Ultra Short Obligation
  • Investing in an ultra short obligation fund will allow you to free up your capital in a very short time.
  • Ultra short obligation mutual funds are an investment for short term, not long term.
  • No load funds offer a better return and less expense, but you have to make your investment decisions without a broker.

Investing in an ultra short obligation no load mutual fund can allow you to make an investment for short term results. These mutual funds will put your money to work by investing in securities that mature in a very short time, normally less than a year. The time length of the fund investment can be as short as one to two days or can be somewhat longer, but none of the investments in the fund portfolio are held for long term results. One ultra short obligation no load fund is the Ridgeworth U.S. Government Securities Ultra Short Bond I, which trades under the symbol SIGVX. With no load fees and an expense ratio of only point two eight, this fund has a return of between the three and a half and five percent and can be a terrific short term investment.

Another ultra short obligation no load mutual fund is the Federated Adjustable Rate Securities Institutional mutual fund, which trades under the symbol FEUGX. This fund is a good investment for short term as well, and the return is almost four percent for one year. The operating expense is higher for this mutual fund than some others, at point six three percent, but it is rated AAA. Whether you choose to invest in one of these two mutual funds or another one that has a very short maturity time, research is the key to finding a mutual fund which fits with your investment strategies and acceptable risk levels. Look at the performance of each fund, the operating expenses, whether there are any upfront or hidden load fees, and the risks associated with the ultra short mutual fund, among others. Determine which mutual fund is exactly what you are looking for, one that will put all of your capital to work for you.

One of the best ways to determine the right no load ultra short obligation fund is to take a look at the operating expenses and the 12b-1 marketing fee charged by the fund. Some funds may state that they are no load funds, but their operating expenses and 12b-1 marketing fees may tell a different story. Some load fees may be hidden in the 12b-1 marketing fees, making the fund an actual load fund and not a true no load fund. A fund that is actually no load will not have a marketing fee which does not exceed one fourth of one percent of the net assets of the mutual fund. If the marketing fee percentage is higher than this, that means there are hidden load fees involved.

Investment for Short TermAn ultra short obligation mutual fund will give you some place to put your investment capital for short term returns, without having to invest for the long term. This may be done for a number of reasons, such as having money that you are going to use in a short time but do not need for days or months. By investing in short term funds, you will be able to use your capital when you need it but make it work for you in the short time until it is needed for other purposes. Do the proper research before deciding on the right investment for short term, to make sure that you are comfortable with the risks that are associated before risking your investment capital. Just because a mutual fund is a short term obligation does not necessarily mean that it is the right mutual fund for your investment needs. There is no substitute for doing the right research and evaluation for each mutual fund, to help protect you against high risks and unexpected or devastating losses.