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Is Franklin Utilities A1 (FKUTX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Sector - Utilities fund could think about starting with Franklin Utilities A1 (FKUTX - Free Report) . FKUTX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FKUTX is classified in the Sector - Utilities segment by Zacks, an area full of potential. Sector - Utilities mutual funds focus on companies that provide essential servicessuch as electric power, gas distribution, and water supplyto millions of people on a daily basis. Overall, the utility industry is known for its stability and reduced volatility.
History of Fund/Manager
Franklin is responsible for FKUTX, and the company is based out of San Mateo, CA. Franklin Utilities A1 debuted in September of 1948. Since then, FKUTX has accumulated assets of about $3.38 billion, according to the most recently available information. John Kohli is the fund's current manager and has held that role since December of 1998.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 7.78%, and is 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 12.27%, which places it in the top 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. FKUTX's standard deviation over the past three years is 17.21% compared to the category average of 14.78%. The standard deviation of the fund over the past 5 years is 17.52% compared to the category average of 15.47%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.6, so investors should note that it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -1.8, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FKUTX is a load fund. It has an expense ratio of 0.72% compared to the category average of 0.95%. Looking at the fund from a cost perspective, FKUTX is actually cheaper than its peers.
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 Utilities A1 ( FKUTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Franklin Utilities A1 ( FKUTX ) looks like a good potential choice for investors right now.
Your research on the Sector - Utilities segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Franklin Utilities A1 (FKUTX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Sector - Utilities fund could think about starting with Franklin Utilities A1 (FKUTX - Free Report) . FKUTX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FKUTX is classified in the Sector - Utilities segment by Zacks, an area full of potential. Sector - Utilities mutual funds focus on companies that provide essential servicessuch as electric power, gas distribution, and water supplyto millions of people on a daily basis. Overall, the utility industry is known for its stability and reduced volatility.
History of Fund/Manager
Franklin is responsible for FKUTX, and the company is based out of San Mateo, CA. Franklin Utilities A1 debuted in September of 1948. Since then, FKUTX has accumulated assets of about $3.38 billion, according to the most recently available information. John Kohli is the fund's current manager and has held that role since December of 1998.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 7.78%, and is 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 12.27%, which places it in the top 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. FKUTX's standard deviation over the past three years is 17.21% compared to the category average of 14.78%. The standard deviation of the fund over the past 5 years is 17.52% compared to the category average of 15.47%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.6, so investors should note that it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -1.8, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FKUTX is a load fund. It has an expense ratio of 0.72% compared to the category average of 0.95%. Looking at the fund from a cost perspective, FKUTX is actually cheaper than its peers.
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 Utilities A1 ( FKUTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Franklin Utilities A1 ( FKUTX ) looks like a good potential choice for investors right now.
Your research on the Sector - Utilities segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.