Mutual Funds


The average mutual fund decreased more than 30% during the millennium bear market. If you had managed your portfolio of mutual funds using the EquiTrend money management system, you would have substantially grown your investment capital instead of decreasing it. Read on and learn more about the benefits of active management and the dynamics of the evolving mutual fund industry.



Most mutual fund companies despise active management. They want you to buy and hold your funds and they promote this concept extensively. (They spin this idea so much that Washington politicians pale in comparison).

There is a dirty secret in the mutual fund industry that the average investor doesn't know or understand. The reason they don't want you to actively manage your money is because it makes their job more difficult. As of today, the average mutual fund in the country has a turn over rate greater than 100%. What this means is that the average fund has bought or sold all of the securities that they hold more than once over the last 12 months. That's right. They do not practice what they preach! They advise you to do one thing, and they do something completely different. To evaluate this Buy and Hold myth more, please visit Why Active Management.



Over the last several years, three mutual fund families have sprung up that promote the use of active management or market timing. The pioneer in this field is Rydex. After Rydex successfully launched its family of funds, Profunds and Potomac launched similar offerings. Below are links and phone numbers to these innovative multi-billion dollar fund families.

Rydex family of funds  (800-820-0888)

ProFunds family of funds  (888-776-3637)

Diresion faamily of funds  (800-851-0511)


These innovative fund families have also added leverage to their funds so that their returns will be greater than the returns of the index they benchmark to. To allow fund investors to play both sides of the market, each of these fund families has developed a series of funds that are inversely correlated to their benchmark index. In other words, when the NASDAQ 100 index decreases by 20%, their Inverse NASDAQ 100 index fund will increase by 20%. These inverse funds allow you to short the market when you feel the market is going to decrease. What a novel idea. You make money when the market decreases!!! The Rydex family has a series of dynamic funds that trade twice a day allowing you to trade fairly close to the opening price. These fund families can be a great way to utilize the EquiTrend money management system.


We highlighted the above fund families because they cater to active management. However, there are numerous fund families that will also work just fine. As a matter of fact, trading some of the better-managed funds can help reduce your volatility. To emulate our EquiTrend Growth Strategy, search for a technology fund and a small cap fund of your liking and actively manage them using EquiTrend. This same approach works for all other fund families. As long as you are not a professional money manager throwing around millions of dollars, you should be able to fly under their radar screen.

You should seek funds that have a high beta relative to their benchmark index. Since you will be actively managing your investments with EquiTrend, you mitigate the down side volatility. When actively managing your money, you always want to be in a position to reap the rewards of up-side volatility.

The only downside to using other fund families is your inability to short. If possible, try to trade these funds with some type of online broker where you have access to at least one short fund. Making money only on the long side can be difficult when the market decreases more than it increases.



EquiTrend works the best with funds that are correlated to the major Indices, shown below. We prioritized the list by their order of total performance using the EquiTrend money management system.



If your objective is to produce the highest overall return, then trading an index fund that tracks the Nasdaq 100 Index is for you. If you are looking for a mutual fund trading system with the Highest Reward and Lowest Risk Ratio, then consider our EquiTrend Growth Strategy. If you would like to view an in-depth performance analysis of our favorite strategy, check out our Performance Section.



Your decision to join the EquiTrend community will be one of the most financially rewarding decisions of your investing career. Following our industry leading market timing signals is a simple, stress free way to grow and protect your precious investment capital. To learn more about how the EquiTrend money management system can help you reap the rewards of investing with the market and not against the market, visit our How To Section. If you have any questions regarding our service, feel free to contact us at .

Thank you for evaluating the EquiTrend Stock Market Timing System.