- General us government no load funds are normally a conservative way to invest your money
- US government funds invest in securities which are backed by the us government even if they are not issued by it
- True no load funds do not have hidden marketing fees
General US Government funds are mutual funds that invest in US government debt, and this can include government bonds that are backed by the faith of the US Government but not necessarily issued directly by the United States government. General us government mutual funds are usually quite conservative by nature, with their goal being the preservation of your investment capital while getting the highest returns possible in this risk level. Mutual funds take the pooled investment capital from all the investors and use this money to invest with better results. Because the investment capital is pooled it can be more effective, due to the larger amount available.
General us government mutual funds may invest in government securities with varying maturity rates, so that they become mature at different times. These funds may invest in only short term, long term, or a combination of both, depending on the goal and strategy of the fund. No load funds offer the best return on your investment normally, because load funds take a portion of your investment capital. This can be a front end load, which means that the load fee is taken off of your investment capital before it is even invested. This can significantly lower the return on your investment. A back end load fee is a fee when you get rid of your shares. Sometimes this fee is a fixed percentage and other times it may be a sliding fee dependent on how long you kept your investment in the fund. Some load fees may be a combination of front and back loads.
A load fee is generally a sales commission that you will pay to the broker who determines where to invest your funds. No load us government funds do not charge a load fee, and in return you decide which funds will get your investment capital, based on your own research and comparisons. This is usually the best option, because with a load fund it may be hard to tell if the broker chooses a fund for your investment capital because it is the best fit with your investment strategies and goals, or because they will receive a bigger commission from the fund for referring your investment. When you do the comparisons between funds and determine which fund to invest your hard earned money into, you will know that you have your own best interests at heart, unlike some brokers and financial advisors. This will help you protect your investment capital from load fees and losses, and you will be the one to decide how conservatively you want to invest.
General us government no load funds are normally a conservative way to invest your money, and the fact that the securities these funds invest in have the backing of the federal government can offer reassurance to many investors. Make sure to check out the fund prospectus though, to ensure that the fund you choose really is a true no load fund. Some unscrupulous funds may try to hide the load fees under the 12b-1 marketing fees, and if this is the case the marketing fee will normally equal no more than one fourth of one percent of the fund’s net assets. If the fund prospectus shows the 12b-1 marketing fee is more than this, then the fund is probably not a true no load fund. Do your homework and make sure to compare a number of different general us government mutual funds, so that you can better determine which funds and features are right for your investing needs. This will help you make your own investment decisions and save money by avoiding load fees and sales commissions.
