Best Guide to Mutual Funds
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Best Guide to Mutual Funds |
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Fundamentals of Mutual
Funds
 Mutual fund basicsMutual Fund InvestmentBuy Mutual FundsMake money in mutual fundsBest mutual fundsMutual fund analysisTypes of Mutual Funds
Type of mutual fundsNo Load Mutual fundsCommodity Mutual FundDonor advised mutual fundsMicro cap mutual fundsClosed End Mutual FundsBear Market Mutual FundsMajor Exchange Traded FundsTax Exempt Bond FundsDynamic Mutual FundsInvestment and Money market
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Bear Mutual Funds in MarketThere are many companies that have specialized themselves in the short mutual funds market. But only a few of them have been successful. One of them is Prudent Bear, managed by David W. Tice & Associates.They invest in common stock through short sale. A short sale is a market transaction unique in it's kind. With it, the investor sells borrowed securities, expecting that the price will drop. In exchange, he promises to return the same amount of stock in a predetermined period of time. For example, let's say that an investor borrows 10 000 shares at $10 apiece, and sells them. Until that moment, he has $100 000. Suddenly, the price of the stock plunges down, just as he expected. It reaches $9 apiece and stabilizes. The investor will buy, again, 10 000 shares at $9, spending $90 000. Once he has finished the transaction, he returns the 10 000 shares to the original owner and stays with $10 000 in his pocket. Sounds easy, isn't it? Actually, it isn't, since you require a profound knowledge of the market movements.
ProFunds has it's own financial product called Bear ProFound. Through out BearProfund, this fund looks for results that have an opposite performance to the Standard & Poor (S&P) 500 index. An interesting thing about this company is that they alert their potential customers about the risks that entail this kind of investments. As it can be seen, bear market mutual funds (also known as mutual funds that short stocks) aren't for everyone. It requires a special knowledge of how the stock market works. And this is only acquired after years of experience. If you are considering investing in bear market funds, do your homework and do not put your money unless you are really confident that it is going to work. Related ArticlesLearn the Types before Investing in Mutual FundsNo Load Mutual Funds - Where do They Have an Edge? Maximize Your Profits with Commodity Mutual Funds Donor Advised Mutual Funds - Sure Way for Tax Exemptions Small Cap Mutual Funds - Why they are always in demand? Closed End Mutual Funds - Does it Ensure Good Returns? Exchange Traded Funds - Really Tax Efficient? Evaluating Bond Mutual Funds Dynamic Mutual Funds - Are They The Best?  Bookmark
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