Industry Articles
Industry Articles Home > Stretching your Retirement Dollar News
|
New mutual funds are intended to shield investors from market risks 2010-04-30 Many retirees are invested, or considering investing, in the stock market as a way to take advantage of investment gains and dividends while building retirement income. Fear over the market collapse that followed the subprime mortgage crisis has encouraged a new string of funds aimed at protecting investors from market volatility. Seven new funds have emerged with the express purpose of limiting their exposure to inflation by investing in Treasury security-protected securities or commodities that historically perform well despite inflation, the Associated Press reports. Though the inflation rate is not an issue currently, some believe it may be in the future. "We're borrowing money, we're printing money, and historically that has often led to inflation," Eaton Vance Short Term Real Return co-manager Tom Luster told the AP. Six new "long-short" funds use hedge fund defensive strategies known to perform well even during market crashes, the AP reports. Long-short strategies center around stocks that are both expected to do well and others expected to fall. Seniors who want to invest their income in funds that will provide diversification while still offering protection from market volatility should consider their investment options.  |
