Rising interest rates have many investors concerned about the volatility of bond prices. Short-term municipal bonds can help address these risk concerns because they may be less sensitive to changes in interest rates than longer-term bonds.
Invesco Oppenheimer Short Term Municipal Bond focuses on investment-grade bonds and seeks to maintain an average effective maturity of two years or less. With an established track record of navigating volatile bond markets, the fund is designed for investors who are seeking attractive returns on a risk-adjusted basis.
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Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value.
Fixed income investing entails credit and interest rate risks. Interest rate risk is the risk that rising interest rates, or an expectation of rising interest rates in the near future, will cause the values of a fund’s investments to decline. Risks associated with rising interest rates are heightened given that rates in the U.S. are at, or near, historic lows. When interest rates rise, bond prices fall and a fund’s share price can fall. Municipal bonds are subject to default on income and principal payments.
The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.