These work just like other long term municipal bond funds, but their portfolios contain the issues of only one state. Residents of that state have an advantage with these funds by receiving income tax free from both the Feds and the state. Taxable Money Market Funds Seek to maintain a stable net asset value by investing in the short term high grade securities sold on the money market. These include Treasury bills, bank certificates of deposit, and commercial paper. Tax Exempt Money Market Funds Invest in municipal securities with relatively short maturity.
Investors participating in such funds assume minimum risk.
U.S. Government Income Funds Invest in a variety of government securities. These include U.S. Treasury bills, federally guaranteed mortgage backed securities, and other government notes. Back to Top How to buy and Sell Mutual Funds Buying and selling mutual funds is actually quite easy. Most investment companies offering mutual funds advertise directly to the public in an effort to reach potential investors. Sometimes, the investment companies will market fund shares through a sales force.