Looking for a Muni - Bonds fund? You may want to consider AI Kansas Tax-Exempt Bond I (SEKSX Quick QuoteSEKSX - Free Report) as a possible option. SEKSX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes SEKSX 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

SEKSX is a part of the AIF family of funds, a company based out of New York, NY. AI Kansas Tax-Exempt Bond I debuted in December of 1990. Since then, SEKSX has accumulated assets of about $122.29 million, according to the most recently available information. The fund is currently managed by Neil Klein who has been in charge of the fund since December of 2016.

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 0.17%, and it sits in the bottom 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 -1.88%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. The standard deviation of SEKSX over the past three years is 7.34% compared to the category average of 10.33%. Over the past 5 years, the standard deviation of the fund is 6.15% compared to the category average of 10.35%. This makes the fund less volatile than its peers over the past half-decade.

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, SEKSX is a no load fund. It has an expense ratio of 0.48% compared to the category average of 0.85%. SEKSX is actually cheaper than its peers when you consider factors like cost.

This fund requires a minimum initial investment of $3 million, and each subsequent investment should be at least $5,000.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, AI Kansas Tax-Exempt Bond I ( SEKSX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, AI Kansas Tax-Exempt Bond I ( SEKSX ) looks like a somewhat average choice for investors right now.

This could just be the start of your research on SEKSXin the Muni - Bonds 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.