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11 Best Investments in 2022 Part 9_#shorts
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Welcome to Key Word Financial
Continuing the 11 Best Investments in 2022, Short-term government bond funds
Government bond funds are mutual funds or ETFs that invest in debt securities issued by the U.S. government and its agencies.
A mutual fund is a financial vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets.
An exchange-traded fund or ETF is a type of pooled investment security that operates much like a mutual fund. Bond funds invest in U.S. government debt and mortgage-backed securities issued by government-sponsored enterprises. These government bond funds are well-suited for the low-risk investor.
These funds can also be a good choice for beginning investors and those looking for cash flow. Government bond funds may work well for risk-averse investors, though some types of funds (like long-term bond funds) may fluctuate a lot more than short-term funds due to changes in the interest rate.
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