Tax Free bond funds (Fidelity, invest, income, returns)

[PriscillaVanilla]

I have been looking at a tax free bond fund, but it requires 25K minimum initial investment. Not sure if I want to commit that chunk of money right now. I'd prefer something with a 10K minimum.


Has average returns, lower risk. Expense ratio around .4%


Does anyone else here invest in these types of bond funds? This one is called FTABX.

[Ariadne22]

Don't invest in them, but here's one - minimum investment $2,500:

PRTAX T. Rowe Price Tax-Free Income Inv Fund PRTAX Quote Price News

If you have access to Morningstar premium content, other possibilities listed on r-hand side of page, here:

http://analysisreport.morningstar.co...ure=en-US&cur=

[inok]

Originally Posted by PriscillaVanilla

I have been looking at a tax free bond fund, but it requires 25K minimum initial investment. Not sure if I want to commit that chunk of money right now. I'd prefer something with a 10K minimum.


Has average returns, lower risk. Expense ratio around .4%


Does anyone else here invest in these types of bond funds? This one is called FTABX.

There are other muni funds like FHIGX. Expense ratio 0.46, 10,000 min.
But FTABX is better in my opinion. It's net expense is 0.25. I had yield of 2.77 tax free.
Inflation may affect muni in future though.

[inok]

Originally Posted by Ariadne22

Don't invest in them, but here's one - minimum investment $2,500:

PRTAX T. Rowe Price Tax-Free Income Inv Fund PRTAX Quote Price News

If you have access to Morningstar premium content, other possibilities listed on r-hand side of page, here:

http://analysisreport.morningstar.co...ure=en-US&cur=

Expense of PRTAX is 0.52 higher that that of muni funds in Fidelity.

[PriscillaVanilla]

Originally Posted by inok

There are other muni funds like FHIGX. Expense ratio 0.46, 10,000 min.
But FTABX is better in my opinion. It's net expense is 0.25. I had yield of 2.77 tax free.
Inflation may affect muni in future though.

Thanks!

Do funds that require a higher minimum to invest in, usually do better in terms of performance?

[inok]

Originally Posted by PriscillaVanilla

Thanks!

Do funds that require a higher minimum to invest in, usually do better in terms of performance?

I don't see any significant differences in Fidelity charts.