Should you add defined returns to your investment portfolio?

Returns from equities to decrease

Although they do not often hit the headlines, defined return funds can certainly be a good addition to an investment portfolio. As the name suggests, these funds aim to deliver their investors a pre-determined rate of return, over a specific period of time.

Although this is dependent on market performance, it does essentially mean that you could invest in the stock market with a guarantee that if it drops by up to 40% at end of six years, you would still you get your money back. What are the benefits of Defined Returns? The nature of defined returns funds makes them much more predictable and the pre-determined rate of return offers an element of downside protection. This protection distinguishes them from other investment strategies and makes them a good addition to a portfolio to balance out more volatile funds. It is estimated that ret...