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#23
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Short term bond funds would be expected to provide a higher return because they add more risk(liquidity risk, interest rate risk, default risk), as opposed to 'risk free' cash.
Also, notice I said bond funds, not bonds. For example, currentle the Vangaurd Prime MMF yeilds 4.28%, and the Short Term Bond Fund Index yeilds 4.77%. http://flagship5.vanguard.com/VGApp/hnw/FundsByType -Matt For a longer explanation goodle bond/risk or something. |
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