There are two "slam dunk" strategies for beating the S&P 500 (SPX) that don't add much risk to your portfolio (over and above the risk of investing in the benchmark itself) and which you or your financial adviser could implement.

Strategy #1 uses the Rydex Nova Fund (RYNVX) . Using leverage, this mutual-fund's investment objective is to earn 150% of the S&P 500's daily return.

The fund has met its daily objective consistently. That does not mean it will earn 1.5 times the S&P 500 over a longer period. That multiple is determined by the compounding of the daily returns; the steeper and more consistent the rise, the greater the multiple; the more volatile the rise and fall, the lower the multiple.

In a down market Rydex Nova will lose more than the S&P 500. During down markets like the 2000-2002 bear market, both the fund and the index should have been avoided.

Rydex does offer a mirror image Rydex Inverse S&P 500 Fund (RYUAX) designed to earn positive returns during down markets. See related story on inverse mutual-funds.

Only a very few fund families offer a leveraged index fund like Rydex Nova. Strategy #2 offers a customized alternative.

Invest half your portfolio in a ProShares Ultra S&P 500 (SSO) ETF with a 2.0 beta leverage. In this way, half your money will earn the same as a typical S&P 500 fund.

Then invest the remaining 50% of your portfolio in a money-market fund (let's assume a 5% annual return), Guess what? Your portfolio will earn roughly 2.5% more than Vanguard Index 500 (VFINX) , the biggest S&P 500 index product. Moreover, the money fund return is virtually risk-free. Most of the portfolio's risk hinges on the S&P 500.

There are even more choices: Rydex, ProFunds and Direxion funds give you access to index-funds and ETFs that leverage the S&P 500 up to 250%.

Invest more or less in these funds to match the performance of the S&P 500. For example, put 66% of your portfolio in Rydex Nova with a 1.5 beta; invest 50% in ProShares Ultra S&P 500 or ProFunds UltraBull (ULPSX) with a 2.0 beta, or invest 40% in Direxion S&P 500 Bull 2.5x Fund (DXSLX) with a 2.5 beta.

The higher the beta, the less assets needed to match the S&P 500 return and the more cash you have left to invest in a money fund.

Strategy #2 is easily actionable and probably the safer strategy, as you can buy both the double-beta fund and your choice of money fund. You could also follow these strategies with the small-cap Russell 2000 Index (RUT )

A third strategy could even be better: Why wouldn't a fund buy only the best 400 stocks in the S&P 500 and drop the 100 worst? A fund manager might even double-weight the top 100 favorite stocks. No fund has ever tried that, to the best of my knowledge. You are paying for investment management; maybe you should demand more effective management.

The first two options are available to those with self-directed IRA brokerage accounts or, for that matter, in Nationwide Financial Services' retirement plans that include Rydex funds. Maybe your employer or third-party investment adviser should offer these strategies in your 401(k).