If you've been stuck searching for Muni - Bonds funds, consider Goldman Sachs High Yield Municipals A (GHYAX Quick QuoteGHYAX - Free Report) as a possibility. GHYAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

GHYAX 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

GHYAX finds itself in the Goldman Sachs family, based out of New York, NY. Since Goldman Sachs High Yield Municipals A made its debut in April of 2000, GHYAX has garnered more than $468.97 million in assets. The fund is currently managed by a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 6.13%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 6.73%, 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 13.69%, the standard deviation of GHYAX over the past three years is 7.86%. Over the past 5 years, the standard deviation of the fund is 6.7% compared to the category average of 11.39%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.82, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, GHYAX has a positive alpha of 1.52, which measures performance on a risk-adjusted basis.

Ratings

However, it is worth noting that 26 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, GHYAX is a load fund. It has an expense ratio of 0.86% compared to the category average of 0.79%. So, GHYAX is actually more expensive than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.

Bottom Line

Overall, Goldman Sachs High Yield Municipals A ( GHYAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.

For additional information on the Muni - Bonds area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into GHYAX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.