T. Rowe Price Tax-Free High Yield Fund (PRFHX)

Diversify your portfolio with high yield bonds.

Call 866-831-3699 to speak to an investment specialist about the
Tax-Free High Yield Fund.

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.
Risk Potential**
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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.
**This chart displays relative risk of each U.S. mutual fund listed using standard deviation of returns. Those values are provided in the bars at the top of the chart.

Methodology: We evaluate the standard deviation and its resulting placement within a specific risk/return category on an annual basis. A fund is generally placed in a risk/return category based on the 10-year standard deviation of its performance. If a fund is less than 10 years old, the actual fund performance history is supplemented with the primary prospectus benchmark history to obtain a full 10-year history, or longest time period available up to 10 years. For an Asset Allocation fund with less than 10 years of performance history, sub-strategy returns are used. When a sub-strategy is less than 10 years old, the actual sub-strategy performance history is supplemented with benchmark history to obtain a full 10-year history, or longest time period available up to 10 years.

Risk return categories overlap; a fund with a standard deviation in the overlap between two categories, denoted by a plus (+), is placed so that its risk categorization is better aligned with anticipated return characteristics an investor may experience going forward at the discretion of T Rowe Price.

When a fund has a cash-like benchmark, denoted by a double plus (++), its standard deviation is estimated using only available fund returns. If the fund is less than 10 years old, benchmark returns are not used to obtain a full 10-year history because they would artificially suppress the volatility estimate.

All investments are subject to market risk, including the possible loss of principal. Standard deviation of returns, a measure of price volatility, is one measure of risk. Please consult the funds' prospectuses for a more complete discussion of the funds' risks.
See Glossary for additional details on all data elements.