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Is SEKSX a Strong Bond Fund Right Now?

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Having trouble finding a Muni - Bonds fund? AI Kansas Tax-Exempt Bond I (SEKSX - Free Report) is a potential starting point. SEKSX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

SEKSX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. These securities can be backed by taxes (revenue bonds), but others are known as " general obligation " and are not necessarily backed by a defined source. These bonds are especially attractive because of their inherent tax benefits.

History of Fund/Manager

AIF is based in New York, NY, and is the manager of SEKSX. Since AI Kansas Tax-Exempt Bond I made its debut in December of 1990, SEKSX has garnered more than $133.88 million in assets. The fund is currently managed by a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 2.8%, Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 1.48%.

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, SEKSX is a no load fund and it has an expense ratio of 0.48%.

While the minimum initial investment for the product is $3 million, investors should also note that each subsequent investment needs to be at least $5,000.

Bottom Line

This puts this fund from AIF in the top 40% of all mutual funds we have a rank on right now. As a result, this is likely an excellent choice for investors seeking an option in the Muni - Bonds category.

For additional information on this product, or to compare it to other mutual funds in the Muni - Bonds, 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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