Quote:
Originally Posted by jIM_Ohio
RPSIX is a 15-85 mutual fund which could beat 4.75% after taxes (7%, taxed at 25% is still 5.25%). This fund keeps money in cash (not all of it, but some)
PRPFX is a 30-5-16-16-16-16 mutual fund which has little tax distributions and has historically returned more than 7% per year as well before taxes. This fund also keeps some money in cash.
Both funds could have share prices swings >1% each day (not often, but does happen), so tread lightly if you do not like moderate short term risk. week over week and month over month these funds are SOLID.
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At the first look, the 2nd fund looks better. Per M*, the first choise doesn't beat 4.75% (except the 5-year time frame) and has more tax exposure:
T. Rowe Price Spectrum Income Report (RPSIX) | Tax Analysis
Sure, past results don't guarantee the future.
Overall, they seem to be good choices to explore and from a good fund family.
BTW, could you clarify for me "PRPFX is a 30-5-16-16-16-16" allocations because at a quick look I didn't see them on M*? Thanks