Abstract
Academic evidence shows that low-volatility stock portfolios earn high risk-adjusted returns. Several asset managers have created mutual funds that target this specific segment of the stock market. MSCI launched a minimum volatility index in April 2008, which, in hindsight, was good timing. This new low-volatility investment style is gaining momentum among institutional investors, especially since the experience of the financial crises. Based on experience with low (or minimum) volatility research and running low-volatile equity portfolios for our clients, the author summarizes 10 important things that potential investors should know about minimum volatility investing. <b>TOPICS:</b>Mutual funds/passive investing/indexing, volatility measures, style investing
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