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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.
Below, we share with you three top-ranked municipal bond funds, namely, JPMorgan Tax Aware Real Return Fund (TXRAX - Free Report) , Invesco Rochester Municipal Opportunities Fund (ORNAX - Free Report) , and Colorado Bond Shares A Tax Exempt Fund (HICOX - Free Report) . Each has earned 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 funds, their Zacks Rank and past performance.
JPMorgan Tax Aware Real Return Fund seeks protection after-tax return by investing most of its net assets in a portfolio of municipal securities whose interest payments are excluded from federal income tax. TXRAX creates inflation-protected instruments by investing in a combination of municipal securities along with inflation-linked derivatives such as Non-Seasonally Adjusted Consumer Price Index for all Urban Consumers swaps.
JPMorgan Tax Aware Real Return Fundhas three-year annualized returns of 1.7%. As of the end of April 2022, TXRAXhad 45.45% of its net assets invested in Miscellaneous Bonds.
Invesco Rochester Municipal Opportunities Fund invests most of its assets along with borrowing if any in municipal securities that its advisors believe are exempted from federal income tax in the fund's respective state income tax. ORNAX invests in securities issued by the governments of states, their political subdivisions, and the District of Columbia, U.S. territories, commonwealths, and possessions or by their agencies, instrumentalities, and other authorities.
Invesco Rochester Municipal Opportunities Fundhas three-year annualized returns of 0.8%. ORNAX has an expense ratio of 0.69% compared with the category average of 0.92%.
Colorado Bond Shares A Tax Exempt Fund invests most of its assets along with borrowings if any in tax-exempt bonds, securities, notes, and municipal leases of political subdivisions, municipalities and public authorities in the State of Colorado. HICOX only invests in Tax-Exempted securities.
Colorado Bond Shares A Tax Exempt Fund has three-year annualized returns of 1.2%. Fred R. Kelly has been the fund manager of HICOX since November 1990.
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3 Municipal Bond Funds to Add for Stable 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, namely, JPMorgan Tax Aware Real Return Fund (TXRAX - Free Report) , Invesco Rochester Municipal Opportunities Fund (ORNAX - Free Report) , and Colorado Bond Shares A Tax Exempt Fund (HICOX - Free Report) . Each has earned 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 funds, their Zacks Rank and past performance.
JPMorgan Tax Aware Real Return Fund seeks protection after-tax return by investing most of its net assets in a portfolio of municipal securities whose interest payments are excluded from federal income tax. TXRAX creates inflation-protected instruments by investing in a combination of municipal securities along with inflation-linked derivatives such as Non-Seasonally Adjusted Consumer Price Index for all Urban Consumers swaps.
JPMorgan Tax Aware Real Return Fundhas three-year annualized returns of 1.7%. As of the end of April 2022, TXRAXhad 45.45% of its net assets invested in Miscellaneous Bonds.
Invesco Rochester Municipal Opportunities Fund invests most of its assets along with borrowing if any in municipal securities that its advisors believe are exempted from federal income tax in the fund's respective state income tax. ORNAX invests in securities issued by the governments of states, their political subdivisions, and the District of Columbia, U.S. territories, commonwealths, and possessions or by their agencies, instrumentalities, and other authorities.
Invesco Rochester Municipal Opportunities Fundhas three-year annualized returns of 0.8%. ORNAX has an expense ratio of 0.69% compared with the category average of 0.92%.
Colorado Bond Shares A Tax Exempt Fund invests most of its assets along with borrowings if any in tax-exempt bonds, securities, notes, and municipal leases of political subdivisions, municipalities and public authorities in the State of Colorado. HICOX only invests in Tax-Exempted securities.
Colorado Bond Shares A Tax Exempt Fund has three-year annualized returns of 1.2%. Fred R. Kelly has been the fund manager of HICOX since November 1990.
To view the Zacks Rank and the past performance of all municipal bond funds, investors can click here to see the complete list ofmunicipal bond funds.
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