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Is Franklin Gold & Precious Metals A (FKRCX) a Strong Mutual Fund Pick Right Now?

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Mutual Fund Equity Report fund seekers should consider taking a look at Franklin Gold & Precious Metals A (FKRCX - Free Report) . FKRCX bears a Zacks Mutual Fund Rank of 2 (Buy), 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 FKRCX. Franklin Gold & Precious Metals A made its debut in May of 1969, and since then, FKRCX has accumulated about $611.70 million in assets, per the most up-to-date date available. The fund's current manager, Steve Land, has been in charge of the fund since April of 1999.

Performance

Of course, investors look for strong performance in funds. FKRCX has a 5-year annualized total return of 10.34% 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 -9.08%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. FKRCX's standard deviation over the past three years is 30.23% compared to the category average of 18.15%. The fund's standard deviation over the past 5 years is 35.71% compared to the category average of 20.14%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.23, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FKRCX has generated a negative alpha over the past five years of -3.74, demonstrating that managers in this portfolio find it difficult to pick 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, FKRCX is a load fund. It has an expense ratio of 0.92% compared to the category average of 1.10%. Looking at the fund from a cost perspective, FKRCX is actually cheaper than its peers.

While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Franklin Gold & Precious Metals A ( FKRCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Want even more information about FKRCX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.


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