We all know that the one thing we can control is cost. With that in mind I checked out my cast of great managers to get a relative sense of what I am spending. I was shocked to see that I am paying 26% more for management of RPHYX than to the great D. Fuss over at LSBRX. Or 40% more than I am paying the illustrious Gundlach/Barach team over at DLTNX. In an era of diminishing FI returns isn't this relatively high ER a giant hurdle for RPHYX to overcome? Or put another way,,,,,, won't they have to add another layer of risk to get the same net return?

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.

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.

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.

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?

Reply to @JoeNoEskimo:

If you are ok with lower but very smooth returns, the vehicles I prefer are MASNX, OSTIX (becoming very popular), SDGIX, PUBDX or MWCRX, and my "safety" fund RPHYX

What are the differences and similarities between OSTIX and RPHYX?
Mona

PETDX lost about (46%) in 4Q 2008, and then lost another (30%) in 1Q 2009. But otherwise, its been a juggernaut. High risk, high returns. You have to have guts to stay aboard long-term.
As for diversifying to non-correlated assets, this is far and away the biggest challenge for investors. "All boats rise with the tide." But when the tide goes out......
If you are ok with lower but very smooth returns, the vehicles I prefer are MASNX, OSTIX (becoming very popular), SDGIX, PUBDX or MWCRX, and my "safety" fund RPHYX. I've been sleeping well on these.
When I dabble like Bee, I get burned more often than not. Not everybody is content with single-digit annual returns, but I like a smooth, boring ride.

Reply to @scott: Ha! It would indeed need to be arbitrage to get me to pay anyone 2/20. Hard to believe folks do...
I see ADAIX as a best-in-class offering. Diversified across mergers, convertibles, and other opportunity driven events. Low beta, good alternative to cash (for me) or short-term bonds, like RPHYX and PAIUX. Not sure I would own a lot of it, but starting to think that when a best-in-class fund becomes available, I'd like to own at least a small piece to keep opportunity available.
SEQUX, for example, is another one I wish I had bought when it re-opened in 2008. Ditto with RYSEX, MFLDX.
I'm conflicted here cause ultimately I believe 3-4 funds is all you really need.
So how about this?
While I will continue to pursue this "fewest funds" construct for the principal portion of my portfolio, I will indulge in opportunities to get exposure to other extraordinary money managers for a small but insightful and important role =).

Reply to @Charles:
Well, I meant to keep this thread to Small Caps but since you started...
PRAFX down 4.32%
Remaining Hussman investors should be happy today if they do not mind the past couple of years!
HSGFX up 0.67%.
HSIEX up 0.31%
WHOSX up 0.72%
RPHYX up 0.10%
WBLSX up 0.10%

Reply to @prinx:
David is correct that as far as the 60 day restriction is concerned, Fidelity and the other brokers use FIFO. That means that so long as you've got some shares that were purchased more than 60 days ago, the Fidelity won't charge you a short-term trading fee. (For tax purposes, you can still designate more recent shares, use average cost, etc. This is completely independent of the short term trading fee calculation.)
From a tax perspective, the problem I have using any bond fund as a CMA is that you're always trading in and out, plus reinvesting dividends. This may create many wash sales, lots of tiny transactions showing up on your 1099-B (and from there to your Schedule D). Sure, the broker is required to track this for you now, but for true optimization of taxes, one needs to specify shares and this becomes a lot of bookkeeping.
On the other hand, for what the OP requested (essentially a "Christmas savings account"), RPHYX works fine - lots of buys, few sells. Not a CMA.
FWIW, Fidelity provides an explicit CMA account with (taxable) interest 7x the rate on FMOXX (a whopping 0.07% vs 0.01%), and it's FDIC-insured. Here are some of Fidelity's rates.
I tend to think of a CMA account as a glorified checking account, for day-to-day expenditures (with a limited balance), as opposed to an investment account. If that's what you have in mind, you might consider a reward checking account. High interest, but requiring frequent transactions (bill pay, automatic depost, etc., depending on the particular account). From depositaccounts.com (the best site I've found for bank rates and info), here's a background article on reward checking accounts, and their page of top rates.

