- Ohio municipal debt no load funds are intended to provide investments with tax exemptions for Ohio residents
- Municipal debt is considered fairly safe as an investment, but these securities are rated according to quality from low to high
- Municipal bond debt is used to raise needed funds for public work projects and improvements in the municipality issuing the debt securities
What are Ohio municipal debt no load funds? These investments sound extremely complicated, but in reality they are quite simple and offer a number of benefits and advantages to investors who live in Ohio. Municipal debt funds are mutual funds which mainly invest in Ohio municipal debt securities, such as municipal bond debt. Municipal debt securities can be issued for various time periods, and these bonds and other securities are rated according to their credit quality. The ratings go all the way from the very lowest quality junk bonds all the way up to the highest rated municipal debt bonds, which are rated A or above. Municipal debt funds may be considered short, intermediate, or long, and this refers to the maturity time of the municipal bond debt. Ohio municipal debt that matures in three years or less is considered short, intermediate refers to a maturity time range from three to ten years, and municipal debt that matures more than ten years from being issued is considered long term. There are Ohio municipal debt fund, including no load funds, in each of these categories, so finding the best no load funds to maximize your tax benefits is just a matter of looking.
Investing in no load Ohio municipal debt funds if you are a resident of this state just makes good financial sense. These investments can offer double or even triple tax exemptions, and the money that would have been spent on taxes can be reinvested, so that the investment value increases much faster. Choosing municipal debt funds by examining the best no load funds can help you find the fund that is right for you. No load funds do not come with professional investment advice like load funds do, but they also do not pay high load fees for something that most investors are capable of doing without any professional advice. With no load funds you will do all of the research, fund evaluation, and fund comparisons, but this is not always a negative. Some brokers who sell load fees charge you an exorbitant load fee in exchange for their professional advice, and then direct you to a load municipal fund that also pays a commission or fee to the broker in exchange for bringing in new investment capital. When this occurs it can be a conflict of interest. This may lead to high fees which deduct from your investment capital and investment advice which benefits the broker instead of the investor. Choosing from the best no load funds that invest in Ohio municipal debt will eliminate any chance of conflicts.
Municipal bond debt is issued to raise needed funding for the issuing municipality. This funding is then spent on infrastructure improvements and public work projects. Municipal debt funds benefit both the investor and the municipality issuing the debt securities. Before investing in any Ohio municipal debt funds it is a good idea to thoroughly evaluate the funds involved. Look at the quality of the municipal debt that each fund invests in. Only choose funds that invest within your acceptable levels of risk, and that are compatible with your investment goals and strategies. The best no load funds will not include any 12b-1 marketing fees, in addition to not charging any load fees. Some no load funds charge this marketing fee for legitimate fund marketing expenses, but some funds claim to be no load and then include hidden commissions and load fees in the 12b-1 fee. If the 12b-1 marketing fee totals more than one fourth of one percent of the total net assets of the fund, this may be the case and the fund should be avoided because it is not truly a no load fund.
June 18th, 2009 at 5:12 pm
I am starting to see more of these types of municipal no load funds being offered, and I always get suspicious of trends that are new, in investing terms. But I do think that with the grave state of most economies now, from the federal to the cities, the benefit may outweigh the risk. At least with a no load fund you know you have to do the research, but I think the fact that the local community stands to benefit is worth the effort.