FCSTX - Fidelity ® California Limited Term Tax-Free Bond Fund (2024)

FAQs

Is Fidelity Total Bond Fund good? ›

Overall Rating

Morningstar has awarded this fund 4 stars based on its risk-adjusted performance compared to the 556 funds within its Morningstar Category.

Municipal Bonds

Most bonds issued by government agencies are tax-exempt. This means interest on these bonds are excluded from gross income for federal tax purposes. In addition, interest on the bonds is exempt from State of California personal income taxes.

FTABX - Fidelity ® Tax-Free Bond Fund | Fidelity Investments.

The Fund seeks to provide a high current yield exempt from federal income tax by investing in investment-grade municipal debt securities.

The disadvantages of bond funds include higher management fees, the uncertainty created with tax bills, and exposure to interest rate changes.

Overall, California bonds represent an interesting play in the muni market. As the largest issuer, investors often trade on the headline number. In this case: its budget woes. But digging deeper, California's fiscal situation is strong, making bonds a big buy for portfolios – especially those in the state.

Certain mutual funds pay “exempt-interest dividends.” If the mutual fund has at least 50 percent of its assets invested in tax-exempt U.S. obligations and/or in California or its municipal obligations, that amount of dividend is exempt from California tax.

How much fidelity bond coverage is required? At the beginning of each plan year, the coverage amount of the bond must be at least 10 percent of the amount of funds handled. The minimum bond amount is $1,000 and, in most cases, is not required to be more than $500,000.

Does fidelity charge fees for treasury bonds? ›

All US Treasury auction orders placed online on Fidelity.com are free of charge. If you prefer to place your trade through a representative, a $19.95 service fee will be charged.

How long does the coverage last? A fidelity bond remains in effect for six months from the date it was issued. It cannot be canceled, forfeited, terminated, or transferred to another employee.

Income from bonds issued by state, city, and local governments (municipal bonds, or munis) is generally free from federal taxes. * You will, however, have to report this income when filing your taxes. Municipal bond income is also usually free from state tax in the state where the bond was issued.

FMOXX - Fidelity ® Tax-Exempt Money Market Fund | Fidelity Investments.

Bond mutual funds

The key benefits to owning bond funds are: Greater diversification per dollar invested: It is much easier to achieve a diversified bond portfolio per dollar invested using a fund, because you obtain exposure to a basket of bonds within the fund.

The most common forms of fidelity bond are: Business services bonds: These products, also called business bonds or janitorial service bonds, are generally the most common type of fidelity bond.

Answer: Now may be the perfect time to invest in bonds. Yields are at levels you could only dream of 15 years ago, so you'd be locking in substantial, regular income. And, of course, bonds act as a diversifier to your stock portfolio.