Have you been searching for a Muni - Bonds fund? You might want to begin with AI Kansas Tax-Exempt Bond I (SEKSX). SEKSX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We classify SEKSX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.

History of Fund/Manager

SEKSX finds itself in the AIF family, based out of New York, NY. AI Kansas Tax-Exempt Bond I debuted in December of 1990. Since then, SEKSX has accumulated assets of about $182.34 million, according to the most recently available information. Neil Klein is the fund's current manager and has held that role since December of 2016.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 2.32%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 3.8%, which places it in the top third during this time-frame.

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, SEKSX's standard deviation comes in at 3%, compared to the category average of 9.06%. Over the past 5 years, the standard deviation of the fund is 2.73% compared to the category average of 7.8%. This makes the fund less volatile than its peers over the past half-decade.

With a beta of 0.48, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, SEKSX has a negative alpha of -0.22, which measures performance on a risk-adjusted basis.

Ratings

Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, SEKSX has 47.22% in high quality bonds rated at least 'AA' or higher, while 38.45% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, SEKSX is a no load fund. It has an expense ratio of 0.48% compared to the category average of 0.79%. So, SEKSX is actually cheaper than its peers from a cost perspective.

This fund requires a minimum initial investment of $3 million, and each subsequent investment should be at least $5,000.

Bottom Line

Overall, AI Kansas Tax-Exempt Bond I ( SEKSX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

Don't stop here for your research on Muni - Bonds funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare SEKSX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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