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Is American Funds Tax-Exempt Bond A Fund (AFTEX) Worth Another Look?

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American Funds Tax-Exempt Bond A (AFTEX - Free Report) a Zacks Ranked #2 (Buy) was incepted in October 1979 and is managed by Capital Research and Management Company. AFTEX's main objective is to provide a high level of current income exempt from federal taxes, consistent with the preservation of capital. AFTEX primarily invests in state, municipal and public authority bonds and notes. AFTEX normally invests major portion of its assets in tax-exempt securities, and at least 65% of assets in tax-exempt securities rated in the three highest categories at the time of purchase. AFTEX emphasizes quality-oriented municipal securities and has the flexibility to invest anywhere in the United States, providing the opportunity to spread risks and enhance returns over time. AFTEX may also invest a maximum of 35% of assets in lower rated securities.

The American Funds Tax-Exempt Bond A, managed by American Funds , carries an expense ratio of 0.55. Moreover, AFTEX requires a minimal initial investment of $250.

AFTEX has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 1, 3, 5 year benchmarks; 1 year 6.95%, 3 year 4.63%, and 5 year 5.44%. To see how this fund performed compared in its category, please click here.

AFTEX’s performance, as of the last filing, when compared to funds in its category was in the top 34% in 1 year, top 23% over the past 3 years, and in the 26% over the past 5 years.

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