Municipal Bond Fund

Business, Legal & Accounting Glossary

Definition: Municipal Bond Fund


Municipal Bond Fund


Full Definition of Municipal Bond Fund


A mutual fund which invests in municipal bonds. These bond funds are popular among investors in high income tax brackets because they are exempt from federal taxes and, in some cases, from state taxes as well. As with U.S. government bond funds, the underlying securities in municipal bond funds are backed by the government and thus are considered to have a high credit rating. However, municipalities have been known to declare bankruptcy on occasion, making these funds more risky than U.S. government bonds. also called muni fund.


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Definition Sources


Definitions for Municipal Bond Fund are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.