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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