Absolute return

Given the obvious uncertainty, investors may like to consider absolute return funds. These funds help to reduce portfolio volatility by focusing on investments with fixed investment terms carrying low risk or by hedging risk, most commonly by using futures and options as well as selling stocks short that they believe will fall in price. I feel it is of paramount importance to have a dynamic and well-established team with a honed process, that can adapt and process inevitable market volatility, if choosing an absolute return fund.

There are some very large and well known funds in this sector, but I have also been looking at some of the lesser known ones, which I believe to be no less effective in dampening volatility within a portfolio.

Chelsea Selection or Elite Rated*: Old Mutual Global Equity Absolute Return and Smith & Williamson Enterprise

*by fundcalibre.com