Dupree Mutual Funds N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES.

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-2918

DUPREE MUTUAL FUNDS

(Exact Name of Registrant as Specified in Charter)

125 South Mill Street, Vine Center, Suite 100

Lexington, Kentucky 40507

(Address of Principal Executive Offices) (Zip Code)

Allen E. Grimes, III

125 South Mill Street, Vine Center, Suite 100

Lexington, Kentucky 40507

(Name and address of agent for service)

Registrant’s Telephone Number, including Area Code (859) 254-7741

Date of fiscal year end: June 30

Date of reporting period: December 31, 2021

Item 1. Report to Stockholders

December 31, 2021

SEMI ANNUAL REPORT

TO SHAREHOLDERS

ABOUT DUPREE MUTUAL FUNDS

In 1941, Dupree & Company, Inc. began business in Harlan, Kentucky as a small securities brokerage firm specializing in tax-exempt municipal bonds.

Over the years the firm, which in 1963 moved its offices to Lexington, Kentucky, grew to become a regional leader in public finance, helping to structure complex and innovative municipal bond financing for some of the largest public projects in the Commonwealth of Kentucky.

In 1979, Dupree & Company began what is now Dupree Mutual Funds with the Kentucky Tax-Free Income Series and became the Fund’s investment adviser. The Fund was one of the first single-state municipal bond funds in the country, and the first mutual fund to invest solely in Kentucky municipal bonds. Since then, several new offerings have been added to the Dupree Mutual Funds family:

Kentucky Tax-Free Short-to-Medium Series in 1987;

Intermediate Government Bond Series in 1992;

Tennessee Tax-Free Income Series in 1993;

Tennessee Tax-Free Short-to-Medium Series in 1994;

North Carolina Tax-Free Income Series in 1995;

North Carolina Tax-Free Short-to-Medium Series in 1995;

Alabama Tax-Free Income Series in 2000;

Mississippi Tax-Free Income Series in 2000; and

Taxable Municipal Bond Series in 2010.

Today, after more than 60 years in business, Dupree continues to be a pioneer in the industry. Our Kentucky, Tennessee, and Mississippi Series are currently the ONLY 100% “no-load” municipal bond funds available in those states. No-load means simply that shares of the funds are offered directly to investors with no front or back-end sales charges, as opposed to load funds, which are sold through brokerage firms or other institutions that typically carry sales charges.

At Dupree Mutual Funds, our goal is a simple one: to offer investors a high-quality, low-cost way to invest in municipal and government bonds while providing superior service to our shareholders. We encourage you to let us know how we’re doing.

TABLE OF CONTENTS

Management’s Discussion of Fund Performance	i
Sector Allocation of Funds	iii
Financial Statements
Alabama Tax-Free Income Series	1
Kentucky Tax-Free Income Series	6
Kentucky Tax-Free Short-to-Medium Series	15
Mississippi Tax-Free Income Series	20
North Carolina Tax-Free Income Series	24
North Carolina Tax-Free Short-to-Medium Series	31
Tennessee Tax-Free Income Series	36
Tennessee Tax-Free Short-to-Medium Series	41
Intermediate Government Bond Series	45
Taxable Municipal Bond Series	48
Notes to Financial Statements	52
Other Unaudited Information	62
Schedule of Shareholder Expenses	66

Management’s Discussion of Fund Performance: (Unaudited)

Six Months Ended December 31, 2021

The investment objective for our tax-exempt municipal bond funds is to provide a high level of tax-free income derived from state-specific municipal securities without incurring undue risk to principal. Similarly, the investment objectives for our government bond fund and taxable municipal bond fund are to provide a high level of taxable income derived from securities of the U.S. Government and its agencies and taxable municipal bonds, respectively, without incurring undue risk to principal. We do not try to anticipate market direction; instead, we attempt to buy high quality investment grade bonds at the best possible prices and yields and hold them in down markets as well as up markets.

Factors that may influence the performance of a state-specific tax-exempt municipal bond fund or a taxable municipal bond fund include, but are not limited to, movements in interest rates, a downgrade or upgrade of credit ratings assigned to bonds issued by state or local governments, changes in the credit ratings assigned to bond insurers, downturns or upturns in the specific economies of a given state, the rate at which bonds are called, and the rate at which revenues used to pay debt service on issued bonds are received by state and local governments. Similarly, the performance of a government bond fund may be influenced by several factors including, but not limited to, movements in interest rates, prevailing conditions in the U.S. Government securities markets, changes in an issuer’s financial strength, changes in the credit rating assigned to an obligation, and the rate at which bonds are called.

During the six month period ended December 31, 2021 (the “Reporting Period”), the economy continued its rebound from the sharp contraction caused by the COVID-19 pandemic. Real gross domestic product (“GDP”) increased at an annual rate of 2.3 percent in the third quarter. This growth rate was nonetheless a deceleration from the second quarter growth rate, as a resurgence of COVID-19 cases resulted in new restrictions and delays in reopening the economy. The pace of economic growth then picked up during the fourth quarter with real GDP increasing at a 6.9 percent annual rate (advance estimate). The acceleration in economic growth was fueled by inventory rebuilding and an uptick in consumer spending.

Labor market conditions continued to improve during the Reporting Period. The seasonally adjusted national unemployment rate was 3.9 percent in December. Employment continued to trend up in leisure and hospitality, professional and business services, manufacturing, construction, and transportation sectors. The labor force participation rate was unchanged at 61.9 percent in December but remains 1.5 percentage points lower than in February 2020. Average hourly earnings increased at a 4.7 percent annual rate in December. Many economists believe that the economy is approaching a level close to maximum employment.

Key measures of inflation remained significantly elevated above the Federal Reserve’s (the “Fed”) 2.0 percent inflation target during the Reporting Period. The headline Consumer Price Index (“CPI”) increased at an annual rate of 7.0 percent in December, the most in four decades. The core CPI (which excludes food and energy costs) increased at an annual rate of 5.5 percent in December. The Fed’s preferred inflation gauge, the core Personal Consumption Expenditure Index, increased at an annual rate of 4.9 percent in December. Materials shortages, limited labor supply, and transportation bottlenecks have all contributed to the recent increase in prices.

The Federal Open Market Committee (“FOMC”) met on December 15 and left the federal funds rate unchanged at 0 to ¹⁄₄ percent. However, in response to persistently elevated inflation readings, it decided to double the pace of its quantitative easing taper which it first announced in November. The taper is expected to be complete by as early as March. The Fed’s guidance on interest rate hikes also changed slightly and is now more focused on labor market conditions (i.e., future assessments of maximum employment) rather than price stability. The FOMC is still expected to raise interest rates by the same amount, but interest rate hikes will likely start sooner than originally anticipated. Yields on benchmark 10-year and 30-year Treasuries moved higher at the end of the Reporting Period as the market priced in sooner than expected rate hikes.

Credit quality in the investment grade municipal bond market has held up very well. State and local governments are flush with cash thanks in large part to COVID-19 relief. State and local tax revenues have soared as nominal profits and incomes have risen. Property, corporate, sales, and individual tax revenues have all risen sharply thanks to a strong economic recovery, a frothy stock market, a strong housing market, and ongoing federal assistance. Moreover, state and local governments are set for another large multi-year infusion of cash from the infrastructure package which was passed in early November.

Intermediate and longer-term investment grade municipal bonds provided modest positive returns during the Reporting Period. Shorter-term investment grade municipal bonds provided flat to slightly negative returns during the Reporting Period. The Bloomberg Municipal Bond Index (“Muni Index”) provided a total return (which includes prices changes plus interest) of 0.45 percent for the six month period ended December 31, 2021. Taxable municipal bonds outperformed tax-exempts bonds with the Bloomberg Taxable Municipal Bond Index (“Taxable Muni Index”) returning 0.64 percent. The Bloomberg U.S. Intermediate Government Bond Index (“Intermediate Government Bond Index”) provided a total return of -0.58 percent.

i

Longer-dated investment grade municipal bonds outperformed shorter-dated municipal bonds during the Reporting Period. Municipal bonds with maturities longer than 20 years provided the highest returns, whereas municipal bonds with maturities in the range of 1-4 years provided the lowest returns. Additionally, lower-rated bonds generally outperformed higher-rated bonds with bonds rated “BBB” providing the highest returns. The Muni Index holds a higher percentage of bonds rated “BBB” than any of our single-state municipal bond funds.

A discussion of the performance of each of our funds for the six month period ended December 31, 2021 follows:

The Kentucky Tax-Free Income Series provided a total return of 0.52 percent during the Reporting Period and slightly outperformed the Muni Index. The Kentucky Tax-Free Short-to-Medium Series provided a total return of -0.15 percent. The Kentucky Tax-Free Short-to-Medium Series had a shorter duration (2.63 years) than the Muni Index (5.05 years), which led to its slight underperformance during the Reporting Period.

The Tennessee Tax-Free Income Series provided a total return of 0.28 percent during the Reporting Period. The Tennessee Tax-Free Short-to-Medium Series provided a total return of -0.22 percent. Both the Tennessee Tax-Free Income Series and the Tennessee Tax-Free Short-to-Medium Series had shorter durations (3.73 years and 2.82 years, respectively) than the Muni Index (5.05 years), which led to their slight underperformance during the Reporting Period.

The North Carolina Tax-Free Income Series provided a total return of 0.41 percent during the Reporting Period. The North Carolina Tax-Free Short-to-Medium Series provided a total return of -0.05 percent. Both the North Carolina Tax-Free Income Series and the North Carolina Tax-Free Short-to-Medium Series had shorter durations (4.81 and 3.21 years, respectively) than the Muni Index (5.05 years), which led to their slight underperformance during the Reporting Period.

The Alabama Tax-Free Income Series provided a total a total return of 0.36 percent during the Reporting Period. The Alabama Tax-Free Income Series had a shorter duration (4.58 years) than the Muni Index (5.05 years), which led to its slight underperformance during the Reporting Period.

The Mississippi Tax-Free Income Series provided a total return of 0.31 percent during the Reporting Period. The Mississippi Tax-Free Income Series had a shorter duration (4.34 years) than the Muni Index (5.05 years), which led to its slight underperformance during the Reporting Period.

The Intermediate Government Bond Series provided a total return of -0.56 percent which was in line with the performance of the Intermediate Government Bond Index during the Reporting period.

The Taxable Municipal Bond Series provided a total return of 0.69 percent during the Reporting Period which was slightly better than the performance of the Taxable Muni Index during the Reporting Period.

It should be noted that the Bloomberg indices do not take into consideration any operating expenses or transaction costs. An investment cannot be made directly in an index.

Thank you for investing with Dupree Mutual Funds.

Total returns include changes in share price, reinvestment of dividends, and reinvestment of capital gains, if any. Performance data quoted represents past performance which is not a guarantee of future results. The opinions expressed herein are those of the funds’ portfolio management and are current as of December 31, 2021. Management’s opinions are not guarantees of performance or investment results and should not be taken as investment advice. You may lose money investing in the funds.

ii

The illustrations below provide each Fund’s sector allocation and
summarize key information about each Fund’s investments as of December 31, 2021 Unaudited

Alabama Tax-Free Income Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aaa/AAA		2.01%
Aa/AA		92.84%
A		2.00%
Not Rated		3.15%
		100.00%
COMPOSITION
	% of Net Assets
Prerefunded		26.20%
School Improvement		21.00%
University Consolidated Education and Building Revenue		13.37%
Public Facilities Revenue		11.79%
Municipal Utility Revenue		11.71%
Miscellaneous Public Improvement		5.48%
Refunding		4.97%
Hospital and Healthcare Revenue		2.19%
Turnpikes/Toll Road/Highway Revenue		1.11%
Other Assets Less Liabilities		2.18%
		100.00%

Kentucky Tax-Free Income Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aa/AA		50.51%
A		47.87%
Baa/BBB		0.01%
Not Rated		1.61%
		100.00%
COMPOSITION
	% of Net Assets
Miscellaneous Public Improvement		32.07%
School Improvement		16.58%
University Consolidated Education and Building Revenue		13.29%
Municipal Utility Revenue		9.03%
Prerefunded		6.73%
Public Facilities Revenue		5.43%
Hospital and Healthcare Revenue		4.75%
Turnpikes/Toll Road/Highway Revenue		4.12%
Refunding		2.87%
Airport Revenue		0.72%
Ad Valorem Property		0.31%
State and Local Mortgage/Housing Revenue		0.01%
Other Assets Less Liabilities		4.09%
		100.00%

Kentucky Tax-Free Short-to-Medium Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aaa/AAA		0.39%
Aa/AA		33.98%
A		64.58%
Not Rated		1.05%
		100.00%
COMPOSITION
	% of Net Assets
School Improvement		23.24%
Miscellaneous Public Improvement		22.99%
Public Facilities Revenue		15.75%
Turnpikes/Toll Road/Highway Revenue		10.94%
University Consolidated Education and Building Revenue		9.69%
Municipal Utility Revenue		7.03%
Prerefunded		2.66%
Refunding		1.89%
Ad Valorem Property		1.65%
Airport Revenue		1.27%
Other Assets Less Liabilities		2.89%
		100.00%

Mississippi Tax-Free Income Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aa/AA		89.36%
A		8.34%
Not Rated		2.30%
		100.00%
COMPOSITION
	% of Net Assets
University Consolidated Education and Building Revenue		28.43%
Prerefunded		21.34%
Municipal Utility Revenue		8.69%
Miscellaneous Public Improvement		8.46%
Turnpikes/Toll Road/Highway Revenue		7.72%
Ad Valorem Property		6.39%
Public Facilities Revenue		5.54%
School Improvement		3.92%
Refunding		2.98%
Hospital and Healthcare Revenue		1.49%
Other Assets Less Liabilities		5.04%
		100.00%

iii

The illustrations below provide each Fund’s sector allocation and
summarize key information about each Fund’s investments as of December 31, 2021 Unaudited

North Carolina Tax-Free Income Series
CREDIT QUALITY *	% of Fair Value of Investments Held
Aaa/AAA		6.17%
Aa/AA		78.90%
A		13.76%
Not Rated		1.17%
		100.00%
COMPOSITION
	% of Net Assets
School Improvement		17.64%
Public Facilities Revenue		17.21%
Municipal Utility Revenue		14.64%
Prerefunded		14.25%
University Consolidated Education and Building Revenue		12.31%
Refunding		6.17%
Hospital and Healthcare Revenue		5.51%
Miscellaneous Public Improvement		3.62%
Turnpikes/Toll Road/Highway Revenue		3.54%
Airport Revenue		3.21%
Lease Revenue		1.04%
Other Assets Less Liabilities		0.86%
		100.00%

North Carolina Tax-Free Short-to-Medium Series
CREDIT QUALITY *	% of Fair Value of Investments Held
Aaa/AAA		2.18%
Aa/AA		64.25%
A		33.57%
		100.00%
COMPOSITION
	% of Net Assets
University Consolidated Education and Building Revenue		23.00%
Municipal Utility Revenue		15.85%
Refunding		14.09%
School Improvement		10.59%
Public Facilities Revenue		10.44%
Prerefunded		6.12%
Turnpikes/Toll Road/Highway Revenue		3.72%
Hospital and Healthcare Revenue		3.38%
Miscellaneous Public Improvement		2.34%
Ad Valorem Property		2.01%
Lease Revenue		1.87%
Escrowed to Maturity		1.62%
Airport Revenue		0.73%
Other Assets Less Liabilities		4.24%
			��
		100.00%

Tennessee Tax-Free Income Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aaa/AAA		3.74%
Aa/AA		77.21%
A		19.05%
		100.00%
COMPOSITION
	% of Net Assets
Municipal Utility Revenue		26.46%
Prerefunded		24.41%
School Improvement		13.77%
Hospital and Healthcare Revenue		8.82%
Miscellaneous Public Improvement		8.31%
Refunding		5.49%
University Consolidated Education and Building Revenue		4.02%
Airport Revenue		3.67%
Public Facilities Revenue		3.52%
Other Assets Less Liabilities		1.53%
		100.00%

Tennessee Tax-Free Short-to-Medium Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aa/AA		83.15%
A		16.46%
NR		0.39%
		100.00%
COMPOSITION
	% of Net Assets
Municipal Utility Revenue		23.21%
Refunding		21.33%
School Improvement		19.26%
Public Facilities Revenue		19.21%
University Consolidated Education and Building Revenue		9.31%
Airport Revenue		1.96%
Prerefunded		1.89%
Miscellaneous Public Improvement		0.72%
Other Assets Less Liabilities		3.11%
		100.00%

iv

The illustrations below provide each Fund’s sector allocation and
summarize key information about each Fund’s investments as of December 31, 2021 Unaudited

Intermediate Government Bond Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aaa/AAA		100.00%
COMPOSITION
	% of Net Assets
Federal Farm Credit		61.64%
Federal Home Loan Bank		32.59%
Federal Home Loan Mortgage Corporation		4.17%
Other Assets Less Liabilities		1.60%
		100.00%

Taxable Municipal Bond Series
CREDIT QUALITY*	% of Fair Value of Investments Held
Aaa/AAA		3.52%
Aa/AA		87.68%
A		8.80%
		100.00%
COMPOSITION
	% of Net Assets
Municipal Utility Revenue		34.00%
Public Facilities Revenue		15.63%
Prerefunded		8.70%
School Improvement		7.91%
Refunding		7.39%
University Consolidated Education and Building Revenue		7.34%
Miscellaneous Public Improvement		5.29%
Turnpikes/Toll Road/Highway Revenue		3.26%
Marina/Port Authority Revenue		2.37%
Ad Valorem Property		2.02%
Hospital and Healthcare Revenue		2.00%
Mass Transit		1.98%
Airport Revenue		0.99%
Other Assets Less Liabilities		1.12%
		100.00%

* Ratings by Moody’s Investors Services, Inc. unless noted otherwise. See Schedules of Portfolio Investments for individual bond ratings.

v

DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Alabama Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date	Rating#	Par Value		Fair Value
PREREFUNDED BONDS
26.20% of Net Assets
AL Federal Aid Highway Finance Authority		4.000	%	06/01/2037	Aa1	$	250,000	$	294,233
Alabaster AL Board of Education Special Tax Warrants**		5.000		09/01/2039	A1		600,000		673,302
Auburn AL Waterworks Board Water Revenue		5.000		09/01/2036	Aa2		250,000		290,030
Birmingham AL Waterworks**		5.000		01/01/2038	Aa2		550,000		576,076
Birmingham AL Waterworks		5.000		01/01/2040	Aa2		150,000		170,363
Decatur City AL Board of Education Special Tax		5.000		02/01/2040	Aa2		225,000		256,311
Etowah County AL Board of Education Capital Outlay Tax		5.000		09/01/2037	A+*		200,000		206,350
Jasper AL Warrants		5.000		03/01/2031	A2		250,000		274,840
Jasper AL Warrants		5.000		03/01/2032	A2		450,000		494,712
Limestone County AL Board of Education		5.000		07/01/2033	AA*		255,000		284,284
Limestone County AL Water & Sewer Authority		5.000		12/01/2033	AA-*		300,000		329,130
Limestone County AL Water & Sewer Authority		4.750		12/01/2033	AA*		290,000		347,287
Limestone County AL Water & Sewer Authority		5.000		12/01/2034	AA-*		250,000		272,288
Madison AL Warrants		5.000		04/01/2035	Aa2		350,000		400,831
Morgan County AL Board of Education Capital Outlay Warrants		5.000		03/01/2035	NR		155,000		159,326
Morgan County AL Board of Education Capital Outlay Warrants		5.000		03/01/2035	NR		245,000		251,838
Morgan County AL Board of Education Capital Outlay Warrants		5.000		03/01/2035	AA-*		255,000		262,178
Trussville AL Warrants		5.000		10/01/2039	NR		445,000		481,392
Trussville AL Warrants**		5.000		10/01/2039	Aa2		775,000		839,090
Tuscaloosa AL Warrants		5.000		01/01/2032	Aa1		350,000		382,333
Tuscaloosa AL Warrants		5.000		07/01/2034	Aa1		300,000		334,293
									7,580,487
SCHOOL IMPROVEMENT BONDS
21.00% of Net Assets
Athens AL Warrants		3.000		05/01/2041	Aa3		125,000		135,815
Bibb County AL Board of Education Special Tax		4.000		04/01/2032	AA*		380,000		453,781
Cherokee County AL Board of Education Tax Warrants		4.000		12/01/2034	A1		310,000		360,955
Elmore County AL Board of Education		4.000		08/01/2036	Aa3		225,000		265,881
Elmore County AL Board of Education		4.000		08/01/2038	Aa3		250,000		294,443
Guntersville AL Warrants		3.000		08/01/2040	AA-*		250,000		271,930
Houston County AL Board of Education Special Tax School Warrants		3.000		12/01/2037	AA*		250,000		275,043
Jackson County AL Board of Education School Tax Warrants		3.000		03/01/2038	AA*		350,000		385,028
Jefferson County AL Board of Education Public School Warrants		4.000		02/01/2042	A1		325,000		374,312
Jefferson County AL Public Schools		4.000		02/01/2038	A1		165,000		191,499
Madison AL Board of Education Special Tax School Warrants		4.000		02/01/2041	Aa3		370,000		430,303
Madison County AL Board of Education Capital Outlay		5.000		09/01/2031	Aa3		660,000		770,411
Marshall County AL Board of Education Special Tax School Warrants**		4.000		03/01/2033	A2		250,000		277,073
Mountain Brook AL City Board of Education		3.000		03/01/2042	Aa1		250,000		276,133
Oxford AL Board of Education School Tax Warrants		4.000		05/01/2045	Aa3		350,000		409,623
Saint Clair County AL Board of Education Special Tax Warrants		3.000		02/01/2038	A1		250,000		274,813
Troy AL Public Educational Building Authority		5.250		12/01/2036	A2		30,000		30,099
Tuscaloosa County AL Board of Education Special Tax School Warrants		5.000		02/01/2036	Aa3		250,000		300,128
Tuscaloosa County AL Board of Education Special Tax School Warrants		5.000		02/01/2037	Aa3		250,000		299,853
									6,077,123
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
13.37% of Net Assets
AL Community College System Gadsden State Community College		5.000		06/01/2038	A1		325,000		391,003
AL State Public School & College Authority		4.000		11/01/2038	Aa1		250,000		301,065
Auburn University AL General Fee Revenue		4.000		06/01/2036	Aa2		380,000		428,078
Troy University AL Facilities Revenue		5.000		11/01/2028	A1		250,000		283,758
Troy University AL Facilities Revenue		4.000		11/01/2032	A1		300,000		346,086
Troy University AL Facilities Revenue		5.000		11/01/2037	A1		200,000		243,194
University of AL Birmingham		5.000		10/01/2037	Aa2		225,000		242,577
University of AL Huntsville General Fee Revenue		5.000		09/01/2037	Aa3		250,000		304,805
University of AL Huntsville General Fee Revenue		5.000		09/01/2038	Aa3		500,000		615,970

The accompanying notes are an integral part of the financial statements.

1

DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Alabama Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date	Rating#	Par Value		Fair Value
University of AL Huntsville General Fee Revenue		5.000	%	09/01/2038	Aa3	$	435,000	$	529,787
University of South AL		5.000		04/01/2044	A1		150,000		183,855
									3,870,178
PUBLIC FACILITIES REVENUE BONDS
11.79% of Net Assets
Adamsville AL Warrants		3.000		09/01/2045	AA*		250,000		271,277
Anniston AL Public Building Authority DHR Project		5.250		05/01/2030	AA-*		50,000		50,188
Anniston AL Public Building Authority DHR Project		5.500		05/01/2033	AA-*		200,000		200,788
Bessemer AL Public Educational Building Authority Revenue		5.000		07/01/2030	AA*		140,000		140,363
Birmingham Jefferson AL Civic Center Authority Revenue		5.000		05/01/2037	Aa3		500,000		607,365
Birmingham Jefferson AL Civic Center Authority Revenue		5.000		05/01/2038	Aa3		250,000		303,345
Boaz AL Warrants		4.000		02/01/2037	AA*		250,000		287,775
Bullock County AL Public Building Authority		4.000		10/01/2038	AA-*		500,000		562,475
Montgomery County AL Public Building Authority		5.000		03/01/2036	Aa2		350,000		435,470
Phenix City AL Public Building Authority		4.000		10/01/2035	AA-*		100,000		118,788
Phenix City AL Public Building Authority		4.000		10/01/2037	AA-*		120,000		141,870
Saint Clair County AL Public Building Authority		4.000		02/01/2041	AA-*		250,000		292,690
									3,412,394
MUNICIPAL UTILITY REVENUE BONDS
11.71% of Net Assets
Athens AL Water & Sewer		4.000		05/01/2039	A1		200,000		237,992
Athens AL Water & Sewer		4.000		05/01/2040	A1		100,000		118,481
Berry AL Water & Sewer Revenue		4.000		09/01/2039	AA*		250,000		277,468
Birmingham AL Waterworks		4.000		01/01/2037	Aa2		250,000		285,048
Birmingham AL Waterworks		4.000		01/01/2041	Aa2		225,000		256,307
Coosa Valley Water Supply		4.000		10/01/2036	AA-*		150,000		178,995
Gadsden AL Waterworks & Sewer Board		4.000		06/01/2034	A1		120,000		139,283
Limestone County AL Water & Sewer Authority		4.750		12/01/2035	AA*		400,000		446,934
Opelika AL Utilities Board		4.000		06/01/2039	Aa3		250,000		286,178
Prattville AL Sewer Warrants		4.000		11/01/2042	AA-*		375,000		428,973
Scottsboro AL Waterworks Sewer & Gas		4.000		08/01/2040	AA*		150,000		177,575
Talladega AL Water & Sewer Revenue		3.000		09/01/2046	AA*		250,000		269,360
Tuskegee AL Utilities Board		3.000		08/01/2037	A1		260,000		287,108
									3,389,702
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
5.48% of Net Assets
Arab AL		3.000		12/01/2041	AA*		250,000		271,583
Birmingham AL Warrants		4.000		12/01/2035	Aa3		250,000		293,443
Birmingham AL Warrants		5.000		12/01/2037	Aa3		250,000		308,847
Birmingham AL Warrants		4.000		06/01/2046	Aa3		600,000		710,453
									1,584,326
REFUNDING BONDS
4.97% of Net Assets
Montgomery AL Warrants		5.000		06/15/2035	A1		500,000		614,375
Northport AL Warrants**		5.000		08/01/2040	AA*		735,000		823,016
									1,437,391
HOSPITAL AND HEALTHCARE REVENUE BONDS
2.19% of Net Assets
Chilton County AL Health Care Authority Chilton County Hospital**		5.000		11/01/2035	AA-@		550,000		632,528

The accompanying notes are an integral part of the financial statements.

