Investing in Oppenheimer “Rochester Style” Municipal Funds

Securities fraud has become far more common, especially due to the downturn in the economy. Investing in Oppenheimer funds requires a significant amount of research on behalf of the investor due to its risky and unstable status. When looking to invest in Oppenheimer “Rochester Style” funds one should look at the fund’s objectives, risks, strategies, as well as the charges and expenses allocated to the fund. “Rochester Style” municipal funds invest more commonly in lower rated, high yield bonds. This way there is more risk but in turn investors are compensated far greater than other types of investment funds. Rochester style municipal funds are essentially exempt from Federal, NY and NY city personal incomes. These are very attractive to investors that want to take the risk and potentially earn a good reward for bearing that risk. The main focus on these types of funds is on the tax-exempt, in which they try to exploit this advantage to capitalize on bringing in as much profits as possible. It is a known fact that markets can be rather inefficient at times, which makes for tremendous opportunities for those who are able to recognize and capitalize on this knowledge. A lot of research goes into determining the most lucrative Rochester Fund Municipals.

Many different bond offerings that turn out to be the most lucrative are smaller in volume and size. Researchers have found that smaller bond offerings with unrated and lower ratings may be less expensive to pay a higher rate to bond holders than to pay for a better-rated credit deal. This allows investors to exploit all options of the market and essentially capitalize on finding cheaper unrated or lower rated bonds and being paid out a higher amount of money. Although these bonds are usually Junk declared, about 25% of an investor’s portfolio may be assigned to these more risky assets. The fact of the matter is that investors are willing to put up the risk to earn a more profitable and competitive return than just playing it safe. The tax-exempt status on all Rochester style municipal funds will give investors a tremendous advantage while helping to diversify away some risk.

When investors are investing in more risky assets, they like to rely on the Rochester style municipal funds because they are tax exempt. In exploiting this measure, they are essentially reducing some of the risk associated with investing in Municipal Funds. The exploitation of the tax-exempt status of the Rochester style municipal funds is extremely important to understand. This is one of the major advantages in investing in these types of risky assets, and without proper knowledge about how to effectively go about exploiting the tax-exempt status the investor will not be in the best position possible to gain the rewards. When investing in Oppenheimer “Rochester Style” Municipal Bonds, it is extremely important to do a significant amount of research to ensure that you are setting up your investments and portfolios in the proper position to take advantage of the tax exempt status.