dumbstruck wrote:
- quote -

Most leveraged funds I know of try to maintain a constant beta (often
1.5 or 2.0) against their benchmark, and purchasing call options is not
the best way to achieve this, since their "delta" changes as the market
moves. Probably the leveraged funds used futures contracts (whose delta
does not change) or their equivalents.

Besides, I don't think there is much connection between the strategies
a mutual fund can employ and what the investor is allowed to do
directly. There is no restriction against owning a long-short equity
fund in an IRA AFAIK. Since such a fund is probably not very tax
efficient, it would in fact be sensible to own it in a tax-deferred
account.

"dumbstruck" <dumbstruc[at]gmail.com> writes:

- quote -

You can write covered calls and purchase puts and calls in
an IRA, since those do not involve margin.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

I think the allowed leveraged mutual funds use options, so maybe you
can do options directly as well.

Rich Carreiro wrote:

- quote -

Not to mention that "debt financed income" within an otherwise
exempt account would probably be taxable.

MTW

Rich Carreiro wrote:
- quote -

Explicit borrowing may not be allowed, but I think one can purchase a
leveraged open-end or closed-end mutual fund or options in an IRA, or
even use an IRA account for futures trading. Only sophisticated
investors should consider these things.

revheck[at]linuxwaves.com writes:

- quote -

It's definitely not allowed in IRAs since using any part of an
IRA as collateral for a loan is a prohibited transaction.


--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

Do any of the tax-deferred accounts--401K, 403(b), ROTH, 529--allow
trading
on margin? Or is this only possible in taxable account?