Absolutely no reason to buy these funds – MarketWatch

BOSTON (MarketWatch) — Investors absolutely want to make money regardless of the direction of the market.

That’s precisely why “absolute return” funds are one of the hottest and fastest-growing areas of the mutual fund world.

But just because something is easy to market to the public doesn’t mean it’s a good idea.

It’s becoming so clear that Main Street investors understand so little about how absolute-return funds work that they are heading for disappointment, which is why the entire slate of absolute-return funds is the Stupid Investment of the Week.

Stupid Investment of the Week highlights concerns and conditions that make a security less than ideal for the average investor, in the hope that showcasing trouble in one situation makes it easier to avoid elsewhere. While obviously not a purchase recommendation, neither is the column intended to be an automatic sell signal, as there are times when dumping a dangerous investment simply compounds the problem.

via Absolutely no reason to buy these funds – MarketWatch.


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