Best Municipal Bond Mutual Funds 2013

Find best municipal bond mutual funds list for the past 5 years. You will find top muni national short mutual fund, and more.

Municipal Bond Funds

Top Funds

Municipal bond funds are investing mainly in tax free municipal bonds issued by various U.S. municipalities such as state of California, state of Texas, Los Angeles city, New York City, and more. The interests are exempt from federal income tax, it may also exempt from state and local tax. You can buy these bond funds from your brokerage such as Vanguard, Fidelity, TD Ameritrade, ETrade, etc.

Top Funds

Muni National Short

Muni national short funds utilize its assets to purchase bonds issued by state and local governments to fund public projects. The portfolios have shorter duration of less than 5 years. These muni bond funds invest in investment grade bonds of many states and sectors. The income from these bonds is tax free from federal taxes and/or state taxes in the issuing state.

Best muni national short mutual funds are:

1. RidgeWorth S/T Municipal Bond A (SMMAX) – 4.78%
2. Thornburg Limited-Term Muni A (LTMFX) – 4.52%
3. Bernstein Diversified Municipal (SNDPX) – 4.05%
4. MFS Municipal Limited Maturity A (MTLFX) – 3.93%
5. Nuveen Limited-Term Municipal Bond A (FLTDX) – 3.90%
6. AllianceBern Intermediate Diversified Municipal A (AIDAX) – 3.78%
7. Glenmede Municipal Intermediate (GTCMX) – 3.67%
8. Wells Fargo Advantage Strategic Municipal Bond A (VMPAX) – 3.58%
9. T. Rowe Price Tax-Free Short-Intermediate (PRFSX) – 3.52%

Muni National Interm

Muni national intermediate mutual funds are investing in tax free municipal bonds issued by various states and localities. These funds have durations of 5 to 7 years. They have higher yield than short duration bonds. They also invest in multiple sectors such as state general obligation, health, hospital, revenue, dedicated tax, etc.

More: Best Municipal Bond Mutual Funds for 2013 and 2014

Best muni national intermediate mutual funds are:

1. Wells Fargo Advantage Core Builder Ser M (WFCMX) – 9.84%
2. SEI Tax-Exempt Tax-Advantaged Income A (SEATX) – 6.75%
3. First Investors Tax Exempt Opportunities A (EIITX) – 6.13%
4. JPMorgan Tax Aware High Income A (JTIAX) – 5.98%
5. RidgeWorth High Grade Municipal Bond A (SFLTX) – 5.97%
6. BlackRock Intermediate Municipal Inv A (MEMTX) – 5.91%
7. Vanguard High-Yield Tax-Exempt (VWAHX) – 5.86%

Muni National Long

Muni national long mutual funds use its portfolios to buy debts issued by various U.S. state and local governments. The fund has a longer duration than previous 2 muni bond funds. Typically, they have durations of more than 7 years. With longer durations, these funds also have the highest yield among the municipal bond funds.

Best muni national long mutual funds are:

1. Nuveen Municipal Total Return Managed Accounts (NMTRX) – 7.19%
2. Nuveen All-American Municipal Bond A (FLAAX) – 6.95%
3. Wells Fargo Advantage Municipal Bond Inv (SXFIX) – 6.65%
4. Delaware Tax-Free USA A (DMTFX) – 6.39%
5. Lord Abbett National Tax-Free Income A (LANSX) – 6.35%
6. MFS Municipal Income A1 (MMIDX) – 6.26%
7. Western Asset Managed Municipals A (SHMMX) – 6.18%
8. Waddell & Reed Municipal Bond A (UNMBX) – 6.14%
9. Pioneer AMT-Free Municipal A (PBMFX) – 6.09%

High Yield Muni

High yield muni mutual funds invest in non-investment grade municipal bonds. These municipal bond funds provide high income or yield for investors. They also have higher risks than investment grade muni bond funds.

Best high yield muni mutual funds are:

1. Delaware National High-Yield Municipal Bond A (CXHYX) – 7.43%
2. BlackRock High Yield Municipal Inv A (MDYHX) – 6.99%
3. MFS Municipal High-Income A (MMHYX) – 6.68%
4. Waddell & Reed Muni High-Income A (UMUHX) – 6.51%
5. T. Rowe Price Tax-Free High Yield (PRFHX) – 6.30%
6. Prudential Municipal High-Income A (PRHAX) – 6.26%
7. Putnam Tax-Free High Yield A (PTHAX) – 6.25%
8. Franklin High Yield Tax-Free Income A (FRHIX) – 6.20%
9. Western Asset Municipal High Income A (STXAX) – 6.15%

Other municipal bond fund categories include:

• Muni California Intermediate
• Muni California Long
• Muni Massachusetts
• Muni Minnesota
• Muni New Jersey
• Muni New York Intermediate
• Muni New York Long
• Muni Pennsylvania
• Muni Single State Short
• Muni Single State Intermediate
• Muni Single State Long

I’ll provide the list update in near future for these categories.