The biggest effects were seen in more conservative funds, those generally held by the most risk-averse investors.

For risk-averse investors, though, the research provides a reason to invest in index funds.

These are exactly the types of businesses that risk-averse investors are now shunning.

The study concluded, therefore, "The tax is thus likely to fall most heavily on long-term, risk-averse investors.

"It's the last utility monopoly available for risk-averse investors," he said of water companies.

So the general rule for the risk-averse investor is to buy options, not sell them.

In most cases, they say, there are better and cheaper ways for risk-averse investors to protect themselves against gyrations.

"Germans are risk-averse investors," one person involved in the agreement said.

In addition, risk-averse investors require higher expected return if the asset's market-liquidity risk is greater.

Some advisers argue that there are cheaper and more flexible ways for risk-averse investors to achieve their goals.