I hope this question is on-topic. It is not relally a quant question but it is a question that quants in risk management in asset management firms have to answer:
In the KIID (key investor information document) directive investment funds have to be categorized as market funds, life-cycle funds, structured funds, total return and absolute return funds (see an ESMA paper here) in order to decide about the methodology to calculate the SRRI (synthetic risk reward indicator).
The difference between an absolute return fund and a total return fund is hard to tell in practice. Which are your strongest arguments/relevant traits of the fund that you use to decide?
How would you categorize: a multi asset class (stocks, bonds) momentum strategy - how a multi asset class risk parity strategy?