No Load Funds

Why should you invest in a general US Treasury no load fund right now? There are a number of reasons. These mutual funds invest in US Treasury securities, such as bills, notes, and bonds, and these investments may vary in holding times for the fund from a very limited time like days all the way up to a decade or more. US Treasury investments offer many benefits. With the economy uncertain, job losses occurring all across the globe, companies downsizing and going under, it is a natural reaction to want to keep your capital safe. Investing in mutual funds which specialize in general US Treasury securities can help do this in a number of ways. By choosing these funds, you keep your risks levels low. These securities are backed by the US Government, so the risk of default is very small.

General US Treasury mutual funds use the combined resources of investment funds provided by a number of investors. The return for these investments may not be as big as other options, but the risk is also much smaller so you do not suffer severe capital losses due to wide market swings and high volatility. Right now this is the condition in the stock market, making it an unacceptable risk to most investors. US Treasury mutual funds can minimize your risks while giving you small but consistent returns instead of huge losses. Choosing no load mutual funds will prevent part of your investment capital from going to a third party instead of being put to work for you. Load fees are simply commissions or sales incentives given to the financial advisor or broker who chose the mutual fund for you. As long as you are willing to do the research and compare the different funds to choose the right ones for you, there is no need to pay a load fee.

Portfolio diversification is a very good reason to invest in general US Treasury mutual funds, especially right now. A diverse investment portfolio can help protect you against large investment losses, and these mutual funds can keep your investment portfolio diverse and low risk. With the way the economy has been falling, this security level is very important right now. Even when other markets and investment areas are doing poorly, US Treasury mutual funds and investments will normally show at least small gains.

There are a number of different types of US Treasury mutual funds. Some of these funds may only invest in United States Government securities which mature at a specific time, such as less than five years, five to ten years, or even up to thirty years. Most of these mutual funds invest in US Treasury securities of varying maturity rates though, so that they are staggered. A mutual fund may hold some one year securities, some which mature in five year, some in ten years, and so on. This may be a better long term strategy that offers more stability and the chance for higher returns. A common myth about these securities is that their value does not change, and this is not true. The interest rates will have an effect on securities issued by the treasury. If interest rates go down after a security is invested in, the value of the security will rise, but is interest rates g up he value will fall. A general US Treasury no load mutual fund will usually hold a wide variety of securities issued by the US Government, with varying rates of maturity. This offers the best coverage and exposure, with the fewest risks and amount of research and work involved for investors. Compare a number of these funds to determine which one is the right investment choice for you.