Municipal Debt
  • Colorado municipal debt no load bond funds offer tax advantages for residents of Colorado
  • Municipal bond debt can be a great investment opportunity that is relatively safe and low risk
  • No load index funds follow a specific index when it comes to the portfolio holdings

Colorado municipal debt no load funds are mutual funds that invest in municipal bond debt that originates in Colorado. No load bond funds and no load index funds can invest in municipal debt, and this offers attractive tax benefits as well, especially for upper income investors. Municipal bonds and securities are exempt from federal taxes, and usually the federal alternative minimum tax as well. For residents who live in the state of Colorado, investing in municipal bonds issued there will also result in a tax exemption for state taxes and possibly even local taxes. Municipal bond debt is used by states, cities, and other municipalities to raise needed revenue to fund projects that benefit the public. There are a number of these funds that are ideal for almost all investment types, offering tax exemptions and a wide range of holdings. If you choose no load bond funds, or no load index funds, it is crucial to do all of the necessary research and legwork before deciding on the funds to invest in. These funds do not charge a load fee, but you also do not have access to free investment advice either. With load funds you may be directed to certain funds by a broker, but there is no way to tell whether the broker receives financial compensation for directing you to these funds. It is better for most investors to do the research and decision making rather than pay for load funds.

Municipal debt no load index funds and bond funds come from a variety of fund families. One such fund is Westcore Colorado Tax Exempt Fund. The ticker symbol for this fund is WTCOX, and the fund has been operating since 1991. With no load fees or 12b-1 marketing fees, this fund can help save you significant amounts in expenses. There is a redemption fee for any funds withdrawn within ninety days of investment, and this fee is two percent of the amount withdrawn that is subject to this fee. The fund invests mainly in high quality insured Colorado municipal bond debt, with intermediate time frames. Another municipal debt fund for Colorado residents is the Franklin CO Tax Free Income C no load fund. This fund trades under the ticker symbol FCOIX, and has almost sixty million dollars in asset value. The minimum investment amount for this municipal debt no load bond fund is a low one thousand dollars, and the manager has not changed since 1992. This fund invests at least eighty percent of the fund assets in long term Colorado municipal bond debt.

First American CO Tax Free Y, ticker symbol FCOYX, is another Colorado municipal debt mutual fund. This fund has a three star Morningstar rating, and invests in long term Colorado municipal bonds of varying ratings. There is no minimum investment amount, and there are no front or back end load fees. A diversified portfolio can help this fund minimize any possible losses, and it offers double or possibly triple tax exemptions for residents of Colorado. Whether you choose one of the listed funds or another Colorado municipal bond fund or index fund, these funds can offer a number of benefits, but also possible disadvantages as well. Not all municipal bond debt is created equal, and municipal bonds are rated according to their quality. Make sure you understand exactly what quality of municipal bonds a mutual fund invests in, and make sure that these risks are well within your acceptable investment risk levels and strategies. Choosing no load municipal debt mutual funds can help you save money by making your own investment comparisons and decisions.