Fidelity Intermediate Municipal Income Fund (FLTMX)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Fidelity Intermediate Municipal Income Fund (FLTMX) with AI Score 49/100 (Weak). Fidelity Intermediate Municipal Income Fund (FLTMX) is a mutual fund focused on providing income exempt from federal income tax. Market cap: 0, Sector: Financial services.
Last analyzed: Mar 17, 2026Fidelity Intermediate Municipal Income Fund (FLTMX) Financial Services Profile
Fidelity Intermediate Municipal Income Fund is a large player in the asset management sector, specializing in investment-grade municipal securities that offer federal income tax exemptions. With a focus on income generation and a managed maturity range, FLTMX caters to investors seeking stable, tax-advantaged returns within the municipal bond market.
Investment Thesis
Fidelity Intermediate Municipal Income Fund presents a compelling investment case for income-seeking investors due to its focus on tax-exempt municipal securities. With a market capitalization of $14.43 billion, FLTMX offers substantial scale and liquidity. The fund's strategy of maintaining a dollar-weighted average maturity between three and 10 years aims to balance income generation with capital preservation. A key value driver is the ongoing demand for tax-advantaged investment options, particularly among high-net-worth individuals and retirees. Growth catalysts include potential increases in municipal bond issuance to fund infrastructure projects and favorable shifts in tax policy that could enhance the attractiveness of municipal bonds. However, potential risks include rising interest rates, which could negatively impact bond values, and credit risk associated with municipal issuers. The fund's beta of 0.75 suggests lower volatility compared to the broader market.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $14.43 billion indicates substantial scale and liquidity.
- Investment-grade municipal securities focus provides tax-exempt income.
- Dollar-weighted average maturity between three and 10 years balances income and capital preservation.
- Beta of 0.75 suggests lower volatility compared to the broader market.
- Managed by Fidelity Investments, a leading global asset manager with extensive fixed income expertise.
Competitors & Peers
Strengths
- Large market capitalization provides scale and liquidity.
- Focus on investment-grade municipal securities offers tax-exempt income.
- Managed by Fidelity Investments, a reputable asset manager.
- Dollar-weighted average maturity balances income and capital preservation.
Weaknesses
- Vulnerable to interest rate increases.
- Subject to credit risk associated with municipal issuers.
- Limited growth potential compared to equity investments.
- Dependence on the municipal bond market.
Catalysts
- Ongoing: Potential increases in infrastructure spending at the state and local levels.
- Ongoing: Favorable shifts in tax policy that could enhance the attractiveness of municipal bonds.
- Ongoing: Reinvestment opportunities in higher-yielding municipal securities as older bonds mature.
- Ongoing: Growing demand for tax-advantaged income from an aging population.
Risks
- Potential: Rising interest rates could negatively impact bond values.
- Potential: Economic downturn could increase credit risk among municipal issuers.
- Potential: Changes in tax laws could reduce the attractiveness of municipal bonds.
- Ongoing: Competition from other fixed-income investments.
- Ongoing: Market volatility and unforeseen economic events.
Growth Opportunities
- Increased Infrastructure Spending: Potential increases in infrastructure spending at the state and local levels could lead to greater municipal bond issuance. This would provide FLTMX with more investment opportunities and potentially enhance returns. The American Society of Civil Engineers estimates a multi-trillion dollar infrastructure gap in the U.S., suggesting significant potential for future municipal bond issuance. Timeline: Ongoing.
- Favorable Tax Policy Changes: Changes in federal tax policy could increase the attractiveness of municipal bonds, driving demand for funds like FLTMX. For example, higher income tax rates could make tax-exempt income more valuable to investors. The potential for tax policy changes is an ongoing factor that could influence the fund's growth. Timeline: Ongoing.
- Rising Interest Rate Environment: While rising interest rates pose a risk to existing bond values, they also create opportunities for FLTMX to reinvest in higher-yielding municipal securities. As older bonds mature or are called, the fund can allocate capital to new issues with more attractive yields. This could enhance the fund's income generation potential over time. Timeline: Ongoing.
- Aging Population and Retirement Savings: The aging population and the increasing need for retirement income are driving demand for stable, income-generating investments. Municipal bond funds like FLTMX can be a noteworthy option for retirees seeking tax-advantaged income. As the baby boomer generation continues to retire, this trend is expected to persist. Timeline: Ongoing.
- Expansion of ESG Investing: There is a growing trend towards environmental, social, and governance (ESG) investing. Municipal bonds can play a role in ESG portfolios, particularly those that finance environmentally friendly projects or support social initiatives. FLTMX could potentially attract more investors by highlighting the ESG aspects of its municipal bond holdings. Timeline: Ongoing.
Opportunities
- Increased infrastructure spending could lead to greater municipal bond issuance.
- Favorable tax policy changes could increase demand for municipal bonds.
- Rising interest rates could create opportunities to reinvest in higher-yielding securities.
- Growing demand for ESG investments could attract more investors.
Threats
- Rising interest rates could negatively impact bond values.
- Economic downturn could increase credit risk among municipal issuers.
- Changes in tax laws could reduce the attractiveness of municipal bonds.
- Increased competition from other fixed-income investments.
Competitive Advantages
- Scale: With a market capitalization of $14.43 billion, FLTMX benefits from economies of scale and liquidity.
- Brand Reputation: Fidelity Investments has a strong brand reputation and a long history of providing investment management services.
- Expertise: Fidelity's extensive research capabilities and expertise in fixed income investing provide a competitive advantage.
- Tax-Advantaged Structure: The fund's focus on tax-exempt municipal securities offers a unique benefit to investors.
