The fund’s income should be above that of a money market fund, with only minimal share price fluctuation.
Due to the nature of the fund’s investment universe, the fund will take on incrementally more credit risk than a money market fund.
Additionally, this fund is subject to interest rate risk, as a rise in interest rates may cause the price of its securities to fall. However, share price fluctuation should be substantially less than that found in long term bond strategies.
Investors seeking slightly higher income than what money funds provide who can accept small share price fluctuation.
Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.