Municipal Bond Fund

A mutual fund that invests in municipal bonds, or "munis." Municipal bonds are debt securities issued by a state, municipality, county, or special purpose district (public schools, airports, etc.) to finance capital expenditures. They are exempt from federal tax, and are generally exempt from state taxes for residents of the state in which they are issued.

Municipal bonds and bond funds are generally bought for their favorable tax implications and are a popular fixed-income investment for people in a high income tax bracket. Like all bonds, the municipal variety is subject to an investor's consideration of yield, credit quality and duration.


Investment dictionary. . 2012.

Look at other dictionaries:

  • municipal bond fund — /mju: nɪsɪp(ə)l bɒnd fʌnd/, muni fund / mju:ni fʌnd/ noun US a fund invested in municipal bonds (NOTE: Usually called munis.) …   Dictionary of banking and finance

  • municipal bond fund — a mutual fund that invests in municipal bonds. * * * …   Universalium

  • municipal bond fund — a mutual fund that invests in municipal bonds …   Useful english dictionary

  • municipal bond fund — A mutual fund that invests in bonds issued by state, city, and/or local governments. The interest obtained from these bonds is passed through to shareholders and is generally free of federal (and sometimes state and local) income taxes. Bloomberg …   Financial and business terms

  • Insured municipal bond fund — взаимный фонд гарантированных муниципальных облигаций. Процентный доход освобождается от налогов, а сами облигации застрахованы от дефолта крупнейшими страховыми компаниями. См. также: Фонды муниципальных облигаций Финансовый словарь Финам …   Финансовый словарь

  • single-state municipal bond fund — A mutual fund investing only in government obligations within a single state, with state tax free dividends, but taxed capital gains. Bloomberg Financial Dictionary …   Financial and business terms

  • Municipal bond — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Bond fund — A bond fund is a collective investment scheme that invests in bonds and other debt securities. [ [http://www.sec.gov/answers/bondfunds.htm U.S. Securities and Exchange Commission on Bond Funds] ] Bond funds yield monthly dividends that include… …   Wikipedia

  • bond fund — A mutual fund that emphasizes income consistent with risk, rather than growth by investing in corporate, municipal, or US government debt obligations, or some combination of them. Bloomberg Financial Dictionary * * * bond fund bond fund ➔ fund1 * …   Financial and business terms

  • Bond Fund — A fund invested primarily in bonds and other debt instruments. The exact type of debt the fund invests in will depend on its focus, but investments may include government, corporate, municipal and convertible bonds, along with other debt… …   Investment dictionary

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