4 Low-Risk Mutual Funds To Beat Geopolitical Fears

Over the past few sessions, rising geopolitical concerns left a negative impact on investor sentiment. All the key U.S. indexes slumped in recent times after the U.S. dropped "the mother of all bombs" on a suspected terror hideout in Afghanistan. Moreover, the recent standoff between the U.S. and North Korea and uncertainty over the French election added to investor woes.

In this context, mutual funds that are capable of offering favorable returns and bear a lower level of risk might be prudent investment options. And to identify low-risk mutual funds, we have used Sharpe ratio which is used to measure a fund’s risk-adjusted returns.

MOAB Shakes Sentiments

The U.S. dropped the “Mother of All Bombs” or MOAB, also known as GBU-43/B Massive Ordnance Air Blast bomb in Afghanistan, with the intention to destroy a suspected ISIS tunnel network. In this context, President Trump said that it was a very proud moment and “was another very, very successful mission” for the U.S. military.

Additionally, tensions between Russia and the U.S. escalated after the latter allegedly accused the former of trying to cover up the ghastly Syrian chemical attack last week. The U.S. concluded that the Syrian military applied the banned sarin gas in the attack that had inflicted severe casualty on many civilians.

U.S. And North Korea Tension Persists

The U.S. has cautioned that it may initiate a preemptive strike against North Korea should the reclusive country conduct another nuclear test. This has naturally left investors wary. Further, in this context, the Vice Foreign Minister of North Korea, Han Song Ryol, said that the country will “go to war,” in case the U.S. opts “a preemptive strike.”

Last week, in his meeting with Chinese President Xi Jinping, U.S. President Donald Trump said that a trade deal with China will be far better only if the country works with the U.S. to address the North Korea issue. But he also said that the U.S. will respond to Pyongyang if China, one of North Korea’s partners, doesn’t act.

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