Is TAIFX a strong bond fund right now?

If you’re looking for Muni – Bonds, a good place to start might be American Funds Tax-Aware Conservative Growth and Income F-1 (TAIFX). TAIFX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors such as size, cost, and past performance.

objective

We classify TAIFX in the Muni Bond category, an area full of potential options. Muni – Bond funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for infrastructure construction, public school operation, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as “general obligation” bonds that are not backed by a specific issuer. Investors are usually interested in the municipal bonds that come with most municipal bonds, which can be of particular interest to those in higher tax brackets.

History of the fund/manager

American Funds is responsible for TAIFX, and the company is headquartered in Los Angeles, California. The US F-1 Tax-Aware Conservative Income and Growth Fund debuted in May of 2012, and TAIFX has accumulated approximately $287.00 million in assets, according to the most recent information available. A team of investment professionals is the current manager of the fund.

performance

It is clear that what investors are looking for in these funds is strong performance compared to their peers. TAIFX has a 5-year TSR of 8.62%, ranking third among peers in its category. If you’re interested in shorter time frames, don’t neglect to look at the fund’s 3-year total annualized return of 12.86%, which puts it in the top third over that time frame.

It is important to note that product returns may not reflect all product expenses. Any fees not reflected would reduce returns. Total returns do not reflect the fund’s returns [%] Sale charge. If sales charges had been included, the total returns would have been lower.

When looking at a fund’s performance, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, TAIFX’s standard deviation has been 8.18%, compared to the category average of 11.12%. Over the past five years, the fund’s standard deviation has been 9.16% compared to the category average of 12.38%. This makes the fund less volatile than its peers over the past half-decade.

Expenses

Costs are becoming increasingly important for mutual fund investing, especially as competition in this market intensifies. All things being equal, a less expensive product will outperform its comparable counterpart, so taking a close look at these metrics is key for investors. In terms of fees, TAIFX is a no-load fund. The expense ratio is 0.38% compared to the category average of 0.91%. From a cost perspective, TAIFX is actually cheaper than its counterparts.

Investors should be aware that with this product, the minimum initial investment is $250; Each subsequent investment must be at least $50.

Fees charged by investment advisors have not been taken into account. Returns would be lower if they were included.

Bottom line

Overall, Conservative Growth and Conservative Income of U.S. F-1 Funds (TAIFX) has a high Zacks Mutual Fund Rank, and in combination with its relatively strong performance, average downside risk, and low fees, Conservative Growth and Income of U.S. F-1 Funds (TAIFX) looks like a good potential choice for investors right now.