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 ?
has announced monthly distributions of USD 0.035 have been declared on common stock shares of each of the BNY Mellon Municipal Income, Inc., BNY Mellon Strategic Municipal Bond Fund, Inc.
The group manages more than $80 billion in taxable and tax-exempt fixed income portfolios including Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund, and Baird Quality Intermediate Municipal Bond Fund.
4 March 2019 - Shareholders of Eaton Vance Municipal Bond Fund II (NYSE American: EIV) have approved the merger of EIV into Eaton Vance Municipal Bond Fund (NYSE American: EIM), the firm said.
In 2013, when investors fled the market, it was not able to digest the number of municipal bond fund redemptions, resulting in one of the most volatile summers in recent history.
For municipal bond fund investors, this typically results in a decrease in the fund's net asset value (NAV).
Aquila Investment Management LLC appointed JAMES (JT) THOMPSON co-portfolio manager and vice president of Tax-Free Fund for Utah, a municipal bond fund that invests in bonds that are exempt from Utah state and regular federal income taxes.
If you'd rather not master the intricacies of the muni market, you can simply invest in a municipal bond fund. Funds holding intermediate-term munis may generate decent yields with relatively low risks.
On Thursday, he spoke to investors of the Aquila Tax-Free Trust of Oregon, a municipal bond fund. Earlier in the week, he shared similar remarks with more than 100 people at U.S.
ZURICH: Swiss wealth manager EFG International took a hit from the credit crisis yesterday, saying a US municipal bond fund it was distributing had to be liquidated.
A municipal bond fund can provide further diversification of assets.
The earnings from the sale were invested in tax-exempt bonds and a municipal bond fund worth over $7 million.
A high-income investor might want to include a tax-free municipal bond fund, but a low-income investor would have no real need for one.

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