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

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? What's next is now at the Morningstar Investment Conference. Register now to get to the source for cutting-edge research, expert insights, and thorough analysis. Get tickets here.  Read about topics from this episode.   Subscribe to the FundInvestor Newsletter How to Diversify Away From Large-Growth Funds How to Diversify Your Portfolio to Handle a Market Correction 3 Super Risky Low-Risk Funds A Practical Test for Contrarian Investing: When Should You Go Against the Grain?   Where to Invest in 2025 and Beyond The Thrilling 36 5 Mistakes to Avoid With Your Investment Portfolio in 2025 Can Growth Stocks Keep Powering the Market Higher?   What to watch from Morningstar.  Gray Divorce: How to Avoid Triggering a Costly Tax Bill Why the Bond Market Looks Brighter Than It Did in 2022 Where to Find Bargain Stocks in an Expensive Market  These 4 Dividend ETFs Strike the Right Balance for Income Investors   Read what our team is writing: Russel Kinnel Ivanna Hampton   Follow us on social media. Facebook: https://www.facebook.com/MorningstarInc/ X: https://x.com/MorningstarInc Instagram: https://www.instagram.com/morningstar...  LinkedIn: https://www.linkedin.com/company/5161/