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Muni - Bonds fund seekers should consider taking a look at American Funds Tax-Advantaged Income F1 (TAIFX - Free Report) . TAIFX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TAIFX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
TAIFX is a part of the American Funds family of funds, a company based out of Los Angeles, CA. The American Funds Tax-Advantaged Income F1 made its debut in May of 2012 and TAIFX has managed to accumulate roughly $233 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TAIFX has a 5-year annualized total return of 8.67% and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.06%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 13.98%, the standard deviation of TAIFX over the past three years is 8.9%. Over the past 5 years, the standard deviation of the fund is 7.22% compared to the category average of 11.53%. This makes the fund less volatile than its peers over the past half-decade.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TAIFX is a no load fund. It has an expense ratio of 0.39% compared to the category average of 0.80%. From a cost perspective, TAIFX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Funds Tax-Advantaged Income F1 ( TAIFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Funds Tax-Advantaged Income F1 ( TAIFX ) looks like a good potential choice for investors right now.
Want even more information about TAIFX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is TAIFX a Strong Bond Fund Right Now?
Muni - Bonds fund seekers should consider taking a look at American Funds Tax-Advantaged Income F1 (TAIFX - Free Report) . TAIFX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TAIFX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.
History of Fund/Manager
TAIFX is a part of the American Funds family of funds, a company based out of Los Angeles, CA. The American Funds Tax-Advantaged Income F1 made its debut in May of 2012 and TAIFX has managed to accumulate roughly $233 million in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. TAIFX has a 5-year annualized total return of 8.67% and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.06%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 13.98%, the standard deviation of TAIFX over the past three years is 8.9%. Over the past 5 years, the standard deviation of the fund is 7.22% compared to the category average of 11.53%. This makes the fund less volatile than its peers over the past half-decade.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, TAIFX is a no load fund. It has an expense ratio of 0.39% compared to the category average of 0.80%. From a cost perspective, TAIFX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $250; each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Funds Tax-Advantaged Income F1 ( TAIFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, American Funds Tax-Advantaged Income F1 ( TAIFX ) looks like a good potential choice for investors right now.
Want even more information about TAIFX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.