PRMDX

About PRMDX

T. Rowe Price Maryland Short-Term Tax-Free Bond Fund is a municipal bond mutual fund designed to provide income that is exempt from both federal and Maryland state and local income taxes. The fund primarily invests in a diversified portfolio of investment-grade municipal securities issued by the State of Maryland and its localities to finance public projects, such as schools, infrastructure, and transportation. Its strategy emphasizes bonds with short maturities, maintaining a weighted average maturity under three years, which typically helps limit interest rate risk and price volatility. The fund may hold a modest allocation to lower-rated bonds, but the majority of assets are in higher-quality securities. As a non-diversified fund, it can concentrate holdings among specific issuers within Maryland, with a notable focus on industrial revenue bonds at times. The fund’s purpose is capital preservation with a reliable stream of tax-exempt income, appealing particularly to Maryland residents seeking tax efficiency. This vehicle is significant in the municipal bond market for providing state-specific, short-term, tax-advantaged investment options that support local development while offering lower risk and regular monthly income distributions for investors.