July 30, 2014

Top 15 High Yield Municipal Bond Mutual Funds 2014

Top 15 high yield municipal bond mutual funds 2014 are Nuveen High Yield Municipal Bond Fund, AMG GW&K Municipal Enhanced Yield Fund, BlackRock High Yield Municipal Fund, etc.

High Yield Muni Fund

Top 15 High Yield Municipal Bond Mutual Funds 2014High yield municipal bond funds invest most of its assets in lower rated municipal bonds. These bond funds provide tax free high yield income for investors. They usually provide the distribution yield regularly (i.e. monthly or quarterly). They have higher risk than investment grade municipal bond funds. The investment risks include market risk, interest risk, issuer risk, etc.

You can buy and sell this high yield muni fund using your brokerage. You can invest as little as $1,000 for regular investment account or $100 for retirement account. For your 401k account, please check with your fund administrator about this fund.

From this best performing funds list, you may find each individual fund review. You can find the fund performance, expense ratio, and yield or dividend from the table below. The list is sorted based on its year to date performance in 2014 (up to July 2014).

Top 15 high yield municipal bond mutual funds 2014 are:
  1. Nuveen High Yield Municipal Bond Fund
  2. Eaton Vance High-Yield Municipal Income Fund
  3. AMG GW&K Municipal Enhanced Yield Fund
  4. AllianceBernstein High Income Municipal Portfolio
  5. BlackRock High Yield Municipal Fund
  6. Wells Fargo Advantage High Yield Municipal Bond Fund
  7. Transamerica High Yield Muni Fund
  8. Goldman Sachs High Yield Municipal Fund
  9. MainStay High Yield Municipal Bond Fund
  10. Principal Opportunistic Municipal Fund
  11. Invesco High Yield Municipal Fund
  12. Delaware National High Yield Municipal Bond Fund
  13. T. Rowe Price Tax-Free High Yield Fund
  14. MFS Municipal High Income Fund
  15. Federated Municipal High Yield Advantage Fund
Updated on July 30, 2014

Nuveen High Yield Municipal Bond Fund (NHMAX)

This Nuveen High Yield Municipal Bond Fund uses its assets to buy lower rated municipal bonds. It is ranked 4-stars rating by Morningstar. It has total net assets of $9.0 billion. The dividend yield is 5.88%. The annual expense ratio of this fund is 0.79%.

More: Top Performing Municipal Bond Closed End Funds

This best performing high yield muni fund has average maturity of 21.83 years. The modified duration is 11.04 years. For 2014, the year to date return is 12.77%. It has 5-year annualized return of 11.76%. The share price is $16.70.  Class A fund has a sales load of 4.20%.

The top portfolio allocation as of July 2014 is State & Local General Obligation (22.67%), Health (20.33%), and 12.70%.

AMG GW&K Municipal Enhanced Yield Fund (GWMNX)

AMG GW&K Municipal Enhanced Yield Fund invest majority of assets in unrated securities and high-yield municipal securities. It seeks a high level of current income exempt from federal income taxes. With total net assets of $233 million, it has 11.57% YTD return. The dividend yield is 3.57%. You can buy this fund with $2,000 minimum initial investment. The total expense ratio is 1.12%.

This high yield muni bond fund is ranked with 3 stars by Morningstar. Last year (2013), this bond fund has returned -8.36%. The CUSIP is 00170K604. Other classes are Institutional class (GWMEX), and Service Class (GWMRX). The effective maturity is 15.4 years.

The top holdings are Parish of St John the Baptist LA, Grand Parkway Transportation Corp, City of Chicago IL O'Hare International Airport Revenue, New Jersey Economic Development Authority, etc.

AllianceBernstein High Income Municipal Portfolio (ABTHX)

As 4 stars rated muni bond fund, AllianceBernstein High Income Municipal Fund has a tax free yield of 5.04%. This class A fund has a sales load of 3.00%. The minimum investment is $2,500. The portfolio turnover rate is 41%. With total assets of $1.6 billion, it has returned 8.23% over the past 3 year.

Goldman Sachs High Yield Municipal Fund (GHYAX)

Goldman Sachs High Yield Municipal Fund has $3.1 billion of assets. The fund managers are Ben Barber, and Scott Diamond. It has expense ratio fee of 0.87% per year. This fund is open for new investors. The fund objective is to provide high level of current income that is exempt from regular federal income tax.

More: Best Municipal Bond ETFs 2014

You can buy this top tax free bond fund with $1,000 for your brokerage & $250 for your retirement account. There are 96 brokers offering this fixed income fund. In 2014, the year to date return is 11.22%.

T. Rowe Price Tax-Free High Yield Fund (PRFHX)

T. Rowe Price Tax-Free High Yield Fund uses its assets to buy long-term municipal securities and its weighted average maturity is expected to normally exceed 10 years. The total net assets are $2.9 billion. The current yield is 4.31%. This no load fund has an expense fee of 0.68%.

Morningstar has ranked this top high yield muni fund with gold and 4 stars rating. It has a 3 year annualized return of 7.82%. In 2014, the YTD return is 9.11%.

High Yield Muni Funds Return

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