FSHLAX

About FSHLAX

First Trust Combined Series 407 is a unit investment trust designed to provide federally tax‑exempt income through a diversified portfolio of insured municipal bonds. The trust’s primary purpose is to deliver predictable cash flows from interest payments that are generally exempt from U.S. federal income tax, appealing to investors seeking stability and tax efficiency. It invests in bonds backed by municipal issuers such as states, cities, and public authorities, with insurance features intended to enhance credit quality and support timely payment of principal and interest. By packaging a fixed portfolio for a defined life, the trust offers transparent holdings and a finite termination date, differentiating it from open‑ended funds. Within the municipal market, it channels capital to essential public finance projects—transportation, education, water and sewer systems—while distributing income on a regular schedule. The structure provides exposure to interest‑rate dynamics and municipal credit conditions without active trading, making it a vehicle often used for laddering strategies, income planning, and diversification across geographies and revenue sectors.