American Century CA High Yield Municipal Investor (BCHYX) shows promise with strong ratings and lower fees, making it a potential choice for investors
BCHYX is part of the Muni-Bonds category, which is all about investing in debt from states or local governments. These bonds help pay for things like schools and infrastructure. Many investors like them because they often come with tax benefits, especially if you’re in a higher tax bracket.
This fund has been around since December 1986 and is managed by Joseph Gotelli, who’s been at the helm since January 2012. It has over $750 million in assets, so it’s a pretty established player in the market.
When it comes to performance, BCHYX has a 5-year annualized return of 0.96%, which puts it in the middle of the pack compared to similar funds. If you look at the 3-year return, it’s a bit lower at -1.03%. Just keep in mind that these returns don’t include all the fees, which could lower what you actually get back.
Another thing to consider is how much the fund fluctuates. BCHYX has a standard deviation of 9.16% over the last three years, which is lower than the category average. This means it’s been less volatile than many of its peers. Plus, it has a beta of 0.87, indicating it’s less volatile than the broader market.
In terms of bond quality, about 22.8% of the bonds in BCHYX are rated ‘AA’ or higher, while 22.95% are rated ‘A’ to ‘BBB’. The average quality is ‘BBB’, but keep in mind that nearly half of the bonds aren’t rated, so take that into account.
When it comes to costs, BCHYX is a no-load fund with an expense ratio of 0.50%, which is lower than the average for similar funds. However, you’ll need to invest at least $2,500 to get started, and subsequent investments must be at least $50.
Overall, BCHYX looks like a solid option right now, especially with its strong ranking, decent performance, and lower fees. If you want to dive deeper into Muni-Bonds, check out Zacks.com for more info. They’ve got a lot of resources to help you out.
