American Funds Tax-Exempt Fund of California Class F-2 is a municipal bond mutual fund designed to generate income that is exempt from both federal and California state income taxes. Its primary function is to provide California residents with tax-advantaged income through investments in a diversified portfolio of high-quality, long-term municipal bonds issued by California state and local governments or related entities. The fund focuses predominantly on revenue bonds, which support various infrastructure and public service projects within the state, as well as general obligation bonds. Notable features include a broad diversification across more than 1,600 individual holdings, low portfolio concentration in any single issuer, and a disciplined, research-driven approach managed by an experienced team. With an effective duration typically exceeding six years, the fund’s holdings are structured for investors seeking exposure to long-maturity municipal debt. The fund regularly distributes income monthly and is recognized for its relatively low expense ratio within its category. By offering targeted tax-exempt income, the fund plays a key role in helping California-based investors mitigate state and federal tax liabilities while supporting important public works and community projects throughout California.
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