New Jersey Bonds (New Jersey NJ Municipal Bonds)

 

 

New Jersey bonds are issued by local and state governments. The funds collected through these bonds are used to finance the construction of public utilities, such as sewers, highways and bridges. If the buyer is a resident of the municipality that issued the bond, s/he does not have to pay federal taxes on the income generated from the bonds.[br]

 

The interest available on New Jersey NJ municipal bonds can be fixed or variable. The bondholder makes the payment in cash to the issuer who promises to repay the bondholder over time. The repayment time may vary from a few months to many years.

New Jersey Bonds: Popular Funds for Municipal Bonds

The following are some popular funds that offer New Jersey bonds:

 

Oppenheimer NJ Municipal A Fund (ONJAX): The ONJAX management has been operating for four years. These funds have good short-term performance. The management fee is also lower than its Muni New Jersey average. However, these funds are more volatile and are not as safe as Muni New Jersey. ONJAX has less than ideal mid- and long-term performance.

 

First Investors Tax Exempt NJ A Fund (FINJX): This fund has been around for over 18 years. It features good short-, mid- and long- term performance as compared to Muni New Jersey average. The fund is less volatile and its management fee is also low. However, it has higher annual stock turnover rate than its Muni New Jersey counterpart. The trading fee is high in FINJX. Moreover, the fund has a Morningstar rating of 3 or below.

 

BlackRock NJ Municipal Bond I Fund (MANJX): This is a new fund and is recommended because its management does not trade extensively for its return. It is less volatile compared to its peers and has good short-, mid- and long- term performance. Other lucrative features of MANJX fund include lower management fee and no marketing expenses. However, its risk management return may not be good.[br]

 

Putnam NJ Tax Exempt Income Y Fund (PNJYX): It is a true no-load fund and is comparatively less volatile than its counterparts. Lower management fee and no marketing and distribution expenses are additional benefits of investing in PNJYX. This fund has good short-, mid- and long-term performance. However, this is not a very old fund so analyzing manager’s ability on the basis of the fund’s operation record is difficult.

 

Nuveen NJ Municipal Bond I Fund (NMNJX): The fund has been in operation for more than three years. It has good short, mid- and long-term performance. NMNJX is less volatile and features impressive annual stock turnover rate.