2007-02-03 13:55:43 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
What would you recommend?
2007-02-03 14:08:07 · update #1
Muni (municiple) only has bonds issued by governments.
2007-02-03 13:58:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Municipal bonds are debt to local governments. The yield is typically lower, but the investor does not need to pay taxes on the interest and growth. This is a big advantage if you are in a high tax bracket.
High yield bond fund combines many different types of bonds (government, corporate, utility, ..etc). The investor does need to pay taxes on these. High yield takes more risk than standard bond funds, but over long periods of time, gets a better return.
2007-02-03 22:05:06 · answer #2 · answered by MR MONEY 3 · 0⤊ 0⤋
The high yield muni bond mutual fund invests in bonds issued by municipalities (cities, states,), and other taxing entities like school districts,etc. The interest income is tax free.
High yield bond funds usually have lower quality bonds like "junk" bonds in their portfolio. They are higher risk than muni bond funds and the interest income is taxable.
2007-02-03 22:05:14 · answer #3 · answered by ? 6 · 1⤊ 0⤋