Municipal Debt
  • Municipal debt can offer terrific opportunities for investors who are looking for tax exempt investments, including high income investors
  • Municipal bond debt may be very high quality, very low quality, or somewhere in between these two
  • No load index funds and no load bond funds do not charge front or back end load fee, which are both like sales commissions that are paid to the broker

Municipal debt has become a very popular investment option for many reasons, and this is true of Florida municipal bond debt as well. No load bond funds and no load index funds are types of mutual funds that invest in municipal debt. These mutual funds hold a portfolio of municipal bonds and other municipal debt securities which offer certain tax exemption benefits. For residents of Florida, making investments into mutual funds that hold Florida municipal bonds and other debt securities, these funds offer exemption from both federal and state taxes, and possibly local taxes as well. Municipal bonds and other debt instruments are used by states, cities, and other municipal entities to raise funds needed for public projects and other special improvements that benefit the population of the municipality. Municipal bond debt is rated, just like other bond types are, and these ratings range from the highest quality AAA rating all the way down to junk bonds that offer higher risks, but also the possibilities of higher rewards as well. Even though municipal debt investments are considered a relatively safe choice, they still have risks involved, depending on the specific mutual fund chosen.

Florida municipal debt no load bond funds and no load index funds do not involve expensive or confusing load fees, but they also do not provide any investment advice or direction either. Load funds charge a load fee, which is basically the same as a sales commission which is paid to the broker or financial advisor who helps you choose the right funds to invest in. This means that you pay a percentage of your investment capital to the broker, and they are supposed to provide the best possible investment advice concerning which municipal debt funds best meet your investment goals, strategies, and acceptable risk levels. With no load municipal bond debt funds and other no load funds, there is no investment advice given. Instead you make all of the investment decisions on your own, and then simply invest your capital in the funds you have chosen. This makes doing all of the research, comparison, and investment preparation especially crucial. Municipal debt offers a terrific investment opportunity, but make sure to do your homework, so you get the mutual fund which is the best for your investment aims. The best no load index funds and bond funds do not charge any 12b-1 marketing fee either, and this fee can also drag down the returns on your investment.

One possibility if you are looking for municipal debt no load bond funds is the USAA FL Tax Free Income Fund, which trades under the ticker symbol UFLTX. This fund is intended for Florida residents only, and offer a double or triple tax exemption for residents of this state. The fund has net assets that are worth more than one hundred and fifty million dollars, and has been in operation since 1993. There are no load fees or 12b-1 marketing fees charged, and the minimum initial investment amount is a low three thousand dollars. This municipal debt fund has at least eighty percent of the holdings in Florida municipal debt at any time. No matter what state you live in, municipal bond debt offered by that state can have many benefits, including tax exemptions, you will not find with other types of investments. Make sure to do all of the necessary fund comparisons, so that you do not choose a municipal debt mutual fund that invests in high risk securities which exceed your acceptable levels of risk. Using no load bond funds and no load index funds allow you to invest in a diverse amount of municipal bond debt with one simple investment.