Government Bond Funds: Invest in government-backed securities, but the value of the fund itself is not guaranteed by the government, as these funds are subject to market risks.
Incorrect Options:
A: Diversification depends on the fund’s investment strategy.
B: Interest/dividend payments may fluctuate.
C: If interest rates fall, NAVs typically rise, not drop.
SEC Guidance on Mutual Funds: SEC Government Bond Funds.
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