Subscribe to Entrepreneur for $5
Subscribe

Is Franklin Income C (FCISX) a Strong Mutual Fund Pick Right Now?

Mutual Fund Report for FCISX

By
This story originally appeared on Zacks

Allocation Balanced fund seekers should not consider taking a look at Franklin Income C (FCISX) at this time. FCISX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.

- Zacks

Objective

FCISX is classified in the Allocation Balanced segment by Zacks, which is an area full of possibilities. Here, investors are able to get a good head start with diversified mutual funds, and play around with core holding options for a portfolio of funds. Allocation Balanced funds look to invest across a balance of asset types, like stocks, bonds, and cash, though including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation.

History of Fund/Manager

FCISX finds itself in the Franklin Templeton family, based out of San Mateo, CA. Franklin Income C made its debut in May of 1995, and since then, FCISX has accumulated about $7.71 billion in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.

Performance

Of course, investors look for strong performance in funds. FCISX has a 5-year annualized total return of 7.29% 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 7.5%, which places it in the bottom third during this time-frame.

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. Over the past three years, FCISX's standard deviation comes in at 12.13%, compared to the category average of 14.15%. The standard deviation of the fund over the past 5 years is 9.8% compared to the category average of 11.64%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.59, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -3.29. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FCISX is a no load fund. It has an expense ratio of 1.13% compared to the category average of 0.89%. From a cost perspective, FCISX is actually more expensive than its peers.

Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment has no minimum amount.

Bottom Line

Overall, Franklin Income C ( FCISX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Franklin Income C ( FCISX ) looks like a poor potential choice for investors right now.

Want even more information about FCISX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.



Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Get Your Free (FCISX): Fund Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research