Municipal Debt
  • The best no load funds will also usually not charge 12b-1 marketing fees either
  • Municipal debt mutual funds which are insured offer a safety net against default
  • No load bond funds will allow you to invest and save a significant amount in load fees at the same time

Some of the best no load funds when it comes to municipal debt are insured no load bond funds. Municipal debt management practices make these funds relatively safe and stable. Municipal debt is debt that is incurred to fund projects that benefit the area and population, and these projects can be very diverse. They can include schools, hospitals, roads, libraries, and much more. No load bond funds and no load index funds also offer the benefit of no load fees or high commissions. Many municipal debt securities also have important tax considerations, because there is normally no federal tax on any yields from these investments, and many times these securities are also exempt from state taxes as long as you live in the state where the municipal securities originate. With insured municipal debt no load funds the insurance on the payments just adds another layer of security and stability to these mutual funds. Municipal debt securities are graded according to their quality and creditworthiness, and these bonds can be rated from very high quality all the way down to junk bond quality. The quality of the bonds will help to determine the yield. Just like with other investments, the higher the risks involved to the investor, the higher the returns for that investment can be.

The best no load funds include those funds that involve municipal debt for a number of reasons. These funds not only allow you to make a return on your investment in a relatively safe manner but they also benefit the communities where they are created. Municipal debt mutual funds offer tax advantages, and because these securities are secured by states, counties, cities, and other municipalities there is little risk that you will face any losses. While not as safe as mutual funds that invest in US government securities, municipal bond mutual funds are often referred to as the next best thing when it comes to security and stability. This does not mean that there is no risk at all, because any investment has risks of losses as well as gains, but no load bond funds which invest in municipal debt are considered one of the safest investment options out there. And when these bonds are insured, the risk gets that much smaller and the investment becomes even more attractive.

Choosing no load bond funds and no load index funds means seeing quite substantial savings, due to no load fees being deducted from your investment capital. Load funds offer investment advice, but they charge a hefty fee for doing so, many times around eight percent of the amount you are investing. Both funds will normally perform the same, but with load funds that charge front load fees you will start out behind by the percentage that is equal to the load fees charged. This means it will take longer for load funds to get to the same value as no load funds. In addition, many times the advice you will receive from a broker or advisor who sells load funds may be better suited for their financial well being than yours. It is not uncommon for a broker to receive commissions from some mutual funds in exchange for bringing in new investors and investment capital. This allows the broker to get two commissions, one from the fund and one from you. This can lead to you being directed to funds which may not be best for you but which pay a higher commission to the broker. No load funds do not come with investment advice, but most investors are comfortable and more than competent when it comes to choosing investments, especially with a little online help and research.