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How to Double Your Profits Whether the Stock Market is Up or Down

Copyright 2006 Equitrend, Inc.generate accelerated losses if the
In today's sophisticated investmentinvestor is on the wrong side of the
world, investors now have themarket.
opportunity to double the performance ofPotential Advantages of Enhanced Index
the major stock market indexes by usingFunds
the enhanced index mutual fund offerings--Double the gains of the underlying
of two families of mutual funds, Rydexindex in both up and down markets
and ProFunds.--More market exposure without increased
By using this strategy, investors caninvestment cost
amplify their returns for the same--Can be used in qualified retirement
outlay of investment dollars and soaccounts to short the market which can't
accelerate their portfolio's growth.be done with most other shorting
The Rydex and ProFunds Families offervehicles
what are commonly known as enhancedPotential Disadvantages of Enhanced
index funds. Like regular mutual funds,Index Funds
enhanced index funds invest in various--Leverage will maximize losses if
stocks and underlying major indexes likeinvested on the wrong side of the market
the NASDAQ 100, Dow Jones Industrials--Increased volatility due to
and S&P 500. But they also invest inderivatives
derivative products like futures--May not be suitable for all investor
contracts and Equity Index Swap--Lack of flexibility; cannot be traded
Agreements to leverage their returns andduring trading day; end of day pricing
provide gains or losses that equal 200%--Tracking error; enhanced index funds
of the underlying index.may vary from underlying benchmark and
Enhanced index fund investing is aso may not deliver 200% returns in
sophisticated strategy that canrelation to underlying index
significantly magnify your returns whenAre Enhanced Index Funds Right for You?
used in conjunction with proper moneyEnhanced index funds are suitable for
management and a robust trading system.investors who seek an aggressive
Enhanced Index Funds Explainedinvestment tool and who want to outpace
The two categories of Enhanced Indexthe potential gains of the underlying
Funds are commonly known as "bull" fundsindex.
and "bear" or "short funds." WhenThey offer the investor greater exposure
buying a bull fund, the investor takes aand potential profits without an
bullish position that the market isadditional cash outlay and so allow the
going to rise. When buying a bear fund,investor to maximize returns.
the investor is taking a position thatBefore utilizing enhanced index funds,
the market will decline because bearthe investor must honestly determine his
funds gain in value if the underlyingor her ability to accept volatility and
index declines.risk; but used wisely and in conjunction
Enhanced index funds allow the investorwith a proven trading system, enhanced
to increase gains in both up and downindex funds can be a valuable and
markets because of their ability toprofitable addition to your portfolio.
return 200% of the underlying movementJohn M. McClure is CEO and President of
of the index.EquiTrend Inc., a stock market timing
Therefore, they provide extra exposuresystem that averages 42% profits per
to an index with less investment capitalyear. Mr. McClure is also a Registered
so you can free up assets for otherInvestment Advisor and President of the
investments. While they can provideNational Association of Active
accelerated gains, they will alsoInvestment Managers.



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