Some funds offer to tame market's chaos, but at a price

[...] the investment industry has something it built just for you: funds that hope to offer a steadier ride.

Many are at risk of falling if interest rates rise, and the expectation is for the Federal Reserve to continue raising its benchmark rate.

If investors have already paid up for the perceived safety that the low-volatility index offers, Ramsey says, it "may fail to live up to its moniker in the weeks and months ahead."

"Everyone is investing in stocks that look 'low risk' based on history," says Jim Fallon, who runs low-volatility mutual funds at MFS Investment Management.

[...] many funds invest in only the 10 or 20 percent of stocks that have had the mildest price swings in the S&P 500 or another index over a certain time period.

At his MFS Low Volatility Equity fund, Fallon considers any stock as long as it's in the bottom 60 percent of the 1,000 largest U.S. stocks in terms of volatility.