2

DUPREE MUTUAL FUNDS — ALABAMA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Alabama Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date	Rating#	Par Value		Fair Value
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS
1.11% of Net Assets
AL State Highway Finance Corporation		5.000	%	08/01/2040	Aa2	$	250,000	$	321,848
Total Investments 97.82% of Net Assets (cost $26,506,003) (See (a) below for further explanation)								$	28,305,977
Other assets in excess of liabilities 2.18%									630,226
Net Assets 100%								$	28,936,203

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $26,506,003 and net unrealized appreciation of investments is as follows:    

Unrealized appreciation	$	1,804,940
Unrealized depreciation		(4,966	)
Net unrealized appreciation	$	1,799,974

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		28,305,977
Level 3	Significant Unobservable Inputs		—
		$	28,305,977

The accompanying notes are an integral part of the financial statements.

3

ALABAMA TAX-FREE INCOME SERIES

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2021 UNAUDITED

ASSETS:
Investments in securities, at fair value (Cost: $26,506,003)		$	28,305,977
Cash			430,429
Interest receivable			306,278
Total assets			29,042,684
LIABILITIES:
Payable for:
Distributions to shareholders	86,870
Fund shares redeemed	3,235
Investment advisory fee	5,475
Transfer agent fee	7,361
Professional fees	1,216
Custodian expense	354
Trustees fees	234
Accrued expenses	1,736
Total liabilities			106,481
NET ASSETS:
Capital			27,133,877
Total distributable earnings			1,802,326
Net assets at value		$	28,936,203
NET ASSET VALUE, offering price and redemption price per share (2,266,621 shares outstanding; unlimited number of shares authorized; no par value)		$	12.77

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	403,320
Expenses:
Investment advisory fee		71,930
Transfer agent fee		20,288
Custodian expense		3,800
Professional fees		3,009
Compliance fees		3,630
Pricing fees		3,805
Registration fees		4,746
Trustees fees		1,477
Other expenses		3,337
Total expenses		116,022
Fees waived by Adviser (Note 2)		(15,160	)
Custodian expense reduction (Note 7)		(13	)
Net expenses		100,849
Net investment income		302,471
Realized and unrealized gain/(loss) on investments:
Net realized gain		2,352
Net change in unrealized appreciation/depreciation		(199,281	)
Net realized and unrealized loss on investments		(196,929	)
Net increase in net assets resulting from operations	$	105,542

The accompanying notes are an integral part of the financial statements.

4

ALABAMA TAX-FREE INCOME SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 6/30/2021
Operations:
Net investment income	$	302,471		$	625,892
Net realized gain on investments		2,352			73,063
Net change in unrealized appreciation/depreciation		(199,281	)		100,184
Net increase in net assets resulting from operations		105,542			799,139
Total distributions (Note 6)		(304,129	)		(625,892	)
Net Fund share transactions (Note 4)		925,678			681,869
Total increase		727,091			855,116
Net assets:
Beginning of period		28,209,112			27,353,996
End of period	$	28,936,203		$	28,209,112

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	12.86		$	12.78		$	12.43		$	12.08		$	12.29		$	12.77
Income from investment operations:
Net investment income		0.14			0.29			0.33			0.34			0.36			0.37
Net gains/(losses) on investments		(0.09	)		0.08			0.35			0.35			(0.21	)		(0.48	)
Total from investment operations		0.05			0.37			0.68			0.69			0.15			(0.11	)
Less distributions:
Distributions from net investment income		(0.14	)		(0.29	)		(0.33	)		(0.34	)		(0.36	)		(0.37	)
Net asset value, end of period	$	12.77		$	12.86		$	12.78		$	12.43		$	12.08		$	12.29
Total return		0.36%	(b)		2.93%			5.49%			5.80%			1.24%			(0.82	)%
Net assets, end of period (in thousands)	$	28,936		$	28,209		$	27,354		$	26,154		$	25,255		$	26,555
Ratio of net expenses to average net assets (a)		0.70%	(c)		0.70%			0.70%			0.70%			0.70%			0.70%
Ratio of gross expenses to average net assets		0.81%	(c)		0.80%			0.82%			0.84%			0.82%			0.78%
Ratio of net investment income to average net assets		2.12%	(c)		2.26%			2.58%			2.79%			2.96%			3.00%
Portfolio turnover		1.08%	(b)		13.38%			6.98%			16.54%			13.83%			6.95%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Not annualized

(c) Annualized

The accompanying notes are an integral part of the financial statements.

5

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
32.07% of Net Assets
KY Association of Counties		4.000	%		2/1/2028	AA-*	$	345,000	$	403,712
KY Association of Counties		4.000			2/1/2029	AA-*		240,000		284,604
KY Association of Counties		5.000			2/1/2030	AA-*		385,000		481,982
KY Association of Counties		5.000			2/1/2031	AA-*		255,000		318,059
KY Association of Counties		4.000			2/1/2033	AA-*		420,000		475,096
KY Association of Counties		4.000			2/1/2034	AA-*		435,000		492,899
KY Association of Counties		4.000			2/1/2035	AA-*		690,000		796,439
KY Association of Counties		4.000			2/1/2035	AA-*		460,000		519,023
KY Association of Counties		4.000			2/1/2037	AA-*		745,000		856,162
KY Association of Counties		4.000			2/1/2038	AA-*		3,165,000		3,629,306
KY Association of Counties		4.000			2/1/2039	AA-*		1,000,000		1,144,820
KY Bond Corporation Finance Program		3.000			2/1/2032	AA-*		550,000		597,454
KY Bond Corporation Finance Program		3.000			2/1/2033	AA-*		1,010,000		1,095,921
KY Bond Corporation Finance Program		3.000			2/1/2033	AA-*		905,000		987,618
KY Bond Corporation Finance Program		3.000			2/1/2034	AA-*		1,070,000		1,155,846
KY Bond Corporation Finance Program		3.000			2/1/2034	AA-*		925,000		1,008,796
KY Bond Corporation Finance Program		3.000			2/1/2035	AA-*		1,170,000		1,258,241
KY Bond Corporation Finance Program		3.000			2/1/2035	AA-*		930,000		1,010,352
KY Bond Corporation Finance Program		3.000			2/1/2036	AA-*		1,240,000		1,329,813
KY Bond Corporation Finance Program		3.000			2/1/2036	AA-*		965,000		1,043,686
KY Bond Corporation Finance Program		3.000			2/1/2037	AA-*		990,000		1,070,032
KY Bond Corporation Finance Program		3.000			2/1/2038	AA-*		980,000		1,044,553
KY Bond Corporation Finance Program		3.000			2/1/2038	AA-*		1,025,000		1,102,203
KY Bond Corporation Finance Program		3.000			2/1/2039	AA-*		1,050,000		1,127,637
KY Bond Corporation Finance Program		3.000			2/1/2040	AA-*		1,030,000		1,104,747
KY Bond Corporation Finance Program		3.000			2/1/2041	AA-*		1,000,000		1,059,950
KY Bond Corporation Finance Program		3.000			2/1/2041	AA-*		1,065,000		1,138,634
KY Bond Corporation Finance Program		3.000			2/1/2042	AA-*		420,000		447,892
KY Bond Corporation Finance Program		3.000			2/1/2043	AA-*		430,000		459,438
KY Bond Corporation Finance Program		3.000			2/1/2044	AA-*		450,000		479,885
KY Bond Corporation Finance Program		3.000			2/1/2047	AA-*		1,100,000		1,167,815
KY State Property & Building #105		4.750			4/1/2031	A2		2,110,000		2,221,049
KY State Property & Building #105		4.750			4/1/2032	A2		2,205,000		2,319,616
KY State Property & Building #105		4.750			4/1/2033	A2		2,310,000		2,429,774
KY State Property & Building #106		5.000			10/1/2029	A1		4,130,000		4,470,064
KY State Property & Building #106		5.000			10/1/2030	A1		7,165,000		7,754,966
KY State Property & Building #106		5.000			10/1/2031	A1		4,910,000		5,314,289
KY State Property & Building #106		5.000			10/1/2032	A1		6,275,000		6,790,491
KY State Property & Building #106		5.000			10/1/2033	A1		4,870,000		5,270,071
KY State Property & Building #108		5.000			8/1/2026	A1		955,000		1,103,006
KY State Property & Building #108		5.000			8/1/2028	A1		2,670,000		3,064,306
KY State Property & Building #108		5.000			8/1/2030	A1		5,000,000		5,740,300
KY State Property & Building #108		5.000			8/1/2031	A1		8,290,000		9,520,651
KY State Property & Building #108		5.000			8/1/2032	A1		8,820,000		10,122,538
KY State Property & Building #108		5.000			8/1/2033	A1		5,270,000		6,060,395
KY State Property & Building #108		5.000			8/1/2034	A1		4,900,000		5,631,129
KY State Property & Building #110		5.000			8/1/2029	A1		4,200,000		4,821,852
KY State Property & Building #110		5.000			8/1/2032	A1		1,515,000		1,738,735
KY State Property & Building #110		5.000			8/1/2033	A1		1,000,000		1,148,830
KY State Property & Building #110		5.000			8/1/2034	A1		1,900,000		2,181,314
KY State Property & Building #110		5.000			8/1/2035	A1		3,680,000		4,222,064
KY State Property & Building #112		5.000			11/1/2028	A1		2,765,000		3,301,410
KY State Property & Building #112		5.000			2/1/2035	A1		8,325,000		9,672,152
KY State Property & Building #112		5.000			2/1/2036	A1		7,920,000		9,187,834
KY State Property & Building #115		5.000			4/1/2028	A1		4,000,000		4,857,400
KY State Property & Building #115		5.000			4/1/2033	A1		4,565,000		5,468,140

The accompanying notes are an integral part of the financial statements.

6

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
KY State Property & Building #115		5.000	%		4/1/2034	A1	$	13,975,000	$	16,731,848
KY State Property & Building #115		5.000			4/1/2036	A1		14,460,000		17,214,919
KY State Property & Building #115		5.000			4/1/2037	A1		5,000,000		5,963,850
KY State Property & Building #117		5.000			5/1/2031	A1		5,055,000		6,076,312
KY State Property & Building #117		5.000			5/1/2032	A1		3,680,000		4,412,946
KY State Property & Building #117		5.000			5/1/2033	A1		3,550,000		4,257,054
KY State Property & Building #117		5.000			5/1/2034	A1		5,825,000		6,971,826
KY State Property & Building #117		5.000			5/1/2035	A1		5,065,000		6,059,260
KY State Property & Building #117		5.000			5/1/2036	A1		5,275,000		6,301,460
KY State Property & Building #119		5.000			5/1/2030	A1		3,920,000		4,836,535
KY State Property & Building #119		5.000	��		5/1/2034	A1		725,000		893,019
KY State Property & Building #119		5.000			5/1/2035	A1		10,000,000		12,290,100
KY State Property & Building #119		5.000			5/1/2036	A1		10,000,000		12,262,800
KY State Property & Building #119		5.000			5/1/2037	A1		770,000		942,657
KY State Property & Building #119		4.000			5/1/2038	A1		265,000		307,313
KY State Property & Building #122		5.000			11/1/2031	A1		790,000		989,910
KY State Property & Building #122		5.000			11/1/2033	A1		1,000,000		1,250,060
KY State Property & Building #122		4.000			11/1/2034	A1		750,000		884,138
KY State Property & Building #122		4.000			11/1/2035	A1		2,500,000		2,938,175
KY State Property & Building #122		4.000			11/1/2036	A1		1,750,000		2,052,960
KY State Property & Building #122		4.000			11/1/2037	A1		3,000,000		3,517,230
KY State Property & Building #122		4.000			11/1/2037	A1		675,000		792,821
KY State Property & Building #122		4.000			11/1/2038	A1		6,595,000		7,713,313
KY State Property & Building #122		4.000			11/1/2039	A1		9,655,000		11,271,633
KY State Property & Building #124		5.000			11/1/2034	A1		2,000,000		2,609,780
KY State Property & Building #124		5.000			11/1/2037	A1		7,530,000		9,760,386
KY State Property & Building #124		5.000			11/1/2038	A1		7,915,000		10,244,221
KY State Property & Building #124		5.000			11/1/2039	A1		8,325,000		10,750,905
Louisville & Jefferson County Visitors & Convention Commission		4.000			6/1/2034	Aa3		3,720,000		4,166,735
										327,969,157
SCHOOL IMPROVEMENT BONDS
16.58% of Net Assets
Bowling Green KY School District Finance Corporation		4.000			8/1/2034	A1		1,890,000		2,124,398
Bowling Green KY School District Finance Corporation		4.000			8/1/2035	A1		2,215,000		2,481,287
Bowling Green KY School District Finance Corporation		4.000			8/1/2036	A1		2,305,000		2,579,940
Bowling Green KY School District Finance Corporation		4.000			8/1/2037	A1		2,395,000		2,681,801
Bullitt County KY School District Finance Corporation		4.000			10/1/2035	A1		1,820,000		2,045,607
Bullitt County KY School District Finance Corporation		4.000			10/1/2036	A1		2,985,000		3,352,095
Bullitt County KY School District Finance Corporation		4.000			10/1/2037	A1		3,075,000		3,448,643
Fayette County KY School District Finance Corporation		5.000			8/1/2028	Aa3		1,330,000		1,526,920
Fayette County KY School District Finance Corporation		5.000			10/1/2028	Aa3		1,375,000		1,487,200
Fayette County KY School District Finance Corporation		4.750			11/1/2031	Aa3		1,730,000		1,924,660
Fayette County KY School District Finance Corporation		5.000			8/1/2032	Aa3		10,600,000		12,161,380
Fayette County KY School District Finance Corporation		5.000			8/1/2034	Aa3		8,750,000		10,038,875
Hardin County KY School District Finance Corporation		4.000			5/1/2030	Aa3		635,000		716,737
Hopkins County KY School District Finance Corporation		3.000			2/1/2031	A1		1,235,000		1,370,443
Hopkins County KY School District Finance Corporation		3.000			2/1/2032	A1		1,000,000		1,105,400
Jefferson County KY School District Finance Corporation		5.000			4/1/2030	Aa3		975,000		1,108,799
Jefferson County KY School District Finance Corporation		4.000			5/1/2030	Aa3		2,000,000		2,153,920
Jefferson County KY School District Finance Corporation		5.000			4/1/2031	Aa3		1,025,000		1,164,246
Jefferson County KY School District Finance Corporation		5.000			5/1/2032	Aa3		4,230,000		4,654,354
Jefferson County KY School District Finance Corporation		4.000			6/1/2032	Aa3		4,120,000		4,669,896
Jefferson County KY School District Finance Corporation		5.000			12/1/2032	Aa3		3,395,000		4,530,356
Jefferson County KY School District Finance Corporation		5.000			5/1/2033	Aa3		5,145,000		5,662,381
Jefferson County KY School District Finance Corporation		4.000			6/1/2033	Aa3		4,310,000		4,875,257
Jefferson County KY School District Finance Corporation		4.750			4/1/2034	Aa3		1,165,000		1,310,718
Jefferson County KY School District Finance Corporation		5.000			5/1/2034	Aa3		5,405,000		5,949,878
Jefferson County KY School District Finance Corporation		4.000			6/1/2034	Aa3		3,500,000		3,949,295

The accompanying notes are an integral part of the financial statements.

7

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
Jefferson County KY School District Finance Corporation		4.750	%		4/1/2035	Aa3	$	1,220,000	$	1,370,926
Jefferson County KY School District Finance Corporation		3.000			12/1/2035	Aa3		11,140,000		12,434,802
Jefferson County KY School District Finance Corporation		4.250			10/1/2037	Aa3		2,110,000		2,417,807
Jefferson County KY School District Finance Corporation		3.000			12/1/2038	Aa3		6,470,000		7,153,620
Jefferson County KY School District Finance Corporation		3.000			12/1/2039	Aa3		4,385,000		4,835,734
Jefferson County KY School District Finance Corporation		3.000			12/1/2040	Aa3		1,940,000		2,133,884
Kenton County KY School District Finance Corporation		4.000			4/1/2036	A1		1,210,000		1,399,184
Kenton County KY School District Finance Corporation		4.000			4/1/2037	A1		1,255,000		1,447,969
Kenton County KY School District Finance Corporation		4.000			4/1/2038	A1		1,300,000		1,497,366
Kenton County KY School District Finance Corporation		3.000			12/1/2040	A1		1,965,000		2,101,823
Kenton County KY School District Finance Corporation		3.000			12/1/2041	A1		2,025,000		2,163,287
Meade County KY School District Finance Corporation		4.000			6/1/2036	A1		2,215,000		2,471,874
Meade County KY School District Finance Corporation		4.000			6/1/2037	A1		2,255,000		2,517,550
Meade County KY School District Finance Corporation		4.000			6/1/2038	A1		2,400,000		2,675,064
Morgan County KY School District Finance Corporation		4.000			8/1/2029	A1		960,000		1,113,744
Oldham County KY School District Finance Corporation		4.000			10/1/2034	A1		1,560,000		1,759,524
Raceland-Worthington KY Independent School District Finance Corporation		3.400			6/1/2037	A1		655,000		717,716
Scott County KY School District Finance Corporation		4.500			1/1/2025	A1		4,890,000		5,446,873
Scott County KY School District Finance Corporation		4.000			2/1/2029	Aa3		5,040,000		6,003,043
Scott County KY School District Finance Corporation		4.000			6/1/2035	Aa3		1,440,000		1,614,902
Scott County KY School District Finance Corporation		4.000			10/1/2035	Aa3		2,235,000		2,524,164
Scott County KY School District Finance Corporation		4.000			6/1/2036	Aa3		1,500,000		1,675,335
Scott County KY School District Finance Corporation		4.000			10/1/2037	Aa3		2,415,000		2,709,630
Shelby County KY School District Finance Corporation		4.000			8/1/2037	Aa3		6,240,000		6,987,240
Shelby County KY School District Finance Corporation		4.000			8/1/2038	Aa3		3,000,000		3,354,990
										169,602,537
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
13.29% of Net Assets
Boyle County Centre College		5.000			6/1/2037	A3		2,865,000		3,401,185
KY Bond Development Corporation Educational Facilities Centre College		5.000			6/1/2033	A3		1,345,000		1,640,214
KY Bond Development Corporation Educational Facilities Centre College		5.000			6/1/2034	A3		1,605,000		1,955,083
KY Bond Development Corporation Educational Facilities Centre College		5.000			6/1/2035	A3		2,165,000		2,634,264
KY Bond Development Corporation Educational Facilities Centre College		5.000			6/1/2036	A3		2,835,000		3,443,675
KY Bond Development Corporation Educational Facilities Centre College		5.000			6/1/2038	A3		1,340,000		1,624,964
KY Bond Development Corporation Educational Facilities Centre College		4.000			6/1/2038	A3		200,000		238,144
KY Bond Development Corporation Educational Facilities Centre College		3.000			6/1/2039	A3		860,000		932,704
KY Bond Development Corporation Educational Facilities Centre College		4.000			6/1/2040	A3		640,000		756,589
KY Bond Development Corporation Educational Facilities Centre College		3.000			6/1/2041	A3		1,405,000		1,516,262
KY Bond Development Corporation Educational Facilities Centre College		4.000			6/1/2046	A3		4,045,000		4,736,169
KY Bond Development Corporation Educational Facilities Centre College		4.000			6/1/2051	A3		4,400,000		5,106,772
KY State Property & Building #114		5.000			10/1/2032	A1		2,795,000		3,315,178
KY State Property & Building #114		5.000			10/1/2033	A1		2,940,000		3,484,165
KY State Property & Building #114		5.000			10/1/2034	A1		3,090,000		3,658,776
KY State Property & Building #114		5.000			10/1/2035	A1		1,945,000		2,300,040
KY State Property & Building #116		5.000			10/1/2035	A1		4,165,000		5,065,015
KY State Property & Building #116		5.000			10/1/2036	A1		2,725,000		3,307,060
Murray State University		5.000			3/1/2032	A1		2,220,000		2,505,736
University of Kentucky Certificate of Participation		4.000			5/1/2033	Aa3		885,000		1,034,742
University of Kentucky Certificate of Participation		4.000			5/1/2034	Aa3		1,020,000		1,202,641
University of Kentucky Certificate of Participation		4.000			5/1/2039	Aa3		4,660,000		5,375,124
University of Kentucky Certificate of Participation		4.000			5/1/2044	Aa3		3,755,000		4,289,562
University of Kentucky General Receipts		5.000			4/1/2030	Aa2		5,490,000		6,243,393
University of Kentucky General Receipts		5.000			4/1/2036	Aa2		6,390,000		6,988,679
University of Kentucky General Receipts		4.000			10/1/2036	Aa2		16,160,000		18,136,206
University of Kentucky General Receipts		5.000			4/1/2037	Aa2		7,180,000		7,847,668
University of Kentucky General Receipts		5.000			4/1/2038	Aa2		7,395,000		8,084,362
University of Kentucky General Receipts		4.000			10/1/2038	Aa2		10,855,000		12,134,479
University of Kentucky Higher Educational		4.750			4/1/2034	Aa2		5,435,000		6,114,810

The accompanying notes are an integral part of the financial statements.

8

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
University of Louisville		3.000	%		9/1/2039	A1	$	1,450,000	$	1,579,485
University of Louisville		3.000			9/1/2040	A1		1,495,000		1,625,155
University of Louisville		3.000			9/1/2042	A1		1,575,000		1,703,881
Western KY University		4.000			9/1/2034	A1		575,000		647,013
Western KY University		4.000			9/1/2035	A1		595,000		669,803
Western KY University		4.000			9/1/2036	A1		620,000		695,553
										135,994,551
MUNICIPAL UTILITY REVENUE BONDS
9.03% of Net Assets
Campbell & Kenton County Sanitation District #1		4.000			8/1/2032	Aa2		6,100,000		6,967,844
KY Bond Development Corporation		5.000			9/1/2030	A2		2,515,000		3,249,506
KY Bond Development Corporation		5.000			9/1/2031	A2		2,645,000		3,405,623
KY Bond Development Corporation		5.000			9/1/2049	A2		5,000,000		6,248,750
KY Bond Development Corporation		5.000			9/1/2032	A2		2,780,000		3,569,520
KY Rural Water Finance Corporation		4.500			2/1/2023	A+*		1,085,000		1,132,556
KY Rural Water Finance Corporation		4.500			2/1/2024	A+*		880,000		918,958
KY Rural Water Finance Corporation		4.000			8/1/2030	A+*		625,000		746,481
KY Rural Water Finance Corporation		3.000			2/1/2032	A+*		240,000		262,752
KY Rural Water Finance Corporation		3.000			2/1/2033	A+*		370,000		405,076
KY Rural Water Finance Corporation		5.125			2/1/2035	A+*		295,000		295,702
KY Rural Water Finance Corporation		3.000			8/1/2036	A+*		285,000		310,194
KY Rural Water Finance Corporation		3.000			8/1/2037	A+*		280,000		304,545
KY State Association of Counties Finance Corporation		4.000			2/1/2031	AA-*		405,000		470,817
KY State Association of Counties Finance Corporation		4.000			2/1/2033	AA-*		415,000		480,068
Louisville & Jefferson County Metropolitan Sewer		4.000			5/15/2030	Aa3		3,120,000		3,591,276
Louisville & Jefferson County Metropolitan Sewer		4.000			5/15/2033	Aa3		1,000,000		1,096,070
Louisville & Jefferson County Metropolitan Sewer		4.750			5/15/2034	Aa3		2,230,000		2,491,780
Louisville & Jefferson County Metropolitan Sewer		5.000			5/15/2034	Aa3		4,595,000		5,340,815
Louisville & Jefferson County Metropolitan Sewer		4.750			5/15/2035	Aa3		2,245,000		2,508,541
Louisville & Jefferson County Metropolitan Sewer		5.000			5/15/2035	Aa3		4,825,000		5,604,141
Louisville & Jefferson County Metropolitan Sewer		4.750			5/15/2036	Aa3		2,795,000		3,117,990
Louisville & Jefferson County Metropolitan Sewer		4.000			5/15/2037	Aa3		10,000,000		11,672,600
Louisville & Jefferson County Metropolitan Sewer		3.250			5/15/2046	Aa3		2,450,000		2,609,079
Louisville & Jefferson County Metropolitan Sewer		3.000			5/15/2046	Aa3		5,000,000		5,356,500
Murray KY Electric Plant		3.000			12/1/2030	A2		315,000		351,392
Murray KY Electric Plant		3.000			12/1/2036	A2		370,000		404,910
Murray KY Electric Plant		3.000			12/1/2037	A2		380,000		414,971
Murray KY Electric Plant		3.000			12/1/2038	A2		395,000		430,436
Murray KY Electric Plant		3.000			12/1/2039	A2		405,000		440,393
Murray KY Electric Plant		3.000			12/1/2040	A2		420,000		455,738
Murray KY Electric Plant		3.000			12/1/2041	A2		430,000		465,595
Murray KY Electric Plant		3.000			12/1/2042	A2		445,000		480,818
Northern KY Water District		5.000			2/1/2026	Aa2		1,000,000		1,003,870
Northern KY Water District		5.000			2/1/2027	Aa2		4,315,000		4,331,829
Owensboro KY Electric Light & Power		4.000			1/1/2031	A3		245,000		277,431
Owensboro KY Electric Light & Power		4.000			1/1/2033	A3		275,000		310,547
Owensboro KY Electric Light & Power		4.000			1/1/2034	A3		305,000		343,323
Owensboro KY Electric Light & Power		4.000			1/1/2035	A3		200,000		224,614
Owensboro KY Electric Light & Power		4.000			1/1/2036	A3		325,000		363,665
Owensboro KY Electric Light & Power		4.000			1/1/2037	A3		410,000		457,941
Owensboro KY Water Revenue		4.000			9/15/2034	A1		2,075,000		2,367,368
Owensboro KY Water Revenue		4.000			9/15/2035	A1		2,155,000		2,457,368
Owensboro KY Water Revenue		4.000			9/15/2037	A1		1,950,000		2,215,590
Owensboro KY Water Revenue		4.000			9/15/2039	A1		2,125,000		2,406,964
										92,361,947

The accompanying notes are an integral part of the financial statements.

