It seems that no funds are consistent enough to weather the worst economies, no matter how reliable they seem.
- In the wake of the economic crisis, more people are investing in “absolute return” funds - portfolios that supposedly deliver gains in any kind of market.
- Firms advertise these funds as low-risk investments because they focus on short duration and high quality securities.
- It seems, however, that the name of these funds might be misleading. In recent months they have been gaining little, and in some cases even been posting losses.
Facts & Figures
- The Aston/New Century Absolute Return exchange-traded fund lost 9.51% in June
Best Quote
“You just have to be careful that absolute return doesn’t turn into no return.” – Mr. Tuttle, Financial adviser