Municipal bond fund(redirected from National Municipal Bond Fund)
Municipal bond fund
Municipal Bond Fund
municipal bond 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.