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If you've been stuck searching for Mutual Fund Bond funds, consider American Funds High Income Municipals Bond F (ABHFX - Free Report) as a possibility. ABHFX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Funds is based in Los Angeles, CA, and is the manager of ABHFX. American Funds High Income Municipals Bond F made its debut in September of 1994, and since then, ABHFX has accumulated about $100 million in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.57%, 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 -2.54%, 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. Over the past three years, ABHFX's standard deviation comes in at 8.58%, compared to the category average of 14.98%. The standard deviation of the fund over the past 5 years is 6.86% compared to the category average of 13.04%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.89, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, ABHFX has a positive alpha of 0.52, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 32 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, ABHFX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.79%. Looking at the fund from a cost perspective, ABHFX is actually cheaper than its peers.
This fund requires a minimum initial investment of $250, and each subsequent investment should be at least $50.
Bottom Line
Overall, American Funds High Income Municipals Bond F ( ABHFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on ABHFXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is ABHFX a Strong Bond Fund Right Now?
If you've been stuck searching for Mutual Fund Bond funds, consider American Funds High Income Municipals Bond F (ABHFX - Free Report) as a possibility. ABHFX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Funds is based in Los Angeles, CA, and is the manager of ABHFX. American Funds High Income Municipals Bond F made its debut in September of 1994, and since then, ABHFX has accumulated about $100 million in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 0.57%, 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 -2.54%, 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. Over the past three years, ABHFX's standard deviation comes in at 8.58%, compared to the category average of 14.98%. The standard deviation of the fund over the past 5 years is 6.86% compared to the category average of 13.04%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.89, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, ABHFX has a positive alpha of 0.52, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 32 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, ABHFX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.79%. Looking at the fund from a cost perspective, ABHFX is actually cheaper than its peers.
This fund requires a minimum initial investment of $250, and each subsequent investment should be at least $50.
Bottom Line
Overall, American Funds High Income Municipals Bond F ( ABHFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
This could just be the start of your research on ABHFXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.