T. Rowe Price Tax-Free High Yield Fund (PRFHX)
Ticker Symbol:
PRFHX
Fund Status:
Open to new Retail investors  /  Open to subsequent Retail investments
Fund Objective
Quick Stats
Fiscal Year End  February
Morningstar Category  High Yield Muni
Inception Date 03/01/1985
Tax ID 52-1381369
Investment Objective
The fund's objective is to seek a high level of income exempt from federal income tax by investing primarily in long-term, low- to upper-medium-quality municipal securities.
Strategy
The fund invests a substantial portion of assets in below-investment-grade municipal or "junk" bonds and may buy bonds in default as long as they do not exceed 10% of assets. The fundís weighted average maturity is expected to exceed 10 years.
Investor Profile
Investors whose income tax level enables them to benefit from tax-exempt income. Not appropriate for tax-deferred retirement plans, such as IRAs. Some income may be subject to state and local taxes and the federal alternative minimum tax.
Availability
All States
Risk/Reward Potential*
Click on the risk/reward spectrum below to view the funds in that category
Highest
Higher
Moderate
Lower
Lowest
The Tax-Free High Yield Fund has the highest potential for current income and capital appreciation of all of the T. Rowe Price federal tax-free funds. It offers the potential for a high level of tax-exempt income and some capital appreciation by investing in below-investment-grade bonds. These bonds tend to offer higher yields to compensate for a greater default risk.

Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. In addition to their sensitivity to interest rates, high-yield bonds carry a significant level of credit risk.
*Funds are placed in general risk/return categories based on their past performance or, for newer funds, the performance of the types of securities in which they invest. There is no assurance past trends will continue.
See Glossary for additional details on all data elements.