bond funds

Bond Fund


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I have 20K that I would like to park somewhere for the next 8-9 months. I want to get more than the 5% interest offered by ING and those banks without being exposed to market fluctations.

I found this bond fund offered by T Rowe price, wanted to know what you all think.

http://finance.yahoo.com/q/pi?s=PREMX

It seems to give a decent return while being failry stable.
Im still trying to familiarize myself with the bond market. I notice that in 98 it fell back 23% and all the other years where psoitive. Does anyone know what happened in 1998?

All input is appreciated

http://finance.yahoo.com/q/pr?s=PREMX

High interest rate sensitivity and low credit quality. You could risk a lot. You'd be better off sticking with the ING account for the short-term, unless you are willing to take the risk.

Look how it reacted to the recent spike in interest rates:

http://finance.yahoo.com/q/bc?s=PREMX&t=3m&l=on&z=m&q=l&c=

There's a 3%+ drop in there.

no Im not willing to take the risk.

Out of the bond funds I looked at this one had the highest returns in the past. The other funds were equal or less than what I could get at in an ING savings account. And the ING account is guaranteed.

thanks for your input. it is very much appreciated.

are you saying thumbs down to bund funds in general or just this one?

I'd say, personally, with an 8-9 month timeframe, stick with the safer 5%.

Bond funds are good, and the one you mentioned is as well (I have over 15% of my portfolio in similar, U.S. bonds), but the scenario you mentioned does not allow for such an investment, in my opinion.

If anyone else has an opinion, please interject.