- No load municipal bond funds invest in municipal debt securities, with no expensive load fees charged.
- No load bond funds and no load index funds can hold investments in municipal debt.
- California short-intermediate municipal no load bond funds are intended for California residents because of the tax advantages to this population.
California short-intermediate municipal no load bond funds have become a very popular investment for residents of the state of California, in part because of the special tax benefits received from these funds. No load municipal bond funds do not charge any load fees, either up front or at the back end. Some of these municipal debt funds may have a short term redemption fee, which is not a load fee, but rather a fee used if shares are not held for the minimum time limit, normally thirty days. Unlike load fees, redemption fees help offset higher expenses caused by frequent trading, so that all investors do not pay higher expenses because a small number of investors frequently buy and sell shares. If the shares of the municipal debt funds or the no load index funds are held for the minimum time frame, there is no redemption fee at all. It is only if shares are redeemed within the time stated after purchase that redemption fees apply. With load fees, these apply no matter how long the shares are held. Fund screener software and other fund tools can help you compile a no loads fund list that may meet your investment criteria, so that it is much easier and more convenient to compare no load municipal bond funds and decide which ones are right for your investing goals.
A no load funds list can include both no load index funds and no load municipal bond funds. No load index funds follow a specified index, like the Standard & Poor 500 index. This is just one of many indexes that can be used, but it is the most popular and the most used index when it comes to these funds. California short-intermediate municipal no load bond funds are funds that are used for short to intermediate time periods, normally between one and ten years. Short no load bond funds normally hold investments for between one and three years, and intermediate funds normally hold the investments for up to ten years. The portfolio diversity of these funds can help protect against unexpected losses due to one sector performing poorly. The diversity of the investments held by California short-intermediate municipal no load bond funds means that even if one area of the investment portfolio falls in value other areas of the portfolio will be going up at the same time. This evens out any losses in investment capital that you may experience.
One of the best no load municipal bond funds for most investors who reside in California is the Fidelity California Short Intermediate Tax-Free Bond Fund, which trades under the symbol FCSTX. This fund is intended for residents of the state of California, and offers the same tax advantages that other no load municipal bond funds in the state do. This fund is tax exempt on both a state and federal level, and may even be exempt on a local level as well. Unlike investing in individual municipal bonds, investments in bond funds give a monthly income. This regular income can be reinvested in the fund, increasing the investment value. No load municipal bond funds are actively managed, while no load index funds are managed passively instead. Whether you choose Fidelity California Short Intermediate Tax-Free Bond Fund or another type of California municipal debt bond fund that has no load fees, make sure to do all the necessary research and comparisons needed to fully evaluate all the possible no load municipal bond funds before choosing. No load funds do not have high load fees, but they also do not offer investment advice either, so you do all the comparisons and make all the fund decisions.
