How do GNMA funds work?
Could you please explain how GNMA funds function in simple terms? I'm interested in understanding the mechanics behind these investments and how they generate returns for investors. Specifically, what role does the Government National Mortgage Association (GNMA) play in the process, and how do the underlying mortgages contribute to the overall performance of these funds? Also, what are some potential risks and benefits associated with investing in GNMA funds?
Are GNMA funds safe?
Are GNMA funds indeed a SAFE investment option? I've heard that they are backed by the US government, but with the ever-evolving financial landscape, is this still the case? How does their performance compare to other fixed-income investments? And what are the potential risks associated with investing in GNMA funds that investors should be aware of? It would be helpful to gain a deeper understanding of these factors before making a decision.