We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Top-Ranked Municipal Bond Mutual Funds for Your Portfolio
Read MoreHide Full Article
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.
American High-Income Municipal Bond F-1 (ABHFX - Free Report) seeks growth of income free from regular federal income tax. ABHFX invests the lion’s share of its assets in securities that are exempted from regular federal income tax. The fund also invests a minimum of half of its portfolio in BBB+ or lower or Baa1 or lower rated debt securities. American High-Income Municipal Bond F-1 has returned 2.8% year to date (YTD).
ABHFX has an expense ratio of 0.74% compared with the category average of 1.10%.
AB Municipal Bond Inflation Strategy A (AUNAX - Free Report) invests primarily in securities of the municipal sector which pays interest free from federal taxation. It invests a bulk of its total assets in A or higher rated fixed-income securities. AB Municipal Bond Inflation Strategy A has returned 2.1% YTD.
Robert Davidson is one of the fund managers of AUNAX since 2010.
Baird Quality Intermediate Municipal Bond Fund Class Investor (BMBSX - Free Report) seeks current income that is free from federal income tax. BMBSX invests its assets primarily in a portfolio of bonds and debentures. The fundinvests in municipal debts of governmental establishments throughout the U.S. and its states. Baird Quality Intermediate Municipal Bond Fund Class Investor has returned 2% YTD.
BMBSX has an expense ratio of 0.55% compared with the category average of 0.94%.
Dreyfus Short-Intermediate Municipal Bond Fund Class I (DIMIX - Free Report) invests a bulk of its assets in Baa/BBB or higher rated municipal bonds that offer income exempted from federal personal income tax. DIMIX seeks maximization of current income free from federal income tax. Dreyfus Short-Intermediate Municipal Bond Fund Class I has returned 1.5% YTD.
As of March 2017, DIMIX held 175 issues, with 1.59% of its assets invested in Citizens Ppty Ins Corp Fla Senior Se 5%.
Image: Bigstock
4 Top-Ranked Municipal Bond Mutual Funds for Your Portfolio
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 four top-ranked municipal bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
American High-Income Municipal Bond F-1 (ABHFX - Free Report) seeks growth of income free from regular federal income tax. ABHFX invests the lion’s share of its assets in securities that are exempted from regular federal income tax. The fund also invests a minimum of half of its portfolio in BBB+ or lower or Baa1 or lower rated debt securities. American High-Income Municipal Bond F-1 has returned 2.8% year to date (YTD).
ABHFX has an expense ratio of 0.74% compared with the category average of 1.10%.
AB Municipal Bond Inflation Strategy A (AUNAX - Free Report) invests primarily in securities of the municipal sector which pays interest free from federal taxation. It invests a bulk of its total assets in A or higher rated fixed-income securities. AB Municipal Bond Inflation Strategy A has returned 2.1% YTD.
Robert Davidson is one of the fund managers of AUNAX since 2010.
Baird Quality Intermediate Municipal Bond Fund Class Investor (BMBSX - Free Report) seeks current income that is free from federal income tax. BMBSX invests its assets primarily in a portfolio of bonds and debentures. The fundinvests in municipal debts of governmental establishments throughout the U.S. and its states. Baird Quality Intermediate Municipal Bond Fund Class Investor has returned 2% YTD.
BMBSX has an expense ratio of 0.55% compared with the category average of 0.94%.
Dreyfus Short-Intermediate Municipal Bond Fund Class I (DIMIX - Free Report) invests a bulk of its assets in Baa/BBB or higher rated municipal bonds that offer income exempted from federal personal income tax. DIMIX seeks maximization of current income free from federal income tax. Dreyfus Short-Intermediate Municipal Bond Fund Class I has returned 1.5% YTD.
As of March 2017, DIMIX held 175 issues, with 1.59% of its assets invested in Citizens Ppty Ins Corp Fla Senior Se 5%.
To view the Zacks Rank and past performance of all municipal bond mutual funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>