- Massachusetts intermediate municipal debt no load funds can offer unique tax advantages for Massachusetts residents and institutions
- Intermediate municipal debt is municipal debt that matures in a time frame which ranges from five years to ten years
- Investing in an intermediate municipal fund offers many benefits for most investors, but there are some risks involved as well
Are Massachusetts intermediate municipal debt no load funds a good investment? This will depend on the individual investor, but it is a known fact that intermediate municipal debt funds offer tax advantages to investors who reside in Massachusetts, and choosing no load mutual funds is considered the best choice by many professionals. An intermediate municipal fund is a mutual fund that uses the pooled investment capital in the fund for investments in Massachusetts municipal debt. These mutual funds are intended for individuals and institutions that live in the state of Massachusetts, because this makes them tax exempt on more than one level. No load index funds and no load bond funds that invest in municipal debt can be ideal for residents of the state who are in higher income brackets especially, because these investments help lower the amount of taxes owed. Intermediate municipal debt is debt that is for an intermediate time period, normally considered between five and ten years. Municipal debt less than five years until maturity is considered short, and any municipal debt with a maturity date more than ten years after issue is considered long. Massachusetts intermediate municipal debt no load funds have no load fees, and these funds normally hold between sixty five and eighty percent of the portfolio at a minimum in Massachusetts intermediate municipal debt.
There are many no load Massachusetts intermediate municipal debt mutual funds to choose from, whether you are an institutional investor or an individual investor. One of these funds is the Dreyfus MA Intermediate Muni Bond, with a ticker symbol of DMAIX. Another fund that invests mainly in Massachusetts intermediate municipal debt is the Dreyfus MA Tax-Exempt Bond, which has the ticker symbol DMEBX. If you are using no load bond funds and no load index funds for your investment capital, it is important to understand what these funds do and do not offer. When it comes to performance and returns, no load funds will normally be better for most investors due to no load fee deductions. Experts and investment professionals all agree that load funds do not offer any better performance when compared with similar no load funds. If you choose Massachusetts intermediate municipal debt no load funds, you will not get any investment advice. For most investors this is not a problem, because the information needed to find and compare intermediate municipal funds is easily available over the Internet. No load funds means doing all the work and fund comparisons, instead of getting advice from a load fund broker. It is a good idea to research and learn any terminology or techniques that you are unfamiliar with before you start making investment decisions, and always use care to make sure you examine each possible municipal debt fund thoroughly.
Massachusetts intermediate municipal debt can be invested in using either no load bond funds or no load index funds. Both of these are types of mutual funds, but there are some differences. With index funds, the portfolio of the fund is set up to follow a specific index, which can be one of many. These funds are not managed actively, which means that the portfolio turnover is much lower and as a result so are fund expenses. The problem is that many investment experts and professionals believe that index funds do not always do as well as bond funds, simply because they are passively managed. Bond funds, on the other hand, are actively managed by professional money managers, and these funds may have much higher portfolio turnovers and returns as a result. Some investors prefer bond funds while others prefer index funds, and it all comes down to acceptable risks and rewards, in addition to personal preferences.
