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…

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