But you know that. So here's a query: What is the typical growth rate of these funds' cash distributions since just before the Federal Reserve threw the interest rate switch in March? The answer: 94%. Monthly payouts from the 10 largest such funds are riding a rocket ship, nearly doubling already, with more raises to come.
American Funds' Intermediate Bond Fund of America (symbol FIFBX), a short-term fund despite its name, tops the list with a 246% boost since early March. Annualizing its latest monthly payment works out to a 4.2% yield-about where economists and fixed-income fund managers expect the Fed to drive short-term rates over the next several months before pausing to assess the effects on the economy, inflation and investor moods.
This story is from the November 2022 edition of Kiplinger's Personal Finance.
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This story is from the November 2022 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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