Today we are featuring top-performing “Short” equity mutual funds, which can buy or sell securities of companies when they like in search of maximum value.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Short Equity Funds.

2 Solid Options

PIMCO StocksPLUS TR Short Strategy A (PSSAX) seeks total return through the implementation of short investment positions on the S&P 500. The fund is non-diversified. The fund may invest up to 15% of total assets in securities and instruments that are economically tied to emerging markets. It may also invest up to 10% of total assets in preferred stocks. Shareholders have to make a minimum initial investment of $5,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. It distributes dividends and capital gains, if any, annually.

Federated Prudent Bear (BEARX) was founded in December 1995. The investment seeks capital appreciation. The fund tries to attain its objective primarily through short sales of domestically-traded equity securities. It is expected to hold more short positions than long positions on securities and/or the overall market. Doug Noland has been lead manager at the fund since December 1999. It has topped total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past, but are also expected to outperform going forward.

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