PTFYX

About PTFYX

Putnam Tax-Free High Yield Fund Class Y is a mutual fund specializing in high-yield municipal bonds whose interest payments are generally exempt from federal income tax. Its primary objective is to provide investors with higher levels of tax-free income by investing in a diversified portfolio of municipal securities that may carry higher credit risk and, consequently, offer higher yields. The fund’s portfolio leans toward bonds issued by states, cities, and public authorities, often supporting infrastructure projects such as airports, healthcare, and educational facilities, with significant holdings in sectors like transportation and local government finance. Managed with an institutional share class structure, the fund is intended for investors seeking both tax efficiency and above-average income, accepting the added volatility of lower-rated or non-investment-grade issuers. It benchmarks its performance against the Barclays Municipal Bond Index and is supported by in-house research to navigate credit risk and interest rate environments. With a moderate expense ratio, the fund plays a notable role for tax-sensitive investors, non-profits, and institutions aiming to balance tax-exempt income production with credit diversification across the municipal bond market.