T. Rowe Price GNMA Fund |
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.
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
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.
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.
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