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.
Fund Family T. Rowe Price
Category Muni Single State Short
Performance Rating Below Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol PRMDX
Index Bloomberg Municipal 1-3 Y TR
PRMDX had a total return of 3.59% in the past year, including dividends. Since the fund's
inception, the average annual return has been 4.58%.
