Mortgage

Mortgage funds invest in commercial or residential mortgage-backed securities (MBS). Mortgage-backed securities... Mortgage funds invest in commercial or residential mortgage-backed securities (MBS). Mortgage-backed securities are fixed income products that receive regular interest payments from the underlying mortgages they own. These funds offer income-oriented investors predictable steams of income, in excess of what they’d receive from more conservative options such as a money market fund or savings account. However, they’re not risk free: If payments are not made on the underlying mortgages, an investor owing a mortgage fund could lose some of their money. Mortgage funds can be either passively or actively managed. The latter have professional managers who make decisions about which MBS to buy or sell at a given time. Last Updated: 11/27/2024 View more View less

Mortgage funds invest in commercial or residential mortgage-backed securities (MBS). Mortgage-backed securities are fixed income products that receive regular interest payments from the underlying mortgages they own. These funds offer income-oriented investors predictable... Mortgage funds invest in commercial or residential mortgage-backed securities (MBS). Mortgage-backed securities are fixed income products that receive regular interest payments from the underlying mortgages they own. These funds offer income-oriented investors predictable steams of income, in excess of what they’d receive from more conservative options such as a money market fund or savings account. However, they’re not risk free: If payments are not made on the underlying mortgages, an investor owing a mortgage fund could lose some of their money. Mortgage funds can be either passively or actively managed. The latter have professional managers who make decisions about which MBS to buy or sell at a given time. Last Updated: 11/27/2024 View more View less