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Investing in market neutral funds in 2017

Posted: Fri Aug 25, 2017 3:39 pm
by kakinada
Hello


I received a lump sum payment from a former employer. I am going to invest it slowly over the next one and a half years or so.


Ideally I would have put it into a CD while the money is waiting to be invested. However given the near zero rates, I was looking around for some fixed income investment and found that market neutral funds are sometimes considered as a part of fixed-income portfolio.


This is an example of the links that support this. Of course, they are more of marketing material from the financial institutions


http://www.calamos.com/fundinvestor/MarketInsights/investmentideas/article?name=TIPS_vs_Market_Neutral_Income_Funds


https://seekingalpha.com/article/3738426-4-key-reasons-consider-market-neutral-investing


This is the link that I found that says that investing in market neutral funds is a problem because of the unpopularity of the ETF and the consequent liquidity problems


http://www.wealthmanagement.com/etfs/perils-market-neutral-funds


It would be great if members can post their views on this.


Thank you.