- Municipal bonds, or "muni bonds," are debt securities issued by governmental entities to fund public projects. Interest payments are usually tax-exempt, making them attractive to high-income investors.
- Risk-averse investors can consider municipal bond mutual funds for regular tax-free income. Funds like HICOX, PRFHX, and FRHIX are top-ranked and expected to outperform peers.
- HICOX invests in tax-exempt bonds in Colorado, with a 5.9% annualized return. PRFHX focuses on high-yield municipal securities, with a 4.6% return and 0.65% expense ratio.
- FRHIX seeks high-yielding municipal securities nationwide, with a 4.6% annualized return. As of August 2025, 63.9% of its assets were in miscellaneous bonds.
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Read more at Nasdaq: 3 Municipal Bond Funds to Buy for Solid Returns