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5 Worst Mutual Funds So Far in 2012

Gold funds really have taken a beating

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Rydex Inverse S&P 500 2x Strategy

YTD Return: -19%

The Rydex Inverse S&P 500 2x Strategy (MUTF:RYCBX) fund — now under the Guggenheim banner — was double trouble for investors. It is structured to gain 1% for every 2% drop in the S&P 500. Naturally, with the index up for the year, the fund has turned out to be a big loser.

This also shows the perils of buying a leveraged fund: Not only can you suffer heavy losses thanks to a fund’s multiplier, but — depending on rebalancing and once you add in fees — you can lose a whole lot more.

Article printed from InvestorPlace Media,

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