Municipal Bond Fund

A Municipal Bond Fund is a mutual fund or ETF that invests in debt securities issued by state and local governments or their agencies to finance public projects like schools, highways, and infrastructure. These funds are especially attractive to investors in higher tax brackets, as the interest income is generally exempt from federal—and often state and local—income taxes. Municipal Bond Funds offer steady, tax-advantaged income with relatively low credit risk, making them ideal for conservative, income-focused investors.

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