14 important things you should know about Aberdeen NTFAX mutual fund

Updated: June 29, 2020
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Before we start: if you’re looking for NTFAX “stock” price, you can quickly find it out by visiting Finny and typing "NTFAX quote". If you’re looking for a quick scoop on NTFAX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "NTFAX". You’ll get all this info in one place.

Are you looking to buy or sell NTFAX? Or perhaps you’re looking for NTFAX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this NTFAX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: NTFAX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: NTFAX buy or sell; the pros and cons of investing in NTFAX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to NTFAX.

And here is the list of questions we’ll answer:

  1. Describe Aberdeen Funds: Aberdeen Tax-Free Income Fund; Class A Shares (NTFAX).
  2. What are NTFAX holdings?
  3. What is NTFAX performance? What are NTFAX historical returns?
  4. How many up and down years did NTFAX have historically?
  5. What is NTFAX dividend yield?
  6. What is NTFAX minimum initial investment amount?
  7. What is NTFAX expense ratio?
  8. Does NTFAX have any sales loads or 12b-1 distribution expenses?
  9. What is NTFAX tax efficiency (tax-cost ratio)?
  10. What is NTFAX beta? How would you assess NTFAX risk?
  11. What is NTFAX Sharpe ratio?
  12. What is NTFAX Finny Score? NTFAX buy or sell?
  13. What are the pros of investing in NTFAX? What are NTFAX buy reasons?
  14. What are the cons of investing in NTFAX? What are NTFAX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe Aberdeen Funds: Aberdeen Tax-Free Income Fund; Class A Shares (NTFAX).

The Fund seeks as high a level of current income exempt from federal income tax as is consistent with the preservation of capital by investing in investment-grade municipal obligations.

2. What are NTFAX top holdings?

NTFAX has 0 stock holdings and 92 bond holdings.

The top 10 holdings represent 30.68% of total assets. Here are the top holdings:

Name Symbol % Assets
HARRIS CNTY TEX HEALTH FACS DEV CORP REV 5.75% N/A 8.96%
PENNSYLVANIA ST TPK COMMN REGISTRATION FEE REV 5.25% N/A 3.69%
NEW JERSEY ST TRANSN TR FD AUTH 5% N/A 3.20%
MARYLAND INDL DEV FING AUTH PORT FACS REV 15% N/A 2.99%
ARIZONA INDL DEV AUTH SR LIVING REV 5% N/A 2.27%
TEXAS MUN GAS ACQUISITION & SUPPLY CORP I GAS SUPPLY REV 6.25% N/A 2.11%
NEW YORK ST DORM AUTH REVS ST SUPPORTED DEBT 5.5% N/A 1.97%
ST CHARLES PARISH LA GULF OPPORTUNITY ZONE REV 4% N/A 1.89%
CONNECTICUT ST HEALTH & EDL FACS AUTH REV 5% N/A 1.82%
ESCAMBIA CNTY FLA SALES TAX REV 5% N/A 1.78%

3. What is NTFAX performance? What are NTFAX historical returns?

NTFAX has generated the following returns:

  • 1-month return is -0.40%;
  • 3-month return is -4.82%;
  • 1-year return is -0.58%;
  • 3-year return is 1.49%;
  • 5-year return is 1.44%;
  • 10-year return is 2.67%;
  • 15-year return is 2.95%.

4. How many up and down years did NTFAX have historically?

In the last 10 years, NTFAX had 8 up years and 2 down years.

5. What is NTFAX dividend yield?

NTFAX yield is 2.78%.

6. What is NTFAX minimum initial investment amount?

NTFAX minimum initial investment amount is $3.00K.

7. What is NTFAX expense ratio?

NTFAX expense ratio is 0.77%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does NTFAX have any sales loads or 12b-1 distribution expenses?

NTFAX 12b-1 distribution fee is 0.25. NTFAX front-end sales load is 2.5. NTFAX back-end sales load is 0.

9. What is NTFAX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.27%;
  • 3-year ax cost ratio is 0.09%.

10. What is NTFAX beta? How would you assess NTFAX risk?

  • 3-year beta is 1.01;
  • 5-year beta is 0.89;
  • 10-year beta is 0.96;
  • 15-year beta is 0.95.

11. What is NTFAX Sharpe ratio?

  • 3-year Sharpe ratio is 0.09;
  • 5-year Sharpe ratio is 0.12;
  • 10-year Sharpe ratio is 0.63.

Analysis

12. What is NTFAX Finny Score? NTFAX buy or sell?

NTFAX Finny Score is 13. Our quantitative analysis shows 1 reason to buy NTFAX and 7 reasons to sell it, resulting in the Finny Score of 13.

13. What are the pros of investing in NTFAX? What are NTFAX buy reasons?

The following are NTFAX strengths from our perspective:

  • NTFAX 5-year Beta is 0.89, which is inversely correlated with the index (BBgBarc Municipal TR USD). The could be good if you're trying to hedge your portfolio.

14. What are the cons of investing in NTFAX? What are NTFAX negatives?

The following are NTFAX weaknesses from our perspective:

  • NTFAX net assets are $7.30 million. This fund is not a popular choice with retail investors.
  • NTFAX 3-year return is 1.49%, which is lower than the 3-year return of the benchmark index (ICE BofA 1-22 Year US Municipal Securities TR USD), 3.29%.
  • NTFAX 5-year return is 1.44%, which is lower than the 5-year return of the benchmark index (ICE BofA 1-22 Year US Municipal Securities TR USD), 3.05%.
  • NTFAX 10-year return is 2.67%, which is lower than the 10-year return of the benchmark index (ICE BofA 1-22 Year US Municipal Securities TR USD), 3.68%.
  • NTFAX 15-year return is 2.95%, which is lower than the 15-year return of the benchmark index (ICE BofA 1-22 Year US Municipal Securities TR USD), 4.04%.
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.25%, while the maximum front-end sales load is 2.5%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.
  • NTFAX expense ratio is 0.77%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the NTFAX review, we covered NTFAX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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