Single-state municipal bond fund

A mutual fund investing only in government obligations within a single state, with state tax-free dividends, but taxed capital gains.

Single State Municipal Bond Fund

In the United States, a mutual fund that invests exclusively in municipal bonds issued in a single state. The returns from such a fund are exempt from all federal taxes and all state taxes if the bondholder is a resident of that state. A single state municipal bond fund is attractive to locals and encourages them to invest in the fund. It is particularly important in states such as New York, with large populations, and states with high capital gains taxes, such as Oregon.

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References in periodicals archive ?

The fund becomes the 24th single-state municipal bond fund managed by Delaware Investments.

Delaware Investments Launches Delaware Montana Municipal Bond Fund

Its largest single-state municipal bond fund is Minnesota Tax-Free, a Morningstar-ranked four-star fund, with assets of approximately $440 million.

Lincoln National to Acquire Mutual Funds

While investors in municipal funds need to be vigilant when assessing the specific-credit risks of any government obligation, those invested in single-state municipal bond funds are keenly exposed to single-state risks.

Reevaluating state-specific muni bond funds

The Aquila(SM) Group of Funds has made its mark as a niche player in the mutual fund industry, with seven single-state municipal bond funds, a regional equity fund and money market funds, in addition to the new high-yield fund.

Aquila and Former Janus Manager Launch a High-Yield Fund

Its seven single-state municipal bond funds, are among the leaders of such funds in the states of Hawaii, Arizona, Oregon, Colorado, Kentucky, Utah and Rhode Island.

AdvisorCentral Adds The Aquila Group of Funds; Participation Enables Aquila to Expand Service and Visibility