4 Franklin Templeton Mutual Funds to Bank on in a Volatile Market
Franklin Templeton is a San Mateo, CA-based company. Initially known as Franklin Distributors Inc., this investment management giant commenced business in 1947. Franklin Templeton had assets under management of about $1.4 trillion as of Apr 30, 2023.
The company has specialized expertise across a wide range of asset classes. Amongst its offerings are products under the Franklin, Templeton, Mutual Series and Fiduciary brands. The firm offers a wide variety of funds but is historically best known for bond funds under the Franklin brand, international funds under the Templeton brand and value funds under the Mutual Series brand.
Franklin Templeton has a reputation for offering customized solutions for individual needs. Regardless of whether an investor seeks a steady income or aims to maximize growth, the firm has an offering to cater to it. Their available funds span across a wide range of asset types, such as equity, balanced portfolio, fixed income, hybrid and thematic investments. This diversified selection allows various options to develop a well-rounded and comprehensive investment plan.
In recent weeks, with the job market showing signs of a definite slowdown and no clear signal from the Fed about the discontinuation of interest rate hikes, the possibility of a probable economic slowdown is back in the talks. At the very least, markets will remain volatile for the foreseeable future with no end in sight.
This is where Franklin Templeton’s effective risk management practices to alleviate potential risks linked with market fluctuations come to the fore. Its broad range of funds, investment approach and impressive past results have reinforced its name as a trustworthy option for building a diverse portfolio. People looking for a safety net are likely to explore such options, especially in these uncertain times.
Investing in these mutual funds may provide the much-required stability and growth potential in a market that is expected to remain volatile for a while. Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected four mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.
Franklin Small Cap Value Fund FRVFX primarily invests the majority of its net assets in small-cap companies. FRVFX usually invests in stocks that its advisor believes are undervalued at the time of purchase and have the potential for capital appreciation.
Nicholas Karzon has been the lead manager of FRVFX since December 2019. The three top holdings for FRVFX are 3.9% in ACI Worldwide, 3.8% in Crescent Point Energy and 3% in Glanbia.
FRVFX’s 3-year and 5-year annualized returns are 15% and 6%, respectively, and its net expense ratio is 0.73% compared to the category average of 1.16%. FRVFX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Franklin Rising Dividends Fund FRDTX invests primarily in investments of companies that have paid consistently rising dividends. FRDTX invests in both foreign and domestic companies without regard to market capitalization.
Nayan Sheth has been the lead manager of FRDTX since September 2019. The three top holdings for FRDTX are 9% in Microsoft, 3.7% in Roper Technologies and 3.7% in Stryker.
FRDTX’s 3-year and 5-year annualized returns are 11.8% and 10.2%, respectively, and its net expense ratio is 0.59% compared to the category average of 0.84%. FRDTX has a Zacks Mutual Fund Rank #2.
Franklin Utilities Fund FRUAX seeks capital growth and primarily invests its assets in securities of public utility companies. FRUAX invests primarily in equity securities, which consist mainly of common stocks.
John Kohli has been the lead manager of FRUAX since December 1998. The three top holdings for FRUAX are 11.5% in NextEra, 4.7% in The Southern and 4.6% in Edison.
FRUAX’s 3-year and 5-year annualized returns are 7.4% and 8.4%, respectively, and its net expense ratio is 0.57% compared to the category average of 0.94%. FRUAX has a Zacks Mutual Fund Rank #1.
Franklin Mutual International Value Fund TEMIX invests primarily in foreign issuers. TEMIX invests mainly in securities involving merger arbitrage and the debt and equity of stressed or distressed companies.
Timothy Rankin has been the lead manager of TEMIX since April 2023. The three top holdings for TEMIX are 3.8% in Novartis, 3.7% in Deutsche Telekom and 3.6% in BNP Paribas.
TEMIX’s 3-year and 5-year annualized returns are 16.4% and 5.2%, respectively, and its net expense ratio is 0.95% compared to the category average of 1.03%. TEMIX has a Zacks Mutual Fund Rank #2.
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