Is AMHIX tax free?

Is AMHIX tax free?

The Fund seeks to provide a high level of current income exempt from federal income tax, consistent with the preservation of capital. The Fund invests primarily in municipal bonds. Under normal circumstances, the Fund will invest at least 80% of its assets in securities that are exempt from regular federal income tax.

Do you pay taxes on municipal bonds?

Income from investing in municipal bonds is generally exempt from Federal and state taxes for residents of the issuing state. While the interest income is tax-exempt, any capital gains distributed are taxable to the investor.

What is sec yield vs distribution yield?

The SEC yield is an annualized figure based on returns over the most recent 30-day period. As outlined above, distribution yields are calculated taking into account returns over a 12-month period. Opinions between analysts and investors are split over which yield is better to evaluate investment returns.

Is Higher SEC yield better?

SEC yield versus distribution yield The SEC yield is a better estimate of future returns. The distribution yield is a better estimate of the types of returns (dividends versus capital appreciation or depreciation), which may affect the taxability of those returns.

Are muni bonds safe right now?

On the plus side, highly-rated municipal bonds are generally very safe investments compared to almost any other investment. The default rate is tiny. As with any bond, there is interest rate risk. If your money is tied up for 10 or 20 years and interest rates rise, you’ll be stuck with a poor performer.