Top 5 Highest Yielding Municipal Bond Funds - Highest Yielding Zacks #1 Ranked Funds

Below we will share with you the 5 highest yielding Zacks #1 ranked municipal bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all municipal bond funds, then click here.

Oppenheimer AMT-Free Municipals A (OPTAX) seeks high current income free from federal income taxes. The fund primarily invests in municipal securities exempt from federal individual income tax. At least 25% of its assets are used to purchase securities below investment grade. The municipal bond mutual fund returned 0.99% in the last one year period.

The Fund Manager is Daniel G. Loughran and he has managed this municipal bond mutual fund since 2002.

Nuveen High Yield Municipal Bond A (NHMAX) invests the majority of its assets in municipal bonds. At least 65% of its assets are invested in bonds rated investment grade or lower. The municipal bond mutual fund has a ten year annualized return of 3.2%.

As of July 2011, this municipal bond mutual fund held 1440 issues, with 1.34% of its total assets invested in Tennessee Engy Acquisition C Jr R 5.625%.

Invesco Van Kampen High Yield Municipal A (ACTHX) seeks high current income not subject to federal income tax. The fund invests a large proportion of its assets in municipal securities. The fund focuses on acquiring instruments of medium and low quality. The municipal bond mutual fund has a three year annualized return of 3.82%.

The municipal bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.76% compared to a category average of 1.04%.

> MFS Municipal High-Income A (MMHYX) invests the majority of its assets in instruments not subject to federal income tax. It may invest substantially all of its assets in debt securities of low quality. The municipal bond mutual fund has a ten year annualized return of 4.4%.

The Fund Manager is Gary A. Lasman and he has managed this municipal bond mutual fund since 2006.

Goldman Sachs High Yield Municipal A (GHYAX) seeks high current income. The fund invests a large portion of its assets in high yield fixed income securities. These instruments may be issued by states agencies and government institutions as well as municipal bodies. The municipal bond mutual fund returned 2.22% over the last one year period.

The municipal bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.91% compared to a category average of 1.04%.

To view the Zacks Rank and past performance of all municipal bond funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.