Interest income is generally exempt from federal taxes and may be exempt from state and local taxes. The funds are managed to maintain a stable share price. Taxable Bond Funds invest in debt securities issued by governments, government agencies or corporations. The funds are managed to generate income. Tax-Free Bond Funds invest in municipal debt securities issued by governments or government agencies.
Interest income is generally exempt from federal taxes and maybe exempt from state and local taxes.
The funds are managed to generate tax-free income. Balanced Funds invest in stocks, bonds and money market securities. A conservative way to share in stocks' growth potential. Stock Funds invest in equity securities. Provide potential for capital growth.