Written by 11:17 am Blog, Securities Fraud Articles

Recovery of Rydex Govt Long Term 1.2x Strategy Fund investment losses

Have you suffered losses in Rydex Govt Long Term 1.2x Strategy Fund?  If so, the securities attorneys of The White Law Group may be able to help you.

Rydex Govt Long Term 1.2x Strategy Fund is a bond fund that invests primarily in long duration bonds.  As such, the fund is exposed to credit risk associated with an increase in interest rates.

When interest rates rise, the value of long term bonds sold at lower interest rates decrease.  The longer the maturity of the bond the greater the decrease.  Long term duration bond funds like the Rydex Govt Long Term 1.2x Strategy Fund are exposed to the risk of increasing interest rates and as rates increase the value of the fund will likely decrease.  Many bond investors are unaware of this risk and assume that their bond investments are their “safe” investments.

Before recommending a bond investment, a financial advisor, at minimum, is required to disclose: (1) the bond’s current price, (2) the commissions or markups that must be paid to acquire the bond, (3) an explanation of the call provisions for the bond (if applicable), (4) the current yield, the yield to maturity, and the yield to call the bond, (5) the amount and timing of the bond payments, and, most importantly, (6) the risk of default or devaluation of that particular bond’s value.

If your financial advisor failed to adequately disclose the risk of investing in Rydex Govt Long Term 1.2x Strategy Fund, you may be able to recover your losses through a FINRA arbitration claim.

For a free consultation with a securities attorney, please call The White Law Group at 312/238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit https://whitesecuritieslaw.com.

Tags: , , , , , , , , , Last modified: July 17, 2015