I have a small sum of money that I would like to put to work for the next 5 years and then must be available again for my use.
I want to take advantage of good muni rates and their tax advantages, but I also want to mitigate my exposure to default risk.
I thought that I should buy an intermediate muni bond fund, but this isn't ideal because I want to be to interest rate risk now and not in 5 years.
Is there some sort of bond investment trust that buys bonds now, holds them to maturity, and returns the proceeds? i.e., investing $1000 now would guarantee that I would get $1000 back minus the default percentage experienced by the fund.
Does such a product exist?