Should I Invest in an MBS Fund Instead of Individual Mortgage-Backed Securities?

There are benefits to investing in an MBS fund that are not available if you invest in individual MBS securities. In particular, MBS funds give you access to active fund management, allowing you to benefit from fund managers' investing experience. In addition, investors will be able to diversify risk factors across MBS products that take into account different credit quality, interest rates and prepayment risks.