Best Mutual Funds Now

This is an examination of the Vanguard California Tax-Exempt Money Market Fund (VCTXX). This is a fund that is intended for have as its shareholders as residents of the state of California. The income made by this fund is both federal and state exempt on taxes when it is applied to your personal income taxes. The income is from the interest that is earned from investments made on high quality short term municipality securities from the state of California.

The minimum amount need to invest in this fund is $3000 and the fund has an expense ratio of 0.17%. There are a total of 285 different securities I this fund that have an average maturity term of just 31 days. There is a total of $5.2 billion in this fund of which all of it is invested.

This is an extremely low risk, but low return investment. Since its inception in June of 1987, this fund has had an average annual return of 3.01% with a 3 year return of 1.76%.

The funds manager since 2003 has been Kathryn Allen and under her leadership this fund has always had a positive return.

This is one of the Vanguard funds that is a solid investment that can be relatively looked at like a money market account except that it is tax exempt. If you will need your investment dollars within the next 3 to five years and just need a safe place to stash it, the Vanguard California Tax-Exempt Money Market Fund (VCTXX) is the right place for you.