Re: What is the cash account good for?

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Posted by Mark on May 22, 2007 at 10:32:14:

In Reply to: Re: What is the cash account good for? posted by Luca on May 21, 2007 at 22:28:01:

: Thanks Mark,
: I think I get how to do it technically. I was just wondering about the pros and cons of keeping a cash account from an user perspecive.

: What do I gain by doing it? The docs say: if you have a broker account you might want to do it, if you have a mutual fund account you might not. Why?

: .luca

Hi Luca,

The reason it is suggested to do with a broker and maybe not with a fund is just because then you match what is happening in real life. Usually brokers have a cash account where your money goes into/comes out of. With a mutual fund, when you redeem they often send you a check...

It is up to you if you want to track a cash account or not. You don't have to, but you can if you want. If you have a cash account, then it might be better so that you know all of your holdings.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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