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Is SEKSX a Strong Bond Fund Right Now?

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There are plenty of choices in the Muni - Bonds category, but where should you start your research? Well, one fund that may not be worth investigating is Carret Kansas Tax-Exempt Bond I (SEKSX - Free Report) . SEKSX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

SEKSX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.

History of Fund/Manager

SEKSX is a part of the AIF family of funds, a company based out of New York, NY. Since Carret Kansas Tax-Exempt Bond I made its debut in December of 1990, SEKSX has garnered more than $122.18 million in assets. The fund's current manager, Neil D. Klein, has been in charge of the fund since December of 2016.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -0.12%, and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 2.1%, which places it in the top 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. Compared to the category average of 10.02%, the standard deviation of SEKSX over the past three years is 6.85%. Looking at the past 5 years, the fund's standard deviation is 5.97% compared to the category average of 9.36%. This makes the fund less volatile than its peers over the past half-decade.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. 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%. Looking at the fund from a cost perspective, SEKSX is actually cheaper than its peers.

While the minimum initial investment for the product is $3 million, investors should also note that each subsequent investment needs to 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, even with its comparatively similar performance, average downside risk, and lower fees, Carret Kansas Tax-Exempt Bond I ( SEKSX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.

Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SEKSX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.


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