An absolute return fund promises gains without the pain. These funds are designed to make money whether the market is going up or down. To generate an “absolute” return, these funds mix “longs” – the traditional way to invest - and “shorts” which is to take bets on a market tumble by using derivatives or short-selling shares. They also seek to spread the risk by investing in many asset classes, bonds, equities, currencies or commodities. These funds may charge hefty fees – as much as 2% of assets under management – and as much as 20% of profits. Introduced in 2008, this type of fund is one of the newest and fastest growing investment vehicles.