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Uncertainty and volatility come together with investment. Investment is a risk that many people take in order to get profit. The condition of the market varies greatly and it is because of this reason that investing proves to be beneficial for some people and for some it proves to be disastrous. These variations in the market have the capability of rattling even the nerves of the seasoned investors.

There are many reasons that cause these variations in the market. Some of these reasons include;

• Inflationary pressure build-up.
• The GDP growth rising globally.
• Turnover of the leadership in the Federal Reserve
• Unemployment rates

There are many tips and strategies that can help investors deal with the highly volatile market. Director of research, fund-rating service Morningstar Inc, Russel Kinnel has some very sensible strategies that can help investors to cope with the highly volatile market. Here is what he has suggested;

1. Reduction of Risk:

According to Russel Kinnel, there are several funds that have a very low risk of being affected by the situation of the country or the market. Some of these funds include;

• Vanguard Short-Term Exempt Fund: one of the low-risk funds in the market according to Kinnel is the VWSTX. This is because it has the potential of yielding 1.32%.
• Vanguard Wellesley Income Fund: another low-risk fund in the market currently is the VWINX. This fund has a potential of yielding 3.26%. it is referred to as a balanced fund, that being sad because it is a combination of both value stocks and high-quality bonds.
• FPA Crescent Fund: the FPACX fund is a low-risk fund too and has a potential of yielding 1.48%. over the last 52 weeks, this fund has given a return of 7.26%.

2. Small-Cap Value:

Since 2007, the large-cap growth stocks have shown exceptional performance as compared to the small-cap value stocks. Kinnel believes that the investors who are tech enthusiasts and fanatics must change the course for the time being and opt for the small-cap value funds. He has mentioned the following small-cap value funds which are cent percent reliable.

• Royce Special Equity Fund (RYSEX): about this fund, he says that this fund shines in the downturns and is not much affected by the variations in the market.
• Vanguard Small Cap Value Index Fund – VSIAX
• American Beacon Small Cap Value Fund – AVPAX

3. Dividend Payers

It is expected that the dividend-paying stocks will raise the payouts with passing time. The reason for this expectation is the tax cut. As compared to this, the bond has a much lower yielding capability. According to Kinnel, these are the funds that are the best in this category.

• American Funds Washington Mutual Investors Fund (AWSHX) is a strong fund that holds up well when the whole market is in a decline. The current yielding value of this fund is 1.74%.
• American Century Equity Income Fund – TWEIX: the current yielding of this fund is almost 2.31%.
• Vanguard Dividend Appreciation Index Fund: the VDADX fund is currently yielding 2.14%.

The aforementioned strategies are the major ones to consider when deciding your investment strategy. Another strategy that can be considered is the protection of inflation, according to the Kennel, this is not a major consideration while designing the strategies to deal with the highly volatile market.