No Load Index Funds
  • No load index funds which invest in municipal debt can be a great investment which offers tax advantages.
  • No load municipal bond funds do not charge load fees and offer some tax exemptions.
  • The best no load funds offer no 12b-1 marketing fees either, along with low fund operating expenses.

California intermediate municipal no load index funds may sound like a mouthful, but these investment securities and mutual funds are not difficult to understand once you realize what they are and what they do. These mutual funds are no load index funds, and they offer tax advantages because they invest in municipal bonds that originate in the state of California. Investing in no load municipal bond funds if you are a resident of California may double or even triple the tax advantages you will see from these investments. Municipal bonds are normally exempt from federal taxes, and if you are a resident of the municipality that these bonds are issued from, including the state and even the city, then these investments are also usually exempt from those taxes as well. There is a list of no load funds that are available on many different mutual fund screeners that invest mainly in municipal bonds and index bonds, so finding these funds is not difficult. The best no load funds in this category are the ones which charge no 12b-1 marketing fees, in addition to no load fees. Both of these fees can add up to a substantial amount, and this is deducted from your investment.

California intermediate municipal no load index funds are mutual funds which hold debt security investments for an intermediate time period, normally between five and ten years. These funds are also index funds, and this means that the funds are passively managed instead of being actively managed. The portfolio of these funds is normally built to mirror specific market index components. The index used can be any one of a number of possibilities, but the most popular is the S&P 500 Index. Index funds have the goals of providing broader exposure to the market, a lower portfolio turnover than other mutual funds, and operating expenses which are lower due to the passive management style used. No load index funds offer better returns usually, both because there are no load fees charged and because the operating expenses of these funds are lower. Most index funds will normally outperform other types of no load municipal bond funds, and this can make them a very attractive investment for a lot of people. Even though these mutual funds are considered relatively safe, municipal bonds are rated just like other types of bonds, and these ratings can range from the highest quality bonds all the way down to junk bonds. This means that California intermediate municipal no load index funds are not risk free, and there is still a small possibility of losses from these investments.

One of the best no load funds which fit in this category is the Fidelity Sprt CA Mu In, which trades under the symbol FCTFX. Offered by the Fidelity family of funds, this municipal bond index fund holds at least eighty percent of their investment capital in municipal debt securities which are considered investment grade, and which offers current income that is tax exempt from both federal and state taxes. This fund has over one thousand million dollars in total net assets, and has been investing since 1984. The manager, Jamie Pagliocco, has been managing this no load index fund since 2006. Whether you choose this fund or other no load index funds and no load municipal bond funds, careful research and comparisons should be done to ensure that the funds you chose are the right ones for you. This will be different for each investor, depending on the investment strategies and goals, as well as the acceptable levels of risk you are willing to take with your investment capital.