Education Mutual Fund

Fidelity Defined maturity Municipal bond mutual funds

fidelity tax-free municipal bond mutual fund

In June 2011, Fidelity launched several defined maturity municipal bond mutual funds. The funds will be liquidated on June 30 of each specific year and any remaining value will be returned to shareholders of record. These funds attempt to achieve what individual investors typically do with bond ladders, while including the versatility of a mutual fund. Holding one of these funds until maturity won’t exactly guarantee you get back the same net asset value that you paid in that. Not all bonds will mature exactly on the June 30 liquidation date, resulting in slightly lower yields as they close in on maturity. These funds charge an expense ratio of 0.40%, which is pretty reasonable.

These Fidelity municipal bond mutual funds will target 2015, 2017, 2019, and 2021 as maturity dates: Fidelity Municipal Income 2015 (FMLCX), Fidelity Municipal Income 2017 (FMIFX), Fidelity Municipal Income 2019 (FMCFX), and Fidelity Municipal Income 2021 (FOCFX).

These are brand-new funds, so I would give them time to iron out the kinks and establish a track record especially during any downdrafts. Is

You Might Also Like

No Comments

Leave a Reply