Strategies

Absolute Return

Absolute Return

Absolute return investing describes a category of investment strategies and mutual funds that seek to earn a positive return over time—regardless of whether markets are going up, down, or sideways—and to do so with less volatility than stocks. It takes a different approach altogether. By doing away with conventional benchmarks and instead of striving for consistently positive performance and lower levels of volatility, absolute return funds can offer a number of potential benefits when added to a broadly diversified portfolio.

Potential Benefits:

  • Reducing overall portfolio volatility
  • Limiting losses in down markets
  • Broadening the sources of investment returns
  • Providing valuable diversification potential
  • Improving a portfolio’s risk-adjusted return