Absolute Return Funds are they for you?

Messages on November 15th, 2010 No Comments

What is absolute return investing?

An investor with an ʻabsolute returnʼ strategy aims to generate positive returns in any stock market cycle – the fund manager does this by using techniques that enables them to profit from both the ups and downs in markets and stock prices.

Absolute Return Funds may be suitable if :

  • you wish to invest in a fund that aims to provide positive investment returns in a variety of market conditions
  • you’d like to form the core element of a portfolio or perhaps diversify your existing portfolio
  • you’re seeking to invest in an absolute return strategy and benefit from daily pricing and liquidity, transparency, low minimum investment and competitive fees.

However, Absolute Return Funds may not be right for you if:

  • you don’t want to take any risk with your capital
  • you’d prefer not to invest in a fund that makes significant use of financial derivatives
  • you have an investment time horizon of less than five years

Warning : not all absolute return funds are the same. Different fund managers have different remits, goals, charges and may invest in a wide range of assets including derivatives. There are different risks associated with each fund as no two funds are the same. It is essential that you seek Independent Financial Advice if you are considering investing in these funds.

Contact Your Local Independent Financial Adviser

Lucas Financial Consulting Ltd is based near Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser.

Warning: The value of your investment may go down as well as up
Warning: Past performance is not a reliable guide to future performance
Warning: Funds may be affected by changes in currency exchange rates

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