With around $738.2 billion assets under management as of February 28, 2017, Franklin Templeton Investments is a well-known global investment management firm. Founded in 1947, the company offers investment management strategies and integrated risk management solutions to individuals, institutions, pension plans, trusts and partnerships. With over 600 investment professionals, Franklin Templeton manages a wide range of mutual funds across different categories including both equity and fixed income.
Below we share with you three best-ranked Franklin Templeton mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future.
Franklin Utilities Fund C (MUTF:FRUSX) invests the bulk of its assets in the securities of public utility companies, which are involved in providing water, natural gas, communication and electricity services. FRUSX seeks growth of capital and income. The fund invests at least one-fourth of its total assets in companies based in the utilities sector. Franklin Utilities C has a one-year annualized return of 8.5%.
As of December 2016, FRUSX held 52 issues, with 5.66% of its assets invested in NextEra Energy Inc. (NYSE:NEE).
Franklin LA Tax Free Income Fund A (MUTF:FKLAX) seeks a high level of income which is free from federal income taxes. FKLAX invests the lion's share of its assets in securities whose interest is exempted from both federal income tax and federal alternative minimum tax as well as from the personal income taxes of Louisiana. Franklin LA Tax-Free Income A returned 0.5% over the last one-year period.
FKLAX has an expense ratio of 0.69% compared with the category average of 1.05%.
Franklin High Income Fund A (MUTF:FHAIX) seeks high current income with growth of capital as its secondary objective. FHAIX invests primarily in high yield securities that are rated below investment grade. The fund invests in debt securities including bonds, notes and debentures. It may also invest all of its assets in junk bonds. Franklin High Income A returned 22.1% over the last one-year period.
Christopher Molumphy is one of the fund managers of FHAIX since 1991.