T. Rowe Price Tax-Free Income Fd

Frequently Asked Questions About PRTAX

What does PRTAX invest in?

This fund is structured so that, under normal circumstances, at least 80% of the income it generates is exempt from federal income taxation. While it maintains the flexibility to acquire securities with any maturity date, the fund primarily focuses on municipal debt instruments with extended maturities. The majority of its holdings are in investment-grade securities; these are defined as those rated within the top four credit categories by at least one prominent credit rating agency, or, if unrated, assessed by T. Rowe Price to be of comparable high quality.

What is the expense ratio of PRTAX?

T. Rowe Price Tax-Free Income Fd (PRTAX) charges an expense ratio of 0.41%. This is the annual fee deducted from fund assets to cover management and operations.

What is PRTAX's dividend yield?

PRTAX's trailing-twelve-month yield is 3.97%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PRTAX?

Effective duration measures PRTAX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PRTAX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PRTAX?

PRTAX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PRTAX?

Yield to maturity (YTM) is the total return you'd earn from PRTAX if every bond in the portfolio is held to maturity at the current price. PRTAX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.