9

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
PREREFUNDED BONDS
6.73% of Net Assets
Fayette County KY School District Finance Corporation		5.000	%		10/1/2029	Aa3	$	3,660,000	$	3,960,010
Fayette County KY School District Finance Corporation		5.000			10/1/2032	Aa3		3,615,000		3,911,322
Fayette County KY School District Finance Corporation		5.000			10/1/2033	Aa3		4,385,000		4,744,436
Frankfort KY Electric & Water		4.750			12/1/2034	NR		695,000		781,493
Frankfort KY Electric & Water		4.750			12/1/2035	NR		725,000		815,226
Frankfort KY Electric & Water		4.750			12/1/2036	NR		760,000		854,582
Frankfort KY Electric & Water		4.750			12/1/2037	NR		800,000		899,560
Frankfort KY Electric & Water		4.750			12/1/2038	NR		835,000		938,916
KY State Property & Building #106		5.000			10/1/2028	A1		2,030,000		2,196,765
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2029	Aa3		7,235,000		7,405,167
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2032	Aa3		8,755,000		8,960,918
Lexington Fayette Urban County Government		5.000			1/1/2028	Aa2		820,000		931,848
Lexington Fayette Urban County Government		5.000			1/1/2029	Aa2		345,000		392,058
Lexington Fayette Urban County Government		5.000			1/1/2033	Aa2		1,685,000		1,914,834
Lexington-Fayette Urban County Airport Board		5.000			7/1/2028	Aa2		1,170,000		1,198,232
Lexington-Fayette Urban County Airport Board		5.000			7/1/2030	Aa2		1,250,000		1,280,100
Lexington-Fayette Urban County Airport Board		5.000			7/1/2032	Aa2		1,430,000		1,464,506
Lexington-Fayette Urban County Airport Board		5.000			7/1/2033	Aa2		1,520,000		1,556,678
Lexington-Fayette Urban County Airport Board		5.000			7/1/2038	Aa2		1,720,000		1,761,504
Louisville & Jefferson County Catholic Health Initiatives**		5.000			12/1/2035	NR		11,290,000		11,513,655
Louisville & Jefferson County Metropolitan Sewer		5.000			5/15/2031	Aa3		2,465,000		2,624,239
River City, Inc. Parking Authority		4.750			6/1/2030	Aa3		1,025,000		1,089,883
Warren County KY Hospital		5.000			4/1/2028	A+*		6,225,000		6,591,341
Warren County KY Hospital		5.000			4/1/2035	A+*		1,025,000		1,085,721
										68,872,994
PUBLIC FACILITIES REVENUE BONDS
5.43% of Net Assets
KY Bond Development		5.000			9/1/2035	A2		1,275,000		1,571,642
KY Bond Development		5.000			9/1/2036	A2		2,000,000		2,459,580
KY Bond Development		5.000			9/1/2038	A2		1,125,000		1,379,498
KY State Certificate of Participation		4.000			4/15/2030	A1		1,500,000		1,740,840
KY State Certificate of Participation		4.000			4/15/2031	A1		1,350,000		1,557,941
KY State Certificate of Participation		5.000			6/15/2034	A1		1,640,000		1,870,666
KY State Certificate of Participation		5.000			4/15/2038	A1		5,000,000		6,066,450
KY State Certificate of Participation		5.000			6/15/2038	A1		7,535,000		8,564,432
Laurel County General Obligation		4.000			5/1/2031	A2		1,295,000		1,483,928
Laurel County General Obligation		4.000			5/1/2034	A2		1,440,000		1,638,101
Laurel County General Obligation		4.000			5/1/2035	A2		1,495,000		1,699,830
Laurel County General Obligation		4.000			5/1/2036	A2		1,555,000		1,764,630
Laurel County General Obligation		4.000			5/1/2037	A2		1,620,000		1,834,812
Laurel County General Obligation		4.000			5/1/2038	A2		1,680,000		1,900,920
Laurel County KY Judicial Center		5.000			3/1/2025	A1		500,000		563,685
Lexington Fayette Urban County Government — Court Facilities		4.000			10/1/2030	A1		785,000		900,262
Louisville & Jefferson County Visitors & Convention Commission		4.000			6/1/2032	Aa3		2,725,000		3,072,301
Marshall County Library		4.000			6/1/2038	Aa3		1,060,000		1,215,195
Nicholasville KY General Obligation		3.500			5/1/2030	AA*		1,480,000		1,649,652
Nicholasville KY General Obligation		5.000			2/1/2029	AA*		1,160,000		1,462,493
River City, Inc. Parking Authority		4.750			6/1/2027	Aa3		750,000		797,588
River City, Inc. Parking Authority		4.750			6/1/2028	Aa3		940,000		999,361
River City, Inc. Parking Authority		4.750			6/1/2029	Aa3		1,160,000		1,234,112
River City, Inc. Parking Authority		4.750			6/1/2029	Aa3		980,000		1,042,611
River City, Inc. Parking Authority		4.750			6/1/2031	Aa3		1,270,000		1,351,331
River City, Inc. Parking Authority		5.000			6/1/2031	Aa3		1,080,000		1,152,976
River City, Inc. Parking Authority		5.000			6/1/2032	Aa3		1,130,000		1,206,354
River City, Inc. Parking Authority		5.000			6/1/2033	Aa3		1,395,000		1,489,051

The accompanying notes are an integral part of the financial statements.

10

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
River City, Inc. Parking Authority		3.000	%		12/1/2036	Aa3	$	835,000	$	907,253
River City, Inc. Parking Authority		3.000			12/1/2037	Aa3		860,000		931,483
										55,508,978
HOSPITAL AND HEALTHCARE REVENUE BONDS
4.75% of Net Assets
KY Development Corporation Hospital Facilities — St. Elizabeth		4.000			5/1/2032	AA*		1,810,000		2,029,064
KY Development Corporation Hospital Facilities — St. Elizabeth		4.000			5/1/2035	AA*		1,390,000		1,560,734
KY Development Corporation Hospital Facilities — St. Elizabeth		4.000			5/1/2036	AA*		1,200,000		1,339,836
KY Development Corporation Hospital Facilities — St. Elizabeth		5.000			5/1/2039	AA*		7,185,000		8,370,812
Louisville & Jefferson County Norton Healthcare		5.500			10/1/2033	A*		2,000,000		2,167,400
Louisville & Jefferson County Norton Healthcare		5.000			10/1/2033	A*		6,810,000		8,046,151
Louisville & Jefferson County Norton Healthcare		4.000			10/1/2035	A*		3,850,000		4,342,415
Louisville & Jefferson County Norton Healthcare		4.000			10/1/2036	A*		7,005,000		7,887,140
Louisville & Jefferson County Norton Healthcare		4.000			10/1/2039	A*		4,500,000		5,209,515
Louisville & Jefferson County Norton Healthcare		4.000			10/1/2040	A*		2,000,000		2,309,080
Louisville & Jefferson County Norton Healthcare		3.000			10/1/2043	A*		4,000,000		4,235,560
Warren County KY Hospital		5.000			4/1/2032	A+*		800,000		1,065,088
										48,562,795
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS
4.12% of Net Assets
KY Asset Liability Commission Federal Highway		5.250			9/1/2025	A2		3,400,000		3,669,484
KY Asset Liability Commission Federal Highway		5.000			9/1/2027	A2		9,760,000		11,280,412
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2029	Aa3		4,000,000		4,733,320
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2030	Aa3		1,465,000		1,500,424
KY State Turnpike Economic Development Road Revenue**		5.000			7/1/2031	Aa3		9,350,000		9,578,047
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2032	Aa3		1,315,000		1,506,227
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2032	Aa3		1,765,000		2,126,154
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2033	Aa3		5,000,000		5,356,950
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2034	Aa3		1,120,000		1,319,898
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2036	Aa3		400,000		479,724
KY State Turnpike Economic Development Road Revenue		5.000			7/1/2037	Aa3		500,000		599,360
										42,150,000
REFUNDING BONDS
2.87% of Net Assets
KY Association of Counties		3.000			2/1/2034	AA-*		480,000		522,475
KY Association of Counties		3.000			2/1/2035	AA-*		505,000		547,577
KY Association of Counties		3.000			2/1/2036	AA-*		510,000		550,525
KY State Property & Building #84		5.000			8/1/2022	A1		18,000,000		18,500,220
KY State Property & Building #102		5.000			5/1/2024	Aa3		405,000		420,204
KY State Property & Building #108		5.000			8/1/2025	A1		2,690,000		3,115,181
KY State Property & Building #121		5.000			2/1/2029	A1		4,535,000		5,726,435
										29,382,617
AIRPORT REVENUE BONDS
.72% of Net Assets
Kenton County Airport		5.000			1/1/2029	A1		240,000		279,914
Kenton County Airport		5.000			1/1/2034	A1		275,000		343,079
Kenton County Airport		5.000			1/1/2035	A1		300,000		373,812
Kenton County Airport		5.000			1/1/2036	A1		965,000		1,199,514
Kenton County Airport		5.000			1/1/2037	A1		670,000		832,314
Kenton County Airport		5.000			1/1/2038	A1		500,000		620,755
Kenton County Airport		5.000			1/1/2039	A1		500,000		620,380
Kenton County Airport		5.000			1/1/2044	A1		2,500,000		3,079,375
										7,349,143

The accompanying notes are an integral part of the financial statements.

11

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
AD VALOREM PROPERTY BONDS
.31% of Net Assets
Henderson KY		3.000	%		9/1/2042	Aa3	$	845,000	$	909,761
Henderson KY		3.000			9/1/2043	Aa3		870,000		934,745
Warren County General Obligation		4.000			6/1/2035	Aa1		1,175,000		1,347,032
										3,191,538
STATE AND LOCAL MORTGAGE/HOUSING REVENUE BONDS
.01% of Net Assets
Greater KY Housing Assistance Corporation — Chenowith Woods		6.100			1/1/2024	Baa2		120,000		120,281
Total Investments 95.91% of Net Assets (cost $918,156,117) (See (a) below for further explanation)									$	981,066,538
Other assets in excess of liabilities 4.09%										41,833,445
Net Assets 100%									$	1,022,899,983

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $918,156,117 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	63,018,415
Unrealized depreciation		(107,994	)
Net unrealized appreciation	$	62,910,421

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		981,066,538
Level 3	Significant Unobservable Inputs		—
		$	981,066,538

The accompanying notes are an integral part of the financial statements.

12

KENTUCKY TAX-FREE INCOME SERIES

STATEMENT OF ASSETS AND LIABILITIES UNAUDITED

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $918,156,117)		$	981,066,538
Cash			34,246,724
Receivable for fund shares sold			276,559
Interest receivable			10,601,483
Total assets			1,026,191,304
LIABILITIES:
Payable for:
Distributions to shareholders	2,559,587
Fund shares redeemed	115,084
Investment advisory fee	322,756
Transfer agent fee	104,425
Professional fees	84,177
Trustees fees	41,631
Custodian expense	7,373
Accrued expenses	56,288
Total liabilities			3,291,321
NET ASSETS:
Capital			959,989,803
Total distributable earnings			62,910,180
Net assets at value		$	1,022,899,983
NET ASSET VALUE, offering price and redemption price per share (128,384,153 shares outstanding; unlimited number of shares authorized; no par value)		$	7.97

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	14,361,037
Expenses:
Investment advisory fee		1,908,758
Transfer agent fee		616,763
Professional fees		106,725
Trustees fees		52,622
Custodian expense		48,130
Pricing fees		12,880
Registration expense		3,435
Compliance fees		3,680
Other expenses		51,205
Total expenses		2,804,198
Custodian expense reduction (Note 7)		(166	)
Net expenses		2,804,032
Net investment income		11,557,005
Realized and unrealized gain/(loss) on investments:
Net realized gain		17,419
Net change in unrealized appreciation/depreciation		(6,777,305	)
Net realized and unrealized loss on investments		(6,759,886	)
Net increase in net assets resulting from operations	$	4,797,119

The accompanying notes are an integral part of the financial statements.

13

KENTUCKY TAX-FREE INCOME SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 6/30/2021
Operations:
Net investment income	$	11,557,005		$	24,521,135
Net realized gain on investments		17,419			386,956
Net change in unrealized appreciation/depreciation		(6,777,305	)		20,472,215
Net increase in net assets resulting from operations		4,797,119			45,380,306
Total distributions (Note 6)		(11,611,672	)		(25,026,594	)
Net Fund share transactions (Note 4)		21,335,484			14,136,385
Total increase		14,520,931			34,490,097
Net assets:
Beginning of period		1,008,379,052			973,888,955
End of period	$	1,022,899,983		$	1,008,379,052

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	8.02		$	7.86		$	7.83		$	7.60		$	7.76		$	8.06
Income from investment operations:
Net investment income		0.09			0.20			0.21			0.22			0.23			0.24
Net gains/(losses) on investments		(0.05	)		0.16			0.03			0.24			(0.16	)		(0.30	)
Total from investment operations		0.04			0.36			0.24			0.46			0.07			(0.06	)
Less distributions:
Distributions from net investment income		(0.09	)		(0.20	)		(0.21	)		(0.22	)		(0.23	)		(0.24	)
Distributions from capital gains		0.00	(b)		0.00	(b)		0.00			(0.01	)		0.00	(b)		0.00	(b)
Total distributions		(0.09	)		(0.20	)		(0.21	)		(0.23	)		(0.23	)		(0.24	)
Net asset value, end of period	$	7.97		$	8.02		$	7.86		$	7.83		$	7.60		$	7.76
Total return		0.52%	(c)		4.63%			3.08%			6.22%			0.93%			(0.70	)%
Net assets, end of period (in thousands)	$	1,022,900		$	1,008,379		$	973,889		$	969,264		$	954,333		$	990,213
Ratio of net expenses to average net assets (a)		0.55%	(d)		0.56%			0.56%			0.57%			0.56%			0.55%
Ratio of gross expenses to average net assets		0.55%	(d)		0.56%			0.56%			0.57%			0.56%			0.55%
Ratio of net investment income to average net assets		2.28%	(d)		2.46%			2.66%			2.88%			2.98%			3.05%
Portfolio turnover		6.18%	(c)		5.92%			4.59%			10.23%			16.81%			10.44%

(a) Percentages are after custodian expense reduction for which no recovery will be sought.

(b) Rounds to less than $0.01.

(c) Not annualized

(d) Annualized

The accompanying notes are an integral part of the financial statements.

14

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
SCHOOL IMPROVEMENT BONDS
23.24% of Net Assets
Anderson County KY School District Finance Corporation		3.000	%		02/01/2029	A1	$	500,000	$	545,545
Barren County KY School District Finance Corporation**		5.000			08/01/2022	A1		930,000		955,287
Barren County KY School District Finance Corporation		5.000			08/01/2023	A1		500,000		536,180
Bowling Green KY Independent School District Finance Corporation		5.000			08/01/2027	A1		695,000		825,757
Bullitt County KY School District Finance Corporation		5.000			09/01/2022	A1		300,000		309,423
Fayette County KY School District Finance Corporation		5.000			06/01/2023	Aa3		500,000		532,975
Fayette County KY School District Finance Corporation**		5.000			08/01/2023	Aa3		1,000,000		1,071,540
Hardin County KY School District Finance Corporation		5.000			03/01/2023	A1		770,000		811,557
Jefferson County KY School District Finance Corporation		4.000			12/01/2023	Aa3		500,000		534,135
Jessamine County KY School District Finance Corporation		5.000			02/01/2023	A1		575,000		603,755
Laurel County KY School District Finance Corporation		4.000			06/01/2022	A1		890,000		903,590
Laurel County KY School District Finance Corporation		4.000			06/01/2024	A1		465,000		503,107
Pike County KY School District Finance Corporation		5.000			08/01/2024	A1		250,000		278,018
Pike County KY School District Finance Corporation		5.000			02/01/2025	A1		900,000		1,018,134
Pike County KY School District Finance Corporation		5.000			08/01/2025	A1		200,000		230,072
Pike County KY School District Finance Corporation		4.000			02/01/2028	A1		295,000		330,825
Warren County KY School District Finance Corporation		4.000			06/01/2022	A1		725,000		736,035
										10,725,935
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
22.99% of Net Assets
KY Association of Counties		4.000			02/01/2029	AA-*		630,000		748,024
KY State Property & Building #106		5.000			10/01/2024	A1		750,000		810,743
KY State Property & Building #106		5.000			10/01/2025	A1		2,365,000		2,559,285
KY State Property & Building #106**		5.000			10/01/2026	A1		1,000,000		1,082,520
KY State Property & Building #108		5.000			08/01/2023	A1		875,000		939,041
KY State Property & Building #108		5.000			08/01/2028	A1		755,000		866,498
KY State Property & Building #110		5.000			08/01/2023	A1		1,750,000		1,878,083
Somerset KY		5.000			06/01/2028	A2		605,000		751,210
Somerset KY		5.000			06/01/2029	A2		380,000		483,098
Somerset KY		4.000			06/01/2030	A2		415,000		495,269
										10,613,771
PUBLIC FACILITIES REVENUE BONDS
15.75% of Net Assets
KY State Certificate of Participation		4.000			06/15/2023	A1		940,000		987,508
KY State Certificate of Participation		4.000			06/15/2024	A1		300,000		324,825
KY State Property & Building #109**		5.000			10/01/2022	A1		1,000,000		1,035,950
Laurel County KY Justice Center		5.000			03/01/2023	A1		600,000		629,850
Lexington Fayette Urban County Government — Court Facilities		5.000			10/01/2024	A1		700,000		781,424
Livingston County KY Public Properties		5.000			08/01/2022	A1		375,000		385,196
Livingston County KY Public Properties		5.000			08/01/2024	A1		555,000		616,289
River City Parking Authority		5.000			12/01/2024	Aa3		340,000		383,823
Taylor County KY Public Courthouse		4.000			09/01/2027	A1		700,000		785,638
Warren County KY Justice Center Expansion Corporation**		5.000			09/01/2023	A1		1,250,000		1,340,624
										7,271,127
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS
10.94% of Net Assets
KY Asset Liability Commission Federal Highway		5.000			09/01/2024	A2		500,000		559,525
KY Asset Liability Commission Federal Highway		5.000			09/01/2026	A2		565,000		630,664
KY Asset Liability Project Notes		4.000			09/01/2023	A2		250,000		265,020
KY State Turnpike Authority Economic Development		5.000			07/01/2024	Aa3		1,175,000		1,307,446
KY State Turnpike Authority Economic Development		5.000			07/01/2026	Aa3		1,385,000		1,646,336
KY State Turnpike Authority Economic Development		5.000			07/01/2029	Aa3		500,000		640,425
										5,049,416

The accompanying notes are an integral part of the financial statements.

15

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
9.69% of Net Assets
KY Bond Development Corporation Educational Facilities Centre College		4.000	%		06/01/2030	A3	$	170,000	$	204,826
University of Kentucky General Receipts		4.000			04/01/2028	Aa2		750,000		806,723
University of Louisville		5.000			03/01/2024	A1		350,000		382,858
University of Louisville**		5.000			03/01/2024	A1		2,000,000		2,187,760
University of Louisville		4.000			09/01/2030	A1		745,000		892,517
										4,474,684
MUNICIPAL UTILITY REVENUE BONDS
7.03% of Net Assets
Campbell & Kenton Counties Sanitation District #1		4.000			08/01/2031	Aa2		1,000,000		1,143,240
Frankfort Electric & Water		4.000			12/01/2023	NR		440,000		470,914
KY Rural Water Financing Corporation		5.000			08/01/2029	A+*		595,000		755,948
Northern KY Water		5.000			02/01/2026	Aa2		815,000		875,057
										3,245,159
PREREFUNDED BONDS
2.66% of Net Assets
KY Infrastructure Authority Wastewater & Drinking Water		5.000			02/01/2025	Aaa		175,000		175,700
KY Turnpike Economic Development Road Revenue		5.000			07/01/2023	Aa3		600,000		614,291
KY Turnpike Economic Development Road Revenue		5.000			07/01/2024	Aa3		85,000		87,025
Warren County Hospital		5.000			04/01/2023	A+*		340,000		352,434
										1,229,450
REFUNDING BONDS
1.89% of Net Assets
KY State Property & Building #108		5.000			08/01/2022	A1		200,000		205,570
KY State Property & Building #112		5.000			11/01/2026	A1		555,000		667,338
										872,908
AD VALOREM PROPERTY BONDS
1.65% of Net Assets
Henderson KY		5.000			09/01/2029	Aa3		600,000		763,992
AIRPORT REVENUE BONDS
1.27% of Net Assets
Kenton County Airport		5.000			01/01/2026	A1		500,000		585,740
Total Investments 97.11% of Net Assets									$	44,832,182
(cost $43,303,268) (See (a) below for further explanation)
Other assets in excess of liabilities 2.89%										1,334,993
Net Assets 100%									$	46,167,175

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $43,303,268 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	1,541,315
Unrealized depreciation		(12,401	)
Net unrealized appreciation	$	1,528,914

The accompanying notes are an integral part of the financial statements.

16

DUPREE MUTUAL FUNDS — KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Kentucky Municipal Bonds

December 31, 2021

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		44,832,182
Level 3	Significant Unobservable Inputs		—
		$	44,832,182

The accompanying notes are an integral part of the financial statements.

17

KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES

STATEMENT OF ASSETS AND LIABILITIES UNAUDITED

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $43,303,268)		$	44,832,182
Cash			823,768
Interest receivable			605,007
Total assets			46,260,957
LIABILITIES:
Payable for:
Distributions to shareholders	28,731
Fund shares redeemed	775
Investment advisory fee	16,224
Transfer agent fee	6,214
Professional fees	6,019
Custodian expense	3,757
Trustees fees	2,448
Accrued expenses	29,614
Total liabilities			93,782
NET ASSETS:
Capital			44,729,202
Total distributable earnings			1,437,973
Net assets at value		$	46,167,175
NET ASSET VALUE, offering price and redemption price per share (8,601,926 shares outstanding; unlimited number of shares authorized; no par value)		$	5.37

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	517,588
Expenses:
Investment advisory fee		115,307
Transfer agent fee		30,698
Registration expense		6,016
Custodian expense		5,306
Professional fees		4,049
Compliance fees		3,680
Pricing fees		3,680
Trustees fees		2,365
Other expenses		7,530
Total expenses		178,631
Fees waived by Adviser (Note 2)		(17,371	)
Custodian expense reduction (Note 7)		(18	)
Net expenses		161,242
Net investment income		356,346
Net change in unrealized appreciation/depreciation		(406,822	)
Net decrease in net assets resulting from operations		$ (50,476	)

The accompanying notes are an integral part of the financial statements.

