Worried About a Market Sell-Off? These 10 Funds Reduce Portfolio Risk

Author: Morningstar
Published: Fri 14 Mar 2025
Episode Link: http://www.morningstar.com

Russ Kinnel, senior principal of ratings for Morningstar Research Services, researched which alternative, equity, and value funds could provide a good hedge during a market sell-off.

What is the Downside Capture Ratio?

Why Funds with A Low Downside Capture Ratio Make Good Diversifiers

How Does a Fund’s Maximum Drawdown Line Up with Its Downside Capture?

Why Savers Should Look for Low-Risk Investments

Floating-Rate Funds to Help Protect a Bond-Heavy Portfolio Against Interest-Rate Risk

Alternative Funds for Diversification

What is Arbitrage?

Large-Blend Funds to Help Preserve Capital

Defensive Large-Value Funds to Consider

A Small-Value Fund That Can Serve as a Good Diversifier

How Can Risk-Averse Investors Get Zero Downside?

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