fund front-load question?

Question

My opinion is that we could be headed for another bear market that could duplicate 2008 bear market to yet to be found out extent.

So I am considering bear market funds, but they tend to have high expense ratio and/or font-loads. If bear funds charge 3.75% front-load, and I invest their required min initial investment of $3,000, does that mean that I will only be charged 3.75% of the initial $3,000, and not charged front-load of later investments? I think they will charge front-load of each later investment including dividend re-investment. Can anyone clarify with some opinions about bear funds? Thank you so much.

Answer 1

There are exchange traded bear funds that do not have a front end load. You might consider one of those. Easy in and easy out at the click of a mouse.



DOG is a Dow 30 short fund. Its expense ratio is about 1.02%

SH is a S&P 500 short fund. Its expense ratio is about 0.95%

PSQ is a NASD 100 short fund. Its expanse ratio is about 1.16%



There are about 90 others also to choose from, all traded on exchanges and all without a front end load. Some even have the distinction of 3x inverse movement and there are many that do 2x inverse movement such as DXD, SIJ, and SKK to name just 3 of the many.

Answer 2

You are right, large expenses plus every time you add

you will be hit. This type of fund is NOT for the long term

investor.The gains they make are extreamly large, sometimes

more than 100%. Here are two of the possible funds:

Prudentbear

Bearprofund

Your going to need a lot of luck, but if you can spare the

money. Go for it.

Answer 3

A front load is nothing more than a sales charge paid right up front when you purchase shares of the fund. Each time you purchase shares, you pay the load. Stay away from such funds - their returns do not justify the costs. There are many good no-load funds available.

Answer 4

I like Jif's answer. Why buy a loaded fund when you can buy a similar fund that doesn't

have a load?