Massachusetts is a great investment destination. Its GDP growth outperformed the U.S. GDP growth in the first two quarters of this year, according to the U.S. Bureau of Economic Analysis (BEA). One of the best ways to participate in the state’s growth is by investing in municipal bonds, or an even better way is to invest in a portfolio of such bonds through Muni Massachusetts funds. Such funds mainly invest in Massachusetts municipal debt, including long, intermediate and short term bonds. Another thing that makes these bonds more attractive is that the income from these bonds is exempt from federal taxes and Massachusetts state taxes. Let’s take a look at the ten top Muni Massachusetts funds.
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Ten Top Muni Massachusetts Funds
We have used the last one year return data (from U.S. News) to prepare the list of ten top Muni Massachusetts funds. Following are the ten top Muni Massachusetts funds:
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BNY Mellon MA Interm Muni Bond Fund (MMBIX, 3%)
BNY Mellon MA Intermediate Municipal Bond Fund Class Investor (MUTF:MMBIX) primarily invests in municipal bonds exempt from federal and Massachusetts state personal income taxes. This fund has gained more than 1% in the last three months and over 4% in the last three years. MMBIX has more than $352 million in total assets. The top two holdings of the fund are: MASSACHUSETTS BAY TRANSN AUTH MASS SALES TAX REV 4% and MASSACHUSETTS ST DEV FIN AGY REV 5%.
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DWS Massachusetts Tax Free Fund (SQMAX, 3%)
DWS Massachusetts Tax Free Fund (MUTF:SQMAX) usually invests in Massachusetts municipal securities offering tax free income. This fund has gained more than 1% in the last three months and over 4% in the last three years. SQMAX has more than $355 million in total assets. The top two holdings of the fund are: MASSACHUSETTS ST WTR POLLUTN ABATEMENT TR 5.25% and MASSACHUSETTS ST WTR RES AUTH 4%.
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Fidelity® Massachusetts Municipal Inc Fd (FDMMX, 3%)
Fidelity® Massachusetts Municipal Income Fund (MUTF:FDMMX) mainly invests in investment-grade municipal securities that offer tax exempt (federal and Massachusetts personal income taxes) income. This fund has gained more than 1% in the last three months and over 4% in the last three years. FDMMX has more than $2.30 billion in total assets. The top two holdings of the fund are: MASSACHUSETTS ST TPK AUTH MET HWY SYS REV 0% and MASSACHUSETTS ST 5.25%.
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BNY Mellon Massachusetts Fund (PSMAX, 3%)
BNY Mellon Massachusetts Fund (MUTF:PSMAX) usually invests a minimum 80% of its net assets in municipal bonds that offer income that is exempt from federal and Massachusetts state income taxes. This fund has gained more than 1% in the last three months and over 4% in the last three years. PSMAX has more than $124 million in total assets. The top two holdings of the fund are: MASSACHUSETTS ST COLLEGE BLDG AUTH PROJ REV 0% and MASSACHUSETTS ST 0.67%.
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Putnam Massachusetts Tax Exempt IncomeFd (PXMAX, 3%)
Putnam Massachusetts Tax Exempt Income Fund (MUTF:PXMAX) primarily invests in bonds that are of investment-grade quality, have intermediate- to long-term maturities and whose interest is exempt from federal income tax and Massachusetts personal income tax. This fund has gained more than 1% in the last three months and over 4% in the last three years. PXMAX has more than $320 million in total assets. The top two holdings of the fund are: 5 Year Treasury Note Future Sept 21 and MASSACHUSETTS ST 5%.
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Western Asset Massachusetts Muni Fd (SLMMX, 4%)
Western Asset Massachusetts Municipals Fund (MUTF:SLMMX) normally invests in investment grade "Massachusetts municipal securities" and other investments having similar characteristics, of any maturity. This fund has gained more than 1% in the last three months and over 4% in the last three years. SLMMX has more than $100 million in total assets. The top two holdings of the fund are: MASSACHUSETTS ST WTR RES AUTH 5% and MASSACHUSETTS ST SPL OBLIG DEDICATED TAX REV 5.5%.
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Vanguard Massachusetts Tax-Exempt Fund (VMATX, 4%)
Vanguard Massachusetts Tax-Exempt Fund (MUTF:VMATX) primarily invests in high-quality municipal bonds from Massachusetts state and local governments, regional governmental and public financing authorities. This fund has gained more than 1% in the last three months and over 6% in the last three years. VMATX has more than $2.75 billion in total assets. The top two holdings of the fund are: MASSACHUSETTS ST DEV FIN AGY REV and MASSACHUSETTS ST HEALTH & EDL FACS AUTH REV.
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Nuveen Massachusetts Municipal Bond Fund (NMAAX, 4%)
Nuveen Massachusetts Municipal Bond Fund (MUTF:NMAAX) normally invests in municipal bonds, in which interest is tax free. It may also invest some amount in below investment grade municipal bonds as well. This fund has gained more than 1% in the last three months and over 4% in the last three years. NMAAX has more than $756 million in total assets. The top two holdings of the fund are: MASSACHUSETTS ST SCH BLDG AUTH DEDICATED SALES TAX REV 5% and MASSACHUSETTS ST 5.25%.
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MFS Massachusetts Municipal Bond Fund (MFSSX, 4%)
MFS Massachusetts Municipal Bond Fund (MUTF:MFSSX) primarily invests in securities and other investments, the interest from which is free from federal income tax and personal income tax of Massachusetts. This fund has gained more than 1% in the last three months and over 4% in the last three years. MFSSX has more than $409 million in total assets. The top two holdings of the fund are: MASSACHUSETTS ST COLLEGE BLDG AUTH PROJ REV 0% and MASSACHUSETTS ST WTR RES AUTH 0.03%.
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AB Municipal Income II Massachusetts Pt (AMAAX, 5%)
AB Municipal Income Fund II Massachusetts Portfolio (MUTF:AMAAX) normally invests in municipal securities of Massachusetts or municipal securities in which interest is exempt from Massachusetts state income tax. This fund has gained more than 1% in the last three months and over 4% in the last three years. AMAAX has more than $220 million in total assets. The top two holdings of the fund are: MASSACHUSETTS ST 5% and MASSACHUSETTS ST DEV FIN AGY REV 5%.
