jeremy Corbyn mean for buy-to-let landlords?
Corbyn-proof your investments with this portfolio
What would a Labour government under Corbyn mean for house prices?
Grenfell-style cladding leaves thousands of homeowners with worthless properties
Why buying insurance on price comparison websites could invalidate your claim
Buy your first home or save into a pension: which leaves you 15,000 better off?
Careless John Lewis delivery man wrecked my ceiling with new mattress
Why being invested during November and December can double your returns
Questor: weve yet to strike gold with our miners but this Australian business could be the answer
Freedom for thousands of mortgage prisoners as City watchdog relaxes rules for banks
We rely on advertising to help fund our award-winning journalism.
We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future.