Fund Description

The fund was incepted in April 1985 and is managed by Franklin Advisers. The objective of this fund is to seek investors with as high a level of income exempt from federal income taxes as is consistent with prudent investment management and the preservation of shareholders' capital. The fund invests at least 80% of its total assets in securities whose interest is free from federal income taxes, including the federal alternative minimum tax. The fund invests at least 80% of its net assets in insured municipal securities that pay interest free from the personal income taxes, if any, of that fund's state. The fund also invests its 20% assets in tax-free securities. The fund offers dividends monthly and capital gains at least annually, but there is no guarantee that it would be paid.