Inverse Mutual Funds

 

FOR EDUCATION ONLY

 

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Mutual funds are investments that pool your money together with other investors to purchase shares of a collection of stocks, bonds, or other securities, referred to as a portfolio, that might be difficult to recreate on your own. Mutual funds are typically overseen by a portfolio manager.

 

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Inverse mutual funds are designed to provide a positive return during a recession including a stock market crash.

Holding shares of inverse mutual funds for more than a short time is not recommended as it is often difficult to determine how long a downturn will last. It is easy to expose oneself to unnecessary risk by confusing a temporary retracement and the beginning of a bear market.

 

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