Fund Evaluator:

T. Rowe Price Tax-Free Shrt-Interm Overview

T. Rowe Price Tax-Free Shrt-Interm (PRFSX) is an actively managed Municipal Bond Muni National Short fund. T. Rowe Price launched the fund in 1983.

The investment seeks to provide, consistent with modest price fluctuation, a high level of income exempt from federal income taxes by investing primarily in short- and intermediate-term investment-grade municipal securities. The fund invests primarily in short-term municipal securities (maturities of less than three years) and intermediate-term municipal securities (maturities between three and ten years). Its weighted average maturity normally ranges from two to five years and is not expected to exceed five years.

About T. Rowe Price Tax-Free Shrt-Interm (PRFSX)

There are 1 members of the management team with an average tenure of 2.00 years: James Lynch (2024). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg Muni 1-5 Yr Blend(1-6) TR USD index with a weighting of 100%. T. Rowe Price Tax-Free Shrt-Interm has 461 securities in its portfolio. The top 10 holdings constitute 11.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

T. Rowe Price Tax-Free Shrt-Interm is part of the Fixed Income global asset class and is within the Municipal Bond fund group. T. Rowe Price Tax-Free Shrt-Interm has 6.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.8% (92.0% domestic bond, 6.8% foreign bond and 0.0% convertible bond). T. Rowe Price Tax-Free Shrt-Interm has 1.2% of the portfolio in cash.

Assets Under Management

The fund has $460 million in total assets, which is below the $630 million average for the Muni National Short category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PRFSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The T. Rowe Price Tax-Free Shrt-Interm expense ratio is below average compared to funds in the Muni National Short category. T. Rowe Price Tax-Free Shrt-Interm has an expense ratio of 0.39%, which is 32% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. T. Rowe Price Tax-Free Shrt-Interm has a portfolio turnover rate of 31%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Muni National Short category.

Recently, in the month of June 2026, T. Rowe Price Tax-Free Shrt-Interm returned 0.4%, which earned it a grade of A, as the Muni National Short category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

T. Rowe Price Tax-Free Shrt-Interm has a trailing yield of 2.98%, which is above the 2.77% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

T. Rowe Price Tax-Free Shrt-Interm Grades

Year to date, the fund has returned 1.3%, 0.0 percentage points better than the category, which translates into a grade of C. The fund has returned 3.8% over the past year (grade of B), 3.5% over the past three years (grade of C) and 1.5% per year over the past five years (grade of D) and 1.6% per year over the past 10 years (grade of C).

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