We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Franklin Convertible Securities A (FISCX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
On the lookout for a Convertible Bonds fund? Starting with Franklin Convertible Securities A (FISCX - Free Report) is one possibility. FISCX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FISCX. Franklin Convertible Securities A made its debut in April of 1987, and since then, FISCX has accumulated about $1.55 billion in assets, per the most up-to-date date available. The fund's current manager, Alan E. Muschott, has been in charge of the fund since July of 2002.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 21.44%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.8%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FISCX's standard deviation over the past three years is 17.29% compared to the category average of 15.01%. Looking at the past 5 years, the fund's standard deviation is 13.83% compared to the category average of 12.42%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.8, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FISCX's 5-year performance has produced a positive alpha of 7.12, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FISCX is a load fund. It has an expense ratio of 0.83% compared to the category average of 1.11%. Looking at the fund from a cost perspective, FISCX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Franklin Convertible Securities A ( FISCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Franklin Convertible Securities A ( FISCX ) looks like a good potential choice for investors right now.
Your research on the Convertible Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Franklin Convertible Securities A (FISCX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Convertible Bonds fund? Starting with Franklin Convertible Securities A (FISCX - Free Report) is one possibility. FISCX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FISCX. Franklin Convertible Securities A made its debut in April of 1987, and since then, FISCX has accumulated about $1.55 billion in assets, per the most up-to-date date available. The fund's current manager, Alan E. Muschott, has been in charge of the fund since July of 2002.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 21.44%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.8%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FISCX's standard deviation over the past three years is 17.29% compared to the category average of 15.01%. Looking at the past 5 years, the fund's standard deviation is 13.83% compared to the category average of 12.42%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.8, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FISCX's 5-year performance has produced a positive alpha of 7.12, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FISCX is a load fund. It has an expense ratio of 0.83% compared to the category average of 1.11%. Looking at the fund from a cost perspective, FISCX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Franklin Convertible Securities A ( FISCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Franklin Convertible Securities A ( FISCX ) looks like a good potential choice for investors right now.
Your research on the Convertible Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.