David I have been using Fidelity Tax Exempt Money Market for cash management. I would like to use RPHYX but at Fidelity where I keep most of my assets there are consequences for using a mutual fund that one may trade in less than 60 days other than a money market fund.
I would assume that one thinks of a cash management fund as liquid enough to trade in less than 60 days. Would you mention other options where one can avoid this inconvenience.
prinx

"Mutual fund investing involves risk including loss of principal. ... Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. ..." Took this from the prospectus for RPHYX (available online) just to show that even a pretty safe fund like this one can't guarantee the safety of your money. So, I'll grudgingly admit Ted has a point here.
But heck. Vacation money ain't the same as money for food or medical. So, I'd be more inclined to roll the dice a bit using any one of David's suggestions. In the unlikely event the investment doesn't work out: here's some low-cost vacation alternatives. http://brilliantfinances.com/top-ten-budget-vacation-ideas

My own cash management accounts are RiverPark Short Term High Yield (RPHYX) and T. Rowe Price Spectrum Income (RPSIX). Price is, by far, the riskier of the two (it dropped 10% in 2008, its only losing year) but conservative and well-diversified. RiverPark might average 3.5% per year and Price 7%. The minimum on RiverPark is $1000.
You might consider PIMCO Short Asset (PAIUX), which is the retail version of the strategy used by PIMCO's mutual fund managers for the "cash" in their funds. The minimum is $1000.
I'm working on profiles of Azzad Wise Capital (WISEX), Payden Global Low Duration (PYGSX) and Scout Low Duration Bond (SCLDX). The first two invest globally in short-term bonds and bond-like securities with an emphasis on capital preservation and inflation protection. Payden has the stronger case, so far but Azzad ($300/AIP) has the lower minimum. The profiles would be further along, but I'm being ignored by "publicists" for both funds. Scout is a new fund but it's managed by an absolutely first-rate team (the folks behind Scout Unconstrained Bond and nominees for Morningstar's fixed-income manager of the year) and sports a $100 minimum for AIP accounts.
Finally, Northern Short Bond (BSBAX) would offer conservative management, low expenses and a $250 AIP minimum. There's absolutely nothing flashy about it but it's also unlikely to ever do anything silly with your money (Northern specializes in keeping the ultra-rich, ultra-rich). Their average return is something like 3%/year.
Remember: none of this is insured. All of it puts your capital at risk. Given my circumstances, the risk seems entirely reasonable but your situation might be different.
For what it's worth,
David

Hmmm ...
Artisan Small Cap Value (ARTVX) - since '97 or '98. I sold my shares of Artisan Small Cap (ARTSX) pretty much as soon as SCV opened and transferred the money. Likewise, Artisan International Value (ARTKX) - since '02, when I did the same thing with my Artisan International (ARTIX) holdings.
From which I recall that I really do rather prefer value to growth and from which I've concluded that active management can work even though there are going to be stretches of explicable or inexplicable weakness.
I suspect that my cash management accounts (RPHYX and RPSIX) are the most secure. Beyond that, it's hard to say. In a decade I'll be able to start thinking about ratcheting back on work which might suggest a more conservative allocation with fewer stock funds. But it's also possible that in a decade stock valuations will be compelling, so ...
Ambivalently,
David
p.s. wasn't thinking about the retirement account. That would likely be Fidelity Low-Priced Stock (FLPSX), around '92 or '93.

Reply to @AndyJ:
Bond funds the family holds are:
PTTRX
PYGFX
DIBRX Dreyfus has neg. return for the year.
MAINX
FSICX
TGTRX
RPHYX
PFODX
LSBRX

2013 1st Q wrap:Four + years into retirement. Retirement accounts breakdown: 30% cash,lucky to get 1.47% in G'ment TSP. 20% international equity led by MSMLX,MAPIX,WAEMX(closed),MAPTX. 19% small growth led by WSCVX (closed) SATMX. 15% core led by BRUFX, FPACX,MFLDX. 8% bond led by RPHYX, DLENX. 5.5% precious metals TGLDX ,DWGOX. And 2% real estate HLPPX. Pretty close to a classic 60/40 portfolio considering the cash yield with no risk from the Gov't TSP G fund.Slowly drawing the cash portion into equities,but in retirement it's no time to go all in!

