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  • T. Rowe Price GNMA Fund (PRGMX)
    Ticker Symbol:
    PRGMX
    Fund Status:
    Open to new Retail investors  /  Open to subsequent Retail investments
    Fund Objective
    Quick Stats
    Fiscal Year End  May
    Morningstar Category  Intermediate Government
    Inception Date 11/26/1985
    Tax ID 52-1426953
    Investment Objective
    The fund seeks high current income consistent with high overall credit quality and moderate price fluctuation.
    Strategy
    Invests at least 80% of assets in securities that are backed by the full faith and credit of the U.S. government, primarily GNMA mortgage-backed securities, and investments linked to these securities.
    Investor Profile
    Generally conservative investors who seek high current income consistent with the highest credit quality and can accept fluctuations in share price as interest rates and mortgage prepayments rise and fall. Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.
    Availability
    All States
    Risk/Reward Potential*
    Click on the risk/reward spectrum below to view the funds in that category
    Highest
    Higher
    Moderate
    Lower
    Lowest
    The GNMA Fund can be an attractive option for income investors who are willing to tolerate some price volatility. Unlike corporate bond funds, the GNMA Fund has negligible credit risk since it invests only in securities guaranteed by the U.S. government. Mortgage-backed bonds offer higher income than Treasuries without any decrease in credit quality.

    Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. The fund is also susceptible to prepayment risk, which occurs when homeowners pay off their loans early. Your investment in the fund is not insured or guaranteed by the U.S. government.
    *Funds are placed in general risk/return categories based on their past performance or, for newer funds, the performance of the types of securities in which they invest. There is no assurance past trends will continue.
    See Glossary for additional details on all data elements.