Full Answer
What is the Franklin federal tax-free income fund?
The Franklin Federal Tax-Free Income Fund offers an inexpensive way for investors to access a municipal bond portfolio. As of August 29, 2019, the fund has assets totaling almost $10.78 billion invested in 818 different holdings. Its portfolio consists primarily of investment-grade municipal bonds.
Who is managing Franklin’s municipal bond funds?
Higgins and Rivera handle most of the day-to-day oversight of the fund, and also manage other municipal bond strategies at Franklin. The fund has returned 3.34 percent over the past year, 5.28 percent over the past three years, 3.89 percent over the past five years and 3.91 percent over the past decade.
Will Franklin federal's tax free income strategy benefit from reorganization?
The reorganization of the team managing Franklin Federal Tax Free Income has the potential to benefit the strategy over the long term, but more time is needed to assess whether these adjustments, plus process changes, create material improvements. All share classes for this strategy retain a Morningstar Analyst Rating of Neutral.
What is FKTIX bond?
About FKTIX. Investors in high tax brackets often turn to municipal bonds, which represent debt of a state, county, city or other government entity, such as a school district. Muni bonds, as these are known, are exempt from federal taxes and from most state and local taxes for residents of the state in which a bond is issued.
What is a 401(k) fund?
The fund seeks to provide investors with a high level of income exempt from federal income taxes. It balances that goal with prudent management and capital preservation, as evidenced by its focus on high-quality bonds.
