How to Manage Volatility

Investors must always expect ups and downs on the stock market, but these fund managers offer some tips on how to limit volatility

Annalisa Esposito 21 May, 2020 | 11:28AM

rollercoaster

While investors must always be prepared for ups and downs on the stock market, this year has been a particular rollercoaster ride thus far. After gaining new highs in January, markets plunged in March as economies across the world went into lockdown, and have since made a patchy recovery at best. Indeed, the Vix index - widely used a measure of volatility on stock markets - hit a record high in March as fears about the impact of Covid-19 ramped up. 

Volatility Managed funds aim to provide investors with a smoother journey. While the specific aims of each fund in this group varies, they are all trying to avoid the sharp swings in performance that have caused many investors sleepless nights in recent weeks. 

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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