Institutional Tax Exempt
  • Institutional tax exempt no load money market fund investments offer many advantages and few disadvantages
  • An institutional tax exempt fund usually has very high minimum investment requirements
  • Institutional tax exempt money market funds are considered safe and liquid investments that earn small returns with little risk involves

Institutional tax exempt no load money market fund investments have both advantages and disadvantages, and understanding both will help you determine whether these funds are right for your investments or not. Institutional tax exempt money market mutual funds , and these funds usually are directed towards large institutions, like endowment trusts that are large, large companies and corporations, and retirement plans who are managed professionally among others. The minimum requirements for an institutional tax exempt fund is normally higher than most individual investors have to put in, and can be as high as five hundred thousand dollars or more. These funds offer the benefits of low expenses and fees in return though. Money market funds are mutual funds which invest for less than one year, are extremely liquid, and aim to keep a share value of one dollar. Money market funds are considered safe investments for capital that you may not need right now but will at some time in the near future. These funds offer flexibility as well, and when you need to sell and use your investment capital for other reasons the process is very quick and easy. The tax advantages that are offered by tax exempt mutual funds make them an even better investment, because the money that would be paid as taxes can be reinvested into the fund instead.

Institutional tax exempt no load money market funds are mutual funds that invest in money markets, and these funds are institutional and have high investment requirements. Choosing no load funds also makes good investing sense, because load fees can hold your investment back. These fees are commissions at the most basic, and they are paid to a professional broker or financial advisor to tell you how to invest your money. In exchange for this advice, which may or may not be the best investment option for you, you will pay up to eight percent or more of your money. Load funds are no safer than no load funds, and they do not perform any better either. Instead, the load fund is always trying to catch up, because the starting value is lower because load fees were taken out. Institutional tax exempt fund investments are not for most investors because of the high amount needed, but for institutional investors the lower fees offered can be a terrific benefit. A no load money market fund may be used to hold retirement capital that will not be needed for a few months, so that these amounts can earn a small return with minimal risks of losses, or for other large amounts that can not be lost but can be put to work earning a return.

Even though no load money market funds are considered safe and aim at keeping a stable share price of one dollar, this does not mean that there is no risk at all with these mutual fund investments. Even though it is extremely rare, it has happened that the share price of a money market fund dropped below one dollar. This is called breaking the buck and it does not happen frequently, but it is a possibility. This means that you should use care and compare all aspects of any fund before you chose the investments and mutual funds which fit with your acceptable risk levels, investing strategies, and investment goals. Institutional tax exempt no load money market funds offer lower fees, tax advantages, high levels of stability and safety, and high liquidity. For many institutions and professional money managers, these funds can be the best investment option available for capital not needed for a short time.