Bond funds of all types have been enjoying an incredible, unprecedented run, due to low inflation tinged with expectations of deflation. When inflation returns, the muni mutual fund values will crash, while directly purchased municipal bonds will pay the face value at maturity/ If you don't ...
Tax-free municipal bonds come with notable risks:Interest Rate Risk: Bond values may decline as interest rates rise, reducing potential resale prices. Credit Risk: The financial health of municipalities affects their ability to meet obligations, posing a potential risk to investors. Liquidity Risk: ...
investors who have invested in tax-exempt municipal bond funds in 2007. The tax was adopted by the U.S. government in the 1960s to prevent the most affluent from avoiding taxes with the use of loopholes or deductions. Analysts feel that since the criteria for paying the tax wasn't ...
Here are nine municipal bond funds that provide exposure to this tax-free income.There’s something for every type of fund preference: mutual funds, exchange-traded funds (ETFs) and closed-end funds (CEFs). (Image credit: iShares) iShares National Muni Bond ETF ...
Best Muni California Intermediate Funds #1 PIMCO Ca Munil Oppc Val Fd GCMFX #2 Vanguard CA Intermediate-Term Tax-Exm Fd VCAIX #3 Principal California Municipal Fund SRCMX #4 AB Municipal Income California Portfolio ALCAX #13 Schwab California Tax-Free Bond Fund™ SWCAX S...
FACT SHEET Georgia Tax-Free Bond Fund (GTFBX) As of December 31, 2024 General Information CUSIP 77957R705 Inception Date March 31, 1993 Benchmark Bloomberg Muni Index Expense Information (as of the 0.61%(Gross) most recent Prospectus)⁽¹⁾ 0.56%(Net) ⁽¹⁾The Fund operate...
investors can earn income that is free from local taxes as well. In an effort to increase the yield they offer, many municipal bond funds buy bonds that are subject to the Alternative Minimum Tax (AMT). Our funds do not hold any bonds that are subject to the AMT. As a result, the ...
The Fed's bond buying has pushed investors into riskier assets, and that may change, says Robert DiMella, manager of the MainStay Tax-Free Bond Fund. MTBAX Mutual Funds Investing News, Analysis and Tips Oct 28, 2010 7:15 AM EDT Municipal Bonds Safe, But Coasts Are Rocky Despite some ...
Tax free can refer to tax free goods, services, or earnings. The most common tax free securities are municipal bonds, followed by some mutual funds that invest in tax-exempt securities. Items exempt from tax includes gifts, cash rebates on purchased goods, and child support payments. ...
Tax-free municipal bonds are not necessarily entirely free of taxes. As noted, there may be state income taxes on the interest. If you receive Social Security, your muni bond interest will count towards your adjusted gross income, thus potentially increasing the taxable amount of your Social Sec...