Municipal Bond Forum
The best of all worlds
Q
Is there such a thing as a fixed-duration, long-term Florida municipal bond fund that would return all capital at the end of the fund life despite intermediate fluctuations in NAV?
A
James A. Klotz responds:
You’re describing the perfect income security, and yes, it does exist. It’s an individual tax-free bond.
As we’ve always pointed out, one of the disadvantages of owning a bond fund is it does not have a specific maturity date. If it did, there would be no rationale for the substantial sales charges and ongoing management fees.
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The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.
