Sentences with phrase «underlying value of the bond fund»

Sure, the underlying value of the bond fund might decline in value when the stock market is tanking, but that is fine, since I'm just using the income they generate to DCA across other investments.

Not exact matches

A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.

Although short - term bond funds can lose value if interest rates rise, they're less risky than long - term bond funds because of the short duration of their underlying bonds.

But while an ETF's NAV is the best estimate of that fund's underlying value, it's still just an estimate — especially for bonds.

A bond mutual fund's share price is always exactly its net asset value, or the value of the underlying securities in its portfolio.

But the principle is still the same: when interest rates rise, the value of all these underlying bonds will fall in value, so the price of your fund will decline to reflect that.

The second principal feature of a stable value fund is a «wrap contract» issued by an insurance company or other financial institution that provides a guaranty that investors will receive the «book value» of their account, the value of their initial investments plus interest accrued at certain intervals of time that reflects the performance of the underlying bond fund.