Just googled "age based investing" and narrowed it to the below articles for basic and somewhat pertinent info. Anyways,some good ideas posted by everyone here.Being retired myself and always being a small-cap fund investor and believer,I have trimmed some positions on these recent highs but continue to look for new funds or as Scott reminds everyone to look @ asset plays, dividend stocks,BDC's, REIT's and companies growing dividends,with the caveat that no asset class is without risk.Remember in the worst of trhe recent crash,YOUpaid the US Treasury to hold your cash!
Start a Google Finance watch list of possible ETF's or dividend stocks and buy on weakness from the cash you may harvest from trimming your positions.Seeking Alpha web site has plenty of ideas on income and dividend investing.
In the fund sector most posters reccomendations for approaching retirement are the asset allocation funds.My personal faves (and I own) are BRUFX,FPACX,MFLDX,and a small allocation in WBMRX ,which can be slowly built over time @TD(see below).But all the posters here have posted plenty of options they feel comfy with in their own circumstances,research, and wisdom.
I have retirement accts at the big 3 discount brokers and there are some funds with low minimums and subsequent minimum investments,if you do some poking around.One of the best is a $500.00 minimum in DWGOX with no minimum subsequent @TD (not automatic).It's $35.00 thursdays in DWGOX for me.Sometime in you retirement, if not before, gold probably will approach $2500.00.I want that insurance.(one big problem with TD is their 180 day hold period in RPHYX,everybody's fave cash position).Beware.
I was going to post this observation in another thread concerning investing in Walmart stock or bonds.But here it is. I had an aquaintence ,who,starting in the late '60s,would on every payday(every two weeks),went to a coin shop and purchased a roll of silver dollars.(I think 20?) Any way, the right investment on a regular basis with enough diversity can insure a somewhat secure retirement. Unfortunately I never found that coin shop! Anyways,good luck as you financially prepare for retirement and to all a great week-end.Go Badgers and LADY BLUE HENS!
http://personaldividends.com/age-based-investing-for-retirement/
http://personaldividends.com/age-based-investment-strategy-can-hurt-you/
http://personaldividends.com/investing-basics-asset-allocation-10-5-3-rule/

Reply to @Hiyield007:
Good question. Unfortunately hard to answer. Here are the thoughts I have. Floating rate funds are obtained by companies that are typically in low credit ratings or they are in a rush to raise funds so they cannot do a normal bond offering in time. Assuming most are low credit rating companies, if they were to offer high yield bonds, they need to offer substantial interest on those bonds. So, they get these floating rate loans from banks at a slightly lower interest but bank loans are the most senior in credit structure. So, the loans get paid first before bond holders. Bank in turn put them in portfolios and sell them to investors much like mortgage bonds are bundled. Floating bond funds buy these assets...
Floating rate funds may return well in an increasing rate environment since duration is short. They are typically steady just like you like but in a liquidity crisis market might disappear and they lost a lot in 2008.
Short term junk bonds are actually very similar to floating rate bond. Shorter term will allow the fund to hold bonds to maturity and new bonds purchased will be at a higher rate as rates increase. However, they will be longer duration than bank loans so they might be slightly more volatile (except RPHYX has comparable low duration)
Secondly, high yield bonds are a proxy for equities. The high yield bond prices have higher correlation with that of the company stock. If interest rates are rising due to the increased expectations better future for the economy, then the company is expected to do better and credit outlook of the company might improve. So, while you might lose a bit on the duration (but still small due to short term nature of above fund) but you may make up some on the credit side and pocket the yield for the period as return. Even if credit quality appreciation does not occur, the Fed will be lifting the interest rates very very slowly and they control the short end of the yield curve more precisely. So, duration based effects will be very very little on these bonds.
In short, which one is better? It is hard to say for sure.

People (including myself, to some extent) seem to regard River Park Short Term High Yield (RPHYX) as an enhanced cash fund. That means that it is expected to have good (but not perfect) price stability, superior yield to a MMF, and a portfolio not constrained by Rule 2a-7 (essentially 60 day/13 month maturity restrictions).
Bank loan funds don't seem to come close to this ideal. Just look at the huge price drop in 2008, even for FFRHX. (Admittedly, several funds marketed as enhanced cash funds, notably Schwab Yield Plus, failed miserably also.) So I don't see bank loan funds serving as an alternative fund.
As to why the Loomis Sayles fund has a much higher yield than the Fidelity Fund, several factors pop out: LS credit rating is somewhere between B and CCC (60% of fund rated B, nearly half the rest is lower), vs. BB for the Fidelity fund (higher than most bank loan funds); LS can hold fixed rate securities (longer effective duration, or equivalently, more interest rate risk); LS can use leverage.
Finally, note that the SEC yield between the two funds is smaller than the TTM (trailing twelve month) yield difference. SEC yield is yield that takes into consideration total return - if you buy a bond at a premium (above face value), then it gradually declines in price (NAV) over time. So the total returns are somewhat closer than you may think (though there's still quite a difference between the funds).
In the muni arena, BobC has suggested NEARX. I'm not quite as sanguine about this fund as he is, but I'm happy to acknowledge that it's worth a serious look. (You didn't say whether you were looking for a taxable or tax-sheltered account.)
As I've written before, I like FPA New Income (FPNIX) as a conservative bond fund, but it too is unlike RPHYX. It is certainly not positioned as an enhanced cash fund.

How about adding a conservative allocation fund like EXDAX or USCCX.
MWCRX is interesting as well, but DLSNX is most conservative.
Also, another S/T HY fund is ASHDX, though its going to be more volatile than the steadier RPHYX that you own.