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What are risk-parity funds?

Updated : October 12, 2018 02:58 PM IST

The benchmark US S&P 500 stock index marked its biggest one-day fall since February on Wednesday and added to losses the day after.
The order of events, rising bond yields followed by a stock market selloff, recalled a similar event in February and also placed the focus on mechanical investment strategies sensitive to volatility, including risk-parity funds.
What are risk-parity funds?
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