- There are a number of Maryland municipal debt no load funds to choose from
- Municipal debt offers tax advantages that can not be found in many investment methods
- The best no load funds do not involve high operating expenses or any 12b-1 marketing fees
One of the best no load funds concerning Maryland municipal debt is the Fidelity Maryland Municipal Income Fund, which is traded under the ticker symbol SMDMX. This fund was started in 1993 and has been going strong since then. It is offered by the Fidelity family of funds, and when it comes to investments Fidelity is a name that many know and trust. This fund invests in the highest quality municipal debt, and is considered one of the top among no load bond funds. With almost one hundred and fifty million dollars in assets, this fund is considered well established and funded. The initial investment for this specific Maryland municipal debt fund is ten thousand dollars, and the fund has a slid performance history. This does not mean that this mutual fund is for every investor though, because the portfolio which is held is not very diversified. Just like with other investment choices, there are risks involved with any type of investment, and only you can determine if an investment meets your goals and strategies. Fidelity also offers no load index funds with holdings in municipal debt as well.
Institutions and large entities who are looking to invest in Maryland municipal debt should take a look at MTB MD Muni Instl I, with a ticker symbol of ARMTX. This mutual fund offers opportunities for institutions to invest in municipal debt management and Maryland municipal bonds. Just like with individual investors, institutions who are located in Maryland may see double or even triple tax exemptions from the return on these investments. This fund offers lower expenses in exchange for a minimum investment amount that is extremely high, normally more than individual investors have. For this specific no load municipal debt fund the minimum is one hundred thousand dollars. MTB MD Muni Instl I has been in operation since 1996, and has been managed by Susan L. Schnaars this entire time. There is a little under eighty million dollars in assets in this fund, and it has a three star quality rating from Morningstar. This is just one of many institutional mutual funds that invest in Maryland municipal debt. There are also no load index funds which may include municipal debt, and these funds have a portfolio designed to follow a specific index and are passively managed, unlike no load bond funds. Bond funds are actively managed, and most experts believe that active municipal debt management funds offer better returns.
Municipal debt management can affect the quality rating of the municipal bonds and other debt securities. Maryland municipal bonds are rated according to the credit rating of the issuing municipal entity. These bonds range from high quality investment bonds, rated the highest, all the way down to high risk junk bonds, which receive the lowest levels of ratings. The best no load funds will invest in municipal debt that is higher quality, and that carries lower risks. No load mutual funds offer savings, because there are no expensive load fees that are deducted from your investment capital. These fees can be as high as eight percent or more, and this is money that you have saved and is being taken as a sales commission. With no load funds you make all of the investment decisions and do all of the leg work and the preparation, including finding and comparing possible funds. With load funds the broker who helps you choose the right Maryland municipal debt fund will get the load fee, which is simply like a sales commission. There is no guarantee, however, that the advice you receive is the best possible advice for your investment needs and goals.
