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Lack o' Tax

The return from these funds is all yours.

This story appears in the March 2002 issue of Entrepreneur. Subscribe »

If you're one of the lucky ones still making the big bucks, you've got to love tax-free municipal bond funds. "Munis" to those in the know, these funds are particularly attractive to those in high tax brackets, who get more bang for their buck from the tax benefits. Let's talk about one that's been around for a while, is conservatively managed and has paid off for investors.

The Thornburg Limited-Term Municipal National Bond Fund (LTMFX) is the kind of investment your parents would be proud you made. Brian McMahon and George Strickland have managed the fund since its inception in 1984, and their investment strategy is simple: Invest in high-quality munis, keep the bonds' maturity dates relatively short and ladder the portfolio.

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