When it comes to investing in municipal bonds, the Fidelity Intermediate Municipal Income Fund (FLTMX) has a "steadfast" approach that has served investors well, according to Morningstar.
They look at the yield curve, credit quality and structure of the bond when assessing assets, he added.
The result is a 45.5% allocation to AA-rated munis, 31% in A-rated and 7% in BBB-rated municipal bonds.
The team also makes a lot of small bets instead of relying on big investments that can make or break a portfolio, Maka added.
So we've been buying some of those deep discount securities that were hit hard as rates rose," Maka explained.
Persons:
Morningstar, Michael Maka, We're, Maka, FLTMX, Bond, we've, muni, it's, Elizabeth Foos
Organizations:
Fidelity, Income Fund, SEC, Federal Reserve, Revenue, BBB, AAA, Bloomberg