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On the lookout for a Mutual Fund Bond fund? Starting with American Funds High Income Municipals Bond A (AMHIX - Free Report) is one possibility. AMHIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Funds is based in Los Angeles, CA, and is the manager of AMHIX. American Funds High Income Municipals Bond A made its debut in September of 1994, and since then, AMHIX has accumulated about $4.91 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. AMHIX has a 5-year annualized total return of 2.1% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 2.62%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of AMHIX over the past three years is 7.96% compared to the category average of 13.95%. Over the past 5 years, the standard deviation of the fund is 7.48% compared to the category average of 13.75%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.04, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, AMHIX has a negative alpha of -0.03, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 35 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, AMHIX is a load fund. It has an expense ratio of 0.66% compared to the category average of 0.78%. Looking at the fund from a cost perspective, AMHIX is actually cheaper than its peers.
While the minimum initial investment for the product is $250, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Funds High Income Municipals Bond A ( AMHIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is AMHIX a Strong Bond Fund Right Now?
On the lookout for a Mutual Fund Bond fund? Starting with American Funds High Income Municipals Bond A (AMHIX - Free Report) is one possibility. AMHIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
American Funds is based in Los Angeles, CA, and is the manager of AMHIX. American Funds High Income Municipals Bond A made its debut in September of 1994, and since then, AMHIX has accumulated about $4.91 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. AMHIX has a 5-year annualized total return of 2.1% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 2.62%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of AMHIX over the past three years is 7.96% compared to the category average of 13.95%. Over the past 5 years, the standard deviation of the fund is 7.48% compared to the category average of 13.75%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.04, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, AMHIX has a negative alpha of -0.03, which measures performance on a risk-adjusted basis.
Ratings
However, it is worth noting that 35 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, AMHIX is a load fund. It has an expense ratio of 0.66% compared to the category average of 0.78%. Looking at the fund from a cost perspective, AMHIX is actually cheaper than its peers.
While the minimum initial investment for the product is $250, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, American Funds High Income Municipals Bond A ( AMHIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.