Inverse ProFunds seek to increase in value when the market declines and decrease in value when the market rises—a result that is the opposite of traditional mutual funds.
For example, when the S&P 500® goes down by 1% on a given day, Bear ProFund should increase by 1% and UltraBear ProFund, by 2%. Conversely, when the S&P 500 goes up by 1%, Bear ProFund should decrease by 1% and UltraBear ProFund, by 2%.
Inverse ProFunds may be appropriate:
- when you believe the stock market—or some portion of it—will fall, and you seek to profit from its decline.
- when you want to hedge—or lessen the impact of a market decline, and you don't want to sell. (definition on hedging)
Like all ProFunds, Inverse ProFunds may be appropriate for active investors. ProFunds does not limit how often an investor may exchange among ProFunds and does not impose transaction fee when investors buy, sell or exchange a ProFund (excluding a $10 wire redemption fee imposed under certain circumstances).
Please note that some Inverse ProFunds use leveraged investment techniques that will produce greater volatility in the attempt to achieve greater returns. Inverse ProFunds principally invest in futures and options and engage in short sales. For more information on the Inverse ProFunds' investment strategies and risks, please download the prospectus.
The Nation's Largest Lineup of Inverse Equity Mutual Funds¹
¹ Source: Lipper. January 31, 2006. Lipper defines ''inverse funds'' as an open-end mutual fund (not an Exchange Traded Fund, or ETF) that seeks investment results corresponding to the inverse (opposite) of the performance of an assigned index.
Notes:
There is no guarantee that any ProFund will achieve its investment objective. Investment return and principal value will vary and shares may be worth more or less at redemption than at original purchase. See the prospectus for more information.
These ProFunds should experience losses when benchmark indexes rise.
There are no restrictions on the size and frequency of trades and no transaction fees. The frequent exchanges our policies permit can decrease performance, increase expenses and incur tax consequences. All ProFunds permit active investment strategies can decrease performance and increase expenses. In addition, it is important to note that some ProFunds are not suitable for all investors, because of aggressive investment techniques many of the funds employ.
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