Which Funds are best for investing in options and futures?

Posts: 11
Joined: 2007-05-26

Some stock funds are allowed considerable investment flexibility, and each fund is bound by a slightly different set of investment restrictions. The Prospectus and Statement of Additional Information for the funds describe these restrictions and risks relating to each fund. However, I don't know much about futures. I do know that with "Put and Call Options" Groups are allowed to buy and sell options in all of the stock funds. As a practical matter, they have sold (written) puts and/or calls in each of the funds but they generally do not buy puts and calls. Writing covered options is generally considered more conservative than buying options, but writing is not risk-free.

So what are Futures? How do they factor into the scheme?




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