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These Are The Ten Top Muni National Interm Funds

Investing in bonds issued by state and local governments is one of the best ways to lower investment risk, as well as earn a decent return. One better way to...

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This story originally appeared on ValueWalk

Investing in bonds issued by state and local governments is one of the best ways to lower investment risk, as well as earn a decent return. One better way to invest in such bonds is through Muni National Interm funds. Such funds invest in bonds issued by the state and local governments to fund public projects. Moreover, to further reduce the risk, these funds invest across many states and sectors. Generally, the income from these bonds is exempt from federal taxes. Let’s take a look at the ten top Muni National Interm funds.

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Ten Top Muni National Interm Funds

We have used the past one-year return data (from U.S. News) of the funds to come up with the ten top Muni National Interm funds. Following are the ten top Muni National Interm funds:

  1. Brown Advisory Tax Exempt Bond Fund (BIAEX, 6%)

Brown Advisory Tax Exempt Bond Fund (MUTF:BIAEX) may invest up to 20% of its assets in securities that may be subject to Federal income tax, including Alternative Minimum Tax (AMT). It has given a return of almost 2% in the last three months and over 5% in the last three years. BIAEX has more than $1.20 billion in total assets. The top two holdings of the fund are: MAIN STR NAT GAS INC GA GAS SUPPLY REV 0.89% and NEW YORK ST TWY AUTH GEN REV 5%.

  1. Delaware Tax Free USA Intermediate Fund (DMUSX, 6%)

Delaware Tax-Free USA Intermediate Fund (MUTF:DMUSX) mainly invests in municipal debt obligations to back hospitals, schools, and general capital expenses. It has given a return of more than 2% in the last three months and over 5% in the last three years. DMUSX has more than $1.20 billion in total assets. The top two holdings of the fund are: PUERTO RICO SALES TAX FING CORP SALES TAX REV 4.33% and PHOENIX ARIZ CIVIC IMPT CORP ARPT REV 5%.

  1. Goldman Sachs Dynamic Municipal Inc Fd (GSMIX, 6%)

Goldman Sachs Dynamic Municipal Income Fund (MUTF:GSMIX) may put up to 100% of its net assets in private activity bonds. It has given a return of more than 1% in the last three months and over 4% in the last three years. GSMIX has more than $10.40 billion in total assets. The top two holdings of the fund are: Ultra 10 Year US Treasury Note Future Sept 21 and Ultra US Treasury Bond Future Sept 21.

  1. Principal Tax-Exempt Bond Fund (PTEAX, 7%)

Along with municipal debt, Principal Tax-Exempt Bond Fund (MUTF:PTEAX) may also invest in inverse floating rate obligations that are usually more volatile than other types of municipal obligations. It has given a return of more than 2% in the last three months and over 5% in the last three years. PTEAX has more than $766 million in total assets. The top two holdings of the fund are: TEXAS MUN GAS ACQUISITION & SUPPLY CORP I GAS SUPPLY REV and UNIVERSITY CALIF REVS.

  1. BNY Mellon Municipal Opportunities Fund (MOTMX, 7%)

BNY Mellon Municipal Opportunities Fund (MUTF:MOTMX) may put a maximum of 20% of its assets in taxable fixed-income securities. It has given a return of almost 2% in the last three months and over 5% in the last three years. MOTMX has more than $2.60 billion in total assets. The top two holdings of the fund are: CLIFTON TEX HIGHER ED FIN CORP ED REV 6.12% and BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5%.

  1. Western Asset SMASh Series TF Fund (LSMSX, 7%)

Western Asset SMASh Series TF Fund (MUTF:LSMSX) has given a return of more than 2% in the last three months and over 5% in the last three years. It has more than $80 million in total assets. The top two holdings of the fund are: PUERTO RICO SALES TAX FING CORP SALES TAX REV 5% and NEW YORK N Y CITY MUN WTR FIN AUTH WTR & SWR SYS REV 0.01%.

  1. DFA Municipal Real Return Portfolio (DMREX, 8%)

DFA Municipal Real Return Portfolio (MUTF:DMREX) puts not more than 25% of its assets in municipal securities that at the time of purchase were rated low in the investment grade spectrum. It has given a return of more than 2% in the last three months and over 4% in the last three years. DMREX has more than $1 billion in total assets. The top two holdings of the fund are: NEW YORK ST DORM AUTH SALES TAX REV ST SUPPORTED DEBT 5% and JERSEY CITY N J 1.5%.

  1. BlackRock Strategic Municipal Opps Fund (MAMTX, 10%)

Blackrock Strategic Municipal Opp Fd (MUTF:MAMTX) aims to maintain average portfolio duration of zero to ten years. This fund may put a maximum of 50% of its net assets in non-investment grade bonds. It has given a return of more than 1% in the last three months and over 4% in the last three years. MAMTX has more than $8 billion in total assets. The top two holdings of the fund are: BlackRock Liquidity MuniCash Instl and PUERTO RICO SALES TAX FING CORP SALES TAX REV 4.75%.

  1. AB Tax-Aware Fixed Income Opps Port (ATTAX, 11%)

AB Tax-Aware Fixed Income Opportunities Portfolio (MUTF:ATTAX) usually invests a minimum of 65% of its total assets in municipal securities, whose interest is exempt from federal income tax. It has given a return of more than 2% in the last three months and over 6% in the last three years. ATTAX has more than $176 million in total assets. The top two holdings of the fund are: AB Government Money Market AB and ILLINOIS FIN AUTH REV 5%.

  1. Franklin Templeton SMACS: Series H (FQTHX, 12%)

Franklin Templeton SMACS (MUTF:FQTHX) may not focus on just one state or territory, and may not put over 30% of its assets in municipal securities of any one state or territory. It has given a return of more than 3% in the last three months and over 4% in the last six months. FQTHX has more than $3 million in total assets. The top two holdings of the fund are: Franklin Liberty Interm Muni Oppos ETF and VILLAGE AT DRY CREEK MET DIST NO 2 COLO 4.38%.