Intermediate Investment Grade
  • An intermediate investment grade no load fund can be the right choice for intermediate investment plans
  • An intermediate investment strategy should involve capital preservation while also maximizing the possible yields
  • No load funds allow you to invest without paying load fees, which can really add up to a large amount

An intermediate investment grade no load fund has a lot to offer many investors. These mutual funds use intermediate investment securities which are high quality, called investment grade securities. Unlike high yield mutual funds, these mutual funds are more concerned with getting a decent but lower yield while protecting the initial investment capital. These investments are for medium time ranges, usually more than days or even months at times, but not more than five years usually. These are not mutual funds that you would choose for retirement if your retirement date is thirty years from now, but are used for capital that is not needed in the short term but can not be risked either. These mutual funds offer lower risks than many other fund types, but the yields are lower as well, because there are fewer risks of defaults or losses.

Using no load funds for your intermediate investment needs makes good financial sense as long as you are comfortable comparing mutual funds and making your own investment decisions. Load mutual funds charge a load fee, which can be as high as eight percent or more of your total investment amount, and this can add up to a substantial amount. Load fees may be charged up front, at the back end, or use a combination of both these methods. These fees are basically a sales commission paid to the broker or advisor for directing you to the fund in the first place. This can be a conflict of interest at times, because there is no law that forces an advisor or broker to reveal any commission paid by the fund, in addition to the load fee that you pay. At times unscrupulous or unethical brokers will direct clients to funds which offer higher commissions even if these funds are not the best choice for the client. No load funds do not charge any load fee, so there is never a conflict issue to start with. You do the fund comparisons, and choose the right intermediate investment grade fund for your investment needs and strategies.

One intermediate investment grade fund that is a true no load fund, with no load fees hidden in the operating expenses of the fund, is the Vanguard Intermediate Term Investment Grade Fund. This fund trades under the symbol VFICX, and can be a good fund to consider for your investment capital. This fund has operated for more than fifteen years, and has a good track record. No matter which mutual fund you finally choose, there is no substitute for research when it comes to determining the right fund which meets your investment needs and goals. Look at all of the funds that may work well with your investment strategy, and then compare the different features of each fund to find the one which fits best with your goals and acceptable risk levels.

An intermediate investment grade no load fund may be the best choice for your investment capital. Even though these funds have a main goal of preserving investment capital this does not mean that they are risk free. Any investment involves some risks, and you need to look at all of the risks involved in each fund before making any investment decisions. No load funds offer the benefit of keeping all of your investment capital without having fees deducted, but they also require that you make your own investment choices as well. There is no advisor or broker to help guide you, but this is not a problem for most investors because they are willing to do the work and make their own investment choices.