Having trouble finding a Mutual Fund Equity Report fund? Franklin Corefolio Allocation A (FTCOX) is a possible starting point. FTCOX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FTCOX. Since Franklin Corefolio Allocation A made its debut in August of 2003, FTCOX has garnered more than $745.94 million in assets. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 5.94%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 7.82%, 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. FTCOX's standard deviation over the past three years is 17.57% compared to the category average of 18.04%. Looking at the past 5 years, the fund's standard deviation is 18.45% compared to the category average of 15.93%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.98, so investors should note that it is hypothetically as volatile as the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FTCOX's 5-year performance has produced a negative alpha of -4.36, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
This fund is currently holding about 87.36% stock in stocks and it has a negligible amount of assets in foreign securities. Turnover is 9%, which means this fund makes fewer trades than comparable funds.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FTCOX is a load fund. It has an expense ratio of 0.41% compared to the category average of 0.86%. From a cost perspective, FTCOX is actually cheaper than its peers.