A list of master limited partnership mutual funds can be found at MLPData.com. Also on that website is a list exchange-traded notes, which are another MLP investment option that supplies an investor with a return based on the performance of an MLP index, according to Barron's.Continue Reading
Master limited partnerships were created in the 1980s to incentivize investment in the domestic energy sector, as reported by Forbes. MLPs are tax-exempt and publicly traded. To make MLPs an attractive investment opportunity, Congress gave them a number of tax benefits. Investment income derived from MLPs is strongly tax advantaged in that it is treated as return of capital until the entire original investment amount is recovered. Although these tax benefits are appealing, some have cautioned against MLP mutual funds, with claims that they expose investors to double taxation, whereas investing directly in MLPs does not, as stated by Investing Daily.
MLPs lost popularity after their creation in the 1980s, according to Forbes. A 2013 report by MarketWatch claims MLPs have experienced a growth in popularity as energy prices have increased. As energy exploration has ramped up in the United States, big-named investment firms such as Goldman Sachs have started to offer MLP mutual funds. Because MLPs are exempt from federal and state corporate income taxation, there are more funds available for their investors.Learn more about Investing