FDECAX

About FDECAX

First Trust 401 Tax-Exempt Municipal Income Trust is a unit investment trust designed to provide federally tax‑exempt income while seeking to preserve capital through a diversified portfolio of municipal bonds. It typically holds investment‑grade obligations issued by state and local governments or related authorities, financing essential public projects such as housing, transportation, and community infrastructure. The trust follows a defined life and buy‑and‑hold approach, allowing the underlying bonds to mature within the portfolio’s stated time horizon rather than employing active trading. Its structure emphasizes credit quality, stated maturities, and scheduled income distributions, aligning with investors who prioritize predictable cash flows with favorable federal tax treatment. As a series within First Trust’s combined municipal income trusts, it contributes to the municipal bond market’s role in channeling capital to public-purpose initiatives, while offering transparent holdings and a set termination date characteristic of unit investment trusts. Information from First Trust indicates these tax‑exempt municipal strategies invest primarily in investment‑grade bonds and aim for income exempt from federal—and sometimes applicable state and local—income taxes, subject to each trust’s specific holdings and terms.