Bear Market Funds

Can someone please explain the nuts and bolts to investing in Bear Market Funds? 

 

Is is as simple as, if you think one of the indices will be lower a year from now, then buy shares of a Bear Fund correlated to that index?

 

Any advice is welcome. 

 

-Looper

The simple way to think about it is that the fund will have short or bearish positions it it's portfolio.  The one's I know of are not 100% bearish.  They keep a mix, but are willing to short the market unlike pretty much 99% of the funds out there.  You would need to reseach the fund to see its holdings and strategy.