{"product_id":"v184desfunby","title":"V.17:2 (84-86): Designer Funds by Gary H. Elsner, Ph.D.","description":"Designer\nFunds\u003cbr\u003e\u003cbr\u003eby Gary H. Elsner, Ph.D.\u003cbr\u003e\u003cbr\u003eMutual funds show a less than stellar performance relative to\nthe Standard \u0026amp; Poors 500 index. It should come as no\nsurprise, then, that Wall Street has responded by offering\nproducts that mimic the S\u0026amp;P 500. Going a step further, some\nfunds are set to do the exact opposite of the S\u0026amp;P 500 and\nthereby offer a hedge. Here are some guidelines.\u003cbr\u003e\u003cbr\u003eThe right financial instruments\nare the keys to great investing.\nOver the last four years, 90%\nof mutual fund managers have\nbeen outperformed by S\u0026amp;P\n500 index funds, so it is no\nsurprise that new funds created\nto outperform the S\u0026amp;P\n500 have attracted attention. I\nrefer to these as designer funds\nbecause they are designed to\nperform in specific ways, as opposed to having the simple\nobjective of maximizing returns.\u003cbr\u003e\u003cbr\u003eAs an example, the Rydex Nova fund is designed to have\n150% of the movement of the S\u0026amp;P 500. If the S\u0026amp;P 500 goes\nup 6%, Rydex Nova will go up approximately 9%. If the S\u0026amp;P\n500 goes down 6%, then Rydex Nova will go down about 9%.\nNot only that, recently introduced funds are designed to have\nmovements of up to 200% of the S\u0026amp;P 500. And there are\nfunds that move in an inverse relationship to the S\u0026amp;P 500 and\nthe NASDAQ 100 as well.\u003cbr\u003e\u003cbr\u003eIf we refer to these enhanced movements as leveraging, we\ncan create just about any degree of leveraging by investing\ndifferent amounts in one of these instruments and in a money\nmarket fund. Lets take a look at the new designer funds,\nstudy how we can achieve various degrees of leveraging and\ndetermine ways in which these funds can be used in developing\nnew investment models.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133909627249,"sku":"\\V17\\C02\\013DESI.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_2f046c8e-4235-4969-afa7-c2f035d50714.jpg?v=1739656580","url":"https:\/\/shop.traders.com\/products\/v184desfunby","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}