- New York municipal debt can be an ideal investment for residents of New York because of the available tax exemptions
- Municipal debt is issued by states, cities, and other municipal entities to raise needed funds for projects and infrastructure
- The best no load funds are those that maximize the tax benefits to investors with municipal debt holdings
If you are an investor who lives in New York, or an institution located in New York, it may be a smart financial move to consider New York municipal debt no load funds as an investment option. These municipal debt funds offer double or triple personal income tax exemptions, so they can greatly lower your tax liabilities. There are many New York municipal debt and New York municipal credit funds that can help residents and institutions of this state find investments that offer the maximum tax benefits to them. One of the best no load funds when it comes to New York municipal debt is the Franklin NY Tax Free Income Adv Fund, which trades under the symbol FNYAX. This fund is offered by Franklin Templeton Investments, and has close to one hundred million dollars in net assets. The fund is around eight years old, and has the highest possible Morningstar quality ratings at five stars. The Franklin NY Tax Free Income Adv Fund invests mainly in long term high quality and highly sensitive New York municipal debt. The fund holds municipal debt investments which have maturity dates of ten years or more from the issuance. John Pomeroy has been the manager of this fund since 1989, and the initial investment requirement is high at fifty thousand dollars.
For institutional New York municipal debt investors, the Legg Mason Partners NY Municipals I Fund may be ideal and is worth consideration. The ticker symbol for the fund is SNPYX, and it is offered by Legg Mason Partners. Institutional municipal debt funds offer lower operating expenses in exchange for high investment requirements, and this fund has a minimum investment requirement of one million dollars, which can seem very steep to individual investors. The Legg Mason Partners NY Municipals I Fund received five stars from Morningstar, and the fund has close to thirteen million dollars in net assets. This fund invests only in high quality long term New York municipal debt, which is intended to provide triple tax exemptions for the institutional investors and is normally held for at least ten years. The fund was founded in 2001, and is managed by Joseph P. Deane. This is just one of many New York municipal debt funds to choose from, and many investment websites have free investment tools available to locate the best no load funds for your investment goals and strategies.
Choosing no load funds to invest in New York municipal debt funds makes the best financial sense. Load fees are simply commissions that are paid to the broker or advisor you use to help you choose the right funds to invest in. Load funds do not perform any better than no load funds, and in fact the opposite is true despite the supposed professional investment advice. Because large load fees are deducted from the investment capital or returns, these funds generally see lower values and returns than the best no load funds. No load New York municipal debt funds offer lower fees and expenses and income tax exemptions on more than one level, making them a great investment for almost any New York investor. This does not mean that these investments are risk free, because no investment is ever considered one hundred percent guaranteed, which means that any investment may experience a loss in value or capital. Before you invest in any municipal debt fund, or other investment type, make sure that you thoroughly research and evaluate each possible New York municipal debt fund. Make sure that your investing strategies, goals, and acceptable risks match the funds that you choose for your investments.
