Minnesota Municipal
  • Minnesota municipal debt offers many benefits, including tax exemptions, for investors who live in the state.
  • Municipal bond debt is rated from high quality with lower risks all the way down to junk bond quality with very high risks.
  • Municipal debt funds offer investments in a number of municipal debt securities with one investment.

Minnesota municipal debt originates within this state, and can offer a number of benefits and advantages for investors who reside here. Municipal debt is issued by a municipal entity, whether it is the state, a city, a town, or other entity. The money that these debt bonds generate is used for the public good of the municipality. This can be in the form of schools, roads, airports, or any other project that benefits the population of the issuing municipal entity. Choosing municipal bond debt as an investment can be done one of two ways. You can invest in individual bonds, which can take a while and involve higher risks while building up a diversified portfolio, or you can invest in municipal debt funds. These funds are mutual funds which already hold a portfolio that is professionally managed, and includes a range of municipal debt investments from the state of choice, in this case Minnesota. Municipal debt offers tax advantages, because these investments and returns are exempt from federal tax for all investors. These investments are also exempt from state and possibly local income taxes if you are investing in the municipality where you reside. If you are a Minnesota resident, the best no load funds will include Minnesota municipal debt no load funds.

Whether you are investing personally or on behalf of an institution, it is possible to find Minnesota municipal debt no load funds and other municipal bond debt investments that are right for you. There are a number of fund families which offer municipal debt funds intended for residents of Minnesota, and other states as well. One of these is the Fidelity Minnesota Municipal Income Fund, trading under the ticker symbol FIMIX. This fund has assets that value over four hundred million dollars, and it has been investing since 1985. Morningstar gives this municipal debt mutual fund a four star rating. The current manager, Christine Jones Thompson, has managed this fund for over ten years. The initial investment needed for the Fidelity Minnesota Municipal Income Fund is ten thousand dollars, and there are no load or marketing fees involved. The investments made by the fund only include high quality municipal debt. Another fund considered one of the best no load funds by many when it comes to Minnesota municipal debt is the First American MN Interm T/F Y, which has the ticker symbol FAMTX. This no load municipal debt mutual fund has more than one hundred and seventy million dollars in assets, and invests in municipal debt that is investment quality. This fund has a four star Morningstar quality rating, and is considered by some experts to be one of the best no load funds available that are tax exempt for most residents of Minnesota.

Investing in Minnesota municipal debt should involve using no load funds. Load funds charge a load fee in the form of a percentage, and it is normally somewhere between four and eight percent. For a front load fee this percentage is deducted from your investment capital before investing, so that your investment value starts lower. With a back load fee, the percentage is applied to the amount withdrawn, which can include returns on the investment. No matter where the load fee is applied on municipal debt funds, they can add up to a substantial amount that is deducted from your investment capital. The best no load funds will also involve no 12b-1 marketing fees, because sometimes these fees can include load fees that are well hidden, in the form of commissions paid to brokers for bringing in new investors. If you live in the state of Minnesota, investing in Minnesota municipal debt makes perfect financial sense for many reasons.