UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35380  
Subject: Re: Total Bond vs GNMA vs Treasury Money Market Date: 10/19/2001 11:33 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I'm here for the first time and I'm looking for advise regarding the safest Index investment between Total Bond and a Ginnie Mae Fund. Also, if one is looking for total safety is the Treasury Money Market Fund the safest of all?

Money market funds are the safest, in that your principal is practically guaranteed. Money markets investing solely in treasury issues are even more iron-clad, as the assets are backed by the US Government.

All bond funds give the risk of loss of principal, especially should you need to sell them at an inopportune time. GNMA funds are somewhat safer than most other bond funds, for two reasons:

1) GNMAs are backed by the US Government. Other general bond funds may have holdings in corporate bonds, giving some default risk.

2) GNMA funds tend to have shorter duration than most intermediate bond funds. A shorter duration means that the asset value will decline less, should interest rates rise. Also, it means that the fund will be quicker to recover from such losses.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement