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Subject:  Re: Individual bonds vs funds Date:  3/26/2007  9:40 AM
Author:  ResNullius Number:  20144 of 36468

It's tax free, reinvests dividends and is more liquid that regular bonds. The expense ratio seemed kind of high though, at 0.71% (which includes a 12b1 fee of .10%) for a fund that has 8% annual turn-over. Over the past 10 years it averaged 4.68% annually.

I guess you're talking about a tax exempt muni fund, given that you said the income is tax free. If you want to invest in a muni bond fund, take a look at Vanguard. You just might save yourself a bundle in fees. Keep in mind that the .71% comes out each year. You didn't mention it, but I wouldn't be surprised if there's a front end load, given that the bank is peddling it. Whether tax exempt is better for you than taxable depends on your tax situation, so I would be sure to look at that very closely. Anyway, good luck and let us know what you end up doing.
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