Municipal bond fund

(redirected from National Municipal Bond Fund)

Municipal bond fund

A mutual fund that invests in bonds issued by state, city, and/or local governments. The interest obtained from these bonds is passed through to shareholders and is generally free of federal (and sometimes state and local) income taxes.

Municipal Bond Fund

A mutual fund that invests predominantly or exclusively in municipal bonds. A municipal bond fund is often tax-efficient, as municipal bonds are exempt from federal taxes and in some circumstances also from state and local taxes. As a result, municipal bond funds tend to be attractive to persons who fall into higher tax brackets. Municipal bond funds generally carry lower risks than mutual funds investing primarily in stocks, but the levels of risk vary according to the credit ratings of the municipalities whose bonds are represented in the fund.

municipal bond fund

A mutual fund that invests in tax-exempt securities and passes through tax-free current income to its shareholders. Some municipal bond funds purchase long-term securities that provide a relatively high current yield but vary substantially in price with changes in interest rates. Other funds choose short-term securities that have lower yields but fluctuate little in value. Municipal bond funds differ from municipal bond unit trusts in that the funds manage the bond portfolios and charge an annual management fee. See also double-exempt fund, junk muni-bond fund, tax-exempt money market fund.

Municipal bond fund.

Municipal bond funds invest in municipal bonds. Interest earnings from these funds are free from federal income tax but may be subject to the alternative minimum tax (AMT).

In addition, some mutual fund companies offer funds that invest exclusively in municipal bonds offered by a single state.

One advantage of muni bond funds is that buyers can invest a much smaller amount than they would need to buy a municipal bond on their own. Another advantage is that they pay income monthly rather than semiannually.

References in periodicals archive ?
CHICAGO, May 18, 2012 /PRNewswire/ -- Stocks and funds in this article include: iShares S&P National Municipal Bond Fund (AMEX: MUB ), Vanguard Dividend Appreciation ETF (AMEX: SDY ), iShares FTSE NAREIT Mortgage REIT ETF (AMEX: REM ).
Although classified as a national municipal bond fund, the portfolio is actually an intermediate fund, with an average maturity of about 8.
10 /PRNewswire/ -- The American Stock Exchange(R) (Amex(R)) today announced that it has launched trading in the iShares S&P National Municipal Bond Fund by Barclays Global Investors (Barclays).
Otherwise, the interest from a national municipal bond fund may be subject to state and local income tax.
Columbia Management today also announced its plans to liquidate two funds, Columbia National Municipal Bond Fund ($13.
Key Asset Management, the investment advisor of Victory Funds and a subsidiary of KeyCorp, today announced that the Victory National Municipal Bond Fund Class A Shares (Nasdaq: VNMAX) has been named the winner of the 2000 Lipper One Year Total Return Award.
CLEVELAND -- The Victory National Municipal Bond Fund, Class A Shares , has won the 2001 Lipper Performance Achievement Award.
SAN FRANCISCO, March 15 /PRNewswire/ -- Bank of America has become the manager of four new Pacific Horizon open-end mutual funds; the Asset Allocation Fund, Blue Chip Fund, Flexible Bond Fund and the National Municipal Bond Fund it was announced today by Debra McGinty-Poteet, senior vice president, Bank of America Funds Management.
Nations Fund consists of: five equity funds, one balanced fund, eight taxable fixed-income funds, one long-term national municipal bond fund, one intermediate national municipal bond fund, eight intermediate state specific municipal bond funds and four money market funds.
In addition, Voyageur manages a national municipal bond fund, a government bond fund and a growth equity fund.
In addition, Voyageur manages a national municipal bond fund, a national government bond fund and a national growth equity fund.

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