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3 Franklin Templeton Mutual Funds Worth Considering in Current Times

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Franklin Templeton, with over 75 years of experience, has managed $1.7 trillion in assets. It offers a variety of asset classes including stocks, investment bonds, mutual funds, private equity and real estate. It has a global team of 1,600 professionals that combines innovative strategies with a focus on risk management of human, natural and financial capital. It also has corporate social responsibility embedded in its investment process. All these factors make Franklin a good investment choice.

We have chosen three Franklin Templeton mutual funds — Franklin Natural Resources Fund (FNRAX - Free Report) , Franklin Templeton SMACS (FQTEX - Free Report) and Franklin High Income Fund (FVHIX - Free Report) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Franklin Natural Resources Fund invests the majority of its assets in equity and debt securities of companies in the natural resources sector. FNRAX advisors also invest their assets in smaller-capitalization companies, typically those with market capitalizations below $2 billion at the time of the fund's investment.

Steve M. Land has been the lead manager of FNRAX since Apr. 1, 1999. Most of the fund’s holdings were in Exxon Mobil (5.2%), ConocoPhillips (4.2%) and Chevron (3%) as of July 31, 2024.

FNRAX’s 3-year and 5-year annualized returns are 11.2% and 8.1%, respectively, and its net expense ratio is 0.76%. FNRAX has a Zacks Mutual Fund Rank #1.

Franklin Templeton SMACS fund invests most of its net assets in common stocks and convertible securities, preferably in large-cap companies. FQTEX advisors also invest in foreign issuers either directly or through depositary receipts.

Todd Brighton has been the lead manager of FQTEX since June 3, 2019. Most of the fund’s holdings are in companies like NextEra Energy, Inc. (3.9%), Air Products and Chemicals, Inc. (3.2%) and AbbVie Inc. (3.2%) as of Aug. 21, 2024.

FQTEX’s 3-year and 5-year annualized returns are 7.2% and 10.3%, respectively. Its net expense ratio is 0.10%. FQTEX has a Zacks Mutual Fund Rank #1.

Franklin High Income Fund invests primarily in a portfolio of high-yield yet lower-rated debt securities.  FVHIX advisors may invest all of its total assets in debt securities that are rated below investment grade.

Glenn I. Voyles has been the lead manager of FVHIX since May 1, 2015. Most of the fund’s holdings are in companies like Martin Midstream Partners L.P. (1.2%), Mauser Packaging Solution (1.1%) and Wynn Resorts, Ltd. (1%) as of Sept. 30, 2024.

FVHIX’s 3-year and 5-year annualized returns are 3.8% and 4.7%, respectively. Its net expense ratio is 0.58%. FVHIX has a Zacks Mutual Fund Rank #1.

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