Muni bond defaults are rare, but not unheard of. When a municipality defaults, it stops making interest payments to bondholders. Investing in a fund that owns bonds from lots of issuers reduces your default risk. Look for a fund with a good track record vs. similar funds, she says. Yield is what the fund pays shareholders.
Total return includes the change in the fund's share price.
Duration and credit quality are risk indicators. The higher the duration figure, the greater the risk. 7.7 A Avg.