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To: SunSunM who wrote (72068)2/26/2001 6:32:16 PM
From: XBrit  Respond to of 436258
 
It's not risk-free. It's a medium to long term bond fund, not a money market fund.



To: SunSunM who wrote (72068)2/26/2001 6:35:32 PM
From: pater tenebrarum  Respond to of 436258
 
KC, i'd say there's nothing wrong with this fund. however, if one wishes to invest in inflation protected treasury securities (a.k.a. 'TIPS') one can do so without the help of a fund manager...i really think bond funds are largely superfluous, unless they are specializing in junk or arcane corporate sections of the bond market.
if you buy your TIPS outright, whatever percentage the fund manager makes remains with yourself. it may not be much, but it adds up via the miracle of compounding...as far as i know one can buy all types of govt. securities from the treasury directly.
that's the course of action i would recommend ...

note btw. that in case of a deflationary collapse the normal 30-year bond will outperform every other fixed income security. only gold stocks should do even better...



To: SunSunM who wrote (72068)2/26/2001 10:32:47 PM
From: Don Lloyd  Respond to of 436258
 
KC -

...1 year return 13.9%, seems safer and better yield than money market fund, what's not right about this picture?...

Not knowing anything specific to this fund, you need to avoid comparing yield and return as they are apples and oranges. Also, it may well not be advantageous to hold this fund except in a tax sheltered account.

Regards, Don