18

KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 06/30/2021
Operations:
Net investment income	$	356,346		$	781,394
Net realized gain on investments		—			23,245
Net change in unrealized appreciation/depreciation		(406,822	)		(6,514	)
Net increase/(decrease) in net assets resulting from operations		(50,476	)		798,125
Total distributions (Note 6)		(356,346	)		(781,394	)
Net Fund share transactions (Note 4)		1,485,367			(2,316,932	)
Total increase/(decrease)		1,078,545			(2,300,201	)
Net assets:
Beginning of period		45,088,630			47,388,831
End of period	$	46,167,175		$	45,088,630

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	5.42		$	5.41		$	5.36		$	5.22		$	5.33		$	5.45
Income from investment operations:
Net investment income		0.04			0.09			0.09			0.09			0.09			0.10
Net gains/(losses) on investments		(0.05	)		0.01	(b)		0.05			0.14			(0.11	)		(0.12	)
Total from investment operations		(0.01	)		0.10			0.14			0.23			(0.02	)		(0.02	)
Less distributions:
Distributions from net investment income		(0.04	)		(0.09	)		(0.09	)		(0.09	)		(0.09	)		(0.10	)
Net asset value, end of period	$	5.37		$	5.42		$	5.41		$	5.36		$	5.22		$	5.33
Total return		(0.15	)%(c)		1.86%			2.66%			4.56%			(0.32	)%		(0.44	)%
Net assets, end of period (in thousands)	$	46,167		$	45,089		$	47,389		$	55,419		$	62,646		$	72,172
Ratio of net expenses to average net assets (a)		0.70%	(d)		0.70%			0.70%			0.70%			0.70%			0.71%
Ratio of gross expenses to average net assets		0.78%	(d)		0.78%			0.78%			0.77%			0.75%			0.73%
Ratio of net investment income to average net assets		1.56%	(d)		1.66%			1.70%			1.81%			1.76%			1.79%
Portfolio turnover		4.00%	(c)		10.00%			2.75%			4.88%			4.69%			14.84%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the Fund’s statement of operations due to share transactions for the period.

(c) Not annualized

(d) Annualized

The accompanying notes are an integral part of the financial statements.

19

DUPREE MUTUAL FUNDS — MISSISSIPPI TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Mississippi Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
28.43% of Net Assets
Jackson State University Educational Building		5.000	%		03/01/2034	Aa2	$	440,000	$	502,128
Mississippi State University Educational Building		5.000			11/01/2032	Aa2		125,000		144,625
MS Development Bank Special Obligation Gulf Coast Community Project**		4.000			12/01/2034	AA-*		300,000		341,216
MS Development Bank Special Obligation Itawamba Community College		4.000			10/01/2040	AA-*		350,000		413,004
MS Development Bank Special Obligation Northwest MS Community College		4.000			03/01/2039	AA-*		225,000		264,488
MS Development Bank Special Obligation Pearl River Community College		5.000			10/01/2033	AA-*		125,000		155,159
MS State University		4.000			08/01/2033	Aa2		140,000		162,009
MS State University Educational Building Corporation Revenue		5.000			08/01/2033	Aa2		225,000		273,071
MS State University Educational Building Corporation Revenue		4.000			08/01/2036	Aa2		250,000		288,130
University of Mississippi Educational Building Corporation		5.000			10/01/2031	Aa2		205,000		243,993
University Southern MS Educational Building Corporation		5.000			09/01/2033	Aa2		360,000		426,575
										3,214,398
PREREFUNDED BONDS
21.34% of Net Assets
MS Development Bank Desoto County Highway		5.000			01/01/2030	Aa3		100,000		104,782
MS Development Bank Special Obligation Brandon Public Improvement		5.000			11/01/2033	Aa3		150,000		169,238
MS Development Bank Special Obligation Hattiesburg Water & Sewer		4.750			12/01/2038	AA*		700,000		759,913
MS Development Bank Special Obligation Jackson Schools		5.000			04/01/2028	NR		125,000		132,291
MS Development Bank Special Obligation Marshall County		5.000			01/01/2028	Aa3		50,000		50,000
MS Development Bank Special Obligation West Jackson County Utility District		5.000			12/01/2033	A*		50,000		54,417
MS State Refunding		5.000			10/01/2033	Aa2		150,000		185,144
MS State University Educational Building Corporation Revenue**		5.250			08/01/2038	Aa2		300,000		323,688
Southern Mississippi Educational Building Corporation		5.000			03/01/2038	Aa2		600,000		633,035
										2,412,508
MUNICIPAL UTILITY REVENUE BONDS
8.69% of Net Assets
MS Development Bank Special Obligation Diamondhead Water & Sewer		4.000			07/01/2046	A+*		175,000		205,146
MS Development Bank Special Obligation Jackson Water & Sewer		6.875			12/01/2040	Ba2		150,000		166,170
MS Development Bank Special Obligation Meridian Water & Sewer		4.000			07/01/2036	AA*		215,000		256,798
MS Development Bank Special Obligation Meridian Water & Sewer		4.000			07/01/2038	AA*		150,000		178,373
MS Development Bank Special Obligation Tupelo		5.000			05/01/2033	Aa2		150,000		176,497
										982,984
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
8.46% of Net Assets
Mississippi State		3.000			06/01/2038	Aa2		100,000		111,149
Mississippi State		4.000			10/01/2041	Aa2		250,000		294,012
Mississippi State Gaming Tax Revenue		5.000			10/15/2035	A3		125,000		143,845
Mississippi State Gaming Tax Revenue		5.000			10/15/2037	A-*		125,000		154,135
MS Development Bank Special Obligation Jackson Sales Tax Revenue		5.000			09/01/2029	A*		200,000		253,494
										956,635
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS
7.72% of Net Assets
MS Development Bank Special Obligation Highway Construction		5.000			01/01/2025	Aa3		200,000		226,830
MS Development Bank Special Obligation Highway Construction		5.000			01/01/2029	Aa3		300,000		360,330
MS Development Bank Special Obligation Highway Construction		4.000			01/01/2030	Aa3		175,000		201,189
MS Development Bank Special Obligation Marshall County		5.000			01/01/2030	Aa3		75,000		84,534
										872,883

The accompanying notes are an integral part of the financial statements.

20

DUPREE MUTUAL FUNDS — MISSISSIPPI TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Mississippi Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
AD VALOREM PROPERTY BONDS
6.39% of Net Assets
MS Development Bank Special Obligation Hattiesburg Project		4.000	%		02/01/2040	Aa3	$	250,000	$	294,285
MS Development Bank Special Obligation Hinds County Schools		5.000			03/01/2043	Aa3		350,000		428,123
										722,408
PUBLIC FACILITIES REVENUE BONDS
5.54% of Net Assets
MS Development Bank Special Obligation Brandon Public Improvement**		4.000			08/01/2033	AA*		300,000		341,229
MS Development Bank Special Obligation Brandon Public Improvement		4.000			08/01/2035	AA*		150,000		169,749
MS Development Bank Special Obligation Hinds County		4.000			11/01/2035			100,000		114,937
										625,915
SCHOOL IMPROVEMENT BONDS
3.92% of Net Assets
MS Development Bank Special Obligation Canton School District		5.000			12/01/2033	A1		100,000		115,451
MS Development Bank Special Obligation Jackson Schools		5.000			04/01/2028	A+*		80,000		84,159
MS Development Bank Special Obligation Rankin School District		4.000			06/01/2038	AA*		100,000		114,811
MS Development Bank Special Obligation Vicksburg Warren School District		5.500			03/01/2038	AA*		100,000		128,413
										442,834
REFUNDING BONDS
2.98% of Net Assets
MS State Refunding**		4.000			10/01/2036	Aa2		290,000		337,082
HOSPITAL AND HEALTHCARE REVENUE BONDS
1.49% of Net Assets
Medical Center Educational Building Corporation MS Revenue		5.500	%		12/01/2023	Aa2	$	40,000	$	42,913
Medical Center Educational Building Corporation MS Revenue		5.000			06/01/2035	Aa2		100,000		125,116
										168,029
Total Investments 94.96% of Net Assets (cost $10,080,807) (See (a) below for further explanation)									$	10,735,676
Other assets in excess of liabilities 5.04%										570,138
Net Assets 100%									$	11,305,814

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $10,080,807 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	658,816
Unrealized depreciation		(3,947	)
Net unrealized appreciation	$	654,869

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		10,735,676
Level 3	Significant Unobservable Inputs		—
		$	10,735,676

The accompanying notes are an integral part of the financial statements.

21

MISSISSIPPI TAX-FREE INCOME SERIES

STATEMENT OF ASSETS AND LIABILITIES UNAUDITED

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $10,080,807)		$	10,735,676
Cash			495,358
Interest receivable			128,019
Total assets			11,359,053
LIABILITIES:
Payable for:
Distributions to shareholders	32,702
Fund shares redeemed	2,076
Investment advisory fee	2,418
Transfer agent fee	3,100
Professional fees	5,007
Custodian expense	1,235
Trustee fees	735
Accrued expenses	5,966
Total liabilities			53,239
NET ASSETS:
Capital			10,651,231
Total distributable earnings			654,583
Net assets at value		$	11,305,814
NET ASSET VALUE, offering price and redemption price per share (919,923 shares outstanding; unlimited number of shares authorized; no par value)		$	12.29

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	154,341
Expenses:
Investment advisory fee		28,384
Transfer agent fee		8,515
Registration fees		5,050
Compliance expense		3,680
Custodian expense		2,605
Pricing expense		2,420
Professional fees		1,007
Trustees fees		588
Other expenses		1,737
Total expenses		53,986
Fees waived by Adviser (Note 2)		(14,184	)
Custodian expense reduction (Note 7)		(9	)
Net expenses		39,793
Net investment income		114,548
Realized and unrealized gain/(loss) on investments:
Net realized gain		140
Net change in unrealized appreciation/depreciation		(77,580	)
Net realized and unrealized loss on investments		(77,440	)
Net increase in net assets resulting from operations	$	37,108

The accompanying notes are an integral part of the financial statements.

22

MISSISSIPPI TAX-FREE INCOME SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021

UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 6/30/2021
Operations:
Net investment income	$	114,548		$	251,706
Net realized gain on investments		140			20,016
Net change in unrealized appreciation/depreciation		(77,580	)		30,371
Net increase in net assets resulting from operations		37,108			302,093
Total distributions (Note 6)		(134,991	)		(272,976	)
Net Fund share transactions (Note 4)		(7,953	)		271,443
Total increase/(decrease)		(105,836	)		300,560
Net assets:
Beginning of period		11,411,650			11,111,090
End of period	$	11,305,814		$	11,411,650

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	12.40		$	12.37		$	12.21		$	11.92		$	12.14		$	12.55
Income from investment operations:
Net investment income		0.13			0.27			0.31			0.33			0.33			0.34
Net gains/(losses) on investments		(0.09	)		0.05			0.18			0.29			(0.22	)		(0.41	)
Total from investment operations		0.04			0.32			0.49			0.62			0.11			(0.07	)
Less distributions:
Distributions from net investment income		(0.13	)		(0.27	)		(0.31	)		(0.33	)		(0.33	)		(0.34	)
Distributions from capital gains		(0.02	)		(0.02	)		(0.02	)		0.00	(b)		0.00	(b)		0.00
Total distributions		(0.15	)		(0.29	)		(0.33	)		(0.33	)		(0.33	)		(0.34	)
Net asset value, end of period	$	12.29		$	12.40		$	12.37		$	12.21		$	11.92		$	12.14
Total return		0.31%	(c)		2.68%			4.01%			5.29%			0.99%			(0.48	)%
Net assets, end of period (in thousands)	$	11,306		$	11,412		$	11,111		$	11,325		$	11,615		$	12,448
Ratio of net expenses to average net assets (a)		0.70%	(d)		0.70%			0.70%			0.70%			0.70%			0.70%
Ratio of gross expenses to average net assets		0.96%	(d)		0.96%			0.99%			0.97%			0.92%			0.85%
Ratio of net investment income to average net assets		2.03%	(d)		2.21%			2.51%			2.75%			2.75%			2.80%
Portfolio turnover		4.57%	(c)		8.85%			10.26%			4.65%			7.26%			14.06%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Rounds to less than $0.01.

(c) Not annualized

(d) Annualized

The accompanying notes are an integral part of the financial statements.

23

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
SCHOOL IMPROVEMENT BONDS
17.64% of Net Assets
Brunswick County NC Limited Obligation		5.000	%		06/01/2030	Aa2	$	250,000	$	287,328
Brunswick County NC Limited Obligation		5.000			06/01/2031	Aa2		250,000		287,513
Buncombe County NC Limited Obligation		4.000			06/01/2036	Aa1		125,000		151,713
Burke County NC Limited Obligation		4.000			04/01/2034	Aa3		250,000		287,573
Cabarrus County NC		4.000			06/01/2034	Aa2		795,000		917,716
Cabarrus County NC Limited Obligation		5.000			04/01/2035	Aa2		1,435,000		1,685,020
Cabarrus County NC Limited Obligation		4.000			06/01/2035	Aa2		1,650,000		1,899,992
Chatham County NC Limited Obligation		4.000			11/01/2036	Aa2		750,000		879,308
Chatham County NC Limited Obligation		4.000			11/01/2037	Aa2		2,000,000		2,340,560
Davidson County NC Limited Obligation		5.000			06/01/2032	Aa2		500,000		591,665
Duplin County NC Limited Obligation		5.000			04/01/2032	A2		750,000		865,035
Duplin County NC Limited Obligation		5.000			04/01/2034	A2		865,000		994,577
Henderson County NC Limited Obligation		4.000			06/01/2034	Aa2		200,000		234,484
Henderson County NC Limited Obligation		4.000			06/01/2037	Aa2		1,275,000		1,529,490
Henderson County NC Limited Obligation		4.000			06/01/2038	Aa2		1,060,000		1,266,942
Onslow County NC Limited Obligation		5.000			06/01/2033	Aa2		500,000		574,840
Pitt County NC Limited Obligation		4.000			04/01/2031	Aa2		500,000		572,410
Pitt County NC Limited Obligation		4.000			04/01/2034	Aa2		550,000		627,176
Randolph County NC Limited Obligation		3.000			10/01/2036	Aa3		325,000		363,428
Randolph County NC Limited Obligation		4.000			10/01/2037	Aa3		250,000		296,770
Randolph County NC Limited Obligation		4.000			10/01/2039	Aa3		350,000		413,508
Rutherford County NC Limited Obligation		4.000			03/01/2037	A1		410,000		488,847
Rutherford County NC Limited Obligation		4.000			03/01/2039	A1		500,000		593,620
Rutherford County NC Limited Obligation		4.000			03/01/2040	A1		325,000		384,758
Sampson County NC Limited Obligation		5.000			12/01/2033	A1		1,975,000		2,280,155
Sampson County NC Limited Obligation		5.000			09/01/2040	A1		750,000		907,043
Scotland County NC		4.500			12/01/2036	A*		1,170,000		1,390,475
Surry County NC Limited Obligation		4.000			06/01/2034	Aa3		350,000		413,889
Surry County NC Limited Obligation		4.000			06/01/2036	Aa3		590,000		694,973
Surry County NC Limited Obligation		4.000			06/01/2037	Aa3		730,000		858,195
Wake County NC Limited Obligation		4.000			09/01/2037	Aa1		750,000		901,545
Wayne County NC		4.000			06/01/2034	Aa3		1,500,000		1,728,975
Wilkes County NC Limited Obligation		5.000			06/01/2031	A1		350,000		400,211
										28,109,734
PUBLIC FACILITIES REVENUE BONDS
17.21% of Net Assets
Charlotte NC Certificate of Participation		4.000			06/01/2036	Aa2		1,000,000		1,187,970
Charlotte NC Certificate of Participation		4.000			06/01/2037	Aa2		3,000,000		3,556,920
Charlotte NC Certificate of Participation Convention Facility Project		4.000			06/01/2037	Aa2		500,000		592,820
Charlotte NC Certificate of Participation Convention Facility Project		4.000			06/01/2039	Aa2		1,000,000		1,181,770
Davidson County NC Limited Obligation		4.000			06/01/2037	Aa2		200,000		238,176
Davidson County NC Limited Obligation		4.000			06/01/2038	Aa2		240,000		285,187
Davidson County NC Limited Obligation		4.000			06/01/2040	Aa2		635,000		751,262
Durham Capital Financing Corporation		4.000			06/01/2036	Aa1		300,000		364,110
Durham Capital Financing Corporation		4.000			06/01/2037	Aa1		270,000		326,981
Durham Capital Financing Corporation		4.000			06/01/2038	Aa1		250,000		302,318
Durham NC Limited Obligation		4.000			04/01/2036	Aa1		1,000,000		1,173,360
Harnett County NC Limited Obligation		4.000			10/01/2038	Aa3		1,055,000		1,240,522
Henderson County NC Limited Obligation		5.000			10/01/2030	Aa2		250,000		290,423
Henderson County NC Limited Obligation		5.000			10/01/2031	Aa2		500,000		580,040
Hoke County NC Limited Obligation		3.000			06/01/2039	Aa3		1,815,000		2,002,870
Hoke County NC Limited Obligation		3.000			06/01/2040	Aa3		750,000		825,578
Johnston County NC Limited Obligation		4.000			04/01/2035	Aa2		360,000		433,926
Johnston County NC Limited Obligation		4.000			04/01/2037	Aa2		975,000		1,166,812
Kannapolis NC Limited Obligation		5.000			04/01/2032	A1		500,000		549,210
Onslow County NC Limited Obligation		5.000			06/01/2032	Aa2		500,000		575,390

The accompanying notes are an integral part of the financial statements.

24

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
Orange County NC		4.000	%		10/01/2036	Aa1	$	375,000	$	450,023
Orange County NC		4.000			10/01/2037	Aa1		375,000		448,800
Orange County NC		4.000			10/01/2038	Aa1		275,000		328,226
Orange County NC		4.000			10/01/2038	Aa1		765,000		913,066
Orange County NC		4.000			10/01/2039	Aa1		200,000		238,384
Raleigh NC Limited Obligation		5.000			10/01/2034	Aa1		1,420,000		1,592,629
Randolph County NC Limited Obligation		4.000			10/01/2036	Aa3		250,000		297,173
Randolph County NC Limited Obligation		4.000			10/01/2037	Aa3		250,000		296,770
Randolph County NC Limited Obligation		4.000			10/01/2038	Aa3		670,000		793,186
Randolph County NC Limited Obligation		4.000			10/01/2039	Aa3		500,000		590,325
Surry County NC Limited Obligation**		3.000			10/01/2038	Aa3		395,000		436,835
Surry County NC Limited Obligation		3.000			10/01/2039	Aa3		1,000,000		1,102,150
Surry County NC Limited Obligation		3.000			10/01/2041	Aa3		1,135,000		1,243,504
Thomasville NC Revenue		4.000			05/01/2036	Aa3		500,000		584,795
Wilmington NC Limited Obligation		4.000			06/01/2036	Aa1		230,000		279,151
Wilmington NC Limited Obligation		4.000			06/01/2037	Aa1		170,000		205,877
										27,426,539
MUNICIPAL UTILITY REVENUE BONDS
14.64% of Net Assets
Brunswick County NC Enterprise System Revenue		5.000	%		04/01/2031	Aa3	$	500,000	$	571,220
Brunswick County NC Enterprise System Revenue		4.000			04/01/2039	Aa3		1,000,000		1,170,370
Brunswick County NC Enterprise System Revenue		3.000			04/01/2046	Aa3		500,000		537,055
Buncombe County NC Metropolitan Sewer District		5.000			07/01/2039	Aaa		550,000		610,396
Cary NC Combined Enterprise System Revenue		4.000			12/01/2042	Aaa		750,000		869,123
Charlotte NC Storm Water Fee Revenue		3.000			12/01/2036	Aaa		250,000		283,420
Charlotte NC Water & Sewer System		4.000			07/01/2046	Aaa		1,050,000		1,251,369
Concord NC Utilities System Revenue		4.500			12/01/2034	Aa2		1,000,000		1,156,000
Durham NC Utility System Revenue		3.000			08/01/2042	Aa1		1,250,000		1,387,300
Fuquay-Varina NC Combined Utilities Revenue		5.000			04/01/2040	Aa2		1,000,000		1,172,850
Gastonia NC Combined Utilities System Revenue		5.000			05/01/2034	Aa2		570,000		651,419
Gastonia NC Combined Utilities System Revenue		5.000			05/01/2035	Aa2		250,000		285,533
Greensboro NC Enterprise System Revenue		4.000			06/01/2045	Aa1		1,965,000		2,336,660
Lincoln County NC Enterprise System Revenue		3.000			08/01/2038	AA*		160,000		176,949
Lincoln County NC Enterprise System Revenue		3.000			08/01/2039	AA*		340,000		375,445
Lincoln County NC Enterprise System Revenue		3.000			08/01/2040	AA*		265,000		290,848
Lincoln County NC Enterprise System Revenue		3.000			08/01/2041	AA*		240,000		262,807
Martin County NC Limited Obligation Water and Sewer District		4.750			06/01/2034	A2		1,150,000		1,263,160
NC Municipal Power Agency #1 Catawba Electric Revenue		5.000			01/01/2032	A*		500,000		577,805
Pender County NC Limited Obligation		3.000			06/01/2038	Aa3		490,000		537,334
Pender County NC Limited Obligation		3.000			06/01/2045	Aa3		500,000		537,745
Sampson County NC Water & Sewer District		5.000			06/01/2037	A1/A*		920,000		1,049,967
Union County NC Enterprise System Revenue		4.000			06/01/2038	Aa2		500,000		593,985
Union County NC Enterprise System Revenue		4.000			06/01/2044	Aa2		415,000		488,517
Union County NC Enterprise System Revenue		3.000			06/01/2046	Aa2		1,750,000		1,913,660
Union County NC Enterprise System Revenue		3.000			06/01/2051	Aa2		1,000,000		1,086,330
Wake County NC Industrial Facilities & Pollution Control Duke Energy		4.000			06/01/2041	Aa3		1,260,000		1,313,941
Wilmington NC Storm Water Revenue		5.000			06/01/2035	Aa2		500,000		572,460
										23,323,668
PREREFUNDED BONDS
14.25% of Net Assets
Charlotte NC Certificate of Participation		4.000			12/01/2034	Aa1		290,000		329,075
Durham Capital Financing Corporation		4.000			06/01/2043	Aa1		1,000,000		1,053,140
Durham Capital Financing Corporation Limited Obligation		5.000			06/01/2034	Aa1		500,000		533,640
High Point NC Combined Enterprise		5.000			11/01/2039	Aa2		750,000		846,870
Johnston County NC Limited Obligation		4.750			06/01/2033	Aa2		500,000		531,870
NC Eastern Municipal Power Agency		6.000			01/01/2025	Baa2		1,150,000		1,336,599
NC Municipal Power Agency #1 Catawba Electric Revenue		5.000			01/01/2030	A*		500,000		587,070

The accompanying notes are an integral part of the financial statements.

25

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
NC State Capital Facilities Duke University		5.000	%		10/01/2041	Aa1	$	2,000,000	$	2,331,480
NC State University at Raleigh		5.000			10/01/2042	Aa1		750,000		812,025
New Hanover County NC Hospital Revenue New Hanover Regional Medical**		5.000			10/01/2034	NR		1,500,000		1,842,915
Pitt County NC Certificate of Participation		5.000			04/01/2027	Aa2		500,000		505,775
Raleigh NC Limited Obligation		5.000			10/01/2038	Aa1		500,000		541,075
University of NC Charlotte		5.000			04/01/2035	Aa3		595,000		656,523
University of NC Charlotte		5.000			04/01/2038	Aa3		1,000,000		1,103,400
University of NC Charlotte		5.000			04/01/2040	Aa3		2,650,000		3,037,642
University of NC Charlotte		5.000			04/01/2043	Aa3		1,500,000		1,655,100
University of NC Greensboro		5.000			04/01/2033	Aa3		900,000		991,782
University of NC Greensboro		5.000			04/01/2039	Aa3		2,870,000		3,162,682
Winston Salem NC Limited Obligation		5.000			06/01/2031	Aa1		800,000		853,352
										22,712,015
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
12.31% of Net Assets
Appalachian NC State University		4.000			05/01/2033	A1		500,000		576,550
Appalachian NC State University**		5.000			05/01/2036	A1		1,000,000		1,225,590
Iredell County NC Community College		5.000			04/01/2026	Aaa		225,000		225,630
Iredell County NC Community College		5.000			04/01/2027	Aaa		325,000		326,154
NC State Capital Facilities Davidson College		5.000			03/01/2032	AA+*		310,000		312,415
NC State Capital Facilities Davidson College		4.750			03/01/2035	AA+*		1,000,000		1,006,880
NC State Capital Facilities Wake Forest		5.000			01/01/2048	Aa3		315,000		379,843
Scotland County NC		5.000			12/01/2033	A*		250,000		300,930
University of NC at Asheville		4.000			06/01/2036	A1		1,350,000		1,582,943
University of NC at Charlotte Board of Governors		4.000			10/01/2037	Aa3		750,000		863,175
University of NC at Charlotte Board of Governors		4.000			10/01/2040	Aa3		305,000		358,634
University of NC at Charlotte Board of Governors		5.000			10/01/2042	Aa3		250,000		303,090
University of NC at Wilmington		4.000			10/01/2037	Aa3		750,000		886,688
University of NC Chapel Hill Hospitals		4.000			02/01/2037	Aa3		1,000,000		1,159,380
University of NC Chapel Hill Hospitals		4.000			02/01/2038	Aa3		400,000		463,172
University of NC Charlotte		4.000			10/01/2035	Aa3		250,000		288,628
University of NC Charlotte		4.000			10/01/2036	Aa3		250,000		288,325
University of NC Greensboro		4.000			04/01/2035	Aa3		750,000		867,750
University of NC Greensboro		4.000	%		04/01/2036	Aa3	$	500,000	$	575,590
University of NC Greensboro		5.000			04/01/2038	Aa3		425,000		516,528
University of NC Wilmington		4.000			04/01/2037	Aa3		385,000		450,881
University of NC Wilmington		4.000			04/01/2038	Aa3		405,000		473,392
University of NC Wilmington		4.000			04/01/2039	Aa3		1,380,000		1,594,590
University of NC Wilmington Limited Obligation		5.000			06/01/2033	A1		550,000		627,097
University of NC Wilmington Limited Obligation		4.000			06/01/2034	A1		500,000		560,045
University of North Carolina		5.000			10/01/2033	A3		30,000		30,103
Western Carolina NC University		5.000			10/01/2035	Aa3		1,000,000		1,221,390
Western Carolina NC University		5.000			10/01/2043	Aa3		1,000,000		1,204,730
Western Carolina NC University		5.000			10/01/2045	Aa3		825,000		944,510
										19,614,633
REFUNDING BONDS
6.17% of Net Assets
Asheville NC Limited Obligation		3.000			04/01/2041	Aa1		250,000		276,353
Buncombe County NC Limited Obligation**		5.000			06/01/2035	Aa1		1,000,000		1,146,380
Charlotte NC Certificate of Participation		5.000			06/01/2033	Aa1		840,000		894,155
Charlotte NC Certificate of Participation		5.000			06/01/2034	Aa1		750,000		858,960
Chatham County NC		5.000			11/01/2032	Aa2		825,000		959,624
Durham County NC		4.000			06/01/2036	Aaa		225,000		270,284
Monroe NC Limited Obligation		4.000			03/01/2033	Aa3		255,000		287,255
Monroe NC Limited Obligation**		5.000			03/01/2039	Aa3		1,250,000		1,461,900
New Hanover County NC Limited Obligation		5.000			12/01/2027	Aa1		505,000		526,806
Rockingham County NC Limited Obligation		5.000			04/01/2027	Aa3		250,000		285,088

The accompanying notes are an integral part of the financial statements.

