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What is the difference between constant net asset value (CNAV) money market funds and accumulating net asset value (ANAV) money market funds?

April 26, 2017accumulating ASSET constant funds Money Market NET value

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What is the difference between constant net asset value (CNAV) money market funds and accumulating net asset value (ANAV) money market funds?

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Shares in CNAV funds are issued with an unchanging face value (such as US$1 per share). Income in the fund is accrued daily and can either be paid out to the investor or used to purchase more units in the fund at the end of the month. ANAV funds, known also as roll-up funds, operate under the same investment guidelines as CNAV funds and income is accrued daily. However, unlike CNAV funds, income is not distributed.