- Connecticut tax exempt no load money market funds offer tax advantages to Connecticut residents.
- Tax exempt funds may offer single, double, or even triple tax benefits and exemptions.
- No load index funds and no load bond funds are managed differently, and as a result may offer different returns and yields.
If you reside in the state of Connecticut and are looking at available investment options, one you should consider is investing in Connecticut tax exempt no load money market funds. Because these funds are tax exempt, the returns you see can go back into the investments instead of going to the federal and state government in the form of taxes. Sometimes even local taxes are exempt with these funds. No load money market funds offer many benefits, and they are normally used for investment capital that will be needed in a short time but is not being used currently. Money market funds, unlike no load bond funds and no load index funds, are extremely liquid, so that you can access your investment capital when it is eventually needed without having to deal with long delays and waiting periods. No load money market funds normally keep a net asset value for each share based at one dollar, with no market volatility or instability. It is rare but once in a while the value of the share for a money market fund may drop below a dollar, and this is called breaking the buck. Although rare, when this happens it is still possible to lose money. No investment is one hundred percent safe, so it is important to do all the needed research and investment comparisons, so you can choose the mutual funds that meet your acceptable risk levels and investment strategies.
Connecticut tax exempt no load money market funds can be a wise financial decision on many fronts. Choosing no load funds, whether they are no load money market funds, no load bond funds, no load index funds, or some other type of no load mutual funds, can make great financial sense. No load funds do not charge any load fees, even on tax exempt funds. Load fees are similar to a sales commission that is paid to the broker or financial advisor, in exchange for investment advice and direction. There are a number of problems with these fees, and one of them I the size of the load fee. Many funds may charge between four and eight percent or more in load fees, and this takes away from your investment capital and returns on the investment. Load fees may even offset the benefits of investing in tax exempt funds, because the tax savings may be equal to or even less than the load fees charged.
Another issue with load funds is conflicts of interests. When you invest in Connecticut tax exempt no load money market funds, you make your own investment decisions concerning the right funds for your investment capital. With load mutual funds, there are times when the broker or financial advisor who is receiving the load fee may also receive a commission or bonus from the mutual funds chosen as well. This may cause the broker give you fund advice which is in their financial best interests, but may not be the best possible advice for your investment capital. No load money market funds, as well as other types of no load funds, do not have these problems. You do all the work and make all of the investment decisions, so that you know the funds invested in are the right ones for your investment needs and goals. One of these funds is the Dreyfus Connecticut Municipal Money Market Fund, Inc, which trades under the ticker symbol DRCXX. This fund has the aim of providing investments that are exempt from federal and Connecticut state taxes by using high quality Connecticut municipal debt securities which are short term in nature.
