How to Research Oppenheimer Mutual Funds

In the early 1950s, Oppenheimer & Co. was initially established as a brokerage firm, but in 1960, the Oppenheimer Management Corporation (now called OppenheimerFunds, Inc.) was created in order to more effectively manage the Oppenheimer Fund. In the 1990s, OppenheimerFunds began extending its focus from retail mutual funds to offer more investment products and services. It now claims over $200 billion in assets, many of which are bond funds.

Difficulty: Moderate

Instructions

Things You'll Need:

• Initial investment

Research Oppenheimer Mutual Funds

1. Use the award-winning Oppenheimer website to track fund performance (see Resources below). Oppenheimerfunds.com received a rating of "Excellent" from the DALBAR WebMonitor in the first quarter of 2007 for its innovative and functional approach to providing financial services online.

2. Research one of Oppenheimer's top-rated municipal bond funds, the Oppenheimer CA Municipal fund (OPCAX), which is managed by Ronald H. Fielding and got its start in 1988. Over a billion dollars in assets are invested in various CA bond funds in order to achieve a high level of tax-exempt interest income.

3. Check out the Morningstar rating for the Oppenheimer CA Municipal fund, which is 5 stars. This high rating is due in part to the average annual returns of the last few years: 7.71 percent in 2006, 10.94 percent in 2005 and 8.40 percent in 2004. A negative annual return was posted in 1999.

4. Prepare to spend at least $1,000 for your initial investment in this fund. Subsequent investments require a minimum of $50.

5. Research another one of the bigger and more successful Oppenheimer mutual funds, the Oppenheimer NJ Municipal fund (ONJAX), which was created in 1994. Like the Oppenheimer CA Municipal fund, the Oppenheimer NJ Municipal fund invests the majority of its half billion in assets in New Jersey municipal securities, and it also aims to make its investors money through tax-exempt interest income. It is also managed by Ronald H. Fielding.

6. Review the impressive 5-star Morningstar rating for the Oppenheimer NJ Municipal fund, as well as its annual returns in the past. The annual return was 7.76 percent in 2006, 10.10 percent in 2005 and 8.53 percent in 2004. The last time the fund posted a negative annual return was in 1999.

7. Pull together at least $1,000, which is the minimum for the initial investment in the Oppenheimer NJ Municipal fund. Prepare to spend at least $50 on subsequent investments.

8. Look into one of the other mutual funds provided by Oppenheimer. There are about 70 mutual funds available through this company, many of which focus on domestic and international stocks in addition to municipal and taxable bonds.

Tips & Warnings

• If investing in municipal bonds mutual funds, it is important to realize that the tax exemption only applies to the interest-generated income. You will be expected to pay taxes on any capital gains you earn by selling your shares at a higher price than you paid to purchase them. You will want to factor this into your research.

Resources

• The Oppenheimer website for mutual funds.