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Risks Of Investing In GNMA Funds

Friday, September 9, 2011 - 5:53 AM
From CBS MoneyWatch Wise Investing blog:
I believe the reason that most individuals invest in GNMAs is they’re tricked just like Snow White was by the wicked witch. They focus on the higher yield (the shiny apple) and don’t see the risk (poison) inside.

You can't get around the basic fact in the investment world that higher yields always come with higher risk.
Ken TuminKen Tumin5,473 posts since
Nov 29, 2009
Rep Points: 125,800
1. Friday, September 9, 2011 - 8:13 AM
Many people have put their funds into the Vanguard GNMA Fund because the financial talk show host Bob Brinker has been recommending GNMA funds for years as a conservative investment vehicle.
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,636