We clearly need to do some refinement of the data to see whether a few categories are highly resilient (for example, single -
state muni bond funds might never change their star ratings) and, thus, skewing the results.
Not exact matches
Municipal
bond funds are exempt from paying federal taxes, and in some case even exempt from
state taxes... Most investors that invest in mumi
funds are in the higher tax bracket, so
muni funds are a good choice, to avoid being taxed on the dividends.
Fixed income
fund sample includes the Morningstar historical categories: Corporate
Bond, Inflation - Protected
Bond, Intermediate Government, Intermediate - Term
Bond,
Muni California Intermediate,
Muni National Intermediate,
Muni National Short,
Muni New York Intermediate,
Muni Single
State Short, Short Government, Short - Term
Bond, Ultrashort
Bond, and World
Bond.
I buy a combination of specific municipal
bonds in California because that's where I reside in where I can not pay
state income taxes on the dividends, I also have a California municipal
Bond fund, and a nationwide muni bond f
Bond fund, and a nationwide
muni bond f
bond fund.
I've basically looked at
funds like MUB, and
state muni bonds like CMF since I'm in California.
For
muni bond investors in the 4 high tax
states profiled, there are a bevy of
state specific
funds that cater you your investment needs, if purchasing bespoke
muni bonds is beyond your ken.
Issued by
state and local governments, municipal
bonds (or
munis) help
fund ongoing expenses and complete capital improvements, such as sewers and toll roads.
Muni national long portfolios invest in
bonds issued by various
state and local governments to
fund public projects.
Muni single -
state long portfolios invest in
bonds issued by
state and local governments to
fund public projects.
Muni national intermediate portfolios invest in
bonds issued by various
state and local governments to
fund public projects.
Municipal
bonds («
munis») are issued by
state and local governments to
fund the construction of schools, highways, housing, sewer systems, and other important public projects.
If
munis will give you a higher tax - equivalent yield, you might be tempted to purchase a
muni fund that focuses on
bonds from your
state, so the interest is exempt from
state as well as federal taxes.
A municipal
bond, also known as a
muni, is a debt security used to
fund capital expenditures for a county, municipality or
state.
Also, single -
state muni funds often own relatively long - term
bonds, so they could get hit hard by rising interest rates.
For instance, coupon payments for
muni bonds sold to
fund those activities are federally taxed, with one common example is a
bond issued to
fund a
state's pension plan obligation.
Fixed income
fund sample includes the Morningstar historical categories: Corporate
Bond, High Yield
Bond, Inflation - Protected
Bond, Intermediate Government, Intermediate - Term
Bond,
Muni California Intermediate,
Muni California Long,
Muni Massachusetts,
Muni Minnesota,
Muni National Intermediate,
Muni National Long,
Muni National Short,
Muni New Jersey,
Muni New York Intermediate,
Muni New York Long,
Muni Ohio,
Muni Pennsylvania,
Muni Single
State Intermediate,
Muni Single
State Long,
Muni Single
State Short, Short Government, Short - Term
Bond, Ultrashort
Bond, and World
Bond.