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audreyh1 · 02-02-2008, 04:30 PM

If a fund maintains a $1 NAV (or otherwise fixed), then it is cash. A CD is cash. An IBond is cash.

If the NAV of a (non-equity) fund varies (usually due to interest rate changes or credit spread changes), then it is behaving like a bond.

REITs are equities, not bonds.

I never worry about how much cash a bond fund is holding. That introduces too much useless complexity IMO.

Audrey

02-02-2008, 04:30 PM	#2
audreyh1 Thinks s/he gets paid by the post Join Date: Jan 2006 Posts: 3,113	If a fund maintains a $1 NAV (or otherwise fixed), then it is cash. A CD is cash. An IBond is cash. If the NAV of a (non-equity) fund varies (usually due to interest rate changes or credit spread changes), then it is behaving like a bond. REITs are equities, not bonds. I never worry about how much cash a bond fund is holding. That introduces too much useless complexity IMO. Audrey