California Municipal Debt
  • California municipal debt investments offer many benefits and opportunities for residents of this state
  • No load mutual funds and no load index funds do not charge high load fees, which can eat into investment returns
  • Municipal debt is used to fund public projects, which benefit the entire population and area of the municipality

California municipal debt offers great opportunities for investors who live in this state, and no load mutual funds which invest in municipal debt in this state offers benefits that most other investment choices do not. This includes no load index funds which invest in municipal debt securities in California. These funds are intended for residents who live in the state, and they can offer tax exemption status on state and even city taxes, as well as federal taxes. Finding a no load fund which meets all of your criteria can be easy when you use a fund screener tool and receive a no load funds list as a result. Municipal debt mutual funds offer relative safety and stability, and the fund investments may range from short term to long term, depending on the specific fund. Investing in municipal debt allows you to make a sound investment while improving your community and getting tax benefits, all at the same time. This is because the funds raised by the municipality that is issuing the bonds or other debt securities will be used to fund public projects like libraries, schools, and roads, which makes life better for the entire population.

Choosing California municipal debt no load mutual funds means being a smarter investor, because there are no high load fees which get deducted from your investment capital and any returns received. These fees can go as high as eight percent, and sometimes certain funds charge back and front end load fees for a double whammy. No load mutual funds do not carry these fees, so all of your investment capital works for you instead of going to pay an inflated sales commission. Some load mutual funds use deceptive practices and do not list a load fee, but instead list a high 12b-1 marketing fee. That is because these marketing fees may have a hidden load fee involved. If the 12b-1 marketing fee equals more than one fourth of one percent than the net assets owned by the fund, it is normally due to a hidden load fee. No load index funds that invest in California municipal debt involve passive management, and some experts believe that passive management is better because the investments are normally held for longer periods. This brings down the operating expenses and portfolio turnover for these funds. Not all no load mutual funds offer diverse portfolios and holdings though, so make sure you understand the risks involved and the level of diversity in the portfolio before deciding on any California municipal debt no load mutual fund or other investment. This can help you protect your investment against large losses.

A possible no loads fund list to invest in that includes California municipal debt should include the Vanguard California Long-Term Tax Exempt Fund Investor Shares, which trades under the symbol VCITX. This fund is intended for long term investment, normally at least ten years and usually longer, around twenty five years. There are no load fees or 12b-1 marketing fees involved with this fund. Investments in California municipal debt with this fund offers an expense ratio of only point two percent, and the minimum investment required is only three thousand dollars. This small minimum makes it easy for almost any investor to get into this fund. Another quality no load mutual fund offered for California residents with investments in California municipal debt is the Vanguard California Intermediate-Term Tax Exempt Fund Investor Shares, which trades under the symbol VCAIX. This fund has holdings that range from six to twelve years, so it is intended for shorter time frames than long term funds are. This fund is also offered by Vanguard, and also has a very low minimum investment of only three thousand dollars, with no load fees, marketing fees, or hidden fees.