Intermediate US Government
  • An intermediate us government mutual fund involves investments that are for an intermediate time line, usually more than days or weeks but less than ten or twenty years
  • Intermediate us government funds can be a terrific low risk investment option
  • An intermediate us government no load fund does not involve load fees, which can add up and deduct from your investment yield over the life of the investment

If you have capital to invest that you do not want to place at risk but you will not need for a time period, an intermediate us government mutual fund may be the best choice for you. These funds use their investment capital pool to make investments into intermediate us government backed securities, usually in the form of bonds but which can also include Treasury notes and many other options. A security can be backed by the government even if it was not issued by the government, and us government securities have some of the lowest risks possible when it comes to your capital. Intermediate us government funds have extremely low risks, although they are not risk free. With any investment there is some risk involved, but because these funds are backed by the faith of the United States government it is unheard of for them to be in default leading to large capital losses. This makes mutual funds which invest only in us government securities one of the safest and most conservative investment methods available.

Intermediate us government no load mutual funds do not have as high of a turnover as short term funds do, but the turnover percentage for the fund may still be higher than long term investment funds. The big expense or fee to keep an eye on if you want only no load funds, with no hidden commissions or load fees regardless of how the fund is advertised, is the 12b-1 marketing fee. Some mutual funds that say they are no load actually hide the fees in the marketing fee, and this fee percentage can alert you to this fact. If the 12b-1 marketing percentage is more than one fourth of one percent of the net assets of the fund it is not an actual no load fund but a loaded one in disguise.

An intermediate us government fund investment is a good way to protect your investment capital in exchange for slightly lower yields. These funds are a great place to place money that you will not need for a time period, because the yield offered by intermediate us government funds is higher than some other uses such as a savings account. One of these funds that can be a great option for many investors is the Fidelity Intermediate Government Fund, which trades under the symbol FSTGX. As of March 2009 the fund had net assets of more than one and a half billion dollars, and the portfolio allocation includes more than three percent cash and almost ninety seven percent government backed bonds and securities. At the end of this period US Treasury Notes made up a big percentage of the fund investment portfolio. This fund offers capital protection while minimizing the risks and maximizing the yield.

For many investors, the best funds are intermediate us government mutual funds, for all the reasons stated and more. Because these funds invest in securities which are for an intermediate length, they are not ideal for capital that you will need in the close future like short funds are. Instead they offer a yield that is somewhat higher than short funds, in exchange for leaving your investment capital in the fund for an intermediate time period. There are very few risks involved when you invest in government funds, and choosing no load funds will help you keep your capital instead of paying it out in unnecessary funds. Do the research and compare funds yourself, so that you know you have chosen the right fund for your investment strategy and goals. This is not always the case with load funds, and a broker may not always have your best interests at heart.