Typically, loss due to investment in funds is limited to the amount an investor was willing to use for purchasing those funds. Investing in leveraged and inverse funds is a useful tool for individual investors as it provides a mechanism by which to improve ROI when regular funds may be doing poorly. In all cases investors should be doing some research and consideration of risk before investing in funds or stocks; inverse and leveraged funds are no different. If there is to be regulation, then it should apply equally to all wealth classes; being wealthy is not a measure of capability or understanding.
Eric Kasten Comment On Regulatory Notice 22-08
Typically, loss due to investment in funds is limited to the amount an investor was willing to use for purchasing those funds. Investing in leveraged and inverse funds is a useful tool for individual investors as it provides a mechanism by which to improve ROI when regular funds may be doing poorly. In all cases investors should be doing some research and consideration of risk before investing in funds or stocks; inverse and leveraged funds are no different. If there is to be regulation, then it should apply equally to all wealth classes; being wealthy is not a measure of capability or understanding.