26

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
Rockingham County NC Limited Obligation		4.500	%		04/01/2032	Aa3	$	500,000	$	560,770
Sampson County NC Limited Obligation		4.000			09/01/2036	A1		1,000,000		1,144,670
Sampson County NC Limited Obligation		4.000			09/01/2037	A1		500,000		572,925
Thomasville NC Combined Enterprise System Revenue		4.750			05/01/2028	A1		435,000		441,027
Union County NC Limited Obligation Refunding		5.000			12/01/2024	Aa1		125,000		141,579
										9,827,776
HOSPITAL AND HEALTHCARE REVENUE BONDS
5.51% of Net Assets
Charlotte Mecklenburg NC Hospital Authority Atrium Health		5.000			01/15/2033	Aa3		210,000		263,386
Charlotte Mecklenburg NC Hospital Authority Atrium Health		5.000			01/15/2036	Aa3		590,000		735,930
Charlotte Mecklenburg NC Hospital Healthcare System		5.000			01/15/2039	Aa3		1,500,000		1,570,980
NC State Medical Care Commission Health Care Facilities Rex Hospital		5.000			07/01/2033	A2		750,000		856,553
NC State Medical Care Commission Health Care Facilities Rex Hospital		4.000			07/01/2039	A2		550,000		638,891
NC State Medical Care Commission Health Care Facilities Rex Hospital		4.000			07/01/2040	A2		750,000		868,185
NC State Medical Care Commission Health Care Facilities Vidant Health		5.000			06/01/2040	A2		1,385,000		1,572,626
NC State Medical Care Commission Health Care Facilities Wake Medical		5.000			10/01/2031	A2		1,000,000		1,033,710
NC State Medical Care Commission Health Care Facilities Wake Medical		5.000			10/01/2038	A2		200,000		206,666
NC State Medical Care Commission Wake Forest Baptist Hospital		5.000			12/01/2033	A2		1,000,000		1,041,380
										8,788,307
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
3.62% of Net Assets
Buncombe County NC Limited Obligation		5.000			06/01/2033	Aa1		600,000		688,488
Buncombe County NC Limited Obligation		5.000			06/01/2034	Aa1		1,100,000		1,218,470
Buncombe County NC Limited Obligation		5.000			06/01/2034	Aa1		365,000		418,564
Charlotte NC Certificate of Participation		5.000			12/01/2029	Aa1		340,000		341,173
Rocky Mount NC Special Obligation		4.500			05/01/2032	Aa3		1,500,000		1,731,045
Wilmington NC Limited Obligation		3.000			06/01/2037	Aa1		370,000		408,635
Wilmington NC Limited Obligation		3.000			06/01/2041	Aa1		370,000		414,426
Winston Salem NC Limited Obligation		4.500			06/01/2034	Aa1		500,000		546,965
										5,767,766
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS
3.54% of Net Assets
NC State Grant Anticipation Revenue Vehicle Garvee		5.000			03/01/2030	A2		200,000		226,750
NC State Limited Obligation		4.000			05/01/2035	Aa1		100,000		122,052
NC State Limited Obligation Build NC Bonds		4.000			05/01/2034	Aa1		670,000		795,101
NC State Turnpike Authority		5.000			01/01/2036	AA*		500,000		624,160
NC State Turnpike Authority		5.000			01/01/2038	AA*		2,415,000		3,003,705
NC State Turnpike Authority Triangle Expressway		4.000			01/01/2036	Aa1		250,000		291,668
NC State Turnpike Authority Triangle Expressway		4.000			01/01/2039	Aa1		500,000		580,815
										5,644,251
AIRPORT REVENUE BONDS
3.21% of Net Assets
Charlotte NC Douglas International Airport		5.000			07/01/2030	Aa3		1,095,000		1,219,009
Charlotte NC Douglas International Airport		5.000			07/01/2036	Aa3		250,000		303,833
Charlotte NC Douglas International Airport		4.000			07/01/2036	Aa3		500,000		573,150
Charlotte NC Douglas International Airport		5.000			07/01/2037	Aa3		700,000		851,151
Charlotte NC Douglas International Airport		5.000			07/01/2042	Aa3		1,325,000		1,607,940
Charlotte NC Douglas International Airport		4.000			07/01/2044	Aa3		480,000		556,699
										5,111,782

The accompanying notes are an integral part of the financial statements.

27

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
LEASE REVENUE BONDS 1.04% of Net Assets
Buncombe County NC Limited Obligation		5.000	%		06/01/2032	Aa1	$	1,500,000	$	1,662,315
Total Investments 99.14% of Net Assets (cost $147,942,064) (See (a) below for further explanation)									$	157,988,786
Other assets in excess of liabilities .86%										1,378,028
Net Assets 100%									$	159,366,814

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $147,942,064 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	10,096,309
Unrealized depreciation		(49,587	)
Net unrealized appreciation	$	10,046,722

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		157,988,786
Level 3	Significant Unobservable Inputs		—
		$	157,988,786

The accompanying notes are an integral part of the financial statements.

28

NORTH CAROLINA TAX-FREE INCOME SERIES UNAUDITED

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $147,942,064)		$	157,988,786
Cash			428,791
Receivable for fund shares sold			6,988
Interest receivable			1,368,211
Total assets			159,792,776
LIABILITIES:
Payable for:
Distributions to shareholders	276,808
Fund shares redeemed	38,902
Investment advisory fee	67,125
Transfer agent fee	27,654
Trustees fees	1,324
Professional fees	5,426
Custodian expense	967
Accrued expenses	7,756
Total liabilities			425,962
NET ASSETS:
Capital			150,762,185
Total distributable earnings			8,604,629
Net assets at value		$	159,366,814
NET ASSET VALUE, offering price and redemption price per share (13,300,751 shares outstanding; unlimited number of shares authorized; no par value)		$	11.98

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	2,199,005
Expenses:
Investment advisory fee		395,226
Transfer agent fee		102,688
Professional fees		14,706
Custodian expense		10,569
Trustees fees		8,559
Pricing fees		6,806
Registration fees		2,808
Compliance expense		3,630
Other expenses		14,198
Total expenses		559,190
Custodian expense reduction (Note 7)		(37	)
Net expenses		559,153
Net investment income		1,639,852
Realized and unrealized gain/(loss) on investments:
Net realized gain		7,349
Net change in unrealized appreciation/depreciation		(1,013,413	)
Net realized and unrealized loss on investments		(1,006,064	)
Net increase in net assets resulting from operations	$	633,788

The accompanying notes are an integral part of the financial statements.

29

NORTH CAROLINA TAX-FREE INCOME SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 6/30/2021
Operations:
Net investment income	$	1,639,852		$	3,362,950
Net realized gain on investments		7,349			132,706
Net change in unrealized appreciation/depreciation		(1,013,413	)		1,574,326
Net increase in net assets resulting from operations		633,788			5,069,982
Total distributions (Note 6)		(1,639,852	)		(3,362,950	)
Net Fund share transactions (Note 4)		(2,695,972	)		(3,926	)
Total increase/(decrease)		(3,702,036	)		1,703,106
Net assets:
Beginning of period		163,068,850			161,365,744
End of period	$	159,366,814		$	163,068,850

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six months ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	12.05		$	11.93		$	11.68		$	11.34		$	11.50		$	12.02
Income from investment operations:
Net investment income		0.12			0.25			0.27			0.29			0.31			0.32
Net gains/(losses) on investments		(0.07	)		0.12			0.25			0.34			(0.16	)		(0.52	)
Total from investment operations		0.05			0.37			0.52			0.63			0.15			(0.20	)
Less distributions:
Distributions from net investment income		(0.12	)		(0.25	)		(0.27	)		(0.29	)		(0.31	)		(0.32	)
Net asset value, end of period	$	11.98		$	12.05		$	11.93		$	11.68		$	11.34		$	11.50
Total return		0.41%	(b)		3.12%			4.48%			5.69%			1.27%			(1.68	)%
Net assets, end of period (in thousands)	$	159,367		$	163,069		$	161,366		$	146,078		$	131,178		$	139,272
Ratio of net expenses to average net assets (a)		0.68%	(c)		0.68%			0.69%			0.70%			0.70%			0.69%
Ratio of gross expenses to average net assets		0.68%	(c)		0.68%			0.69%			0.71%			0.71%			0.69%
Ratio of net investment income to average net assets		1.99%	(c)		2.07%			2.27%			2.58%			2.66%			2.73%
Portfolio turnover		4.31%	(b)		7.79%			9.88%			13.02%			11.76%			11.50%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Not annualized

(c) Annualized

The accompanying notes are an integral part of the financial statements.

30

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
23.00% of Net Assets
East Carolina University		5.000	%		10/01/2027	Aa3	$	250,000	$	294,475
Pitt County NC Limited Obligation		5.000			04/01/2027	Aa2		495,000		593,238
University of NC Charlotte		5.000			10/01/2025	Aa3		110,000		128,098
University of NC Charlotte		5.000			04/01/2028	Aa3		250,000		286,395
University of NC Greensboro		5.000			04/01/2026	Aa3		400,000		472,448
University of NC Wilmington		4.000			06/01/2029	A1		750,000		851,490
University of NC Wilmington Limited Obligation		4.000			06/01/2030	A1		200,000		226,414
Western Carolina University		5.000			10/01/2025	Aa3		225,000		261,108
										3,113,666
MUNICIPAL UTILITY REVENUE BONDS
15.85% of Net Assets
Brunswick County NC Enterprise System Revenue**		5.000			04/01/2027	Aa3		250,000		285,957
Cary NC Combined Enterprise Systems		4.000			12/01/2028	Aaa		250,000		283,270
Columbus County NC Limited Obligation		5.000			06/01/2023	A1		355,000		377,993
Lincoln County NC Enterprise System Revenue		5.000			08/01/2029	AA*		100,000		128,972
Monroe NC Limited Obligation		5.000			03/01/2028	Aa3		95,000		111,275
Monroe NC Limited Obligation		5.000			03/01/2029	Aa3		195,000		227,971
NC Municipal Power Agency #1 Catawba Electric		5.000			01/01/2028	A*		125,000		153,965
NC Municipal Power Agency #1 Catawba Electric		5.000			01/01/2028	A*		125,000		144,984
Pender County NC Limited Obligation		5.000			06/01/2027	Aa3		100,000		122,398
Pender County NC Limited Obligation		5.000			06/01/2028	Aa3		100,000		125,436
Warren County NC Limited Obligation		5.000			06/01/2027	A1		160,000		182,778
										2,144,999
REFUNDING BONDS
14.09% of Net Assets
Bertie County Limited Obligation**		4.000			06/01/2022	A2		200,000		203,070
Charlotte NC Certificate of Participation		4.000			06/01/2022	Aa1		125,000		126,993
Charlotte NC Certificate of Participation		5.000			06/01/2023	Aa1		25,000		26,675
Charlotte NC Certificate of Participation		4.000			06/01/2025	Aa1		100,000		105,139
Charlotte NC Certificate of Participation		5.000			12/01/2025	Aa2		100,000		117,134
Raleigh NC Limited Obligation Refunding		5.000			10/01/2023	Aa2		250,000		270,305
Rockingham County NC Limited Obligation**		5.000			04/01/2023	Aa3		250,000		264,680
Rockingham County NC Limited Obligation		4.000			04/01/2024	Aa3		105,000		113,483
Sampson County NC Limited Obligation		5.000			12/01/2023	A1		165,000		179,146
Sampson County NC Limited Obligation		5.000			09/01/2025	A1		125,000		144,423
Sampson County NC Limited Obligation		5.000			09/01/2026	A1		210,000		250,320
Warren County NC Limited Obligation**		5.000			06/01/2023	A1		100,000		106,477
										1,907,845
SCHOOL IMPROVEMENT BONDS
10.59% of Net Assets
Onslow County NC Limted Obligation		5.000			06/01/2023	Aa2		250,000		266,673
Randolph County NC Limited Obligation		5.000			10/01/2025	Aa3		250,000		291,335
Rutherford County NC Limited Obligation		5.000			03/01/2028	A1		75,000		93,150
Scotland County NC		5.000			12/01/2025	A*		270,000		313,296
Scotland County NC		5.000			12/01/2026	A*		250,000		297,993
Scotland County NC		5.000			12/01/2027	A*		140,000		171,013
										1,433,460
PUBLIC FACILITIES REVENUE BONDS 10.44% of Net Assets
Buncombe County NC Limited Obligation**		5.000			06/01/2028	Aa1		500,000		574,290
Charlotte NC Certificate of Participation		4.000			12/01/2022	Aa1		170,000		170,473
Greenville NC Limited Obligation		5.000			06/01/2029	AA-*		150,000		190,820
Monroe NC Limited Obligation		5.000			04/01/2026	AA*		265,000		312,995
Surry County NC Limited Olbligation		5.000			10/01/2030	Aa3		125,000		164,828
										1,413,406

The accompanying notes are an integral part of the financial statements.

31

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
PREREFUNDED BONDS 6.12% of Net Assets
Dare County NC Limited Obligation		5.000	%		06/01/2024	Aa2	$	335,000	$	341,680
North Carolina State Medical Care Commission Vidant Health		5.000			06/01/2028	A2		180,000		207,140
Watauga NC Public Facillities Corporation Limited Obligation		5.000			06/01/2023	Aa3		275,000		280,484
										829,304
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS 3.72% of Net Assets
NC State Grant Anticipation Revenue Vehicle		5.000			03/01/2029	A2		120,000		136,010
North Carolina State Anticipation Revenue Garvee		5.000			03/01/2029	A2		20,000		25,535
North Carolina Turnpike Authority		5.000			01/01/2029	A2		285,000		341,849
										503,394
HOSPITAL AND HEALTHCARE REVENUE BONDS 3.38% of Net Assets
Charlotte-Mecklenburg NC Hospital Authority Health Care System		5.000			01/15/2028	Aa3		225,000		263,070
NC State Medical Care Commission Health Care Facilities		4.000			06/01/2024	A2		180,000		195,160
										458,230
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
2.34% of Net Assets
Wilmington NC Limited Obligation		4.000			06/01/2029	Aa1		150,000		182,808
Winston Salem NC Limited Obligation		5.000			06/01/2023	Aa1		125,000		133,391
										316,199
AD VALOREM PROPERTY BONDS
2.01% of Net Assets
Smithville Township NC**		5.000			06/01/2024	Aa3		250,000		272,810
LEASE REVENUE BONDS
1.87% of Net Assets
Edgecombe County NC Limited Obligation**		4.000			06/01/2022	A2		250,000		253,668
ESCROWED TO MATURITY BONDS
1.62% of Net Assets
NC Eastern Municipal Power Agency		6.000			01/01/2022	A3		220,000		220,000
AIRPORT REVENUE BONDS
.73% of Net Assets
Charlotte NC Airport		5.000			07/01/2030	Aa3		75,000		98,390
Total Investments 95.76% of Net Assets									$	12,965,371
(cost $12,370,967) (See (a) below for further explanation)
Other assets in excess of liabilities 4.24%										574,328
Net Assets 100%									$	13,539,699

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $12,370,967 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	601,494
Unrealized depreciation		(7,090	)
Net unrealized appreciation	$	594,404

The accompanying notes are an integral part of the financial statements.

32

DUPREE MUTUAL FUNDS — NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

North Carolina Municipal Bonds

December 31, 2021

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		12,965,371
Level 3	Significant Unobservable Inputs		—
		$	12,965,371

The accompanying notes are an integral part of the financial statements.

33

NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES

STATEMENT OF ASSETS AND LIABILITIES UNAUDITED

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $12,370,967)		$	12,965,371
Cash			493,778
Interest receivable			110,169
Total assets			13,569,318
LIABILITIES:
Payable for:
Distributions to shareholders	4,606
Fund shares redeemed	2,505
Investment advisory fee	3,267
Transfer agent fee	1,696
Professional fees	3,962
Custodian expense	1,368
Trustees fees	1,560
Accrued expenses	10,655
Total liabilities			29,619
NET ASSETS:
Capital			12,945,295
Total distributable earnings			594,404
Net assets at value		$	13,539,699
NET ASSET VALUE, offering price and redemption price per share (1,222,099 shares outstanding; unlimited number of shares authorized; no par value)		$	11.08

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	149,637
Expenses:
Investment advisory fee		33,822
Transfer agent fee		10,146
Registration fees		4,493
Compliance fees		3,646
Custodian expense		2,750
Pricing fees		2,802
Professional fees		1,190
Trustees fees		694
Other expenses		2,421
Total expenses		61,964
Fees waived by Adviser (Note 2)		(14,586	)
Custodian expense reduction (Note 7)		(9	)
Net expenses		47,369
Net investment income		102,268
Net change in unrealized appreciation/depreciation		(109,606	)
Net decrease in net assets resulting from operations	$	(7,338	)

The accompanying notes are an integral part of the financial statements.

34

NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 06/30/2021
Operations:
Net investment income	$	102,268		$	206,892
Net realized gain on investments		—			48
Net change in unrealized appreciation/depreciation		(109,606	)		(31,639	)
Net increase/(decrease) in net assets resulting from operations		(7,338	)		175,301
Total distributions (Note 6)		(102,316	)		(208,402	)
Net Fund share transactions (Note 4)		409,656			295,632
Total increase		300,002			262,531
Net assets:
Beginning of period		13,239,697			12,977,166
End of period	$	13,539,699		$	13,239,697

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	11.17		$	11.20		$	11.02		$	10.64		$	10.85		$	11.05
Income from investment operations:
Net investment income		0.08			0.18			0.17			0.17			0.16			0.16
Net gains/(losses) on investments		(0.09	)		(0.03	)		0.18			0.38			(0.21	)		(0.20	)
Total from investment operations		(0.01	)		0.15			0.35			0.55			(0.05	)		(0.04	)
Less distributions:
Distributions from net investment income		(0.08	)		(0.18	)		(0.17	)		(0.17	)		(0.16	)		(0.16	)
Distributions from capital gains		0.00	(b)		0.00	(b)		0.00			0.00			0.00			0.00
Net asset value, end of period	$	11.08		$	11.17		$	11.20		$	11.02		$	10.64		$	10.85
Total return		(0.05	)%(c)		1.32	%		3.24	%		5.19	%		(0.45	)%		(0.33	)%
Net assets, end of period (in thousands)	$	13,540		$	13,240		$	12,977		$	19,504		$	22,267		$	21,930
Ratio of net expenses to average net assets (a)		0.70	%(d)		0.70	%		0.70	%		0.70	%		0.70	%		0.73	%
Ratio of gross expenses to average net assets		0.92	%(d)		0.95	%		0.91	%		0.88	%		0.86	%		0.82	%
Ratio of net investment income to average net assets		1.52	%(d)		1.56	%		1.56	%		1.55	%		1.50	%		1.49	%
Portfolio turnover		0.77	%(c)		1.94	%		9.59	%		13.59	%		21.80	%		11.15	%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Rounds to less than $0.01.

(c) Not annualized

(d) Annualized

The accompanying notes are an integral part of the financial statements.

35

DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Tennessee Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
MUNICIPAL UTILITY REVENUE BONDS
26.46% of Net Assets
Chattanooga TN Electric Revenue		5.000	%		09/01/2035	AA*	$	250,000	$	288,453
Chattanooga TN Electric Revenue		5.000			09/01/2040	AA*		2,325,000		2,675,308
Clarksville TN Electric System Revenue		4.000			09/01/2034	Aa2		500,000		579,440
Clarksville TN Water Sewer & Gas Revenue		4.000			02/01/2036	Aa2		1,475,000		1,718,464
Clarksville TN Water Sewer & Gas Revenue		4.000			02/01/2038	Aa2		820,000		953,783
Columbia TN Waterworks Revenue		5.000			12/01/2032	Aa3		885,000		886,770
Franklin TN Water & Sewer Revenue and Tax Authority		5.000			04/01/2024	Aaa		750,000		828,443
Franklin TN Water & Sewer System Revenue		4.000			02/01/2036	Aa2		250,000		286,680
Franklin TN Water & Sewer System Revenue		4.000			02/01/2040	Aa2		710,000		858,184
Franklin TN Water & Sewer System Revenue		4.000			02/01/2041	Aa2		740,000		892,359
Franklin TN Water & Sewer System Revenue		4.000			02/01/2042	Aa2		770,000		926,364
Hallsdale-Powell TN Utility District Knox County Water & Sewer		4.000			04/01/2035	AA*		315,000		355,062
Hallsdale-Powell TN Utility District Knox County Water & Sewer		4.000			04/01/2038	AA*		1,000,000		1,123,620
Harpeth Valley TN Utilities District		5.000			09/01/2034	AA+*		500,000		558,675
Harpeth Valley TN Utilities District		5.000			09/01/2040	AA+*		1,000,000		1,030,930
Harpeth Valley TN Utilities District		4.000			09/01/2045	AA+*		150,000		175,992
Knox Chapman TN Utility District		4.500			01/01/2027	AA-*		1,000,000		1,041,290
Knox Chapman TN Utility District		5.000			01/01/2031	AA-*		250,000		282,815
Knox Chapman TN Utility District		5.000			01/01/2033	AA-*		250,000		282,338
Memphis TN Electric System Revenue		3.000			12/01/2037	Aa2		500,000		550,950
Memphis TN Gas System Revenue		4.000			12/01/2034	Aa1		775,000		887,879
Memphis TN Gas System Revenue		4.000			12/01/2036	Aa1		800,000		929,048
Memphis TN Gas System Revenue**		4.000			12/01/2037	Aa1		1,310,000		1,520,501
Memphis TN Storm Water System Revenue		5.000			10/01/2038	Aa3		500,000		612,730
Metropolitan Government Nashville & Davidson County Electric		5.000			05/15/2036	AA*		500,000		551,740
Metropolitan Government Nashville & Davidson County Electric		5.000			05/15/2039	AA*		500,000		550,740
Metropolitan Government Nashville & Davidson County Water & Sewer		5.000			07/01/2037	Aa2		250,000		303,685
Watauga River Regional Water Authority TN Waterworks		4.000			07/01/2037	A*		270,000		307,959
Williamson County Utilities		4.000			09/01/2041	AA*		500,000		590,600
										22,550,802
PREREFUNDED BONDS
24.41% of Net Assets
Bristol TN Electric Revenue		5.000			09/01/2038	AA-*		1,525,000		1,644,071
Clarksville TN Water Sewer & Gas Revenue		5.000			02/01/2033	Aa2		500,000		525,620
Clarksville TN Water Sewer & Gas Revenue		5.000			02/01/2038	Aa2		1,000,000		1,051,130
Gallatin TN Water & Sewer Revenue		5.000			01/01/2032	AA*		235,000		266,826
Memphis TN Electric System Revenue		5.000			12/01/2031	Aa2		225,000		254,842
Memphis TN Electric System Revenue		5.000			12/01/2034	Aa2		1,250,000		1,415,788
Metropolitan Government Nashville & Davidson County Sports Authority		5.000			08/01/2031	Aa3		1,500,000		1,611,525
Metropolitan Government Nashville & Davidson County Sports Authority		5.000			08/01/2038	Aa3		755,000		811,134
Metropolitan Government Nashville & Davidson County Water & Sewer**		5.000			07/01/2030	Aa2		3,250,000		3,479,450
Metropolitan Government Nashville & Davidson County Water & Sewer		5.000			07/01/2031	Aa2		500,000		535,300
Metropolitan Government Nashville & Davidson County Water & Sewer		5.000			07/01/2033	Aa2		575,000		615,595
Metropolitan Government Nashville & Davidson County Water & Sewer**		5.000			07/01/2040	Aa2		2,265,000		2,424,909
Shelby County TN Health Education & Housing Facilities		5.000			05/01/2027	A1		750,000		761,708
Shelby County TN Health Education & Housing Facilities Board Rhodes College		5.000			08/01/2040	A2		650,000		741,533
TN State School Bond Authority Higher Educational Facilities		5.000			11/01/2037	Aa1		700,000		790,202
TN State School Bond Authority Higher Educational Facilities		5.000			11/01/2040	Aa1		2,000,000		2,334,640
TN State School Bond Authority Higher Educational Facilities		5.000			11/01/2043	Aa1		1,000,000		1,039,860
Watauga River TN Regional Water Authority Waterworks		5.000			07/01/2034	A*		500,000		511,630
										20,815,763

The accompanying notes are an integral part of the financial statements.

