Muni Bond Funds
Running Point and its chief investment officer, Michael Ashley Schulman, CFA, were quoted by U.S. News & World Report in an article — by Tony Dong, “7 of the Best Tax-Free Municipal Bond Funds” — regarding fixed-income tax efficiency.
What to look for in a municipal
Some of the better municipal bond mutual funds have low expense ratios, no front or back-end load costs, no 12b-1 marketing fees, and steady or consistent inflows over time. Consistent inflows can reduce turnover—the need for the bond managers to frequently buy and sell bonds—which can help tame trading costs and fees that might otherwise hamper bond returns.
Additionally, depending on where or how you buy your fund, you may want to check for index funds that don’t have a transaction charge (or commission), especially if you plan to dollar cost average into the fund by periodically investing more into it or if you plan to frequently rebalance your investment portfolio.
Quoted article excerpts are below:
“Some municipal funds are designed to be state specific, which can be extra beneficial if you reside in a high-tax state like California or New York,” says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors. “However, this approach reduces the diversification achieved by investing in a national diversified municipal bond fund.”
Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-23-40