Municipal bonds, or "muni bonds," comprise debt securities issued by various states, cities, counties and other governmental entities to raise money to build roads, schools and a host of other projects for public good. These municipal securities make regular interest payments, usually semi-annually, and the original investment or principal amount at the time of maturity. Interest paid on such bonds is generally exempted from federal taxes,...

Vanguard bond funds offer a great combination of broad diversification and low fees.

There are plenty of choices in the Muni - Bonds category, but where should you start your research? Well, one fund that might be worth investigating is PIMCO High Yield Municipals Bond A (PYMAX). PYMAX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance. Objective PYMAX is one of many Muni - Bonds funds to choose from. Muni - Bonds funds invest in debt...

Looking to lower volatility while keeping taxes under control? These municipal bond funds may be ideal.