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If you've been stuck searching for Muni - Bonds funds, consider American Century CA High Yield Municipal Investor (BCHYX) as a possibility. BCHYX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes BCHYX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
BCHYX is a part of the American Century family of funds, a company based out of Kansas City, MO. Since American Century CA High Yield Municipal Investor made its debut in December of 1986, BCHYX has garnered more than $750.70 million in assets. The fund's current manager, Joseph Gotelli, has been in charge of the fund since January of 2012.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 0.96%, and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -1.03%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. BCHYX's standard deviation over the past three years is 9.16% compared to the category average of 13.23%. The standard deviation of the fund over the past 5 years is 8.47% compared to the category average of 13.79%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.87, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, BCHYX has a positive alpha of 0.45, which measures performance on a risk-adjusted basis.