Government Securities Fund

[tvz]

I've always kept a certain amount of $ in CDs as a conservative investment. Now I see that the Government Securities Fund at my mutual fund company (Sentinel) has had yields of 5 - 6.5% for the past year, 3 years, 5 years, & 10 years. Sounds pretty stable & safe! And a lot better yield than my bank is offering on CDs these days. Is there any good reason to renew my CD, or should I add it to my Govt Securities Fund?
Thanks.

[cbhattarai]

It really seems to be stable till now.

[Wealth-e]

I think it depends upon the longevity of the yield being produced Govt Security Funds? if that is stable from the last one decade as you mentioned then you should give it a try at least.

[bigbigfan]

Just those two terms together make me cringe, government + security = ugh!

Obama is wanting to be able to raise the debt ceiling yet again and China will no longer accept government securities in exchange for more money, they want businesses, land and resources instead. I'd take that lead and avoid government securities too.

[trishgl]

CDs are heaven sent as compared to bank time deposits nowadays which are pretty low interest wise. I have a CD maturing this December and I do plan to reinvest it. Typically I invest it for upto 5 years. I don't invest all my money on CDs however. recently I've been thinking of perhaps setting aside money I can lose on a small business.