7 of the Best Tax-Free Municipal Bond Funds
Low fund fees and diversification
August 22, 2023
Running Point and I were quoted by U.S. News & World Report in an article — by Tony Dong, MSc, “7 of the Best Tax-Free Municipal Bond Funds” — regarding muni bond funds with an attractive combination of low fees and high diversification.
Municipal Bond Funds
Using a mutual fund or exchange-traded fund (ETF) structure for investing in municipal bonds can provide several benefits, including diversification, professional management, liquidity, and cost-effective investing.
Municipal bond mutual funds and ETFs offer diversification by investing in a broad range of bonds issued by different municipalities which can help to reduce the risk of holding individual bonds and provide greater stability to the portfolio.
Mutual funds and ETFs also provide liquidity, making it easier to buy and sell allocations versus individual bonds.
It’s important to note that investing in municipal bond mutual funds or ETFs carries risks, such as interest rate risk and credit risk; investors should carefully consider the investment objectives, risks, charges, and expenses of a mutual fund or ETF before investing or consult a financial advisor regarding appropriateness. Depending on the circumstances, it may be preferable to own individual bonds.
Quoted article excerpts is below:
“Some municipal funds are designed to be state-specific, which can be extra beneficial if you reside in a high-tax state like California or New York,” says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors. “However, this approach reduces the diversification achieved by investing in a national diversified municipal bond fund.”
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Who begins too much accomplishes little.
~~German Proverb
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Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-23–84
Originally published at https://money.usnews.com.
