Markets

Should You Invest in Waddell & Reed Municipal High-Income A Fund (UMUHX)?

Waddell & Reed Municipal High-Income A ( UMUHX ) a Zacks Ranked #1 (Strong Buy) was incepted in January 1986 and is managed by Waddell & Reed Investment Management Company (WRIMCO). UMUHX seeks to provide a high level of income that is not subject to federal income tax. UMUHX seeks to achieve its goal by investing in a diversified portfolio of tax-exempt municipal bonds. However, a significant portion, a maximum of 40%, of UMUHX's dividends paid to shareholders each year may be a tax preference item for purposes of the federal alternative minimum tax (AMT). UMUHX invests primarily in bonds rated in the lower tier of investment grade (BBB by S&P and Baa by Moody's) or lower, including bonds rated below investment grade, or junk bonds. UMUHX typically invests in municipal bonds with remaining maturities of 10 to 30 years.

Waddell & Reed Municipal High-Income A, managed by Waddell & Reed , carries an expense ratio of 0.89. Moreover, UMUHX requires a minimal initial investment of $750.

UMUHX has a history of positive total returns for over 10 years. Specifically, the fund's returns over the 1, 3, 5 year benchmarks; 1 year 3.59%, 3 year 3.90% and 5 year 5.18%. To see how this fund performed compared in its category, please click here .

UMUHX's performance, as of the last filing, when compared to funds in its category was in the top 10% in 1 year, top 6% over the past 3 years, and in the 9% over the past 5 years.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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