Muni bond funds are very popular for investor in taxable brokerage account. The yield of this bond fund is not subjected to the federal tax rate. This opportunity can provide additional incentive for investor as well as opportunity to diversify their investment asset portfolio. One of this best municipal bond fund is described below. More on best mutual fund, please check my MEPB Financial website.
T. Rowe Price Tax-Free High-Yield (MUTF: PRFHX)
The T. Rowe Price Tax-Free High-Yield fund’s objective is to provide a high level of current income exempt from federal income tax. This TRP fund invests mostly in long-term municipal securities and its weighted average maturity is expected to normally >10 years. This bond fund invests majority portion of its assets in below investment-grade (or junk / high yield) municipal bonds. This T Rowe Price bond fund may buy bonds in default as long as they are <10% of total assets. The fund may also consist <20% of the fund’s income could be derived from securities subject to the alternative minimum tax (or AMT). The fund may invest a significant portion of its assets in sectors with special risks, such as hospitals, electric utility, or private activity bonds.
PRFHX Fund Details
T. Rowe Price Tax-Free High-Yield (MUTF: PRFHX)
The T. Rowe Price Tax-Free High-Yield fund’s objective is to provide a high level of current income exempt from federal income tax. This TRP fund invests mostly in long-term municipal securities and its weighted average maturity is expected to normally >10 years. This bond fund invests majority portion of its assets in below investment-grade (or junk / high yield) municipal bonds. This T Rowe Price bond fund may buy bonds in default as long as they are <10% of total assets. The fund may also consist <20% of the fund’s income could be derived from securities subject to the alternative minimum tax (or AMT). The fund may invest a significant portion of its assets in sectors with special risks, such as hospitals, electric utility, or private activity bonds.
PRFHX Fund Details
- Fund Inception Date: March 1, 1985
- Ticker Symbol: PRFHX
- CUSIP: 741486104
- Beta (3yr): 1.37
- Rank in category (YTD): 47
- Category: High Yield Muni
- Distribution: 5.13%
- Net Assets: $ 1.73 billion
- Sales Load: 0.0%
- Expense Ratio: 0.68%
- Capital Gains: N/A
- Number of Years Up: 21 years
- Number of Years Down: 4 years
- Average Maturity: 19.55 years
- Average Duration: 7.64 years