Or simply saying to diversifying the portfolio and recognizing which ones are actually beneficial so that those give handsome returns even if the rest of the options chosen are gone bad. If this is tactfully implemented, then the absolute returns itself or as part of higher portfolio would give results which would prove to be less hazardous with less instability and drawdown as compared to the investment which only looks for great relative returns. Thus to be successful consistently by obtaining absolute returns takes lots of expertise and thorough research.
It is sometimes considered that it is much tougher to be efficient in generating absolute returns when compared to that for relative returns. It implies that it is difficult to evaluate accusation that the search is for making higher absolute returns. For this purpose, a lengthy tracing record that covers a very wide range of market states could be of assistance. As per Lhabitant (2011), it is important to consider entire terms and conditions, along with inclusion of restrictions regarding adding or withdrawal some part or entire investments before making any investment in a hedge fund. It is just about the whole hedge funds that would provide outstanding ones and mutual funds looking for the absolute returns traditionally would attract penalties when the shares are sold within a year, or more such specified duration from the beginning of the investment in some cases.