Fund investment you consider "better" than cash?

bee

Since cash has many positive attributes...its liquid, it has little market risk, it smells good...but today it just sits there being green. I was looking for a "better then cash" fund or investment. I believe David Snowball has touted River Park High Yield fund (RPHYX) as one alternative to cash. Wondering if anyone has other choices?

I have used GNMA funds in the past as well as ST Treasury/Corporate funds. Looking for some higher octane...low risk...funds. Any thoughts?

BobC

Alternatives to cash should, by definition, have darned low risk potential. I have been unable to find any information on RPHYX average duration and maturity. They might be very short, which would be good. But without that information, I would be very hesitant to use a high-yield fund as a cash substitute. Lord Abbett Short Duration Income LLDYX has a lower current yield than RPHYX, but an extremely low risk profile. Short muni funds would fit the bill, but their current yields are very low. VMLTX is at 0.52%, LTMIX is 0.95%. But both are much better than cash and CD yields. The other issue is expenses. RiverPark at 1.25% is way up there for short-term bonds, but a turnover of more than 600% has a lot to do with that. Vanguard and Thornburg funds have miniscule expenses by comparison. Just something to think about.

ron

JSHIX, Janus short term bond is about the best I know with good record.

JoeNoEskimo

Though its not "higher octane", another cash alternative:

Monthly Total Returns DLSNX

2013
March 0.03
February 0.23
January 0.22

2012
December 0.11
November 0.06
October 0.25
September 0.26
August 0.47
July 0.39
June 0.34
May 0.03
April 0.22
March 0.23
February 0.38
January 0.54

2011
December 0.32
November 0.17
October 0.59

Now if you want to gamble a little bit more for higher return, check out ASHDX...slighty more risk than RPHYX, and of course higher returns.

There's only so much you can expect from these vehicles.

But ASHDX might fit the bill if RPHYX is too wimpy for you.

AndyJ

I think the idea of a cash or cash-like position means different things to different people at different times. Most basically, those might fall into categories like these, roughly speaking: savings you're going to use in a year or two for a down payment, college costs, etc.; a short-term, liquid parking place for $ you're targeting to put back in stocks or bonds on some sort of correction; an indeterminate-duration position at a time when you're not comfortable with the investment environment in either stocks or bonds; and a strategic or long-term portfolio allocation designed to damp down portfolio volatility.

For someone whose situation is either of the latter two, I'd have no hesitation putting it in DBLTX/DLTNX ... short duration, barbelled credit risk, very limited price movement, nice yield, reasonable cost. Part of the risk-off nature, incidentally, is due to a large cash position, usually 15% or more.

JoeNoEskimo

Its another next step up risk-wise, but maybe a conservative allocation fund could do? Check out USCCX (fund of funds) that has a small allocation to equities. NTF at Vanguard.

VintageFreak

RPHYX? Maybe SIRIX? But really, better than cash over (say) 3 months is more appropriate question. Better over 1 day then IMHO question becomes an oxymoron.