4 Must-Have Franklin Templeton Mutual Funds For May
Founded in 1947, Franklin Templeton Investments prides itself in offering "exceptional asset management" to clients in more than 165 nations. It has offices in more than 30 countries and approximately 1,300 investment professionals.
With around $1.5 trillion assets under management as of Dec 31, 2020, Franklin Templeton Investments is a well-known global investment management firm. The company offers investment management strategies and integrated risk management solutions to individuals, institutions, pension plans, trusts and partnerships.
Franklin Templeton invests in a variety of sectors that are sensitive, cyclical and defensive. From the sensitive sectors, most investments were made in the technology sector. Among the cyclical sectors, the fund family invested the maximum in the financial services sector, while among the defensive sectors it invested heavily in healthcare.
Technology Select Sector SPDR (XLK) has climbed 43% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors.
4 Best Funds to Buy Now
We have highlighted four Franklin Templeton mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Franklin Utilities Fund Class A1 FKUTX aims for capital growth and current income. The fund invests majority of its assets in the equity securities of utilities companies.
This Sector - Utilities product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FKUTX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%. The fund has one and three-year returns of 18.8% and 11.1%, respectively.
Franklin DynaTech Fund Class A FKDNX aims for capital appreciation. The fund primarily invests in common stocks of companies, which the fund manager believes are leaders in innovation, take advantage of new technologies, have superior management and benefit from new industry conditions in a dynamically changing global economy.
This Sector - Tech product has a history of positive total returns for over 10 years. Specifically, the fund's returns over the one and three-year benchmarks are 71.1% and 26.4%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
The fund carries a Zacks Mutual Fund Rank #1 and has an annual expense ratio of 0.85%.
Franklin Gold and Precious Metals Fund Class A FKRCX aims for capital growth. The fund normally invests majority of its assets in securities of companies that operate in the area of gold and precious metals. FKRCX is a non-diversified fund that invests in companies of all market capitalizations.
This Sector - Precious Metal product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FKRCX sports a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.93%. The fund has one and three-year returns of 80.9% and 20.9%, respectively.
Franklin Michigan Tax-Free Income Fund Class C FRMTX aims to provide a high level of income, which is exempted from federal income tax as well as Michigan personal income taxes. Further, this income is consistent with prudent investment management as well as preservation of shareholders’ capital.
This Zacks Intl Bond-Emerging product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FRMTXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 1.21%. The fund has one and three-year returns of 3.5% and 4%, respectively.
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