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If you have been looking for Muni - Bonds funds, a place to start could be American Century CA High Yield Municipals Investor (BCHYX - Free Report) . BCHYX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify BCHYX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.
History of Fund/Manager
American Century is responsible for BCHYX, and the company is based out of Kansas City, MO. Since American Century CA High Yield Municipals Investor made its debut in December of 1986, BCHYX has garnered more than $877.77 million in assets. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.39%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 4%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of BCHYX over the past three years is 6.05% compared to the category average of 10.57%. The standard deviation of the fund over the past 5 years is 5.57% compared to the category average of 9.74%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.94, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, BCHYX has a negative alpha of -0.61, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 47 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, BCHYX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.82%. From a cost perspective, BCHYX is actually cheaper than its peers.
This fund requires a minimum initial investment of $5,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, American Century CA High Yield Municipals Investor ( BCHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Century CA High Yield Municipals Investor ( BCHYX ) looks like a good potential choice for investors right now.
Your research on the Muni - Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is BCHYX a Strong Bond Fund Right Now?
If you have been looking for Muni - Bonds funds, a place to start could be American Century CA High Yield Municipals Investor (BCHYX - Free Report) . BCHYX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify BCHYX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.
History of Fund/Manager
American Century is responsible for BCHYX, and the company is based out of Kansas City, MO. Since American Century CA High Yield Municipals Investor made its debut in December of 1986, BCHYX has garnered more than $877.77 million in assets. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.39%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 4%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of BCHYX over the past three years is 6.05% compared to the category average of 10.57%. The standard deviation of the fund over the past 5 years is 5.57% compared to the category average of 9.74%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.94, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, BCHYX has a negative alpha of -0.61, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 47 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, BCHYX is a no load fund. It has an expense ratio of 0.50% compared to the category average of 0.82%. From a cost perspective, BCHYX is actually cheaper than its peers.
This fund requires a minimum initial investment of $5,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, American Century CA High Yield Municipals Investor ( BCHYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Century CA High Yield Municipals Investor ( BCHYX ) looks like a good potential choice for investors right now.
Your research on the Muni - Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.