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4 Best-Rated Franklin Templeton Mutual Funds

With around $763.9 billion assets under management, Franklin Templeton Investments is considered one of the well-known global investment management firms. Founded in 1947, the company offers investment management strategies and integrated risk management solutions to individuals, institutions, pension plans, trusts and partnerships. With over 650 investment professionals and offices in 35 countries, Franklin Templeton provides services in more than 180 countries. It manages a wide range of mutual funds across different categories, including both equity and fixed-income funds. Below, we share with you four top-rated Franklin Templeton mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all Franklin Templeton mutual funds, investors can click here . Franklin Corefolio Allocation Fund A (MUTF: FTCOX ) seeks growth of capital. It invests an equal portion of its assets in Franklin Flex Cap Growth Fund, Franklin Growth Fund, Mutual Shares Fund and Templeton Growth Fund. Funds in which FTCOX allocates its assets tend to invest in both domestic and foreign securities. The fund has a one-month return of 4%. T. Anthony Coffey is the fund manager of FTCOX since 2003. Templeton Global Bond Fund A (MUTF: TPINX ) invests a large chunk of its assets in bonds, including notes, bills and debentures. It primarily invests in debt securities of governments or those that are issued by government agencies. The fund invests in securities throughout the globe, and may allocate not more than 25% of its assets in securities that are considered below investment-grade. This is a non-diversified fund and has a one-month return of 2%. TPINX has an expense ratio of 0.88%, compared to the category average of 1.03%. Franklin Convertible Securities Fund A (MUTF: FISCX ) seeks maximum total return through appreciation of capital and high level of current income. The fund invests the lion’s share of its assets in convertible securities. Though FISCX may invest all of its assets in non-investment grade securities, it invests a maximum of 10% of its assets in unrated securities or those that are rated below B. It may also invest not more than 20% of its assets in securities including common and preferred stocks. The fund has a one-month return of 1.7%. As of December 2015, FISCX held 75 issues, with 2.55% of its assets invested in Tyson Foods (NYSE: TSN ). Franklin California Tax Free Income Fund A (MUTF: FKTFX ) invests a major portion of its assets in municipal securities that are rated investment-grade and exempted from federal alternative minimum tax as well as California personal income taxes. The fund may invest not more than 20% of its assets that are subject to the federal alternative minimum tax. A maximum of 35% of FKTFX’s assets may be invested in securities of the U.S. territories. It has a one-month return of 0.9%. FKTFX has an expense ratio of 0.58%, compared to the category average of 0.89%. Original Post

Are There Dangers In Not Diversifying Your Portfolio?

Originally published on March 15, 2016 When it comes to investing, the key for most people to make money is to avoid as much risk as possible. In order to accomplish this, it’s best that all investors decide to diversify their portfolios in all possible ways. However, while it may sound simple, diversification is anything but that. However, by following a few simple rules it’s possible to diversify one’s portfolio in such a way that avoids huge losses. Just What Is Diversification? Diversifying a portfolio is just as it sounds. Rather than put all their money into a particular stock, investors should always look to invest their money in as many different avenues as available. By doing so, they greatly reduce the risk of losses occurring due to their money being tied up in only one industry. While diversification does not completely guarantee against financial losses happening, it has proven to be the most useful tactic when it comes to making a person’s money grow. Various Types of Risk When investing in stocks , bonds, or other financial instruments, there is always a certain level of risk involved with the venture. However, by having a good understanding of these risks, investors greatly increase their chances of minimizing losses or having none at all. There are two major types of diversification, which are known as diversifiable and non-diversifiable. Non-diversifiable risk is that which is associated with any type of company or industry, such as inflation, cost-of-living, and political instability. This is considered the type of risk that cannot be avoided, so it must be weighed in relation to other risks as to how it will affect a portfolio. However, diversifiable risk is directly tied to an industry, company, or even a particular country. To avoid having issues due to this type of risk, investors should have various assets within their portfolios that all have different reactions to the same situation, which in turn will lead to a safer investment strategy. Be Open to New Strategies One of the biggest mistakes many investors make is having tunnel vision when it comes to their investing strategies. When this happens, they often experience larger losses in their portfolios than other people who have spread their money around to many different places. Not only should a person not invest solely in one company, but they should also be careful not to invest in companies or industries that have a strong correlation to one another. If this happens, the likelihood of losses increases substantially. Opposites Attract Not only do opposites attract when it comes to love, but to diversifying as well. Along with being open to new strategies, it’s also advantageous for investors to look for various asset classes that tend to move in opposite directions. A great example of this is stocks and bonds, which while related tend to go in opposite directions almost daily. This allows them to offset the unpleasant moves of one asset class with the positive ones of another, which over time will keep a portfolio far less vulnerable to market swings. As a general rule, investors who are just beginning to put together their portfolios are almost always advised to include bonds, which tend to offset any losses sustained with stocks. There Are No Guarantees While diversifying a portfolio does not automatically guarantee investment success, it has been shown to increase the likelihood of positive returns over time. However, it’s important to note that even if your portfolio is correctly diversified, some risk can never be eliminated . This is where we talk about over diversification. This is a big problem that big investors, and experts warn others about, because it has the potential to undo all your efforts. It’s common consensus that wide diversification within your portfolio can cause investing to be more confusing than it normally would be, since you have so many eggs in so many baskets. Understanding that there is a point at which the benefits of diversification stop reducing risk, and instead start eating away at investment returns is crucial, otherwise, you’re just stuck with a hodgepodge mess of a portfolio. When it comes to reaching one’s financial goals, virtually every investor has their own set of unique plans. Most financial planners agree that investors who don’t let themselves get too high or too low depending on the market conditions will always do best, while others who invest too heavily in one direction often run into problems. By taking diversification seriously and taking the time to learn about the benefits associated with it, investment success can be had. This guest article was written and provided by Accuplan Benefits Services, a self-directed IRA administrator.

