On the lookout for a Muni – Bonds fund? Starting with Eaton Vance MA Municipals C (ECMMX) should not be a possibility at this time. ECMMX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Zacks categorizes ECMMX 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.
Eaton Vance is based in Boston, MA, and is the manager of ECMMX. Since Eaton Vance MA Municipals C made its debut in July of 2006, ECMMX has garnered more than $1.44 million in assets. Craig Brandon is the fund’s current manager and has held that role since February of 2010.
Investors naturally seek funds with strong performance. ECMMX has a 5-year annualized total return of -1.4% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 0.05%, which places it in the bottom third during this time-frame.
Invest in Gold
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. Over the past three years, ECMMX’s standard deviation comes in at 7.32%, compared to the category average of 11.5%. Looking at the past 5 years, the fund’s standard deviation is 6.31% compared to the category average of 11.05%. This makes the fund less volatile than its peers over the past half-decade.
Modified duration is a measure of a given bond’s interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
For investors who think interest rates will rise, this is an important factor to consider. ECMMX has a modified duration of 8.53, which suggests that the fund will decline 8.53% for every hundred-basis-point increase in interest rates.
