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Any investors hoping to find a Muni - Bonds fund could think about starting with American Century CA High Yield Municipals Investor (BCHYX - Free Report) . BCHYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes BCHYX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
American Century is responsible for BCHYX, and the company is based out of Kansas City, MO. American Century CA High Yield Municipals Investor made its debut in December of 1986, and since then, BCHYX has accumulated about $876.62 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 4.46%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.65%, 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. BCHYX's standard deviation over the past three years is 6.16% compared to the category average of 12.49%. Over the past 5 years, the standard deviation of the fund is 5.64% compared to the category average of 10.71%. This makes the fund less volatile than its peers over the past half-decade.
BCHYX carries a beta of 0.87, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.45, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 49 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key 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 0.83%. From a cost perspective, BCHYX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $5,000; each subsequent investment needs to 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, better downside risk, and lower fees, American Century CA High Yield Municipals Investor ( BCHYX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BCHYX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is BCHYX a Strong Bond Fund Right Now?
Any investors hoping to find a Muni - Bonds fund could think about starting with American Century CA High Yield Municipals Investor (BCHYX - Free Report) . BCHYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes BCHYX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
American Century is responsible for BCHYX, and the company is based out of Kansas City, MO. American Century CA High Yield Municipals Investor made its debut in December of 1986, and since then, BCHYX has accumulated about $876.62 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 4.46%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.65%, 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. BCHYX's standard deviation over the past three years is 6.16% compared to the category average of 12.49%. Over the past 5 years, the standard deviation of the fund is 5.64% compared to the category average of 10.71%. This makes the fund less volatile than its peers over the past half-decade.
BCHYX carries a beta of 0.87, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.45, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 49 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key 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 0.83%. From a cost perspective, BCHYX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $5,000; each subsequent investment needs to 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, better downside risk, and lower fees, American Century CA High Yield Municipals Investor ( BCHYX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BCHYX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.