While these types of bonds generally represent higher risk than those from developed nations, the risk profile of each fund will vary according to the credit quality of the
individual bonds held by that fund.
Although the income from
municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares.
The price of the assets would include the closing price on the stock rather than a bid or ask, similar pricing
for bonds held by the fund, derivatives and cash equivalents.
You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices
of bonds held by the Fund may fall; individualinvestments of the Fund may not perform as expected; and / or the Fund's portfolio management practices may not achieve the desired result.
If a fund investor is resident in the state of issuance of
the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.
Interest income generated by municipal bond funds is generally not subject to federal taxes, and may be tax - exempt at the state and local level as well, if
the bonds held by the fund were issued by the state in which you live.
Interest income generated by municipal bond funds is generally not subject to federal taxes, and may also be exempt from state and local taxes if
the bonds held by the fund were issued by the state in which you live.
If a fund's investor is a resident in the state of issuance of
the bonds held by the fund, interest dividends may also be exempt from state and local income taxes.
During the final year of the Fund's operations, as
the bonds held by the Fund mature and the Fund's portfolio transitions to cash and cash equivalents, the Fund's yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the Fund and / or prevailing yields for bonds in the market.»
What I don't understand is what is the duration of
these bonds held by the fund?
You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of
bonds held by the Fund may fall; individual investments of the Fund may not perform as expected; and / or the Fund's portfolio management practices may not achieve the desired result.