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Investment trusts linked twice to NVIDIA shares

This mutual fund aims for daily investment results in line with stock price movements of a company called NVIDIA. For example, if NVIDIA's stock price rises 10% in 1 day, this mutual fund aims to double that, or increase 20%. Conversely, if NVIDIA's stock price falls 10%, this mutual fund also aims to double that, or fall 20%.
This mutual fund carries out a transaction called a “swap agreement” with a financial institution. A swap agreement is an agreement between a mutual fund and a financial institution to exchange returns on specific shares (in this case, NVIDIA shares). For example, mutual funds receive returns on NVIDIA shares and instead pay fixed fees to financial institutions.
Also, this mutual fund is called “non-decentralized.” This means that investments are concentrated in NVIDIA stocks, so the risk is high. For example, if NVIDIA stock falls sharply, there is a possibility that this mutual fund will also suffer large losses.
In this way, this mutual fund is strongly linked to the movement of NVIDIA stocks, and although it is possible to aim for large returns in a short period of time, it also has the characteristic that the risk is high accordingly.
Source: Microsoft Copilot
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