What is the difference between a high yield muni mutualy fund and high yield bond mutual fund? - best high yield bond funds
Muni (cities), such as bonds issued by governments.
Monday, January 18, 2010
Best High Yield Bond Funds What Is The Difference Between A High Yield Muni Mutualy Fund And High Yield Bond Mutual Fund?
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High-yield muni bond funds invested in mutual bonds of municipalities (cities, countries) granted and the other tax entities such as school districts, etc., the interest is exempt of tax.
Bond funds tend to have high-performance low-quality bonds as junk bonds in the portfolio. You are more at risk than muni bond funds and interest income taxable.
High-yield muni bond funds invested in mutual bonds of municipalities (cities, countries) granted and the other tax entities such as school districts, etc., the interest is exempt of tax.
Bond funds tend to have high-performance low-quality bonds as junk bonds in the portfolio. You are more at risk than muni bond funds and interest income taxable.
Municipal bonds are debt of the municipalities. The yield is usually lower, but investors do not pay tax on the interest and growth. This is a big advantage if you are in a higher tax bracket.
High Yield Bond Fund combines different types of bonds (government, businesses, utilities, etc. ..). The investor must pay taxes on them. High performance is more risk than conventional bond funds, but also for a long time get better performance.
Municipal bonds are debt of the municipalities. The yield is usually lower, but investors do not pay tax on the interest and growth. This is a big advantage if you are in a higher tax bracket.
High Yield Bond Fund combines different types of bonds (government, businesses, utilities, etc. ..). The investor must pay taxes on them. High performance is more risk than conventional bond funds, but also for a long time get better performance.
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