36

DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Tennessee Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
SCHOOL IMPROVEMENT BONDS
13.77% of Net Assets
Coffee County TN		4.000	%		06/01/2037	AA-*	$	500,000	$	590,885
Coffee County TN		4.000			06/01/2041	AA-*		620,000		727,930
Franklin TN Special School District		5.000			06/01/2039	Aa1		250,000		315,195
Franklin TN Special School District		4.000			06/01/2046	Aa1		750,000		905,303
Johnson City TN		4.000			06/01/2036	Aa2		1,150,000		1,363,486
Montgomery County TN		4.000			04/01/2036	AA*		260,000		298,501
Montgomery County TN		4.000			04/01/2037	AA*		1,920,000		2,201,144
Rhea County TN**		5.000			04/01/2029	A1		1,385,000		1,401,108
Shelby County TN		5.000			04/01/2037	Aa1		500,000		605,170
Wilson County TN		4.000			04/01/2039	AA+*		1,495,000		1,685,134
Wilson County TN 10th Special School District		4.000			04/01/2033	AA-*		655,000		768,983
Wilson County TN 10th Special School District		4.000			04/01/2037	AA-*		200,000		236,030
Wilson County TN 10th Special School District		4.000			04/01/2039	AA-*		550,000		644,529
										11,743,398
HOSPITAL AND HEALTHCARE REVENUE BONDS
8.82% of Net Assets
Knox County TN Health East Tennessee Children’s Hospital		4.000			11/15/2048	A*		900,000		1,009,395
Metropolitan Government Nashville & Davidson County TN Health		5.000			07/01/2035	A3		2,500,000		2,951,050
Metropolitan Government Nashville & Davidson County TN Health		5.000			07/01/2040	A3		950,000		1,117,257
Shelby County TN Health Education & Housing Facilities		5.000			05/01/2036	A1		1,535,000		1,841,601
Shelby County TN Health Education & Housing Facilities — LeBonheur		5.000			05/01/2035	A1		500,000		600,730
										7,520,033
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
8.31% of Net Assets
Germantown TN		3.000			12/01/2050	Aaa		415,000		455,687
Memphis Shelby County TN Port Authority Community Development		5.000			04/01/2035	Aa3		625,000		627,231
Memphis TN		4.000			06/01/2041	Aa2		1,120,000		1,267,403
Metropolitan Government Nashville & Davidson County TN		4.000			07/01/2033	Aa2		1,470,000		1,705,435
Metropolitan Government Nashville & Davidson County TN		4.000			07/01/2034	Aa2		500,000		579,495
Metropolitan Government Nashville & Davidson County TN		4.000			07/01/2036	Aa2		500,000		592,440
TN State Series A		5.000			02/01/2036	Aaa		1,500,000		1,853,250
										7,080,941
REFUNDING BONDS
5.49% of Net Assets
Blount County TN		5.000			06/01/2037	Aa2		1,000,000		1,178,080
Jackson TN Refunding		4.000			06/01/2037	AA*		405,000		479,245
Memphis TN General Improvement		5.000			04/01/2034	Aa2		500,000		550,040
Memphis TN General Improvement		5.000			04/01/2039	Aa2		250,000		274,250
Memphis TN Refunding		5.000			04/01/2030	Aa2		1,000,000		1,102,210
Memphis TN Refunding		5.000			04/01/2033	Aa2		250,000		275,137
Memphis TN Refunding		5.000			04/01/2035	Aa2		250,000		274,840
Memphis TN Refunding		5.000			04/01/2040	Aa2		500,000		548,500
										4,682,302
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
4.02% of Net Assets
Franklin County TN Health & Education Facilities Board Revenue		5.000			09/01/2030	A+*		200,000		206,242
Shelby County TN Health Education & Housing Facilities Board Rhodes College		4.000			08/01/2036	A2		920,000		1,052,664
Shelby County TN Health Education & Housing Facilities Board Rhodes College		4.000			08/01/2037	A2		1,030,000		1,177,877
Shelby County TN Health Education & Housing Facilities Board Rhodes College		4.000			08/01/2040	A2		875,000		994,630
										3,431,413

The accompanying notes are an integral part of the financial statements.

37

DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE INCOME SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Tennessee Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
AIRPORT REVENUE BONDS
3.67% of Net Assets
Memphis Shelby County TN Airport Authority		4.000	%		07/01/2038	A2	$	500,000	$	590,660
Metropolitan Nashville Airport Authority		5.000			07/01/2034	A1		800,000		919,928
Metropolitan Nashville Airport Authority		5.000			07/01/2035	A1		250,000		287,198
Metropolitan Nashville Airport Authority		5.000			07/01/2040	A1		1,160,000		1,327,387
										3,125,173
PUBLIC FACILITIES REVENUE BONDS
3.52% of Net Assets
Memphis Shelby County TN Industrial Development Board		5.000			11/01/2030	Aa3		1,250,000		1,488,588
Memphis TN Refunding General Improvement		5.000			04/01/2031	Aa2		800,000		881,200
Metropolitan Government Nashville & Davidson County Convention Center		5.000			07/01/2026	A1		630,000		631,978
										3,001,766
Total Investments 98.47% of Net Assets (cost $78,663,106) (See (a) below for further explanation)									$	83,951,591
Other assets in excess of liabilities 1.53%										1,306,721
Net Assets 100%									$	85,258,312

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $78,663,106 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	5,305,560
Unrealized depreciation		(17,075	)
Net unrealized appreciation	$	5,288,485

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		83,951,591
Level 3	Significant Unobservable Inputs		—
		$	83,951,591

The accompanying notes are an integral part of the financial statements.

38

TENNESSEE TAX-FREE INCOME SERIES

STATEMENT OF ASSETS AND LIABILITIES UNAUDITED

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $78,663,106)		$	83,951,591
Cash			490,058
Interest receivable			1,074,181
Total assets			85,515,830
LIABILITIES:
Payable for:
Distributions to shareholders	190,025
Fund shares redeemed	8,053
Investment advisory fee	37,253
Transfer agent fee	9,482
Professional fees	6,040
Custodian expense	1,256
Trustees fees	2,238
Accrued expenses	3,171
Total liabilities			257,518
NET ASSETS:
Capital			80,128,979
Total distributable earnings			5,129,333
Net assets at value		$	85,258,312
NET ASSET VALUE, offering price and redemption price per share (7,344,753 shares outstanding; unlimited number of shares authorized; no par value)		$	11.61

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	1,278,000
Expenses:
Investment advisory fee		216,354
Transfer agent fee		54,950
Professional fees		7,669
Custodian expense		6,537
Compliance fees		3,277
Trustees fees		4,494
Pricing fees		5,042
Registration expense		2,547
Other expenses		4,331
Total expenses		305,201
Fees waived by Adviser (Note 2)		(3,579	)
Custodian expense reduction (Note 7)		(23	)
Net expenses		301,599
Net investment income		976,401
Realized and unrealized gain/(loss) on investments:
Net realized gain		13,241
Net change in unrealized appreciation/depreciation		(766,134	)
Net realized and unrealized loss on investments		(752,893	)
Net increase in net assets resulting from operations	$	223,508

The accompanying notes are an integral part of the financial statements.

39

TENNESSEE TAX-FREE INCOME SERIES

STATEMENTS OF CHANGES IN NET ASSETS UNAUDITED

For the six months ended December 31, 2021 and the year ended June 30, 2021

	Six Months Ended 12/31/2021			Year Ended 06/30/2021
Operations:
Net investment income	$	976,401		$	2,146,230
Net realized gain on investments		13,241			156,369
Net change in unrealized appreciation/depreciation		(766,134	)		268,393
Net increase in net assets resulting from operations		223,508			2,570,992
Total distributions (Note 6)		(976,401	)		(2,169,427	)
Net Fund share transactions (Note 4)		(135,577	)		(9,934,989	)
Total decrease		(888,470	)		(9,533,424	)
Net assets:
Beginning of period		86,146,782			95,680,206
End of period	$	85,258,312		$	86,146,782

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	11.71		$	11.66		$	11.51		$	11.24		$	11.44		$	11.89
Income from investment operations:
Net investment income		0.13			0.27			0.28			0.30			0.31			0.33
Net gains/(losses) on investments		(0.10	)		0.05			0.15			0.27			(0.20	)		(0.45	)
Total from investment operations		0.03			0.32			0.43			0.57			0.11			(0.12	)
Less distributions:
Distributions from net investment income		(0.13	)		(0.27	)		(0.28	)		(0.30	)		(0.31	)		(0.33	)
Net asset value, end of period	$	11.61		$	11.71		$	11.66		$	11.51		$	11.24		$	11.44
Total return		0.28%	(b)		2.84%			3.77%			5.12%			0.94%			(1.03	)%
Net assets, end of period (in thousands)	$	85,258		$	86,147		$	95,680		$	104,207		$	108,121		$	108,260
Ratio of net expenses to average net assets (a)		0.70%	(c)		0.70%			0.70%			0.70%			0.70%			0.70%
Ratio of gross expenses to average net assets		0.71%	(c)		0.71%			0.71%			0.71%			0.71%			0.71%
Ratio of net investment income to average net assets		2.28%	(c)		2.35%			2.42%			2.63%			2.70%			2.82%
Portfolio turnover		7.25%	(b)		2.75%			3.46%			6.46%			15.77%			9.27%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Not annualized

(c) Annualized

The accompanying notes are an integral part of the financial statements.

40

DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Tennessee Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
MUNICIPAL UTILITY REVENUE BONDS
23.21% of Net Assets
Chattanooga TN Electric Revenue**		5.000	%		09/01/2023	AA*	$	250,000	$	269,562
Hallsdale-Powell TN Utility District		4.000			04/01/2028	AA*		255,000		289,372
Maryville TN		4.000			06/01/2029	Aa2		250,000		285,115
Metropolitan Government Nashville & Davidson County TN Water & Sewer		5.000			07/01/2026	Aa2		100,000		107,092
Springfield TN		5.000			06/01/2027	Aa3		245,000		299,439
										1,250,580
REFUNDING BONDS
21.33% of Net Assets
Maryville TN		5.000			06/01/2026	Aa2		350,000		416,350
Memphis TN General Improvement**		5.000			11/01/2023	Aa2		350,000		380,118
Memphis-Shelby County TN Industrial Development Board		5.000			11/01/2027	Aa2		200,000		240,375
Putnam County TN		4.000			04/01/2025	Aa2		100,000		111,475
										1,148,318
SCHOOL IMPROVEMENT BONDS
19.26% of Net Assets
Bedford County TN		4.000			04/01/2027	AA*		250,000		284,373
Milan TN Special School District		5.000			03/01/2028	AA*		170,000		210,795
Rhea County TN		4.000			04/01/2025	A1		250,000		252,310
White County TN		4.000			06/01/2027	AA-*		260,000		289,476
										1,036,954
PUBLIC FACILITIES REVENUE BONDS
19.21% of Net Assets
Memphis TN Center City Revenue Finance Corporation Sports Facility		4.000			02/01/2022	Aa3		95,000		95,305
Memphis-Shelby County TN Industrial Development Board		5.000			11/01/2024	Aa3		250,000		282,062
Metropolitan Government Nashville & Davidson County TN Sports Authority		5.000			07/01/2023	Aa3		125,000		133,689
Metropolitan Government Nashville & Davidson County TN Sports Authority		5.250			08/01/2024	Aa3		190,000		204,970
Metropolitan Government Nashville & Davidson County TN Sports Authority		5.250			08/01/2025	Aa3		195,000		210,300
Metropolitan Government Nashville & Davidson County TN Sports Authority		5.250			08/01/2026	Aa3		100,000		107,846
										1,034,172
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
9.31% of Net Assets
Franklin County TN Health & Educational Facilities Board		4.000			09/01/2024	A+*		135,000		138,251
Shelby County TN Health Educational & Housing Facilities Rhodes College		4.000			08/01/2025	A2		100,000		111,922
Shelby County TN Health Educational & Housing Facilities Rhodes College		4.000			08/01/2027	A2		225,000		250,890
										501,063
AIRPORT REVENUE BONDS
1.96% of Net Assets
Metropolitan Nashville Airport Authority		4.000			07/01/2023	A1		100,000		105,564
PREREFUNDED BONDS
1.89% of Net Assets
Metropolitan Government Nashville & Davidson County TN		4.000			07/01/2024	NR		20,000		20,377
Metropolitan Government Nashville & Davidson County TN		4.000			07/01/2024	Aa2		80,000		81,502
										101,879

The accompanying notes are an integral part of the financial statements.

41

DUPREE MUTUAL FUNDS — TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Tennessee Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
.72% of Net Assets
Selmer TN		4.000	%		06/01/2025	AA*	$	35,000	$	39,031
Total Investments 96.89% of Net Assets (cost $4,981,050) (See (a) below for further explanation)									$	5,217,561
Other assets in excess of liabilities 3.11%										167,204
Net Assets 100%									$	5,384,765

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $4,981,050 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	239,766
Unrealized depreciation		(3,255	)
Net unrealized appreciation	$	236,511

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		5,217,561
Level 3	Significant Unobservable Inputs		—
		$	5,217,561

The accompanying notes are an integral part of the financial statements.

42

TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES

STATEMENT OF ASSETS AND LIABILITIES UNAUDITED

December 31, 2021

ASSETS:
Investments in securities, at fair value (Cost: $4,981,050)		$	5,217,561
Cash			124,474
Interest receivable			55,868
Total assets			5,397,903
LIABILITIES:
Payable for:
Distributions to shareholders	1,214
Fund shares redeemed	863
Investment advisory fee	591
Transfer agent fee	811
Professional fees	2,283
Pricing fees	1,789
Postage expense	1,149
Custodian expense	612
Trustees fees	761
Accrued expenses	3,065
Total liabilities			13,138
NET ASSETS:
Capital			5,396,505
Total accumulated loss			(11,740	)
Net assets at value		$	5,384,765
NET ASSET VALUE, offering price and redemption price per share (497,319 shares outstanding; unlimited number of shares authorized; no par value)		$	10.83

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	63,918
Expenses:
Investment advisory fee		14,122
Transfer agent fee		4,237
Registration expense		4,094
Custodian expense		2,450
Compliance fees		3,598
Pricing expense		1,935
Professional fees		516
Trustees fees		305
Other expenses		1,284
Total expenses		32,541
Fees waived by Adviser (Note 2)		(12,777	)
Custodian expense reduction (Note 7)		(8	)
Net expenses		19,756
Net investment income		44,162
Realized and unrealized gain/(loss) on investments:
Net realized gain		2,808
Net change in unrealized appreciation/depreciation		(59,276	)
Net realized and unrealized loss on investments		(56,468	)
Net decrease in net assets resulting from operations	$	(12,306	)

The accompanying notes are an integral part of the financial statements.

43

TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES

STATEMENTS OF CHANGES IN NET ASSETS UNAUDITED

For the six months ended December 31, 2021 and the year ended June 30, 2021

	Six Months Ended 12/31/2021			Year Ended 06/30/2021
Operations:
Net investment income	$	44,162		$	97,031
Net realized gain on investments		2,808			18,522
Net change in unrealized appreciation/depreciation		(59,276	)		(62,358	)
Net increase/(decrease) in net assets resulting from operations		(12,306	)		53,195
Total distributions (Note 6)		(44,162	)		(97,031	)
Net Fund share transactions (Note 4)		(480,870	)		(634,312	)
Total decrease		(537,338	)		(678,148	)
Net assets:
Beginning of period		5,922,103			6,600,251
End of period	$	5,384,765		$	5,922,103

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	10.94		$	11.02		$	10.82		$	10.52		$	10.70		$	10.93
Income from investment operations:
Net investment income		0.09			0.17			0.17			0.17			0.16			0.17
Net gains/(losses) on investments both realized and unrealized		(0.11	)		(0.08	)		0.20			0.30			(0.18	)		(0.23	)
Total from investment operations		(0.02	)		0.09			0.37			0.47			(0.02	)		(0.06	)
Less distributions:
Distributions from net investment income		(0.09	)		(0.17	)		(0.17	)		(0.17	)		(0.16	)		(0.17	)
Net asset value, end of period	$	10.83		$	10.94		$	11.02		$	10.82		$	10.52		$	10.70
Total return		(0.22)%	(b)		0.81%			3.49%			4.48%			(0.17)%			(0.54)%
Net assets, end of period (in thousands)	$	5,385		$	5,922		$	6,600		$	7,239		$	10,003		$	10,499
Ratio of net expenses to average net assets (a)		0.70%	(c)		0.70%			0.70%			0.71%			0.70%			0.75%
Ratio of gross expenses to average net assets		1.16%	(c)		1.12%			1.14%			1.08%			0.98%			0.88%
Ratio of net investment income to average net assets		1.58%	(c)		1.54%			1.60%			1.57%			1.53%			1.59%
Portfolio turnover		0.00%	(b)		5.75%			4.55%			10.64%			22.75%			10.95%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Not annualized

(c) Annualized

The accompanying notes are an integral part of the financial statements.

44

DUPREE MUTUAL FUNDS — INTERMEDIATE GOVERNMENT BOND SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

U.S. Government Securities and Agencies

December 31, 2021

Bond Description	Coupon			Maturity Date	Rating#	Par Value		Fair Value
FEDERAL FARM CREDIT
61.64% of Net Assets
Federal Farm Credit Bank**		5.250	%	10/25/2022	Aaa	$	1,150,000	$	1,197,910
Federal Farm Credit Bank**		5.840		07/20/2022	Aaa		2,650,000		2,733,033
Federal Farm Credit Bank		5.125		11/28/2022	Aaa		2,000,000		2,090,260
Federal Farm Credit Bank		2.375		08/01/2029	Aaa		1,000,000		1,061,333
									7,082,536
FEDERAL HOME LOAN BANK
32.59% of Net Assets
Federal Home Loan Bank		5.365		09/09/2024	Aaa		1,750,000		1,953,340
Federal Home Loan Bank		5.750		06/10/2022	Aaa		1,750,000		1,791,949
									3,745,289
FEDERAL HOME LOAN MORTAGE CORPORATION
4.17% of Net Assets
Federal Home Loan Mortage Corporation		1.400		07/28/2032	Aaa		500,000		478,962
Total Investments 98.40% of Net Assets (cost $11,021,321) (See (a) below for further explanation)								$	11,306,787
Other assets in excess of liabilities 1.60%									184,065
Net Assets 100%								$	11,490,852

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $11,021,321 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	306,005
Unrealized depreciation		(20,539	)
Net unrealized appreciation	$	285,466

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Government Agencies
Level 1	Quoted Prices		—
Level 2	Other Significant Observable Inputs	$	11,306,787
Level 3	Significant Unobservable Inputs		—
		$	11,306,787

The accompanying notes are an integral part of the financial statements.

45

INTERMEDIATE GOVERNMENT BOND SERIES

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2021 UNAUDITED

ASSETS:
Investments in securities, at fair value (Cost: $11,021,321)		$	11,306,787
Cash			69,748
Interest receivable			138,805
Total assets			11,515,340
LIABILITIES:
Payable for:
Distributions to shareholders	4,101
Fund shares redeemed	7,157
Investment advisory fee	1,599
Transfer agent fee	1,467
Professional fees	1,519
Custodian expense	141
Trustee fees	697
Accrued expenses	7,807
Total liabilities			24,488
NET ASSETS:
Capital			11,252,253
Total distributable earnings			238,599
Net assets at value		$	11,490,852
NET ASSET VALUE, offering price and redemption price per share (1,157,855 shares outstanding; unlimited number of shares authorized; no par value)		$	9.92

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	175,540
Expenses:
Investment advisory fee		11,907
Transfer agent fee		8,930
Custodian expense		3,079
Printing expense		2,760
Registration expense		5,624
Compliance fees		3,680
Pricing fees		3,496
Professional fees		1,088
Trustee fees		656
Other expenses		2,266
Total expenses		43,486
Fees waived by Adviser (Note 2)		(1,801	)
Custodian expense reduction (Note 7)		(11	)
Net expenses		41,674
Net investment income		133,866
Realized and unrealized gain/(loss) on investments:
Net realized gain		5,071
Net change in unrealized appreciation/depreciation		(204,452	)
Net realized and unrealized loss on investments		(199,381	)
Net decrease in net assets resulting from operations	$	(65,515	)

The accompanying notes are an integral part of the financial statements.

46

INTERMEDIATE GOVERNMENT BOND SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 6/30/2021
Operations:
Net investment income	$	133,866		$	345,153
Net realized gain on investments		5,071			89,183
Net change in unrealized appreciation/depreciation		(204,452	)		(504,094	)
Net decrease in net assets resulting from operations		(65,515	)		(69,758	)
Total distributions (Note 6)		(133,866	)		(345,153	)
Net Fund share transactions (Note 4)		(353,799	)		(3,218,481	)
Total decrease		(553,180	)		(3,633,392	)
Net assets:
Beginning of period		12,044,032			15,677,424
End of period	$	11,490,852		$	12,044,032

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	10.09		$	10.37		$	10.12		$	9.87		$	10.23		$	10.70
Income from investment operations:
Net investment income		0.11			0.23			0.24			0.25			0.25			0.26
Net gains/(losses) on investments		(0.17	)		(0.28	)		0.25			0.25			(0.36	)		(0.47	)
Total from investment operations		(0.06	)		(0.05	)		0.49			0.50			(0.11	)		(0.21	)
Less distributions:
Distributions from net investment income		(0.11	)		(0.23	)		(0.24	)		(0.25	)		(0.25	)		(0.26	)
Net asset value, end of period	$	9.92		$	10.09		$	10.37		$	10.12		$	9.87		$	10.23
Total return		(0.56	)%(b)		(0.49	)%		4.88%			5.12%			(1.05	)%		(1.99	)%
Net assets, end of period (in thousands)	$	11,491		$	12,044		$	15,677		$	15,128		$	15,033		$	15,606
Ratio of net expenses to average net assets (a)		0.70%	(c)		0.66%			0.68%			0.69%			0.61%			0.58%
Ratio of gross expenses to average net assets		0.74%	(c)		0.67%			0.68%			0.69%			0.61%			0.58%
Ratio of net investment income to average net assets		2.27%	(c)		2.25%			2.33%			2.50%			2.53%			2.49%
Portfolio turnover		0.00%	(b)		3.35%			5.07%			0.00%			1.99%			0.00%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Not annualized

(c) Annualized

The accompanying notes are an integral part of the financial statements.

