Have you been searching for a Muni - Bonds fund? You might want to begin with Franklin California Tax-Free Income A (FKTFX Quick QuoteFKTFX - Free Report) . FKTFX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes FKTFX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.

History of Fund/Manager

Franklin is responsible for FKTFX, and the company is based out of San Mateo, CA. The Franklin California Tax-Free Income A made its debut in February of 1977 and FKTFX has managed to accumulate roughly $7.27 billion in assets, as of 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 1.25%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -0.21%, which places it in the middle 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. Compared to the category average of 13.14%, the standard deviation of FKTFX over the past three years is 8.5%. The standard deviation of the fund over the past 5 years is 7.64% compared to the category average of 13.72%. This makes the fund less volatile than its peers over the past half-decade.

This fund has a beta of 0.85, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, FKTFX has a positive alpha of 0.15, which measures performance on a risk-adjusted basis.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FKTFX is a load fund. It has an expense ratio of 0.60% compared to the category average of 0.90%. So, FKTFX is actually cheaper than its peers from a cost perspective.

This fund requires a minimum initial investment of $1,000, while 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 California Tax-Free Income A ( FKTFX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Franklin California Tax-Free Income A ( FKTFX ) looks like a somewhat average choice for investors right now.

This could just be the start of your research on FKTFXin the Muni - Bonds 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. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.