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.
- What Is a Mortgage-Backed Security (MBS)?
- What Are the Advantages of Investing in MBS?
- How Are Mortgage-Backed Securities Different from Other Fixed Income Securities?
- What Are Residential Mortgage-Backed Securities (RMBS)?
- What Are Some Examples of Mortgage-Backed Securities?
- How Are Mortgage-Backed Securities Hedged?
- What Are Collateralized Debt Obligations (CDOs)?
- What Is the Difference between Collateralized Debt Obligations (CDOs) and Mortgage-Backed Securities (MBS)?