47

DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Taxable Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
MUNICIPAL UTILITY REVENUE BONDS
34.00% of Net Assets
Alexandria LA Utilities		3.087	%		05/01/2043	AA*	$	300,000	$	323,289
Barnesville GA Water & Sewer		3.175			09/01/2046	AA*		250,000		257,553
Benton WA Public Water Authority		3.200			10/01/2044	AA*		200,000		208,368
Cleveland OH Water		3.205			01/01/2042	Aa2		250,000		261,413
Eagle River CO Water & Sanitation District		3.010			12/01/2042	AA*		325,000		337,071
Franklin County WA Public Utility District		2.974			09/01/2041	A1		150,000		152,109
Grant County WA Public Utility District		3.336			01/01/2041	Aa3		125,000		130,961
KY State Rural Water Finance Corporation		3.000			08/01/2050	A+*		250,000		251,010
Lansing MI Board of Water & Light Utilities		3.525			07/01/2041	Aa3		300,000		324,108
Metropolitan Government Nashville & Davidson County TN Recovery Zone		6.693			07/01/2041	Aa2		200,000		312,778
New Orleans LA Sewage		2.939			06/01/2045	AA*		250,000		247,860
OK State Municipal Power Authority		6.310			01/01/2040	A2		95,000		138,994
OK State Water Resources Board State Loan Program**		2.910			10/01/2045	AAA*		200,000		202,468
Pasco WA Water & Sewer Revenue		3.272			12/01/2040	AA-*		245,000		253,470
Pigeon Forge TN Build America Recovery Zone		7.125			06/01/2040	AA*		300,000		354,561
Russellville AR Water & Sewer		2.816			07/01/2040	AA*		245,000		249,334
West Knox Utilities District Knox County TN Water and Sewer**		6.900			06/01/2040	AA+*		400,000		409,714
										4,415,061
PUBLIC FACILITIES REVENUE BONDS
15.63% of Net Assets
Evanston IL Taxable Corporate Purpose Bonds		4.250			12/01/2038	Aa2		275,000		301,141
Franklin County OH Convention Facilities Build America		6.540			12/01/2036	Aa2		155,000		215,794
Metropolitan Government Nashville & Davidson County TN		7.431			07/01/2043	A1		190,000		284,502
Montgomery AL Community Cooperative District		2.815			11/01/2049	Aa1		200,000		203,500
Oklahoma State Capitol Improvement Authority**		3.078			07/01/2040	AA-*		250,000		257,518
Pompano Beach FL Certificate of Participation		5.579			01/01/2040	A1		225,000		246,544
Rhode Island Convention Center		6.060			05/15/2035	A1		70,000		94,744
Tuscon AZ Certificate of Participation		4.831			07/01/2034	A1		130,000		162,360
Wilmington NC Limited Obligation		3.090			06/01/2040	Aa1		250,000		265,228
										2,031,331
PREREFUNDED BONDS
8.70% of Net Assets
TN Housing Development Agency		3.104			07/01/2040	Aa1		250,000		255,110
TN Housing Development Agency		3.254			01/01/2045	Aa1		150,000		153,863
Uptown Development Authority Texas		3.464			09/01/2040	A2		200,000		211,174
VA State Housing Development		3.130			11/01/2045	Aa1		250,000		254,173
VA State Housing Development Authority		3.230			11/01/2050	Aa1		250,000		255,736
										1,130,056
SCHOOL IMPROVEMENT BONDS
7.91% of Net Assets
Jefferson County TN Build America Bonds		6.625			06/01/2040	Aa3		250,000		270,025
Sedgwick County KS Unified School District		3.002			10/01/2043	Aa3		250,000		255,255
Sparta MI Area Schools		3.009			05/01/2046	AA*		250,000		252,412
White Settlement TX Independent School District		2.843			08/15/2045	AAA*		250,000		250,053
										1,027,745
REFUNDING BONDS
7.39% of Net Assets
Homewood AL Warrants		2.753			09/01/2046	Aa2		250,000		251,205
Leeds AL		3.097			05/01/2048	AA*		300,000		307,065
Oxford AL		2.684			01/01/2045	Aa2		400,000		401,260
										959,530
UNIVERSITY CONSOLIDATED EDUCATION AND BUILDING REVENUE BONDS
7.34% of Net Assets
Mesa CO State College Auxiliary		5.800			05/15/2040	Aa2		170,000		234,500

The accompanying notes are an integral part of the financial statements.

48

DUPREE MUTUAL FUNDS — TAXABLE MUNICIPAL BOND SERIES UNAUDITED

SCHEDULE OF PORTFOLIO INVESTMENTS

Taxable Municipal Bonds

December 31, 2021

Bond Description	Coupon			Maturity Date		Rating#	Par Value		Fair Value
Mesa State College CO Auxiliary Facilities Build America		6.746	%		05/15/2042	Aa2	$	100,000	$	153,761
Michigan State University Revenues**		4.496			08/15/2048	Aa2		375,000		429,442
OK Development Finance Authority		2.930			06/01/2041	AA-*		135,000		136,104
										953,807
MISCELLANEOUS PUBLIC IMPROVEMENT BONDS
5.29% of Net Assets
KY State Property & Buildings Build America**		5.921			11/01/2030	A1		250,000		303,688
Leeds AL Taxable Warrants		4.125			05/01/2039	AA*		125,000		130,859
Sherwood OR		2.716			06/01/2041	Aa2		250,000		251,987
										686,534
TURNPIKES/TOLLROAD/HIGHWAY REVENUE BONDS
3.26% of Net Assets
Washoe County NV Highway Revenue		7.969			02/01/2040	Aa3		280,000		423,010
MARINA/PORT AUTHORITY REVENUE BONDS
2.37% of Net Assets
Miami Dade County FL Special Obligation		7.500			04/01/2040	Aa3		200,000		307,212
AD VALOREM PROPERTY BONDS
2.02% of Net Assets
Parker CO Water & Sanitation District		3.062			08/01/2040	AA+*		250,000		261,972
HOSPITAL AND HEALTHCARE REVENUE BONDS
2.00% of Net Assets
Midland County TX Hospital District		6.440			05/15/2039	Aa3		185,000		259,215
MASS TRANSIT BONDS
1.98% of Net Assets
Dallas Area Rapid Transit		3.039			12/01/2043	Aa2		250,000		256,873
AIRPORT REVENUE BONDS
.99% of Net Assets
Tri-Cities TN Airport Authority Revenue		3.625			05/01/2038	Aa2		125,000		129,074
Total Investments 98.88% of Net Assets (cost $11,971,079) (See (a) below for further explanation)									$	12,841,420
Other assets in excess of liabilities 1.12%										145,429
Net Assets 100%									$	12,986,849

# Ratings by Moody’s Investors Service unless noted otherwise.

All ratings are as of the date indicated and do not reflect subsequent changes.

* Rated by Standard & Poor’s Corporation

@ Rated by Fitch’s Investors Service

NR Not Rated

** Security is segregated — see footnote 1(D)

(a) Cost for federal income tax purposes is $11,989,726 and net unrealized appreciation of investments is as follows:

Unrealized appreciation	$	817,149
Unrealized depreciation		(5,455	)
Net unrealized appreciation	$	811,694

Other Information

The following is a summary of the inputs used, as of December 31, 2021, involving the Fund’s investments in securities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

	Valuation Inputs	Taxable Municipal Bonds
Level 1	Quoted Prices	$	—
Level 2	Other Significant Observable Inputs		12,841,420
Level 3	Significant Unobservable Inputs		—
		$	12,841,420

The accompanying notes are an integral part of the financial statements.

49

TAXABLE MUNICIPAL BOND SERIES

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2021 UNAUDITED

ASSETS:
Investments in securities, at fair value (Cost: $11,971,079)		$	12,841,420
Cash			50,647
Interest receivable			128,747
Total assets			13,020,814
LIABILITIES:
Payable for:
Distributions to shareholders	7,231
Investment advisory fee	3,011
Transfer agent fee	1,737
Trustees fees	6,465
Professional fees	4,415
Registration expense	5,813
Custodian expense	2,479
Accrued expenses	2,814
Total liabilities			33,965
NET ASSETS:
Capital			12,232,916
Total distributable earnings			753,933
Net assets at value		$	12,986,849
NET ASSET VALUE, offering price and redemption price per share (1,272,522 shares outstanding; unlimited number of shares authorized; no par value)		$	10.21

STATEMENT OF OPERATIONS

For the six months ended December 31, 2021

Net investment income:
Interest income	$	253,131
Expenses:
Investment advisory fee		37,522
Transfer agent fee		11,257
Registration expense		8,653
Custodian expense		3,083
Compliance fees		3,630
Pricing fees		2,329
Professional fees		1,339
Trustees fees		777
Other expenses		1,819
Total expenses		70,409
Fees waived by Adviser (Note 2)		(17,760	)
Custodian expense reduction (Note 7)		(11	)
Net expenses		52,638
Net investment income		200,493
Realized and unrealized loss on investments:
Net realized loss		(78,878	)
Net change in unrealized appreciation/depreciation		(38,801	)
Net realized and unrealized loss on investments		(117,679	)
Net increase in net assets resulting from operations	$	82,814

The accompanying notes are an integral part of the financial statements.

50

TAXABLE MUNICIPAL BOND SERIES

STATEMENTS OF CHANGES IN NET ASSETS

For the six months ended December 31, 2021 and the year ended June 30, 2021 UNAUDITED

	Six Months Ended 12/31/2021			Year Ended 6/30/2021
Operations:
Net investment income	$	200,493		$	469,550
Net realized gain/(loss) on investments		(78,878	)		13,018
Net change in unrealized appreciation/depreciation		(38,801	)		(93,169	)
Net increase in net assets resulting from operations		82,814			389,399
Total distributions (Note 6)		(203,201	)		(558,521	)
Net Fund share transactions (Note 4)		(1,488,988	)		1,042,989
Total increase/(decrease)		(1,609,375	)		873,867
Net assets:
Beginning of period		14,596,224			13,722,357
End of period	$	12,986,849		$	14,596,224

FINANCIAL HIGHLIGHTS

Selected data for a share outstanding:	Six Months Ended 12/31/2021			For the years ended June 30,
				2021			2020			2019			2018			2017
Net asset value, beginning of period	$	10.28		$	10.40		$	10.39		$	10.24		$	10.48		$	10.98
Income from investment operations:
Net investment income		0.14			0.34			0.52			0.51			0.51			0.47
Net gains/(losses) on investments		(0.07	)		(0.06	)		0.01			0.15			(0.24	)		(0.43	)
Total from investment operations		0.07			0.28			0.53			0.66			0.27			0.04
Less distributions:
Distributions from net investment income		(0.14	)		(0.34	)		(0.52	)		(0.51	)		(0.51	)		(0.47	)
Distributions from capital gains		0.00			(0.06	)		0.00			0.00			0.00			(0.07	)
Total distributions		(0.14	)		(0.40	)		(0.52	)		(0.51	)		(0.51	)		(0.54	)
Net asset value, end of period	$	10.21		$	10.28		$	10.40		$	10.39		$	10.24		$	10.48
Total return		0.69%	(b)		2.72%			5.20%			6.64%			2.66%			0.78%
Net assets, end of period (in thousands)	$	12,987		$	14,596		$	13,722		$	12,239		$	10,957		$	11,037
Ratio of net expenses to average net assets (a)		0.70%	(c)		0.70%			0.70%			0.70%			0.70%			0.62%
Ratio of gross expenses to average net assets		0.95%	(c)		0.96%			1.02%			1.00%			0.92%			0.74%
Ratio of net investment income to average net assets		2.83%	(c)		3.30%			4.62%			4.99%			4.95%			4.79%
Portfolio turnover		6.90%	(b)		33.27%			16.28%			3.58%			4.31%			11.04%

(a) Percentages are after expense waivers and reductions by the Adviser and Custodian. The Adviser and Custodian have agreed not to seek recovery of these waivers and reductions.

(b) Not annualized

(c) Annualized

The accompanying notes are an integral part of the financial statements.

51

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

1. Organization and Significant Accounting Policies

Dupree Mutual Funds is registered under the Investment Company Act of 1940, as amended, as a no-load, open-end investment company. The Declaration of Trust of Dupree Mutual Funds (the “Trust”) permits the Trustees to create an unlimited number of series of investment portfolios (each a “Fund” and collectively, the “Funds”) and with respect to each series to issue an unlimited number of full or fractional shares of a single class. The Trust currently offers ten series:

Alabama Tax-Free Income Series

Kentucky Tax-Free Income Series

Kentucky Tax-Free Short-to-Medium Series

Mississippi Tax-Free Income Series

North Carolina Tax-Free Income Series

North Carolina Tax-Free Short-to-Medium Series

Tennessee Tax-Free Income Series

Tennessee Tax-Free Short-to-Medium Series

Intermediate Government Bond Series

Taxable Municipal Bond Series

The investment strategy of the eight state tax-free funds is to maintain 100% of their investments in their respective states of Alabama, Kentucky, Mississippi, North Carolina, or Tennessee municipal securities.

The Intermediate Government Bond Series’ investment strategy is to invest only in obligations of the U.S. Treasury and Agencies of the U.S. Government. The Intermediate Government Bond Series will buy bonds and notes that will maintain an average maturity of no more than ten years, and its weighted average nominal maturity will normally range between 3-10 years.

The Taxable Municipal Bond Series’ investment strategy is to invest in taxable municipal bonds of investment grade quality.

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). The Trust operates as an investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, and accordingly follows the investment company accounting and reporting guidance of Accounting Standards Codification (“ASC”) Topic 946 “Financial Services — Investment Companies.”

The Funds indemnify the Trust’s Officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

A. Security Valuation

In general, securities for which market quotations are readily available are valued at current market value, as provided by independent third-party pricing agents. All other securities are valued at fair value as determined in good faith by the Board of Trustees of the Trust (the “Board”). The Board is responsible for, among other things, determining and monitoring the value of the Funds’ securities. These procedures involve the use of matrix pricing models which take into consideration, among other factors, years to maturity, call date, coupon rate, trading patterns, creditworthiness, supply and demand dynamics, trading characteristics, special circumstances of a security or trading market, and any other factors or market data considered relevant in determining the value for securities. The procedures also include weekly verification of market quotations provided by two independent pricing services. A bond valuation that is not supported by the matrix pricing model requires the Pricing Review Committee to fair value the security in accordance with policies and procedures (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Pricing Review Committee has the day-to-day responsibility for fair valuing the Trust’s securities or other assets. Securities valued by the Pricing Review Committee are reviewed by the Valuation Committee, which consists of all the Independent Trustees. The Valuation Committee convenes

52

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

1. Organization and Significant Accounting Policies, continued

as needed and reviews the valuation of all assets which have been fair valued for reasonableness. Shares of open-end mutual funds in which the Funds invest, if any, are valued at their respective net asset values as reported by the underlying funds.

The Funds have adopted the provisions of FASB ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under ASC 820 are as follows:

Level 1:	Unadjusted quoted prices in active markets for identical securities.
Level 2:	Prices determined using other significant observable inputs. Observable inputs, either directly or indirectly, are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3:	Price determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, where there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Funds’ own assumptions about the factors market participants would use in pricing a security, and would be based on the best information available.

The aggregate value by input level, as of December 31, 2021, for the Funds’ investments is included at the end of the Funds’ Schedules of Portfolio Investments.

B. Investment Transactions

Security transactions are accounted for on a trade date basis. Realized gains and losses on securities sold are determined on an identified cost basis.

C. Investment Income

Interest income, which includes the amortization of premiums and the accretion of discounts, is recorded on an accrual basis. Discounts or premiums on debt securities purchased are accreted or amortized to interest income over the lives of the respective securities using the effective interest method.

D. When-Issued and Extended Settlement Securities

The Funds may purchase securities with delivery or payment to occur at a later date. At the time the Funds enter into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value. The value of the security may vary with market fluctuations. No interest accrues to the Funds until the security is delivered and payment takes place. At the time the Funds enter this type of transaction, they are required to segregate cash or other liquid assets equal to the value of the securities purchased. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

E. Federal Income Taxes

It is each Fund’s policy to qualify as a regulated investment company by complying with the requirements of the Internal Revenue Code (the “code”) applicable to regulated investment companies, including the distribution of all or substantially all taxable and tax-exempt income to their shareholders. The Funds have met the requirements of the code applicable to regulated investment companies for the six months ended December 31, 2021. Therefore, no federal income tax provision is required. Management has analyzed the Funds’ tax positions for all open tax years and all major jurisdictions, and has concluded that as of December 31, 2021, no provision for income taxes is required in the financial statements. Therefore, no additional tax expense, including any interest and penalties, was recorded in the current year and no adjustments were made to prior periods. To the extent the Funds recognize interest and penalties, they are included in interest expense and other expenses, respectively, in the Statements of Operations. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last three tax year ends and the interim tax period since then).

53

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

1. Organization and Significant Accounting Policies, continued

F. Distributions

Substantially all of the net investment income of the Funds is declared as a dividend to shareholders of record as of the close of business each day. Any net realized long term capital gains are distributed annually to shareholders. Distributions are payable in cash or in additional shares at the net asset value on the payable date. Distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP.

Distributions are payable:

Monthly for:	Kentucky Tax-Free Short-to-Medium Series North Carolina Tax-Free Short-to-Medium Series Tennessee Tax-Free Short-to-Medium Series Intermediate Government Bond Series Taxable Municipal Bond Series
Quarterly for:	Alabama Tax-Free Income Series Kentucky Tax-Free Income Series Mississippi Tax-Free Income Series North Carolina Tax-Free Income Series Tennessee Tax-Free Income Series

G. Estimates

The preparation of these financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual amounts could differ from those estimates.

H. Subsequent Events

Subsequent events occurring after December 31, 2021 have been evaluated by Dupree & Company, Inc (the “Adviser”) for potential impact to this report through the date the financial statements were issued. The Adviser has determined that there were no material subsequent events that require recognition or disclosure in the Funds’ financial statements.

2. Investment Advisory Fee and Other Transactions with Affiliates

Subject to the direction of the Trustees, the Adviser is responsible for the management of the Funds’ portfolios. Under the terms of the Investment Advisory Agreements between the Adviser and the Trust, on behalf of each Fund (each a “Agreement” and collectively, the “Agreements”) the Funds (except the Intermediate Government Bond Series) have agreed to pay to the Adviser as compensation for all services rendered, facilities furnished and expenses paid or assumed by it under the Agreements, a fee at the annual rate of 0.50 of 1% of the first $100,000,000 average daily net assets of each Fund determined separately; 0.45 of 1% of the average daily net assets between $100,000,001 and $150,000,000 of each Fund determined separately; 0.40 of 1% of the average daily net assets between $150,000,001 and $500,000,000 of each Fund determined separately; 0.35 of 1% of the average daily net assets between $500,000,001 and $750,000,000; and 0.30 of 1% of the average daily net assets between $750,000,001 and $1,000,000,000; and 0.25 of 1% of the average daily net assets in excess of $1,000,000,000. The Intermediate Government Bond Series has agreed to pay to the Adviser, as compensation for all services rendered, facilities furnished and expenses paid or assumed by it under the Agreement, a fee at the annual rate of 0.20 of 1% of average daily net assets.

The Adviser may voluntarily waive investment advisory fees payable to it under the Investment Advisory Agreement with each Fund, and assume and pay other operating expenses. The Adviser will not seek to recoup any waived fees or other operating expenses it has assumed.

54

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

2. Investment Advisory Fee and Other Transactions with Affiliates, continued

For the six months ended December 31, 2021, fees voluntarily waived by the Adviser were as follows:

	Fees waived by Adviser
Alabama Tax-Free Income Series	$	15,160
Kentucky Tax-Free Income Series		-0-
Kentucky Tax-Free Short-to-Medium Series		17,371
Mississippi Tax-Free Income Series		14,184
North Carolina Tax-Free Income Series		-0-
North Carolina Tax-Free Short-to-Medium Series		14,586
Tennessee Tax-Free Income Series		3,579
Tennessee Tax-Free Short-to-Medium Series		12,777
Intermediate Government Bond Series		1,801
Taxable Municipal Bond Series		17,760

In addition, each Fund has entered into a Shareholder Service Agreement with Dupree & Company, Inc., the Funds’ transfer agent. The agreement provides for a fee computed on the average daily net asset value at the annual rate of 0.15 of 1% on the first $20,000,000 of average net assets and 0.12 of 1% of all amounts in excess of $20,000,000 of average net assets for each Fund.

For the six months ended December 31, 2021, each member of the Board of Trustees received a fee of $28,000 per year plus $2,000 for each Committee meeting attended. In addition, all Trustees are reimbursed by the Funds for all reasonable out-of-pocket expenses incurred by them in performing their duties. The fees are allocated on an average monthly net asset basis for each Fund. The Trustees fees for each Fund are disclosed on the Funds’ Statements of Operations.

3. Purchases and Sales of Securities

During the six months ended December 31, 2021, the cost of purchases and the proceeds from sales/calls and maturities of securities (excluding short-term securities and U.S. government obligations, except for the Intermediate Government Bond Series which are all U.S. government obligations) for each Fund were as follows:

	Purchases		Sales/Calls
Alabama Tax-Free Income Series	$	1,112,706	$	304,044
Kentucky Tax-Free Income Series		61,776,095		60,702,941
Kentucky Tax-Free Short-to-Medium Series		3,466,585		1,785,000
Mississippi Tax-Free Income Series		498,481		745,734
North Carolina Tax-Free Income Series		7,026,473		8,906,124
North Carolina Tax-Free Short-to-Medium Series		358,597		100,000
Tennessee Tax-Free Income Series		6,171,150		6,411,060
Tennessee Tax-Free Short-to-Medium Series		-0-		461,656
Intermediate Government Bond Series		-0-		259,278
Taxable Municipal Bond Series		1,000,000		2,380,194

55

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

4. Capital Shares

As of December 31, 2021, and June 30, 2021, there were an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows:

ALABAMA TAX-FREE INCOME SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		123,237		$	1,577,449			293,496		$	3,764,316
Shares reinvested		10,319			131,626			19,958			255,760
Shares redeemed		(61,128	)		(783,397	)		(259,812	)		(3,338,207	)
Net increase		72,428		$	925,678			53,642		$	681,869
KENTUCKY TAX-FREE INCOME SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		7,474,541		$	59,795,767			16,706,588		$	133,445,698
Shares reinvested		793,434			6,315,604			1,716,683			13,703,841
Shares redeemed		(5,597,499	)		(44,775,887	)		(16,656,182	)		(133,013,154	)
Net increase		2,670,476		$	21,335,484			1,767,089		$	14,136,385
KENTUCKY TAX-FREE SHORT-TO-MEDIUM SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		650,665		$	3,508,518			981,085		$	5,340,565
Shares reinvested		35,110			189,264			75,976			413,264
Shares redeemed		(410,031	)		(2,212,415	)		(1,483,345	)		(8,070,761	)
Net increase/(decrease)		275,744		$	1,485,367			(426,284	)	$	(2,316,932	)
MISSISSIPPI TAX-FREE INCOME SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		45,510		$	561,089			139,052		$	1,722,024
Shares reinvested		4,282			52,636			8,134			100,664
Shares redeemed		(50,189	)		(621,678	)		(125,113	)		(1,551,245	)
Net increase/(decrease)		(397	)	$	(7,953	)		22,073		$	271,443
NORTH CAROLINA TAX-FREE INCOME SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		1,100,224		$	13,256,866			2,470,661		$	29,730,671
Shares reinvested		89,855			1,075,095			174,207			2,091,395
Shares redeemed		(1,419,783	)		(17,027,933	)		(2,644,285	)		(31,825,992	)
Net increase/(decrease)		(229,704	)	$	(2,695,972	)		583		$	(3,926	)

56

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

4. Capital Shares, continued

NORTH CAROLINA TAX-FREE SHORT-TO-MEDIUM SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		46,277		$	515,195			100,230		$	1,125,345
Shares reinvested		6,756			75,144			13,703			153,756
Shares redeemed		(16,208	)		(180,683	)		(87,590	)		(983,469	)
Net increase		36,825		$	409,656			26,343		$	295,632
TENNESSEE TAX-FREE INCOME SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		248,328		$	2,898,855			471,541		$	5,524,640
Shares reinvested		49,804			578,221			113,232			1,324,566
Shares redeemed		(309,617	)		(3,612,653	)		(1,434,600	)		(16,784,195	)
Net decrease		(11,485	)	$	(135,577	)		(849,827	)	$	(9,934,989	)
TENNESSEE TAX-FREE SHORT-TO-MEDIUM SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		4,637		$	50,578			47,536		$	523,861
Shares reinvested		3,288			35,778			6,690			73,621
Shares redeemed		(51,989	)		(567,226	)		(111,880	)		(1,231,794	)
Net decrease		(44,064	)	$	(480,870	)		(57,654	)	$	(634,312	)
INTERMEDIATE GOVERNMENT BOND SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		26,636		$	267,006			143,600		$	1,473,275
Shares reinvested		10,937			109,385			28,503			291,636
Shares redeemed		(73,005	)		(730,190	)		(490,423	)		(4,983,392	)
Net decrease		(35,432	)	$	(353,799	)		(318,320	)	$	(3,218,481	)
TAXABLE MUNICIPAL BOND SERIES	Six months Ended December 31, 2021						Year Ended June 30, 2021
	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		128,369		$	1,332,803			241,742		$	2,502,800
Shares reinvested		14,646			151,054			38,485			397,308
Shares redeemed		(289,793	)		(2,972,845	)		(180,823	)		(1,857,119	)
Net increase/(decrease)		(146,778	)	$	(1,488,988	)		99,404		$	1,042,989

5. Principal Risks

State-Specific Concentration of Credit Risk

The Alabama Tax-Free Income Series, Kentucky Tax-Free Income Series, Kentucky Tax-Free Short-to-Medium Series, Mississippi Tax-Free Income Series, North Carolina Tax-Free Income Series, North Carolina Tax-Free Short-to-Medium Series,

57

DUPREE MUTUAL FUNDS UNAUDITED

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

5. Principal Risks, continued

Tennessee Tax-Free Income Series, and Tennessee Tax-Free Short-to-Medium Series each invest solely in debt obligations issued by the states of Alabama, Kentucky, Mississippi, North Carolina, and Tennessee, respectively, and their respective political subdivisions, agencies and public authorities to obtain funds for various public purposes. Each of these state-specific Funds is more susceptible to economic and political factors adversely affecting issuers of their states’ respective municipal securities than a fund that is not concentrated in these issuers to the same extent.

