Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

Shazam · 08-28-2006, 03:04 AM

The money market account will always give a fairly low ROI. The bond fund has the potential to make higher returns.

As it is, bond funds are pretty low risk. Money market funds are really appropriate only if you want to have some cash in your portfolio to even out risk, or if you don't know what you want to do with your money quite yet, or if you're trying to do some market timing stunts, or if you need some fairly liquid assets.

Here's Morningstar's page on a TD Bond Fund:

http://www.morningstar.ca/globalhome...sp?fundid=7160

Note how almost the whole fund is composed of gov't Bonds (the institutional version of GICs) and corporate debt.

Oh yeah, I'm not responsible for anything happening to your money based on my advice.

08-28-2006, 03:04 AM	#8
Shazam Franchise Player Join Date: Aug 2005 Location: Memento Mori Exp:	The money market account will always give a fairly low ROI. The bond fund has the potential to make higher returns. As it is, bond funds are pretty low risk. Money market funds are really appropriate only if you want to have some cash in your portfolio to even out risk, or if you don't know what you want to do with your money quite yet, or if you're trying to do some market timing stunts, or if you need some fairly liquid assets. Here's Morningstar's page on a TD Bond Fund: http://www.morningstar.ca/globalhome...sp?fundid=7160 Note how almost the whole fund is composed of gov't Bonds (the institutional version of GICs) and corporate debt. Oh yeah, I'm not responsible for anything happening to your money based on my advice. Last edited by Shazam; 08-28-2006 at 03:11 AM.