Tax Free Mutual Funds offer professional investment management and are available for investment and diversification within virtually all credit ratings for tax free bonds. Generally, the higher the credit ratings the lower the bond coupon (interest payment).
Tax Free Mutual Funds offer broad diversifications within different state, county city, municipal issuance markets.
Sometimes, Tax Free Mutual Funds offer the ability to own tax free bonds that are difficult for individuals to access and purchase directly.
Some families of mutual funds offer up to 20 different tax free mutual funds to select from within their family of funds.
Typically, these different funds are state specific and sometime different funds are available with different credit ratings.
Tax Free Mutual Funds offer monthly accumulation plans.
Tax Free Mutual Funds offer systematic payouts.
Tax Free Mutual Funds offer exchange privileges within their families.
Tax Free Mutual Funds offer liquidity.
Generally, Tax Free Mutual Funds are NOT HELD within IRAs, pension plans.
Tax Free Mutual Funds can be purchased by individuals, corporations, trusts.
Depending on the composition of the underlying investments within the Tax Free Mutual Funds, all the income is typically tax free from federal income tax, but not necessarily tax free from state income tax, if state taxes apply to your state of residence.
Some Tax Free Mutual Funds are tax free from federal and state tax.
Generally, the tax free component of Tax Free Mutual Funds is the interest received on the bonds; however, the bonds themselves, if sold, might or might not have a capital gains tax associated with that transaction.
Tax Free Mutual Funds can be purchased by any adult; however, typically these types of investments are most appropriate for individuals in the higher marginal income tax brackets.
All Mutual Funds, Variable Annuities and Variable Life Insurance policies are offered by prospectus ONLY. For complete information including charges and expenses obtain a prospectus, and read it carefully before you invest.
Mutual Fund, Variable Annuity and Variable Life prospectuses are available directly from the issuing companies when product information is requested, and in some cases, they can be downloaded directly on the issuing company's internet website.
Systematic and dollar cost averaging within Mutual Funds, Variable Annuities and Variable Life insurance policies does not assure a profit and does not protect against loss in declining markets. It involves continuous investment in securities regardless of fluctuating prices and the investor should consider his or her financial ability to continue purchases through periods of low price levels.
In some cases, Tax Free mutual funds are not tax free from state and local taxes and in other individual situations a Alternative Minimum Tax may apply.
Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit.
All of these investments can lose money.
Stocks, bonds, mutual funds and variable annuities are not FDIC insured.
