Franklin CA Tax-Free Income Fund (FKTFX) Class A

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Franklin CA Tax-Free Income A Fund (FKTFX) is one of the best municipal bond mutual funds. This California Muni bond fund provides tax free income for investors. The fund review can be found below.

Franklin CA Tax-Free Income A (Ticker: FKTFX)

The investment aim of Franklin CA Tax-Free Income fund is to provide investors with as high a level of income exempt from federal and California personal income taxes. The fund invests >80% of its total assets in investment grade municipal securities whose interest is free from federal income taxes (including alternative minimum tax) and from California personal income taxes.

Fund Details
Franklin CA Tax-Free Income fund holding
Franklin CA Tax-Free Income
  • Fund Inception Date: January 31, 1977
  • Ticker Symbol: FKTFX
  • CUSIP: 352518104
  • Beta (3yr): 1.42
  • Rank in category (YTD): 40%
  • Category: Muni California Long
  • Distribution: 4.56%
  • Capital Gains: 0%
  • Expense Ratio: 0.57%
  • Net Assets: $ 14.27 billion
  • Number of Years Up: 27 years
  • Number of Years Down: 7 years
  • Average Duration: 5.9 years
  • Average Maturity: 19.7 years
  • Annual Turnover Rate: 7.41%
Updated on 10/4/2012

This Muni California Long mutual fund has total net assets of $14.27 billion. The 12-month dividend yield is 4.56%. Investors of this fund have just received their dividend in April 30, 2012 ($0.03). It was first introduced to public in January 1977. It is currently under the management of John S. Wiley. He has been managing this fund since July 1991. The annual holdings turnover as of March 16, 2012 is 7.41%. This turnover rate is lower than the category average (22.21%). Its annual expense ratio is 0.57%. The 12b1 fee is 0.09% and the maximum sales charge is 4.25%.

Based on the load adjusted return, this mutual fund has returned 11.17% over the past 1-year and 4.78% over the past 10-year. Within its 27 years of positive return, the best 1-year total return was in 2009 with 16.43%. The worst return was in 2008 with -8.86%. This fund has YTD return of 4.77%. The 3-year beta risk is 1.42. Morningstar has ranked this muni bond fund with 4 star and bronze rating.

MORE: Top Franklin Templeton Mutual Funds of 2012 

The minimum initial investment of this long duration California muni bond fund is $1,000 for brokerage account. For retirement account, you can check with your brokerage. Investors can purchase this fund from 93 brokerages, such as Merrill Lynch, JP Morgan, Vanguard, Edward Jones, Scottrade Load, TD Ameritrade Inc, Schwab Retail, Edward Jones, Pershing Fund Center, etc. The other classes of this fund are Class C (FRCTX) and Class Advisor (FCAVX).

As of April 2012, this muni bond fund has total of 733 holdings. The top sector breakdown as of March 2012 is Transportation (21.50%), General Obligation Bonds (17.26%), Hospital & Health Care (16.11%), Refunded (14.04%) and Utilities (11.39%).

According to the fund prospectus, the principal investing risks are California and U.S. Territories risk, Focus risk, Interest rate risk, credit risk, management risk, market risk, income risk, etc.

Pros:
  • Good long term track record
  • Rated as one of the best muni bond funds
Cons:
  • Class A has a sales load
Disclosure: No Position

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