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

Copyright 2006 Equitrend, Inc.accelerated losses if the investor is on the wrong
In today's sophisticated investment world,side of the market.
investors now have the opportunity to double thePotential Advantages of Enhanced Index Funds
performance of the major stock market indexes--Double the gains of the underlying index in both
by using the enhanced index mutual fund offeringsup and down markets
of two families of mutual funds, Rydex and--More market exposure without increased
ProFunds.investment cost
By using this strategy, investors can amplify their--Can be used in qualified retirement accounts to
returns for the same outlay of investment dollarsshort the market which can't be done with most
and so accelerate their portfolio's growth.other shorting vehicles
The Rydex and ProFunds Families offer what arePotential Disadvantages of Enhanced Index Funds
commonly known as enhanced index funds. Like--Leverage will maximize losses if invested on the
regular mutual funds, enhanced index funds investwrong side of the market
in various stocks and underlying major indexes like--Increased volatility due to derivatives
the NASDAQ 100, Dow Jones Industrials and S&P--May not be suitable for all investor
500. But they also invest in derivative products--Lack of flexibility; cannot be traded during
like futures contracts and Equity Index Swaptrading day; end of day pricing
Agreements to leverage their returns and provide--Tracking error; enhanced index funds may vary
gains or losses that equal 200% of the underlyingfrom underlying benchmark and so may not
index.deliver 200% returns in relation to underlying
Enhanced index fund investing is a sophisticatedindex
strategy that can significantly magnify yourAre Enhanced Index Funds Right for You?
returns when used in conjunction with properEnhanced index funds are suitable for investors
money management and a robust trading system.who seek an aggressive investment tool and who
Enhanced Index Funds Explainedwant to outpace the potential gains of the
The two categories of Enhanced Index Funds areunderlying index.
commonly known as "bull" funds and "bear" orThey offer the investor greater exposure and
"short funds." When buying a bull fund, thepotential profits without an additional cash outlay
investor takes a bullish position that the market isand so allow the investor to maximize returns.
going to rise. When buying a bear fund, theBefore utilizing enhanced index funds, the investor
investor is taking a position that the market willmust honestly determine his or her ability to
decline because bear funds gain in value if theaccept volatility and risk; but used wisely and in
underlying index declines.conjunction with a proven trading system,
Enhanced index funds allow the investor toenhanced index funds can be a valuable and
increase gains in both up and down marketsprofitable addition to your portfolio.
because of their ability to return 200% of theJohn M. McClure is CEO and President of
underlying movement of the index.EquiTrend Inc., a stock market timing system
Therefore, they provide extra exposure to anthat averages 42% profits per year. Mr. McClure
index with less investment capital so you can freeis also a Registered Investment Advisor and
up assets for other investments. While they canPresident of the National Association of Active
provide accelerated gains, they will also generateInvestment Managers.