7 Mutual Funds for Gamblers


Direxion Monthly S&P 500 Bull 2x (DXSLX)

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As of May 20, 2010

This fund isn’t for the faint of heart. Its main directive is to use leverage to achieve monthly results that are twice as high (or low) as those of its benchmark, which is the S&P 500. When the index goes up, so should the fund, and vice versa. For investors in this fund, risks abound. For starters, since the fund uses leverage, the potential for losses is magnified. For example, an investor who stayed in the fund throughout all of 2008 (an unlikely scenario since investors are only supposed to hold onto the fund for short periods of time) would have lost a stunning 79 percent. But there is also a potential for large gains. For investors who want to bet that the market will go down, Direxion also offers leveraged bear market funds.

Read more about Direxion Monthly S&P 500 Bull 2x.

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