Emotional Decisions Can Cost Money
Research shows that investors tend to put more money into equity funds when the stock market is nearing its high, and sell when the market reaches a low point (see chart below). In other words, volatility can prompt investors to buy high and sell low. Those decisions can cost money and sleep.
Investors Buy High and Sell Low
Source: Morningstar and SimFund, March 31, 2016
Choosing a low-volatility investment strategy can help smooth out the market ride so that investors stay invested in equity markets longer, which gives them a chance to capture more upside.
Focus on Reducing Drawdown: Mackenzie Global Low Volatility Fund
The Global Low Volatility Fund is one of Mackenzie’s low-volatility options to help investors sustain their confidence in a changing world. The Fund seeks to give investors:
- Enhanced protection from drawdowns during periods of market stress
- A means of controlling volatility
- The ability to maintain equity returns over the longer term
Irish Life Investment Managers (ILIM), one of Ireland’s leading global asset managers with more than 15 years of experience with quantitative strategies, is the sub-advisor for the Mackenzie Global Low Volatility Fund.
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- (Login Required)Irish Life Team Profile and Process
Please contact your advisor or a member of our Sales Team for more information.