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Grab These 3 Municipal Bond Funds for Excellent Returns
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The debt securities category will always be the first choice for risk-averse investors because this class of instruments provides a regular income flow at low levels of risk. Income from regular dividends helps to ease the pain caused by plunging stock prices.
When considering the safety of capital invested, municipal bond mutual funds are second only to those investing in government securities. In addition, interest income earned from these securities is exempt from federal taxes and, in many cases, from state taxes as well.
AB Municipal Income Fund II Arizona Portfolio Class A seeks to earn maximum current income exempt from income tax. AAZAX invests the majority of its net assets in high-yielding, predominantly investment-grade municipal securities.
AB Municipal Income Fund II Arizona Portfolio Class A has three-year annualized returns of 1.5%. AAZAX has an expense ratio of 0.78% compared with the category average of 0.83%.
Colorado Bond Shares A Tax Exempt Fund invests the majority of its net assets in tax-exempt bonds and other tax-exempt securities. HICOX usually attempts to invest all of its net assets plus any borrowings for investment purposes.
Colorado Bond Shares A Tax Exempt Fund has three-year annualized returns of 2.7%. Fred R. Kelly Jr. has been one of the fund managers of HICOX since 1990.
AB Municipal Income Fund II Ohio Portfolio Class A invests the majority of its net assets in municipal securities that pay interest, which is exempt from federal income tax or state income tax in Ohio.
AB Municipal Income Fund II Ohio Portfolio Class A has three-year annualized returns of 1.9%. As of November 2021, AOHAX had 6.5% of its assets invested in CNTY OF HAMILTON OH SWR S.
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Grab These 3 Municipal Bond Funds for Excellent Returns
The debt securities category will always be the first choice for risk-averse investors because this class of instruments provides a regular income flow at low levels of risk. Income from regular dividends helps to ease the pain caused by plunging stock prices.
When considering the safety of capital invested, municipal bond mutual funds are second only to those investing in government securities. In addition, interest income earned from these securities is exempt from federal taxes and, in many cases, from state taxes as well.
Below we share with you three top-ranked municipal bond funds, viz., AB Municipal Income Fund II Arizona Portfolio Class A (AAZAX - Free Report) , Colorado Bond Shares A Tax Exempt Fund (HICOX - Free Report) and AB Municipal Income Fund II Ohio Portfolio Class A (AOHAX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of municipal bond funds.
AB Municipal Income Fund II Arizona Portfolio Class A seeks to earn maximum current income exempt from income tax. AAZAX invests the majority of its net assets in high-yielding, predominantly investment-grade municipal securities.
AB Municipal Income Fund II Arizona Portfolio Class A has three-year annualized returns of 1.5%. AAZAX has an expense ratio of 0.78% compared with the category average of 0.83%.
Colorado Bond Shares A Tax Exempt Fund invests the majority of its net assets in tax-exempt bonds and other tax-exempt securities. HICOX usually attempts to invest all of its net assets plus any borrowings for investment purposes.
Colorado Bond Shares A Tax Exempt Fund has three-year annualized returns of 2.7%. Fred R. Kelly Jr. has been one of the fund managers of HICOX since 1990.
AB Municipal Income Fund II Ohio Portfolio Class A invests the majority of its net assets in municipal securities that pay interest, which is exempt from federal income tax or state income tax in Ohio.
AB Municipal Income Fund II Ohio Portfolio Class A has three-year annualized returns of 1.9%. As of November 2021, AOHAX had 6.5% of its assets invested in CNTY OF HAMILTON OH SWR S.
To view the Zacks Rank and the past performance of all municipal bond funds, investors can click here to see the complete list of municipal bond funds.
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