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the investor must honestly determine his or her ability to accept volatility and risk
 
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the investor must honestly determine his or her ability to accept volatility and risk
In today's sophisticated investment world,abercrombie and fitch, investors now have the opportunity to double the performance of the major stock market indexes by using the enhanced index mutual fund offerings of two families of mutual funds,moncler, Rydex and ProFunds.

By using this strategy, investors can amplify their returns for the same outlay of investment dollars and so accelerate their portfolio's growth.

The Rydex and ProFunds Families offer what are commonly known as enhanced index funds. Like regular mutual funds,abercrombie paris, enhanced index funds invest in various stocks and underlying major indexes like the NASDAQ 100,moncler, Dow Jones Industrials and S&P 500. But they also invest in derivative products like futures contracts and Equity Index Swap Agreements to leverage their returns and provide gains or losses that equal 200% of the underlying index.

Enhanced index fund investing is a sophisticated strategy that can significantly magnify your returns when used in conjunction with proper money management and a robust trading system.

Enhanced Index Funds Explained

The two categories of Enhanced Index Funds are commonly known as "bull" funds and "bear" or "short funds." When buying a bull fund,doudoune moncler, the investor takes a bullish position that the market is going to rise. When buying a bear fund,moncler, the investor is taking a position that the market will decline because bear funds gain in value if the underlying index declines.

Enhanced index funds allow the investor to increase gains in both up and down markets because of their ability to return 200% of the underlying movement of the index.

Therefore,doudoune moncler, they provide extra exposure to an index with less investment capital so you can free up assets for other investments. While they can provide accelerated gains,abercrombie and fitch, they will also generate accelerated losses if the investor is on the wrong side of the market.

Potential Advantages of Enhanced Index Funds

--Double the gains of the underlying index in both up and down markets

--More market exposure without increased investment cost

--Can be used in qualified retirement accounts to short the market which can't be done with most other shorting vehicles

Potential Disadvantages of Enhanced Index Funds

--Leverage will maximize losses if invested on the wrong side of the market

--Increased volatility due to derivatives

--May not be suitable for all investor

--Lack of flexibility; cannot be traded during trading day; end of day pricing

--Tracking error; enhanced index funds may vary from underlying benchmark and so may not deliver 200% returns in relation to underlying index

Are Enhanced Index Funds Right for You?

Enhanced index funds are suitable for investors who seek an aggressive investment tool and who want to outpace the potential gains of the underlying index.

They offer the investor greater exposure and potential profits without an additional cash outlay and so allow the investor to maximize returns.

Before utilizing enhanced index funds,abercrombie france, the investor must honestly determine his or her ability to accept volatility and risk; but used wisely and in conjunction with a proven trading system,franklin marshall, enhanced index funds can be a valuable and profitable addition to your portfolio. [返回上一页] [打 印]相关的主题文章: Although I am disabled, when I walk down the street, definitely not in a landscape. When I go women who do not have to face my body and feeling the pinch caused by hidden action; when I face the same sex, they do not have any grudges or any mental imbalance. Although my body is not a landscape, but precisely because of disability and therefore I sound mind, and has a rich experience of the soul, and a pair of eyes reveal understanding. This image, I can get down to win the trust of others index. In social situations, I would enjoy this kind of .
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01.12.2011 (4740 días)
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