Municipal Income Select Closed-End Portfolio, Series 91
Americans deal with a number of different taxes in their everyday lives, perhaps none more noticeable
than individual income taxes. In fact, individual income taxes comprise the largest component of
Americans' tax bill. Tax Freedom Day is the day on which Americans have earned enough money to pay
all federal, state and local taxes for the year. On average, Americans have to work a full 46 days in 2017
just to earn enough money to pay for these taxes.1
This unit investment trust seeks monthly
income that is exempt from federal income
taxes by investing in a well-diversified pool of
closed-end funds that invest in municipal
bonds. However, certain distributions paid by
cer tain funds may be subject to federal income
taxes. In addition, a por tion of the income may
be subject to the alternative minimum tax.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
Since closed-end funds maintain a relatively fixed pool of investment capital,
portfolio managers are better able to adhere to their investment philosophies
through greater flexibility and control. In addition, closed-end funds don't
have to manage fund liquidity to meet potentially large redemptions.
Closed-end funds are structured to generally provide a more stable income stream
than other managed fixed-income investment products because they are not subjected
to cash inflows and outflows, which can dilute dividends over time. However,
as a result of bond calls, redemptions and advanced refundings, which can dilute
a fund's income, the portfolio cannot guarantee consistent income. Although
the portfolio's objective is to provide investors with the potential for monthly
tax-free income, there is no assurance the objective will be met.
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully before investing. Contact your financial advisor
or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus,
which contains this and other information about the portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should be made with an
understanding of the risks associated with an investment in a portfolio of closed-end funds
which invest in municipal bonds.
Closed-end funds are subject to various risks, including management's ability to meet the
fund's investment objective, and to manage the fund's portfolio when the underlying securities
are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding
the funds or their underlying investments change.Unlike open-end funds, which trade at prices
based on a current determination of the fund's net asset value, closed-end funds frequently
trade at a discount to their net asset value in the secondary market. Certain closed-end funds
may employ the use of leverage which increases the volatility of such funds.
Municipal bonds are subject to numerous risks, including higher interest rates, economic
recession, deterioration of the municipal bond market, possible downgrades and defaults of
interest and/or principal.
Certain of the closed-end funds invest in high-yield securities or "junk" bonds. Investing in high-yield securities should be viewed as speculative and you
should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks,
including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal.
High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.
All of the closed-end funds invest in investment grade securities. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity.
The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. The markets for credit instruments, including municipal securities, have experienced periods of extreme illiquidity and volatility.
It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be
made without paying the trust's sales charge, operating expenses and organizational costs.
For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.