Muni Bond Funds That Work for You

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Investing in tax-exempt municipal bonds is a great idea. But buying them one by one is not.

Individual bonds are issued by airports, water authorities and other community organizations across the country, making it tough to assemble a truly diversified portfolio on your own. And if you ever want to sell your muni bonds, there's not a big market for them. You will pay dearly to dump them.

An easier option is to buy a tax-exempt bond fund. And there are plenty of them out there. ...