- State tax exempt no load money market funds may be the best possible investment for many investors
- No load money market funds cut down on expenses by eliminating high load fees
- State tax exempt money market funds usually invest in municipal debt that matures in ninety days or less and offers tax advantages to the investors
State tax exempt money market funds are a great investment choice for investment capital that is not needed right away, but that can not be placed at high risks of losses because it will be needed soon. These funds are no load money market funds which invest in municipal debt from a specific state or city to offer more tax exemptions for the investor. If an investor resides in the municipality that is invested in there is normally a tax exemption, and this can mean being double exempt or even triple exempt from income taxes. State tax exempt money accounts offer small returns in exchange for a number of benefits. These funds are very liquid, so that the investment capital an be quickly withdrawn when it is needed. They are also considered very safe, with a low risk of loss potential. No load money market funds have the goal of keeping a share value of one dollar. If this value goes under the one dollar price it is called breaking the buck, and this is extremely rare and does not normally occur. These funds have very low volatility and are also considered very stable. This makes them attractive to all investors, but especially to those investors who are in a high tax bracket. It may be necessary to fill out state tax exempt forms to see the maximum tax benefits from these investments
State tax exempt money market funds have the aim of providing investors with double or triple tax exempt income on investment capital that can not be placed at high risks because of a future need. These funds hold very short term municipal debt investments, normally ninety days or less, and can be ideal for a large number of investors. Choosing funds which are no load means not paying high load fees for investment advice that is not always in the best interests of the investor anyway. Some load funds offer commissions to brokers and financial advisors to bring in new investors, and this may cause a conflict of interest. Instead of being guided to the best state tax exempt money market funds for the investor, the advice given may be a result of higher commissions paid to the broker by the chosen funds instead. Load funds do not perform any better than no load money market funds, and in fact most of the time the exact opposite is true. Because there are no high load fees charged at either end, no load funds will usually have higher values, better yields, and better performance.
State tax exempt money market funds are not just for individual investors, institutions like universities, trusts, and others can also enjoy the tax benefits that these funds offer. Because these funds are considered safe, retirement funds and pension plans may also use them for short times. These funds are not intended for long term investment benefits though, because there are other methods which have low risks which pay higher returns over the long term. State tax exempt money funds do carry risks, and these will vary depending on the specific fund that is chosen. Not all municipal debt is created equal, and some will carry higher risks than others. Thoroughly research and examine each fund, and find state tax exempt no load money market funds which fit with within the acceptable investment risks and strategies of the investor. Municipal debt money market funds offer so many different benefits that it is no wonder these funds have become so popular. The safety, stability, high liquidity, and the tax exemptions offered make state tax exempt no load money market funds ones that should never be overlooked when searching for the right investment choice.