What are the cash register funds?
Bonds of bonds of the Ministry of Finance or the Ministry of Finance are mutual funds that invest primarily in the US cash register bonds (US), which are traded, debt securities producing income issued by the United States government. As the Ministry of Finance bonds are supported by the US government's credibility, most investors consider funding funds to be a safer selection of bond funds than corporate or municipal bond funds. However, bonds of the Ministry of Finance have a maturity of 10 years or more, which makes cash registers vulnerable to future price fluctuations, risk of advances, interest rate changes and risk of failure. The duration of the Ministry of Finance can be calculated by finding a weighted time of time remaining until the due date of each bond in the fund. Funds of the Ministry of Finance create a rate of return, which is determined by both a change in the net value of the bond assets and the value of the interest division of the semi -annual.
Interest rate decision made by federal reserve directly affects the net value of government bond activation, in particular those containing securities supported by the mortgage issued by government credit agencies, the Ministry of Finance accounts, notes and other securities with a maturity of less than five years. Prices of long -term funds of the Ministry of Finance are controlled on the market. In 2010, the Ministry of Finance's funds published revenues of up to 10 percent, while short -term funds operated up to four percent. Middle funds, with a maturity of five to 10 years, went from two to five percent in 2010.
American government auction of the Treasury through incompetitive and competitive offers. For incompetitive offers in which the applicant accepts the specified rate, the maximum purchase amount is limited to $ 5 million in the US (USD). INCompetitive auctions in which candidates submit rates that are willing to pay is the maximum allowed purchase of up to 35 percent of the entire offer. The funds of the Ministry of Financejenci contain cash register bonds, but also some other securities of the Treasury with a longer period of time. Many cash register funds seek to overcome the index of long government bonds, including the long -term US Treasury Vanguard (VUSTX), T. Rowe US Treasury long -term (DRGBX).
Some government bond funds provide protection against inflation in the US economy. In these funds, the levels of return or amounts of principal are associated with increases and fall within the level of inflation. Different funds offer different inflation strategies, so the return rate of the variable from the fund to the fund. Investors should be aware that taxes apply not only to the reception of the fund, but also to any adjustments for sure.