About FLTMX
Fidelity Intermediate Municipal Income Fund (FLTMX) is a mutual fund managed by Fidelity Investments, a leading global financial services provider. The fund is designed to provide investors with income that is exempt from federal income tax by investing primarily in investment-grade municipal securities. These securities are debt obligations issued by state and local governments to finance public projects. FLTMX allocates its assets across various market sectors and maturities within the municipal bond market, seeking to optimize returns while managing risk. The fund invests more than 25% of its total assets in municipal securities that finance similar types of projects, indicating a focused investment strategy within specific sectors of the municipal bond market. FLTMX maintains a dollar-weighted average maturity between three and 10 years, which is intended to balance income generation with capital preservation. This maturity range allows the fund to capture attractive yields while mitigating the impact of interest rate fluctuations. Fidelity Investments, the parent company, has a long history of providing investment management services to individuals and institutions. Founded in 1946, Fidelity has grown to become one of the largest asset managers in the world, with a diverse range of investment products and services. FLTMX leverages Fidelity's expertise in fixed income investing and its extensive research capabilities to identify attractive opportunities in the municipal bond market.
What They Do
- Invests primarily in investment-grade municipal securities.
- Provides income exempt from federal income tax.
- Allocates assets across different market sectors and maturities.
- Invests more than 25% of total assets in municipal securities that finance similar types of projects.
- Maintains a dollar-weighted average maturity between three and 10 years.
- Seeks to optimize returns while managing risk in the municipal bond market.
Business Model
- Generates income from interest payments on municipal bonds.
- Manages a portfolio of municipal securities with varying maturities and credit ratings.
- Provides a tax-advantaged investment option for income-seeking investors.
- Charges a management fee based on the fund's assets under management.
Industry Context
Fidelity Intermediate Municipal Income Fund operates within the asset management industry, specifically focusing on fixed-income investments. The municipal bond market, where FLTMX primarily invests, is influenced by factors such as interest rates, credit quality, and tax policy. The industry is characterized by a mix of large asset managers and smaller specialized firms. Competitors include other municipal bond funds such as ERASX, FADMX, FAGIX, FDEEX, and FDIVX. The demand for tax-advantaged investment options is a key driver of growth in this segment, particularly among high-net-worth individuals and retirees.
Key Customers
- Individual investors seeking tax-exempt income.
- High-net-worth individuals looking for tax-advantaged investment options.
- Retirees seeking stable income streams.
- Financial advisors and institutions allocating assets to fixed income.
Financials
Chart & Info
Fidelity Intermediate Municipal Income Fund (FLTMX) stock price: Price data unavailable
Latest News
No recent news available for FLTMX.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FLTMX.
Price Targets
Wall Street price target analysis for FLTMX.
MoonshotScore
What does this score mean?
The MoonshotScore rates FLTMX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
What Investors Ask About Fidelity Intermediate Municipal Income Fund (FLTMX)
What does Fidelity Intermediate Municipal Income Fund do?
Fidelity Intermediate Municipal Income Fund (FLTMX) is a mutual fund that invests primarily in investment-grade municipal securities. The fund's objective is to provide investors with income that is exempt from federal income tax. FLTMX allocates its assets across different market sectors and maturities within the municipal bond market, seeking to optimize returns while managing risk. The fund is managed by Fidelity Investments, a leading global financial services provider with extensive expertise in fixed income investing. By focusing on municipal bonds, FLTMX offers a tax-advantaged investment option for income-seeking investors, particularly those in higher tax brackets.
What are the main risks for FLTMX?
The main risks for Fidelity Intermediate Municipal Income Fund include interest rate risk, credit risk, and market risk. Rising interest rates could negatively impact bond values, leading to potential losses for investors. Credit risk refers to the possibility that municipal issuers may default on their debt obligations. Market risk encompasses broader economic and political factors that could affect the municipal bond market. Additionally, changes in tax laws could reduce the attractiveness of municipal bonds, potentially impacting demand for the fund. These risks are inherent in fixed-income investing and should be carefully considered by investors.
How does Fidelity Intermediate Municipal Income Fund make money in financial services?
Fidelity Intermediate Municipal Income Fund generates revenue primarily through interest income earned on its portfolio of municipal bonds. The fund also collects a management fee, calculated as a percentage of the fund's assets under management (AUM). This fee compensates Fidelity Investments for its expertise in managing the fund's investments and providing administrative services. The fund's profitability is directly linked to its ability to generate attractive returns for investors while effectively managing expenses. The management fee is disclosed in the fund's prospectus and is a key factor for investors to consider when evaluating the fund's overall value proposition.
What are the key factors to evaluate for FLTMX?
Fidelity Intermediate Municipal Income Fund (FLTMX) currently holds an AI score of 49/100, indicating low score. Key strength: Large market capitalization provides scale and liquidity.. Primary risk to monitor: Potential: Rising interest rates could negatively impact bond values.. This is not financial advice.
How frequently does FLTMX data refresh on this page?
FLTMX prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven FLTMX's recent stock price performance?
Recent price movement in Fidelity Intermediate Municipal Income Fund (FLTMX) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Large market capitalization provides scale and liquidity.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider FLTMX overvalued or undervalued right now?
Determining whether Fidelity Intermediate Municipal Income Fund (FLTMX) is overvalued or undervalued requires examining multiple metrics. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying FLTMX?
Before investing in Fidelity Intermediate Municipal Income Fund (FLTMX), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for FLTMX. The information provided is based on available data and may be subject to change.
- Investment decisions should be based on individual risk tolerance and financial circumstances.