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These Are The Ten Top Muni Minnesota Funds

If you are confident about the growth in a particular region or state, then investing in the municipal securities of those regions is a good way to earn returns with...

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This story originally appeared on ValueWalk

If you are confident about the growth in a particular region or state, then investing in the municipal securities of those regions is a good way to earn returns with minimal risk. So, if you are confident with Minnesota’s growth prospects, then one way to invest is through Muni Minnesota portfolios. These funds invest a minimum of 80% of assets in municipal debt (of any duration). Moreover, the interest from such securities is usually exempt from federal and Minnesota state taxes. Let’s take a look at the ten top Muni Minnesota funds.

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Ten Top Muni Minnesota Funds

To rank the ten top Muni Minnesota funds, we have used the last one-year return data (from U.S. News). Following are the ten top Muni Minnesota funds:

  1. Nuveen Minnesota Intermediate Muni Bd Fd (FAMAX, 3%)

Nuveen Minnesota Intermediate Municipal Bond Fund (MUTF:FAMAX) primarily invests in municipal bonds in which interest is exempt from Minnesota personal and regular federal income tax. This fund has given a return of 1.27% in the last three months and 4.07% over the past three years. FAMAX has more than $450 million in total assets. Its top two holdings are: ST PAUL MINN HSG & REDEV AUTH HEALTH CARE FAC REV 5% and ST LOUIS PARK MINN INDPT SCH DIST NO 283 5%.

  1. Wells Fargo Minnesota Tax-Free Fund (NMTFX, 3%)

Wells Fargo Minnesota Tax-Free Fund (MUTF:NMTFX) generally invests in municipal securities, which offer interest that is exempt from federal income tax (and alternative minimum tax) and Minnesota individual income tax. This fund has given a return of 1.15% in the last three months and 3.93% over the past three years. NMTFX has more than $180 million in total assets. Its top two holdings are: MINNESOTA ST 5% and ST PAUL MINN INDPT SCH DIST NO 625 CTFS PARTN 5%.

  1. Putnam Minnesota Tax Exempt Income Fund (PXMNX, 3%)

Putnam Minnesota Tax Exempt Income Fund (MUTF:PXMNX) invests in tax exempt bonds that are investment-grade and have intermediate- to long-term maturities. This fund has given a return of 1.35% in the last three months and 4.35% over the past three years. PXMNX has more than $150 million in total assets. Its top two holdings are: 5 Year Treasury Note Future Sept 21 and HENNEPIN CNTY MINN 5%.

  1. Delaware Tax-Free MN Intermediate Fund (DXCCX, 3%)

Delaware Tax-Free Minnesota Intermediate Fund (MUTF:DXCCX) primarily invests in municipal securities, the income from which is tax exempt. Also, it aims to maintain the effective portfolio maturity of 10 years or less. This fund has given a return of 1.49% in the last three months and 3.82% over the past three years. DXCCX has more than $90 million in total assets. Its top two holdings are: HENNEPIN CNTY MINN REGL RR AUTH 5% and MINNESOTA ST 5%.

  1. Nuveen Minnesota Municipal Bond Fund (FJMNX, 3%)

Nuveen Minnesota Municipal Bond Fund (MUTF:FJMNX) aims to maximize current income, which is exempt from the Minnesota state income tax, as well as federal income tax. This fund has given a return of 1.66% in the last three months and 4.69% over the past three years. FJMNX has more than $740 million in total assets. Its top two holdings are: WESTERN MINN MUN PWR AGY MINN PWR SUPPLY REV 5% and DULUTH MINN ECONOMIC DEV AUTH HEALTH CARE FACS REV 5%.

  1. AB Municipal Income II Minnesota Port (AMNAX, 4%)

AB Municipal Income Fund II Minnesota Portfolio (MUTF:AMNAX) aims to earn the highest level of current income that is exempt from the State of Minnesota personal income tax and federal income tax. This fund has given a return of 1.56% in the last three months and 4.41% over the past three years. AMNAX has more than $57 million in total assets. Its top two holdings are: MINNEAPOLIS MINN SPL SCH DIST NO 001 5% and CLOQUET MINN INDPT SCH DIST NO 094 5%.

  1. Columbia Minnesota Tax-Exempt Fund (IMNTX, 4%)

Columbia Minnesota Tax-Exempt Fund (MUTF:IMNTX) normally invests in municipal obligations that are exempt from federal, as well as from Minnesota State and local income tax. This fund has given a return of 1.67% in the last three months and 4.78% over the past three years. IMNTX has more than $815 million in total assets. Its top two holdings are: METROPOLITAN COUNCIL MINN MINNEAPOLIS-ST PAUL MET AREA 5% and ROCHESTER MINN HEALTH CARE FACS REV 5%.

  1. Delaware Tax-Free MN Fund (DEFFX, 4%)

Delaware Tax-Free Minnesota Fund (MUTF:DEFFX) generally puts money in municipal securities, the income from which is exempt from Minnesota state personal and federal income taxes. This fund has given a return of 1.67% in the last three months and 4.39% over the past three years. DEFFX has more than $611 million in total assets. Its top two holdings are: DAKOTA & WASH CNTYS MINN HSG & REDEV AUTH BLOOMINGTON MTG REV 8.38% and PUERTO RICO SALES TAX FING CORP SALES TAX REV 4.75%.

  1. SIT Minnesota Tax Free Income Fund (SMTFX, 5%)

Sit Minnesota Tax-Free Income Fund (MUTF:SMTFX) primarily invests in municipal securities in which interest is exempt from regular federal and Minnesota regular personal income tax. This fund has given a return of 1.75% in the last three months and 4.44% over the past three years. SMTFX has more than $723 million in total assets. Its top two holdings are: MINNESOTA ST HSG FIN AGY 2.45% and MINNESOTA ST HSG FIN AGY 2.55%.

  1. Delaware MN High-Yield Muni Bd Fd (DVMHX, 6%)

Delaware Minnesota High-Yield Municipal Bond Fund (MUTF:DVMHX) mainly invests in municipal securities, whose income is exempt from federal income tax and Minnesota state personal income taxes. This fund has given a return of 1.95% in the last three months and 5.04% over the past three years. DVMHX has more than $229 million in total assets. Its top two holdings are: MINNEAPOLIS & ST PAUL MINN MET ARPTS COMMN ARPT REV 5% and ST CLOUD MINN HEALTH CARE REV 5%.