Short Intermediate US Government
  • A short intermediate us government mutual fund is ideal for short to medium investment times
  • Short intermediate government funds invest in bonds and securities which are backed by the faith of the federal government
  • Short intermediate us government mutual funds offer lower risks of capital losses, but the yield may be lower than other mutual funds as well

A short intermediate us government no load fund is one type of mutual fund that is available to investors, and this fund type may make sense and be right for your investment capital. These funds invest only in short intermediate government securities which have low risks and that offer modest returns, unlike some types of mutual funds. US government funds are some of the safest funds possible to invest in, but even with these ultra conservative funds which try to preserve your investment capital it is possible to experience investment losses, although it is very unlikely. Government funds normally place their investment pool in government bonds of all types, and this may include bonds which are not issued directly by the government but are backed by it instead. Because only securities which are guaranteed by the US government are included in investments made by these mutual funds, the risk of default or losses is incredibly small. The federal government is a pretty good debt payer, and so far there has never been a default on government backed securities. This makes them a very low risk and an excellent investment choice.

Short intermediate us government mutual funds invest in government securities which are for short term or intermediate term investing, but these funds are not ideal for long term investment needs because the yield may be lower than other investment types. This is due to the lower risks involved with these funds as well. Choosing mutual funds which are no load also makes perfect financial sense, because the amount of capital you will save in load fees can be substantial. Load fees can be eight percent or more of the investment capital you put in a fund, and these fees are simply commissions paid to a broke or financial advisor to direct you to the funds you invest in. Many investors assume that if they use a broker then the funds their capital go into are the ones that meet their needs, but this is not true. Some funds may also pay a commission to any broker or advisor who brings in new investments to the fund, and this can lead to a potential conflict of interest which may affect your earnings. This is because a broker may direct you to a fund that pays them a higher commission, rather than a fund which best meets your investment needs. An ethical broker will disclose any financial agreements with specific mutual funds, but not all of them do.

One short intermediate us government no load fund that may interest any investor looking at these fund types is the Northern Short Intermediate U.S. Government Fund, which trades under the symbol NSIUX. In December of 2008 this fund portfolio had almost seventeen percent in cash and the rest of the portfolio investments in United States Government bonds secured by the government. The cash percentage at the end of the year 2008 is somewhat higher than previous quarters and years, and this is due to the fall of the economy. All businesses and investments are holding on to a larger percent of their assets in cash rather than other investments because of the greater liquidity that cash offers. A short intermediate us government mutual fund investment is a smart financial decision for your investment capital, and choosing one that is no load just makes the move even better. No load funds perform better because there is no deduction from your capital to pay commissions, so all of your money is working for you. With load funds it may take some time just to get back to the original investment amount before these fees were taken out, so the yield is much smaller.