Funds that invest in fixed income municipal securities are not guaranteed and are subject to interest rate, inflation, and credit risks.

FORBES: Muni Bond Manager's Journal: Looking For Real Value

Keep in mind that municipal securities are subject to a number of risks including, but not limited to: Interest Rate Risk, the risk that the market value of fixed-income securities may fluctuate when interest rates change, and Prepayment Risk, the risk that the issuers of individual securities may prepay them at a time when interest rates have declined.

FORBES: Put Intermediate Muni Funds In Your Portfolio's Rotation