Municipal Debt
  • Intermediate municipal debt no load funds hold investments that can range from one year to ten years
  • The best no load funds are ones that do not charge high marketing fees either
  • No load bond funds that invest in municipal debt can be safe, risky, or somewhere in between

Intermediate municipal debt no load funds may be considered some of the best no load funds available by many investors. These no load bond funds invest in municipal debt with an intermediate investment period. This time period can be anywhere from one to ten years, depending on the specific fund and the investments held in their portfolio. Unlike short term mutual funds, intermediate funds use a combination of investment strategies intended for a median time frame. Municipal debt management for these funds is usually handled by a professional money manager or fund manager, and municipal debt can offer a great investment that is low risk with decent returns. Municipal debt is debt that is secured by certain municipal agencies and entities, such as counties, states, and cities. The funds raised by these bonds are used for public works projects. The municipalities which issues the municipal debt backed securities, usually in the form of bonds, are generally safe because most governing bodies do not default on their debt. Some of these bonds may be insured as well, guaranteeing payment from a second party if a default occurs. Municipal debt mutual funds pool together money from many investors, and these funds use the investment pool to buy many types of municipal debt securities.

Municipal debt funds may be considered some of the best no load funds available, because these funds usually have unique tax advantages which make them tax exempt. In addition, the portfolios held by these no load bond funds are normally very diverse, which also helps to hedge against any large losses. The saying concerning putting all of your eggs in one basket applies to any investments, and diversity in the fund investment portfolio is the key to ensuring any losses even out over the spread of the portfolio. Municipal debt is graded according to the risk and credit associated with the municipality, and these bonds and debt securities can range from top quality investor grade securities all the way down to junk bonds that offer much higher possible returns but that also have higher risks associated with them as well. Some municipal debt mutual funds may only invest in the highest grade municipal bonds, while others may run the entire range, holding some debt securities from all of the rating groups.

Even though municipal debt is considered a wise investment, and the best no load funds offer no load fees and much lower expenses normally, this does not mean that these investments are for everyone. As is true of any investments, there is a chance of loss, sometimes large and devastating. Choosing no load funds will allow you to make your own investment decisions, so that you can ensure the no load bond funds and no load index funds that your investment capital goes into are the right ones. Some brokers may steer you towards a particular fund simply because they receive a commission from the fund to bring in new investments. This can lead to a conflict of interest, between your investment interests and the broker’s financial interests. No load funds do not carry these risks, because you do the research and choose the right intermediate municipal debt no load funds for your hard earned money. If you are not comfortable making investment decisions without professional advice, there are other ways to get the advice you want without paying load fees, which can really add up. Many times load fees can be eight percent or more of your investment. Instead of paying these outrageous amounts for advice that may not benefit you, pay for an hour or two with a professional financial adviser.