Debt securities will always be the natural choice of the
risk-averse investor because this category of instruments
provides regular income flow at low levels of risk. Income from
regular dividends helps to ease the pain caused by plunging stock
prices. When considering safety of capital invested, municipal
bond mutual funds are second only to those investing in
government securities. In addition, the interest income earned
form these securities are exempt from federal taxes and in many
cases from state taxes as well.
Below we will share with you the 5 highest yielding Zacks #1
ranked municipal bond mutual funds. Each has earned a
Zacks #1 Rank
(Strong Buy) as we expect these mutual funds to outperform their
peers in the future. To view the Zacks Rank and past performance
of all municipal bond funds, investors can
click here to see the complete list of funds
.
|
Mutual Fund
|
Sec 30 Day Yield
|
|
Pioneer High Income Municipal A
|
5.56%
|
|
Oppenheimer Rochester National Municipals A
|
5.03%
|
|
Invesco Van Kampen High Yield Municipal A
|
5.01%
|
|
Lord Abbett High Yield Municipal Bond A
|
4.95%
|
|
Oppenheimer AMT-Free Municipals A
|
4.63%
|
Oppenheimer Rochester National Municipals A
(
ORNAX
) seeks high current income not subject to federal income taxes.
The fund primarily invests in a wide range of high-yield
municipal securities. The municipal bond mutual fund returned
24.06% in the last one year period.
The Fund Manager is Daniel G. Loughran and he has managed this
municipal bond mutual fund since 2001.
Nuveen High Yield Municipal Bond A
(
NHMAX
) invests the majority of its assets in municipal bonds. At least
65% of its assets are invested in bonds rated investment grade or
lower. The municipal bond mutual fund returned 25.30% in the last
one year period.
As of December 2012, this municipal bond mutual fund held 1878
issues, with 0.97% of its total assets invested in Tennessee Engy
Acquisition CJr R 6.25%.
Pioneer High Income Municipal A
(
PIMAX
) seeks high total return. The fund invests in debt securities
and related instruments issued by states, counties and
municipalities as well as agencies of the US and the District of
Columbia. The interest income from these securities must not be
subject to federal income tax. The municipal bond mutual fund
returned 21.27% in the last one year period.
The municipal bond mutual fund has a minimum initial
investment of $1,000 and an expense ratio of 0.89% compared to a
category average of 1.02%.
Oppenheimer AMT-Free Municipals A
(
OPTAX
) invests in municipal securities exempt from federal individual
income tax. The fund purchases securities regardless of their
maturity period. The municipal bond mutual fund returned 24.90%
in the last one year period.
The Fund Manager is Daniel G. Loughran and he has managed this
municipal bond mutual fund since 2002.
Lord Abbett High Yield Municipal Bond A
(
HYMAX
) seeks high income not subject to federal income taxes. The fund
invests the majority of its assets in municipal bonds. A minimum
of 50% of its assets must be utilized to purchase municipal bonds
rated investment grade by a Nationally Recognized Statistical
Organization (NRSRO). The municipal bond mutual fund returned
20.26% in the last one year period.
The municipal bond mutual fund has a minimum initial
investment of $1,000 and an expense ratio of 0.80% compared to a
category average of 1.02%.
To view the Zacks Rank and past performance of all municipal
bond funds, investors can click here to see the complete list of
funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward.
Learn more about the Zacks Mutual Fund Rank
.
(HYMAX): ETF Research Reports
(NHMAX): ETF Research Reports
(OPTAX): ETF Research Reports
(ORNAX): ETF Research Reports
(PIMAX): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment
Research