Q: What are your thoughts on a light position in this Mutual Fund?
It would appear this funds process may be ok for these uncertain market conditions ?
Thanks!
It would appear this funds process may be ok for these uncertain market conditions ?
Thanks!
5i Research Answer:
The fund writes covered options on US equities so gives some market exposure with an outsized yield. Our main caution is that covered strategies don't really provide as much downside protection as investors think/expect. If the market declines, the underlying holdings are likely to follow. If a sideways market is the assumption, then a fund like this could do fine.