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.
If investors are looking at the Mutual Fund Bond fund category, make sure to pass over Franklin Federal Tax-Free Inc A1 (FKTIX - Free Report) . FKTIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FKTIX. Franklin Federal Tax-Free Inc A1 debuted in October of 1983. Since then, FKTIX has accumulated assets of about $5.23 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 1.39%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 0.25%, which places it in the bottom 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. FKTIX's standard deviation over the past three years is 7.36% compared to the category average of 13.76%. The fund's standard deviation over the past 5 years is 6.23% compared to the category average of 13.46%. This makes the fund less volatile than its peers over the past half-decade.
FKTIX carries a beta of 1.01, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.71, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, FKTIX has 39.31% in high quality bonds rated at least 'AA' or higher, while 45.92% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FKTIX is a load fund. It has an expense ratio of 0.64% compared to the category average of 0.78%. Looking at the fund from a cost perspective, FKTIX is actually cheaper than its peers.
Investors should also note, that according to our data, the fund does not have any minimum investment requirements.
Bottom Line
Overall, Franklin Federal Tax-Free Inc A1 ( FKTIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and lower fees, Franklin Federal Tax-Free Inc A1 ( FKTIX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on FKTIXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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 FKTIX a Strong Bond Fund Right Now?
If investors are looking at the Mutual Fund Bond fund category, make sure to pass over Franklin Federal Tax-Free Inc A1 (FKTIX - Free Report) . FKTIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FKTIX. Franklin Federal Tax-Free Inc A1 debuted in October of 1983. Since then, FKTIX has accumulated assets of about $5.23 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 1.39%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 0.25%, which places it in the bottom 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. FKTIX's standard deviation over the past three years is 7.36% compared to the category average of 13.76%. The fund's standard deviation over the past 5 years is 6.23% compared to the category average of 13.46%. This makes the fund less volatile than its peers over the past half-decade.
FKTIX carries a beta of 1.01, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.71, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, FKTIX has 39.31% in high quality bonds rated at least 'AA' or higher, while 45.92% are of medium quality, with ratings of 'A' to 'BBB'. The fund has an average quality of A, and focuses on high quality securities.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FKTIX is a load fund. It has an expense ratio of 0.64% compared to the category average of 0.78%. Looking at the fund from a cost perspective, FKTIX is actually cheaper than its peers.
Investors should also note, that according to our data, the fund does not have any minimum investment requirements.
Bottom Line
Overall, Franklin Federal Tax-Free Inc A1 ( FKTIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and lower fees, Franklin Federal Tax-Free Inc A1 ( FKTIX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on FKTIXin the Mutual Fund Bond category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank 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.