- Pennsylvania tax exempt no load money market funds are intended for Pennsylvania residents
- Pennsylvania tax exemptions can be possible by investing in money market funds which hold municipal debt investments in the state
- The best no load funds do not offer investment advice but there is also no potential for conflicts between the interests of the broker and those of the investor
Pennsylvania tax exempt no load money market funds sound highly complex and difficult to understand, but this is not the case. Investing in municipal debt in the resident municipality of the investor means that there are tax exemption benefits., and this can be from federal and state income taxes, as well as local income taxes as well at times. No load money market funds have investments in Pennsylvania municipal debt that is very short term, normally with maturities of ninety days or less. These investments are considered very safe, with very little volatility and a high amount of liquidity. These fund are used for capital that will be needed shortly by the investor, but that is not earning enough of a return until that point by sitting in a savings account at the bank. The aim of these funds is to preserve capital while paying decent returns to the investors. With no load money market funds one of the goals is to keep a share value of one dollar, and this is normally done. In rare instances the share of a money market fund has fallen below this goal, also known as breaking the buck, and this shows that even Pennsylvania tax exempt no load money market funds are not completely risk free and should be evaluated completely before making any investment.
One of the best no load money market funds for Pennsylvania tax exemptions is the Fidelity Pennsylvania Municipal Income Fund. This fund uses the ticker symbol FPXTX, and it is offered by the Fidelity fund family. It offers double and sometimes triple Pennsylvania tax exemptions for resident investors, and the fund only invests in high quality municipal debt in Pennsylvania. The five star Morningstar rating the fund has and the net asset value of more than three hundred and fifty million dollars shows that this Pennsylvania tax exempt money market fund is one that should not be ignored. This fund has been investing successfully since 1986, and the current manager Mark Sommer has been with the company since 1992. The fund has an initial investment require of ten thousand dollars, which may seem large to some investors, but the operating expense ratio is still somewhat small for a fund this size at point four six percent. This fund has made a number of the best no load money market fund evaluations, because it is considered a high quality investment and offers Pennsylvania tax exemptions for residents.
All Pennsylvania tax exempt no load money market funds are different when it comes to the types and quality of municipal debt invested in. The maturity times of the different funds is normally under ninety days, but some no load money market funds may invest in inferior municipal debt, because of the higher possible returns. It is critical to thoroughly research and compare each specific Pennsylvania tax exempt money market fund, and to eliminate any possible funds which do not have the same investment strategy, acceptable levels of risk, or investment goals. Many investors make the mistake of not following their strategy or moving outside the level of risk deemed acceptable, and the result can be large losses of investment capital. There are risks involved with even the safest investment methods, and no load money market funds can be safe or risky, depending on the specific fund chosen. No load funds do not come with professional investment advice like load funds do, but this is not an advantage for load funds, because many times the investment advice given by load fund brokers is intended to benefit the broker financially instead of the investor.
