What is this animal Dreyfus Liquid Asset fund..DLAXX

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Cody6136
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What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by Cody6136 » Mon May 20, 2019 5:03 pm

Hi all,

I hold about 60k in a fund that I've had for a very long time, like since the late 1990s. It's Dreyfus Liquid Assets DLAXX.

Is this a simple "money market" account? I hold this in a taxable account and it's part of my net worth that I've completely set and forget It looks like there would not be a big tax hit for selling this (fairly high) fee fund and rolling it into something like Vanguard Total Stock or my current Target Date fund in Vanguard.

In the last few months, I've read a lot here, lurked and asked a few questions. I'm moving to consolidate and simplify my financial life but my question is, does a sale like this trigger the same kind of taxable event that stock sales do? What is the basis that I can use?

I'm really confused about what this fund actually IS, to be honest.

I posted more about my portfolio, such that it is, under a thread called How Has it come to This?

Any help from the BH gods and goddesses is deeply appreciated. Sorry for the rudimentary nature of my quest. :confused

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grabiner
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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by grabiner » Mon May 20, 2019 5:09 pm

The XX at the end of the ticker implies that it is a money-market fund, and Morningstar says so as well. There shouldn't be any capital gain on the sale. (The best place to check for fund information is the prospectus.)

However, selling a money-market fund to buy a stock fund will increase your portfolio risk. If you don't want to do that, you can sell the money-market fund to buy a bond fund. (If you hold stock in your taxable account for tax reasons, you can buy a stock fund in the taxable account and sell an equal amount of stock to buy a bond fund in your IRA.)
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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by carmonkie » Mon May 20, 2019 5:14 pm

http://portfolios.morningstar.com/fund/ ... ture=en_US

It looks like it is 70% Cash, 30% Bonds. @ 0.83 expense ration, it is expensive to be managing that much cash.

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nisiprius
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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by nisiprius » Mon May 20, 2019 5:18 pm

I have several ways of approaching a problem like this. One is to go to Morningstar, see how they classify it, look at the growth chart, and look at "filings" and read the "summary prospectus." Another is to go to the fund company's website and see if they have a search feature (they usually do) and look for a web page about it, a "factsheet," and, again, if necessary, a prospectus. A third is simply to do a Google search on the ticker symbol.

I'm going to start at Morningstar and see how they classify it.

Morningstar.com. Click past the ad. Type "DLAXX" into the search box that says Stock, Fund, ETF, Quotex, Reports, Articles, Videos. "Dreyfus Liquid Assets" pops up as a choice. Click on it.

And there's your answer. Yes, it's a money market fund.

Image

Nope, I'm not clear on what a prime money market fund is, but a little more clicking around in Morningstar tells me that it had inception on 01/28/1974, which makes it relatively old--older than Vanguard Prime Money Market--and that it is basically a "typical" money market fund that virtually duplicated Morningstar's category average and its benchmark, 3-month Treasury bills.

It's a garden variety money market fund. It has slightly underperformed the Vanguard Prime Money Market fund, but not by much.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Cody6136
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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by Cody6136 » Mon May 20, 2019 6:00 pm

OP here.

As before, lots of very valuable information here. Now I am learning the information that my prospective FA warned that I did not know, which is why I was badly in need of his services. "You don't know how much not knowing about this kind of thing can HURT YOU!"

But I digress.

I would think that selling this fund and moving it over into my Vanguard as a bond index fund is a potential strategy. Selling this fund and going into stocks flies in the face of my IPS. And I'm not going to plan one way and invest another. :idea:

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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by Cody6136 » Mon May 20, 2019 6:02 pm

OP again.

So...I don't have to "roll it over," right?

I just contact the firm, sell it and then the check comes to me and I insert it into my existing bond fund in Vanguard.

No complications, eh?

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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by MotoTrojan » Mon May 20, 2019 7:12 pm

Cody6136 wrote:
Mon May 20, 2019 6:02 pm
OP again.

So...I don't have to "roll it over," right?

I just contact the firm, sell it and then the check comes to me and I insert it into my existing bond fund in Vanguard.

No complications, eh?
Selling and withdrawing may be too different events. What brokerage?

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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by grabiner » Mon May 20, 2019 9:52 pm

nisiprius wrote:
Mon May 20, 2019 5:18 pm
Nope, I'm not clear on what a prime money market fund is, but a little more clicking around in Morningstar tells me that it had inception on 01/28/1974, which makes it relatively old--older than Vanguard Prime Money Market--and that it is basically a "typical" money market fund that virtually duplicated Morningstar's category average and its benchmark, 3-month Treasury bills.

It's a garden variety money market fund. It has slightly underperformed the Vanguard Prime Money Market fund, but not by much.
A prime money market fund is one that holds a variety of money-market instruments, such as CDs and commercial paper. This is to distinguish it from a government money-market fund, which holds only securities guaranteed by the US Government. Most fund providers don't actually use the word "prime" in their prime funds as Vanguard does.
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nisiprius
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Re: What is this animal Dreyfus Liquid Asset fund..DLAXX

Post by nisiprius » Mon May 20, 2019 10:22 pm

David, what did "Primary" mean in the late lamented Reserve Primary Fund?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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