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*
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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.
* Annually we evaluate the standard deviation of each US mutual fund listed and its resulting placement within specific risk/return categories.

Methodology: If a fund is at least 5 year old, it is generally placed in risk/return categories based on the standard deviation of its performance for the longest period of its calendar year returns; the longest time period used for analysis is 10 years (regardless of the fund's inception). If a fund is less than 5 years old, we generally use the fund's primary benchmark disclosed in its prospectus as a proxy and follow the same process of using 10-year standard deviation of the benchmark, or longest time period available. The firm at its sole discretion may show a fund in a higher risk category based on qualitative or other factors that may differ from this methodology.
See Glossary for additional details on all data elements.