High Dividend Sector ETFs Hitting All-Time Highs

A few days back, the market was abuzz with faster-than-expected rate hike bets in the U.S. on hawkish tip-offs from some Fed officials after a dovish meeting in mid March. However, recently Fed chair Yellen put all hearsay to rest by emphasizing global growth issues. Also, the Fed chair indicated a ‘cautious’ stance that may be adopted by the U.S. central bank on the policy tightening issue going forward. Following the dovish statements, stocks and bonds soared. Investors should also note that yields on U.S. treasuries dropped following Yellen’s remarks. Below we discuss a few ETFs that popped after Yellen’s speech and could remain in focus ahead. In a falling yield environment, investors rushed to tap every possible option that can cater to their income need. Along with broader dividend funds, high yielding sector ETFs have also been witnessing strong pricing performance lately. Below we highlight a few winning sectors and their ETFs that hit all-time highs reflecting Yellen’s comments. Utilities Utilities usually have strong yields and are embraced by investors when Treasury bond yields fall. Also, the utility sector is considered a safer option when volatility levels spike. This sector is less volatile in nature and relatively immune to the market peaks and troughs. Moreover, the space is less exposed to currency translation due to lack of foreign coverage (read: Protect Your Portfolio with These Utility ETFs ). By virtue of their stronger yields and defensive nature, the following utilities ETFs touched all-time highs lately. The Utilities Alphadex First Trust (NYSEARCA: FXU ) hit an all-time high on March 31 2016. The fund added over 2.7% in the last five trading days (as of March 31, 2016) and yields about 2.85% annually and FXU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Smart Beta ETFs That Stood Out Amid Market Volatility ). The Guggenheim S&P Equal Weight Utilities ETF (NYSEARCA: RYU ) hit an all-time high on March 31, 2016. The fund returned 2.6% in the last five trading days (as of March 31, 2016) and yields 3.20% annually and follows an index which is the equal weighted version of the S&P 500 Utilities Index. Real Estate Real Estate is also a highly interest rate sensitive sector. These firms are usually highly leveraged and face maximum interest rate risk in the REIT world. Now, REITs are required to distribute 90% of their annual taxable income through dividends which make them high dividend yield vehicles. With interest rates expected to remain subdued for longer and bond yields trending down, the Real Estate Select Sector SPDR ETF (NYSEARCA: XLRE ) hit an all-time high, adding about 2.2%, on March 29, 2016. The fund yields 2.06% annually (as of the same date). The fund was up over 3.7% in the last five trading days (as of March 31, 2016). Telecom Telecom, another defensive sector by nature, also offers investors solid dividend yields. The Fidelity MSCI Telecommunications Services Index ETF (NYSEARCA: FCOM ) hit an all-time high on March 31, 2016. The product advanced about 4.4% in the last five trading days (as of March 31, 2016). Consumer Staples Consumer staple stocks have been performing better in recent months as investors are slowly moving toward defensive sectors. Also, consumer staples stocks and ETFs are high yield in nature which put this sector in focus following Yellen’s speech. Also, many consumer staples stocks are rich in global presence and are likely to outperform amid falling dollar. The Fidelity MSCI Consumer Staples Index ETF (FTSA) touched an all-time high on March 31, 2016. The fund added about 1.5% in the last five trading days (as of March 31, 2016). The fund yields about 2.52% annually (as of March 31, 2016). Link to the original post on Zacks.com