I live in NY and own several NY muni bond funds from Fidelity and Dreyfus.
Wondering what will happen to these funds rates/returns, and any muni mutual
funds in general, now that inflation is rising and the Fed is raising rates.
Thanks.
Walter
"Walter Cohen" <> wrote in message
news:%Veee.19343$
>I live in NY and own several NY muni bond funds from Fidelity and Dreyfus.
> Wondering what will happen to these funds rates/returns, and any muni
> mutual
> funds in general, now that inflation is rising and the Fed is raising
> rates.
>
> Thanks.
> Walter
From Fidelity:
Risk
The municipal market is volatile and can be significantly affected by
adverse tax, legislative or political changes and the financial condition of
the issuers of municipal securities. Unfavorable political or economic
conditions within New York can affect the credit quality of issuers located
in that state. Interest rate increases can cause the price of a debt
security to decrease. The value of an individual security or particular type
of security can be more volatile than the market as a whole and can perform
differently from the value of the market as a whole. Non-diversified funds
tend to be more volatile than diversified funds and the market as a whole.
You may have a gain or loss when you sell your shares. A portion of the
dividends you receive may be subject to federal, state, or local income tax
or may be subject to the federal alternative minimum tax. AMT policy: 100%
Walter Cohen wrote:
> I live in NY and own several NY muni bond funds from Fidelity and
Dreyfus.
> Wondering what will happen to these funds rates/returns, and any muni
mutual
> funds in general, now that inflation is rising and the Fed is raising
rates.
>
In general, in a rising rate environment, bond funds usually drop in
NAV.
> Thanks.
> Walter