Top 8 Best Municipal Bond Mutual Funds

The following article will provide top 10 list of municipal bond mutual funds also known as non taxable bond funds. The non taxable bonds consist mainly the municipal bonds either investment grade municipal bond or non investment grade municipal bond. The list include Vanguard Intermediate Term Tax Exempt, Vanguard Limited Term Tax Exempt, American Funds Tax Exempt Bond, and more.

Tax Free Muni Bond Funds

My list mainly consists of 3 or more star of Morningstar rating and big asset underlying the municipal bond mutual funds. Usually, big asset means lot of confident by investor as well constitutional to invest in these funds. With 3 or more star rating, this means the fund has consistently perform under any market condition and should perform better or at least average compare to many of its index benchmark. I also provide list that doesn’t include only 1 state municipal bond funds, this means the list is more diversify and includes multiple states in US.

The following is the Top 8 Best Municipal Bond mutual funds:

1. Vanguard Intermediate Term Tax Exempt Fund - VWITX
2. Vanguard Limited Term Tax Exempt Fund - VMLTX
3. Franklin Federal Tax Free Income - FKTIX
4. American Funds Tax Exempt Bond - AFTEX
5. Franklin High Yield Tax Free Income Fund - FRHIX
6. Vanguard Long Term Tax Exempt Fund - VWLTX
7. Wells Fargo Advantage Ultra Short Term Municipal Income Fund - SMAVX
8. Vanguard High Yield Tax Exempt Fund - VWAHX