Market neutral refers to a type of investment strategy used by investment managers who seek to profit from both rising and falling prices in financial markets.
Known as a market-neutral strategy, investment choices aim to avoid significant losses as long and short positions hedge each other.
Market-neutral strategies are often used by hedge funds because their investment objective is absolute returns, not relative returns.
The two main types of market-neutral strategies that fund managers use are fundamental arbitrage and statistical arbitrage.
Market-neutral strategies have one of the lowest positive market correlations because they place specific bets on stock price convergence, hedging overall market risk.
A floating rate fund is a fund that invests in financial instruments with variable or floating interest rates. A floating rate fund invests in bonds and debt instruments, the interest payments on which fluctuate depending on the level of the base interest rate.
Go-go fund - a mutual fund with an investment strategy focused on growth stocks and other high-risk securities.
These funds were at their peak in the 1960s, attracting investors with the promise of unusually high market returns.
A Growth and Income Fund is a mutual fund or ETF strategy that seeks to generate a total return for investors, including capital gains and current income.
Lifecycle funds are asset allocation funds in which the share of each asset class automatically adjusts to reduce risk as the desired retirement date approaches.
Market timing is the act of moving investment money into or out of the financial market - or switching funds between asset classes - based on predictive methods.