New York Municipal Income Select Closed-End Portfolio, Series 48
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 44 days in 2018
just to earn enough money to pay for these taxes.1
This unit investment trust seeks monthly
income that is exempt from federal, New York
state and/or local income taxes by investing in
a well-diversified pool of closed-end funds that
invest primarily in tax-exempt New York
municipal bonds. A portion of the income,
however, may be derived from non-New York
bonds which would be taxable to New York
residents. In addition, a portion of the income
may be subject to the alternative minimum tax.
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 seeks monthly tax-free income, there is no assurance the objective will be met.
| Not FDIC Insured, Not Bank Guaranteed and May Lose Value.
You should carefully consider the portfolio's investment objectives,
risks, and charges and expenses 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
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. The portfolio is also subject to additional risks as a result of its concentration in bonds issued by New York municipalities, including a deterioration of the economic factors affecting the state.
All of the closed-end funds invest in investment grade bonds. Investment grade bonds are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade bond 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.
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.
As the use of Internet technology has become more prevalent in
the course of business, the trust has become more susceptible to
potential operational risks through breaches in cyber security.