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How safe are gnma funds?
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9th Dec 2009 by Gary
Not to be confused with the devastated Fannie Mae and Freddie Mac, Ginnie Mae funds are actually very safe, and have been a bright spot for investors during these difficult economic times. Ginnie Mae generates income by getting fees for guaranteeing that mortgage investors will be repaid. They are a much more conservative entity than its cousins mentioned above. When taking into account other conservative, safe investments, Ginnie Mae is among the top performers over the last couple of years, although returns have fallen to about 4 percent in 2009. A lot of investors play Ginnie Mae by investing in mutual funds which buy up the Ginnie Maes, which are essentially a pool of mortgages they guarantee.
Not to be confused with the devastated Fannie Mae and Freddie Mac, Ginnie Mae funds are actually very safe, and have been a bright spot for investors during these difficult economic times. Ginnie Mae generates income by getting fees for guaranteeing that mortgage investors will be repaid. They are a much more conservative entity than its cousins mentioned above. When taking into account other conservative, safe investments, Ginnie Mae is among the top performers over the last couple of years, although returns have fallen to about 4 percent in 2009. A lot of investors play Ginnie Mae by investing in mutual funds which buy up the Ginnie Maes, which are essentially a pool of mortgages they guarantee.
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1st Dec 2009 In Investing
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Subjects: gnma funds,