Municipal Securities Risk

Many municipal securities are issued to finance similar projects (such as those relating to education, health care, housing, transportation, and utilities). As a result, conditions in those sectors may affect the overall municipal securities market. In addition, changes in the financial condition of an individual municipal issuer can affect the overall municipal market. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the supporting taxation or the inability to collect revenues for the specific project or specific assets. Municipal securities may be less liquid than taxable bonds and there may be less publicly available information on the financial condition of municipal securities issuers than for issuers of other securities, and the investment performance of a Fund investing in municipal securities may therefore be more dependent on the analytical abilities of the Adviser than if a Fund held other types of investments such as stocks or taxable bonds. The secondary market for municipal securities also tends to be less well developed or liquid than many other securities markets, a by-product of lower capital commitments to the asset class by the dealer community, which may adversely affect a Fund’s ability to sell municipal securities it holds at attractive prices or value municipal securities. A Fund may also invest in municipal lease obligations which differ from other municipal securities because the lease payments are subject to annual legislative appropriation. If the money is not appropriated, the lease can be cancelled without penalty and investors who own the lease obligations may not be paid.

Market Risk

The market values of municipal securities held by a Fund may go up or down, sometimes rapidly or unpredictably, as a result of market activity, interest rate fluctuations or as a result of supply and demand factors. Accordingly, the net asset value (“NAV”) of our shares will fluctuate. When there are more buyers than sellers, prices tend to rise. Conversely, when there are more sellers than buyers, prices tend to fall. Municipal securities may be issued on a when-issued or delayed basis, where payment and delivery take place at a future date. Since the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk that the value of the security at delivery may be more or less than the purchase price.

Taxability Risk

The Funds’ investments in municipal securities rely on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax. Tax opinions are generally provided at the time the municipal security is initially issued. However, after a Fund buys a security, the Internal Revenue Service may determine that the issuer has not complied with applicable tax requirements and a bond issued as tax-exempt should in fact be taxable. This may result in a significant decline in the value of the security.

Non-Diversification Risk (Kentucky Tax-Free Short-to-Medium Series, Mississippi Tax-Free Income Series, Tennessee Tax-Free Short-to-Medium Series and Taxable Municipal Bond Series, only)

Since these Funds are non-diversified, they may invest a greater percentage of its assets in a particular issuer or group of issuers than a diversified fund would. This increased investment in fewer issuers may result in increased volatility in the Funds’ performance and share price.

Risks Associated with Health Crises

The novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many municipal issuers, which may impair a municipal issuer’s ability to meet its financial obligations when due and may adversely impact the value of its bonds, which could negatively impact the performance of the Funds. Factors contributing to the economic stress on municipal issuers may include an increase in expenses associated with combatting the COVID-19 pandemic and a decrease in

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5. Principal Risks, continued

revenues supporting the issuer’s bonds due to factors such as lower sales tax revenue as a result of decreased consumer spending, lower income tax revenue due to higher unemployment, and a decrease in the value of collateral backing revenue bonds due to closures and/or curtailment of services and/or changes in consumer behavior. In light of the uncertainty surrounding the magnitude, duration, reach, costs and effects of the COVID-19 pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, it is difficult to predict the level of financial stress and duration of such stress municipal issuers may experience. Changes in an issuer’s financial strength or changes in the credit rating assigned to an obligation may affect the market values and marketability of many or all municipal obligations of issuers in that state.

Issuer Cybersecurity Risk

Municipalities issuing securities in which the Funds invest, counterparties with which the Funds engage in transactions, exchange and other financial market operators, banks, brokers, dealers and other financial institutions may experience cybersecurity breaches. Cybersecurity breaches can include unauthorized access to systems, networks, or devices; infection from computer viruses of other malicious software code; ransomware; and attacks that shut down, disable, slow or otherwise disrupt operations, business processes, or website access or functionality. These breaches may result in harmful disruptions to their operations and may negatively impact the financial condition for the municipal issuer, counterparty or other market participant. The Funds and their shareholders could be negatively impacted as a result.

6. Federal Income Taxes

At June 30, 2021, the Funds’ capital loss carry-forwards available to offset future capital gains, as follows:

	Short-term		Long-term		Total
Kentucky Tax-Free Short-to-Medium Series	$	90,941	$		$	90,941
North Carolina Tax-Free Income Series		1,223,284		226,158		1,449,442
Tennessee Tax-Free Income Series		149,197				149,197
Tennessee Tax-Free Short-to-Medium Series		2,170		248,889		251,059
Intermediate Government Bond Series		51,938				51,938
Taxable Municipal Bond Series				17,508		17,508

During the year ended June 30, 2021, the following Funds utilized capital loss carry-forwards as follows:

Alabama Tax Free Income Series	$	71,405
Kentucky Tax-Free Short-to-Medium Series		23,245
North Carolina Tax-Free Income Series		132,706
Tennessee Tax-Free Income Series		156,369
Tennessee Tax-Free Short-to-Medium Series		20,692
Intermediate Government Bond Series		89,184

The distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are caused primarily due to the recognition of certain components of realized capital gains for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Funds. For the six months ended December 31, 2021, the Funds did not have any reclassification of net assets.

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6. Federal Income Taxes, continued

The tax character of distributions paid for the six months ended December 31, 2021 and the year ended June 30, 2021 were as follows:

	Six months ended December 31, 2021						Year ended June 30, 2021
	Tax Exempt Income		Ordinary Income		Long-Term Capital Gain		Tax Exempt Income		Ordinary Income		Long-Term Capital Gain
Alabama Tax-Free Income Series	$	302,471	$	—	$	1,658	$	625,892	$	—	$	—
Kentucky Tax-Free Income Series		11,557,005		3,399		51,267		24,521,135		—		505,459
Kentucky Tax-Free Short-to-Medium Series		356,346		—		—		781,394		—		—
Mississippi Tax-Free Income Series		114,548		—		20,443		251,706		—		21,270
North Carolina Tax-Free Income Series		1,639,852		—		—		3,362,950		—		—
North Carolina Tax-Free Short-to-Medium Series		102,268		—		48		206,892		1,510		—
Tennessee Tax-Free Income Series		976,401		—		—		2,169,427		—		—
Tennessee Tax-Free Short-to-Medium Series		44,162		—		—		97,031		—		—
Intermediate Government Bond Series		—		133,866		—		—		345,153		—
Taxable Municipal Bond Series		—		203,201		—		—		476,175		82,346

At June 30, 2021, the Funds’ components of distributable earnings (accumulated losses) on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Tax-Exempt Income		Undistributed Net Long-term Capital Gain		Net Unrealized Appreciation/ Depreciation on Investments
Alabama Tax-Free Income	$		$	83,653	$	1,658	$	1,999,255
Kentucky Tax-Free Income		—		2,733,716		37,008		69,687,725
Kentucky Tax-Free Short-to-Medium		—		27,073		—		1,935,736
Mississippi Tax-Free Income		—		37,856		20,016		732,449
North Carolina Tax-Free Income		—		271,257		—		11,060,135
North Carolina Tax-Free Short-to-Medium		—		4,382		48		704,010
Tennessee Tax-Free Income		—		190,807		—		6,054,619
Tennessee Tax-Free Short-to-Medium		—		1,839		—		295,787
Intermediate Government Bond		3,856		—		—		489,919
Taxable Municipal Bond Series		9,958		—		—		891,827

	Accumulated Capital and Other Losses			Other Temporary Differences			Total Distributable Earnings
Alabama Tax-Free Income	$	-0-		$	(83,653	)	$	2,000,913
Kentucky Tax-Free Income		-0-			(2,733,716	)		69,724,733
Kentucky Tax-Free Short-to-Medium		(90,941	)		(27,073	)		1,844,795
Mississippi Tax-Free Income		-0-			(37,856	)		752,466
North Carolina Tax-Free Income		(1,449,442	)		(271,257	)		9,610,693
North Carolina Tax-Free Short-to-Medium		-0-			(4,382	)		704,058
Tennessee Tax-Free Income		(149,197	)		(214,004	)		5,882,226
Tennessee Tax-Free Short-to-Medium		(251,059	)		(1,839	)		44,728
Intermediate Government Bond		(51,939	)		(3,856	)		437,980
Taxable Municipal Bond Series		(17,507	)		(9,958	)		874,320

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7. Line of Credit Agreement and Custodian Agreement

Under the terms of an agreement with the Funds’ custodian, principal amounts up to 5% of a Fund’s net assets are available on a committed line of credit. Each Fund is permitted to borrow money as a temporary measure in order to pay redeeming shareholders. The principal amounts borrowed are due on demand. The agreement expires on August 22, 2022, but may be renewed annually. Interest is payable based on the published prime rate of the bank. Securities with a minimum value of three times the loan proceeds will be assigned as collateral until the balance of the note and unpaid interest is paid in full and terminated. Each Fund has segregated securities in order to cover potential loans.

At December 31, 2021, the Funds had an aggregate unused line of credit amount of $25,000,000. During the six months ended December 31, 2021, the average interest rate on borrowings was 3.25% and the largest borrowing amount, the date of the largest borrowing and the daily weighted average borrowings for each Fund were as follows:

	Largest Borrowing		Date of Largest Borrowing		Weighted Average Borrowing
Alabama Tax-Free Income Series	$	4,000		12/29/2021	$	22
Kentucky Tax Free Income Series		-0-		N/A		-0-
Kentucky Tax-Free Short-to-Medium Series		-0-		N/A		-0-
Mississippi Tax-Free Income Series		-0-		N/A		-0-
North Carolina Tax-Free Income Series		903,000		12/15/2021		98,603
North Carolina Tax-Free Short-to-Medium Series		-0-		N/A		-0-
Tennessee Tax-Free Income Series		234,000		12/22/2021		4,853
Tennessee Short-to-Medium Tax-Free Series		97,000		10/05/2021		880
Intermediate Government Bond Series		480,000		10/08/2021		7,087
Taxable Municipal Bond Series		561,000		10/08/2021		7,701

The Funds have a contractual agreement with the custodian whereby the Funds compensate the custodian for custodial services incurred exceeding the credits realized as a result of uninvested cash balances. Credits realized as a result of uninvested cash balances are used to reduce each Fund’s expenses. During the six months, these credits reduced each Fund’s expenses by the amount shown on each Statement of Operations as “Custodian expense reduction.”

8. Shares of Beneficial Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund under Section 2(a)(9) of the 1940 Act. At December 31, 2021, the following shareholders held over 25% of a Fund’s shares outstanding:

	Name of Shareholders	Percentage of Ownership
Mississippi Tax-Free Income Series	SEI Private Trust Company		31.76
Taxable Municipal Bond Series	Hardin County Water District No. 2		40.26

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Trustee and officer information

The following table sets forth information as to the Trustees and officers:

Name, Address and Birth Year	Position(s) held with Funds	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee or Nominee	Other Directorships Held by Trustee or Nominee During Past Five Years
Independent Trustees:
James C. Baughman, Jr. 125 South Mill Street Lexington, KY 40507 (1962)	Trustee Chair of Nominating Committee	Indefinite Term/ Since October 2007	President, CJN Advisors, LLC (2013 – present; business consulting); President, Blue Horse Entries, LLC (2014 – 2021; online business support services for equestrian events); President, H&S1 KY Lexington, LLC (2017 – present; health and wellness)	10	Advisory Board, Community Trust Bank
Ann Rosenstein Giles 125 South Mill Street Lexington, KY 40507 (1952)	Trustee Chair of Valuation Committee	Indefinite Term/ Since October 2011	AJ Marketing Partners (a strategic marketing consultant; 2012-present)	10	N/A
Marc A. Mathews, 125 South Mill Street Lexington, KY 40507 (1958)	Chairman, Trustee Chair of Audit Committee	Indefinite Term/ Since October 2011	Vice President for Finance and Business, Transylvania University (2009 – 2021)	10	Director, Bank of the Bluegrass
Knox van Nagell Pfister 125 South Mill Street Lexington, KY 40507 (1978)	Trustee	Indefinite Term/ Since August 2019	Managing Member of Knox Consulting LLC (October 2020 – present), project management, advocacy, and organization-optimization services; General Counsel, Mt. Brilliant Farm and Boone Creek LLC (2017 – 2020); Sr. Director of Philanthropy UK Health Care (2016 – 2017); Executive Director, Fayette Alliance (2006-2016)	10	N/A
Interested Trustees and Officers of the Trust:
Allen E. Grimes, III 125 South Mill Street Lexington, KY 40507 (1962)	President Interested Trustee	Annual Term/ President, May 2018 – present; Executive Vice President, October 2005 – May 2018; Trustee since 2019	President, Dupree & Company, Inc. (2004 – present)	10	N/A
Michelle M. Dragoo 125 South Mill Street Lexington, KY 40507 (1961)	Vice President, Secretary, Treasurer	Annual Term/ Vice President, Secretary & Treasurer, October 1999 – present	Vice President, Secretary, Treasurer of Dupree & Company, Inc. (1999 – present)	N/A	N/A
Huston B. Combs 125 South Mill Street Lexington, KY 40507 (1976)	Vice President	Annual Term/ May 2018 – present	Attorney/Registered Representative Dupree & Company, Inc. (2017 – present); Gess Mattingly & Atchison, P.S.C. (law firm) (2003 – 2017)	N/A	N/A
Vincent Harrison 125 South Mill Street Lexington, KY 40507 (1971)	Assistant Secretary & Assistant Treasurer	Annual Term/ October 2015 – present	Vice President of Dupree & Company, Inc. (2016 – present)	N/A	N/A

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Trustee and officer information, continued

Name, Address and Birth Year	Position(s) held with Funds	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee or Nominee	Other Directorships Held by Trustee or Nominee During Past Five Years
Martin Dean Ultimus Fund Solutions, LLC 225 Pictoria Drive Suite 450 Cincinnati, OH 45246 (1963)	Chief Compliance Officer	Annual Term/ August 2017 – present	Senior Vice President, Head of Fund Compliance, Ultimus Fund Solutions, LLC (January 2016 – present)	N/A	N/A

(1) Allen E. Grimes, III is considered to be an “interested person” as defined in section 2(a)(19) of the Investment Company Act of 1940 by virtue of his affiliation with the Adviser.

As of December 31, 2021, none of the Independent Trustees or members of their immediate family held any beneficial interest in the Trust’s Investment Adviser. Further, the Trust does not have an underwriter.

The Statement of Additional Information (“SAI”) includes additional information about Trustees and officers and is available upon request without charge. Please call (800) 866-0614 to request the SAI.

Proxy Voting Information

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted those proxies during the most recent year ended June 30, 2021, is available without charge upon request by calling (800) 866-0614, or on the Securities and Exchange Commission’s website at http://www.sec.gov. For the six months ended December 31, 2021, the Funds exercised no proxy votes due to the fact that the debt instruments in which the Funds invest carry no voting rights.

Quarterly Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-PORT. The information will be publicly available 60 days after the end of the period.

The complete listing of each Fund’s portfolio holdings is available on the Commission’s website at http://www.sec.gov and will be made available to shareholders upon request by calling (800) 866-0614.

Renewal of Advisory Agreements

In connection with a meeting held on October 28, 2021, the Board, including a majority of the Trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended, discussed the renewal of the investment advisory agreements (the “Advisory Agreements”) between the Adviser and the Trust with respect to each of the Funds.

In considering the renewal of the Advisory Agreements, the Board received materials specifically relating to each Fund and its respective Advisory Agreement and carefully evaluated the following factors: (i) the investment performance of each Fund and the Adviser; (ii) the nature, extent and quality of the services provided by the Adviser to each Fund; (iii) the cost of the services to be provided and the profits to be realized by the Adviser and its affiliates from the relationship with the Funds; (iv) the extent to which economies of scale will be realized as a Fund grows; and (v) whether the fee levels reflect these economies of scale to the benefit of the Funds’ shareholders. In its evaluation the Board relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Advisory Agreements and the weight to be given to each such factor. The Board’s conclusions were based on an evaluation of all the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching conclusions with respect to the Advisory Agreements.

Nature, Quality and Extent of Services. The Board began its review by giving careful consideration to the nature, extent and quality of the services provided by the Adviser, including services provided by the Adviser as the Trust’s transfer agent, fund accountant and administrator. The Board reviewed the Adviser’s experience and the capabilities of its personnel, noting the consistency and

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OTHER UNAUDITED INFORMATION

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Renewal of Advisory Agreements, continued

longevity of the key employees employed by the Adviser. The Board spent considerable time discussing the effectiveness of the Adviser’s business continuity and disaster recovery plans, noting no material issues during the continued COVID-19 pandemic. The Board also discussed the Adviser’s compliance program, noting no concerns for 2021. The Board discussed the Adviser’s research and risk management processes. The Trustees considered intermediary fees and noted that such intermediaries are compensated from the Adviser’s assets, not the Funds. After further discussion and consideration of the personnel involved in servicing each Fund, as well as the materials and services described above, the Board expressed satisfaction with the quality of the services received from the Adviser.

Performance. The Board reviewed the performance of each Fund over the last 10 years and compared the performance of each Fund to the respective indices, peer groups and Morningstar categories. The Board considered the Adviser’s methodology to select the peer groups, noting no material changes in the Adviser’s selection process or peer group composition relative to the previous year, with the exception of a new peer group for the Taxable Municipal Bond Series, noting that this was a result of Morningstar’s reassignment of the Taxable Municipal Bond Fund to a newly created category. The Board considered the Adviser’s explanation that it was difficult to construct peer groups for the short-to-medium Funds due to the lack of comparable funds in the respective states, and further noted that all short term, single-state municipal bond funds in the Morningstar category were used to construct the short-to-medium peer group. Consequently, the Trustees noted that the short-to-medium Funds tended to perform differently from the indexes and peer groups due to differences in credit quality and duration.

The Board reviewed performance for each Fund over the 1-year, 5-year and 10-year periods, relative to each Fund’s respective indices, benchmarks and peer groups, noting that the benchmarks do not reflect fund fees and expenses. The Trustees noted that the Funds generally underperformed the applicable benchmarks and peer groups for the most recent 1-year period, but generally outperformed their peers for the 5-year and 10-year periods. The Trustees considered the Adviser’s explanation that the 1-year underperformance was generally explained by the fact that the Funds have shorter durations and higher credit quality relative to their peer groups. The Trustees further noted the Adviser’s explanation that Funds generally underperformed their respective benchmarks primarily because an index does not reflect any fund fees or expenses. After further discussion, the Board concluded that Fund performance was satisfactory.

Fees and Expenses. The Board reviewed the range of advisory fees paid by the Funds to the Adviser and the total operating expenses of each Fund. The Board turned its attention to materials previously provided by the Adviser that compared the investment advisory fees assessed to the Funds with each Fund’s peer group and the appropriate Morningstar category averages. The Board noted that the advisory fees for the Alabama Tax-Free Income Series, Kentucky Tax-Free Income Series and the Intermediate Government Bond Series were below the peer group and Morningstar category averages. The Board also noted that the advisory fee for the other Funds were equal to or higher than the peer groups and Morningstar category averages, but were within the range of fees charged by funds in the peer groups and Morningstar categories. The Board noted the Adviser’s explanation that the slightly higher fees charged by the Adviser were due to the smaller size of the Funds as compared to the size of the funds comprising the peer group and Morningstar categories. The Board observed that with respect to total operating expenses, the average expense ratios for all Funds, after voluntary fee waivers and reimbursements, were lower than the average expense ratios of the peer groups and Morningstar categories, with the exception of the Taxable Municipal bond Series whose average expense ratio is higher than the Morningstar category average. The Board noted that the Adviser voluntarily waived fees and reimbursed expenses to the extent necessary to keep total Fund operating expenses below 0.70% and noted that the voluntary fee waivers and expenses reimbursements would remain in place for an additional one-year period. The Board reviewed the advisory fee breakpoints currently in place for each Fund. After considering the comparative data as described above, the Board concluded that the advisory fees and expense ratios were reasonable.

Economies of Scale and Profitability. In reviewing the costs of the services to be provided and the profits to be realized by the Adviser, the Board reviewed the Adviser’s unaudited income statement and balance sheet for the six-months ended June 30, 2021, a statement of income and expenses for the six-months ended June 30, 2021. The Board also considered the net profit margins realized on each Fund. The Board noted the Adviser’s explanation regarding the allocation of revenues and expenses, specifically noting that all marketing expenses are allocated to the Adviser. The Board discussed the methodology used by the Adviser in determining profitability and noted that it was the same methodology as used in previous years.

The Board considered the transfer agency fees earned by the Adviser for services provided to the Funds pursuant to the Transfer Agent and Dividend Disbursing Agent Services Agreement. The Board noted the Adviser’s explanation that the transfer agency fees earned by the Adviser reflected its service to the Funds’ direct shareholders and the coordination of any trading and settlement issues

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Renewal of Advisory Agreements, continued

for all shareholders. The Board noted that Dupree does not charge separately for fund accounting and fund administration services, rather, such services are included in the investment advisory fee. The Trustees discussed the level and quality of services provided to shareholders by Dupree. The Board discussed the level and quality of services provided to shareholders by the Adviser. The Board reviewed transfer agency, administration and fund accounting fees (“Administrative Fees”) paid by a peer group of funds and compared those fees to the fees paid by the Trust. The Board also discussed the net profit margins realized by the Adviser on each Fund under the Transfer Agent and Dividend Disbursing Agent Services Agreement. The Trustees noted the difficulty of comparing Administrative Fees due to different methods used to calculate and assess fees and the size of companies providing the services. After further discussion, the Board concluded the level of profit realized by the Adviser in connection with its advisory services provided to the Funds was not excessive.

Conclusion. Having requested and received such information from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Advisory Agreements, and as assisted by the advice of independent counsel, the Board determined that each Investment Advisory Agreement was fair and reasonable, that the Adviser’s fees were reasonable in light of the services provided to the Funds and the benefits received by the Adviser, and that renewal of the Investment Advisory Agreement would be in the best interests of the Funds.

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Schedule of Shareholder Expenses

As a shareholder of the Funds, you incur ongoing costs including investment advisory fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled

Actual Expenses, continued

“Expenses Paid During the Six Months Ended December 31, 2021” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses which is not the Funds’ actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Net Expense Ratio Annualized December 31, 2021			Beginning Account Value July 1, 2021*		Ending Account Value December 31, 2021**		Expenses Paid During the Six Months Ended December 31, 2021
Alabama Tax-Free Income Series
Actual		.70	%	$	1,000.00	$	1,001.81	$	3.57
Hypothetical		.70			1,000.00		1,025.21		3.61
Kentucky Tax-Free Income Series
Actual		.55			1,000.00		1,016.38		2.81
Hypothetical		.55			1,000.00		1,025.21		2.82
Kentucky Tax-Free Short-to-Medium Series
Actual		.70			1,000.00		999.24		3.55
Hypothetical		.70			1,000.00		1,025.21		3.60
Mississippi Tax-Free Income Series
Actual		.70	%		1,000.00		1,001.56		3.57
Hypothetical		.70			1,000.00		1,025.21		3.61
North Carolina Tax-Free Income Series
Actual		.68			1,000.00		1,002.07		3.43
Hypothetical		.68			1,000.00		1,025.21		3.47
North Carolina Tax-Free Short-to-Medium Series
Actual		.70			1,000.00		999.75		3.56
Hypothetical		.70			1,000.00		1,025.21		3.60
Tennessee Tax-Free Income Series
Actual		.70			1,000.00		1,001.41		3.55
Hypothetical		.70			1,000.00		1,025.21		3.59

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Schedule of Shareholder Expenses, continued

	Net Expense Ratio Annualized December 31, 2021		Beginning Account Value July 1, 2021*		Ending Account Value December 31, 2021**		Expenses Paid During the Six Months Ended December 31, 2021
Tennessee Tax-Free Short-to-Medium Series
Actual		.70	$	1,000.00	$	998.89	$	3.56
Hypothetical		.70		1,000.00		1,025.21		3.60
Intermediate Government Bond Series
Actual		.70		1,000.00		997.18		3.37
Hypothetical		.70		1,000.00		1,025.21		3.42
Taxable Municipal Bond Series
Actual		.70		1,000.00		1,003.48		3.57
Hypothetical		.70		1,000.00		1,025.21		3.61

* The example is based on an investment of $1,000 invested at the beginning of the period.

** Expenses are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period multiplied by [184/365] (to reflect one-half year period).

67

Item 2. Not applicable.

Item 3. Not applicable.

Item 4. Not applicable.

Item 5. Not applicable.

Item 6.

(a) Included as part of Item 1.

(b) Not applicable.

Item 7. Not applicable.

Item 8. Not applicable.

Item 9. Not applicable.

Item 10. There have been no changes to the procedures by which shareholders may recommend nominees to the board of trustees nominating committee.

Item 11. Controls and Procedures:

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Not applicable.

Item 13. Exhibits

(a)

(1) Not applicable.

(2) Certifications

(3) Not applicable.

(4) Not applicable.

(b) Certification

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dupree Mutual Funds
By:	/s/    Michelle M. Dragoo,
	Michelle M. Dragoo, Vice President, Secretary, Treasurer
Date: February 25, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/    Allen E. Grimes, III
	Allen E. Grimes, III,
	President
Date: February 25, 2022
	/s/    Michelle M. Dragoo
By:	Michelle M. Dragoo, Vice President, Secretary, Treasurer
Date: February 25, 2022