American Funds Tax-Exempt CA A (TAFTXÂ -Â MF report)Â a Zacks Ranked #2 (Buy) was initiated in October, 1986 and is managed by Capital Research and Management Company. TAFTX’s main objective is to provide current income free from federal and California income taxes and to preserve capital. TAFTX primarily invests in investment-grade securities issued by the state of California (and its political subdivisions, municipalities and public authorities) that are exempt from both federal and California income taxes. TAFTX may invest a maximum of 20% of assets in bonds subject to the alternative minimum tax. TAFTX also considers that not more than 20% of assets are invested in securities rated below investment-grade.
The American Funds Tax-Exempt CA A, managed by American Funds , carries an expense ratio of 0.62, and requires a minimal initial investment of $1,000.
TAFTX has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 1, 3, 5 year benchmarks; 1 year 3.94%, 3 years 4.21% and 5 years 5.70%. To see how this fund performed compared in its category, please click here.
TAFTX’s performance, as of the last filing, when compared to funds in its category was in the top 28% for 1 year, top 19% over the past 3 years, and in the 16% over the past 5 years.
