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From: ded@aplvax.UUCP (Don E. Davis)
Newsgroups: net.invest
Subject: Re: Info on \"Ginny Maes\"
Message-ID: <170@aplvax.UUCP>
Date: Fri, 18-Oct-85 12:31:43 EDT
Article-I.D.: aplvax.170
Posted: Fri Oct 18 12:31:43 1985
Date-Received: Sun, 20-Oct-85 08:53:22 EDT
References: <844@decwrl.UUCP> <7142@ucla-cs.ARPA>
Reply-To: ded@aplvax.UUCP (Don E. Davis)
Organization: JHU/Applied Physics Lab, Laurel, MD
Lines: 20

As I understand it, the problem with Ginnie Maes is that you get 
your money back in small globs, so the rate of return is misleading.
If you hold onto your globs as cash, then the return is roughly 
halved (i.e., a 12% instrument has an effective return of 6%).  Naturally,
you will reinvest the money, but the return on your globs will
probably be less than 12%.  If you get an 8% return on your globs,
your effective return will be around 10%.  

So the question becomes, how can one get a good return on small amounts?
Apparently some of the posters to net.invest have ways of doing this
but of the few I've seen discussed, a substantial initial
investment was required.  Does anyone out there have an easy way to 
get good low-risk return on small sums of money?

-- 

					Don Davis
					JHU/APL
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