Dedicated Short Bias
  • Dedicated short bias funds keep a short position on the markets that they are traded on
  • Dedicated short bias investments can make sense for many investors, but they are nor right for everyone
  • The best no load funds are those which fit the investment strategies used, the goals desired, and the acceptable risks

Dedicated short bias funds can include both load funds and no load mutual funds, and smart investors know that the best no load funds offer many more benefits and advantages. The name dedicated short bias refers to the fact that these specific funds hold more short positions than they do long positions on the markets traded in. Most of these fund managers prefer to take the short position with certain investments, such as derivatives and equities. For no load mutual funds, or any mutual fund for that matter, to be classified as dedicated short bias funds they must have a portfolio with holdings which are more than zero at any specific time. Finding the best no load funds means that the investor has smaller numbers of funds to compare. After all, why compare every possible dedicated short bias fund when only the best are wanted anyways? Finding no load mutual funds can be a simple matter thanks to the invention of computers and the Internet. Many fund families and others offer websites, and free or low cost online fund resources and tools. With a quick online search and the use of a fund screener, it is possible to locate many great investment options that do not charge any load fees.

No load mutual funds have many benefits, and they may offer better performance and returns than load funds can. Load fees take away from investment capital and performance, because they are deducted and the money is no longer working for the investor. Dedicated short bias no load mutual funds have lower costs, and no expensive load fees. These fees are simply sales commissions which are paid to the expert who gives the advice, and most investors do not need it. Any investor who is willing to take some time, and learn about unfamiliar terms and concepts, has the ability to pick the best no load funds just as well as a professional. This will eliminate the need to pay high load fees, which can average seven percent or even more with some funds. For investors who feel the need to get professional investment advice, there are cheaper ways to do this than paying for load funds. A consultation can be arranged with a financial advisor for an hourly rate, and this is much less than even the smallest load fee will be. This will give the advice desired without taking a chance on advice which is conflicted because of high commissions paid.

For some investors, dedicated short bias funds may be a way to ensure an investment which stays on the short position, while others may be willing to face the risks involved because of a higher possible return. Even the best no load funds should be completely evaluate and thoroughly compared, so that the investor ends up with the right no load mutual funds. Each investor is different, and so is each dedicated short bias fund. What may be a perfect fit for one investor is completely wrong for another. This is because each investor will use unique strategies and have different goals, and each of the no load mutual funds in this sector will have various levels of risks and many different holdings. There are many aspects of each fund that should be compared. This includes the yield, the net assets of the fund, he year to date return, the quality rating of each fund, the holdings and level of diversity in the fund portfolio, and many others. Dedicated short bias funds can be an ideal investment for individuals who share these goals and strategies, but for investors who do not understand them these no load mutual funds are better left alone.