When he was a young man, Dave inherited $50,000.1 He didn’t need the money at the time, so in 1970, he invested it in the Franklin Income Fund. Dave never added another penny, but over the years he withdrew more than $350,000. This is Dave’s story…
MEET DAVE
A Hypothetical Illustration with Franklin Income Fund─Advisor Class2
January 1, 1970 – December 31, 2019
Thanks to Franklin Income Fund’s 70-year history of uninterrupted dividends3 and the power of compounding, Dave was able to withdraw seven times his original inheritance while maintaining a healthy account balance year after year. See how Dave’s hypothetical investment would have grown through the years.
An Unexpected Investor
Growth of a Hypothetical $50,000 Investment in Franklin Income Fund─Advisor Class2,4
Dave’s Account Balance for the Years Ended December 31
1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 |
---|---|---|---|---|---|---|
$51,520 | $60,605 | $63,218 | $60,559 | $53,084 | $63,204 | $77,509 |
1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 |
$84,222 | $91,263 | $109,054 | $108,946 | $110,186 | $147,213 | $169,806 |
1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 |
$196,151 | $232,155 | $274,187 | $287,542 | $298,496 | $336,302 | $306,798 |
1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 |
$433,059 | $492,775 | $591,804 | $548,256 | $656,970 | $718,157 | $839,312 |
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 |
$841,172 | $828,574 | $996,715 | $979,541 | $970,502 | $1,274,471 | $1,370,636 |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
$1,398,181 | $1,603,575 | $1,685,064 | $1,133,194 | $1,534,686 | $1,662,941 | $1,704,752 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
$1,951,652 | $2,234,545 | $2,320,868 | $2,140,954 | $2,496,480 | $2,711,567 | $2,569,905 |
2019 | ||||||
$2,981,629 |
Performance data represents past performance, which does not guarantee future results. Current performance may differ from the figures shown. A fund’s investment returns and principal values will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please view Franklin Income Fund’s most recent month-end performance.
Dividends will vary depending on the fund's income, and past distributions are not indicative of future trends.
Average Annual Total Returns (For Periods Ended September 30, 2020)
1-year | 3-year | 5-year | 10-year | Since Inception (8/31/48) | |
---|---|---|---|---|---|
Advisor Class (FRIAX)3 | -3.86% | 0.98% | 5.47% | 5.75% | 9.89% |
Class A (FKIQX)1 | |||||
Without Sales Charge | -4.48% | 0.63% | 5.25% | 5.54% | 9.79% |
With 3.75% Initial Sales Charge12 | -8.06% | -0.65% | 4.45% | 5.14% | 9.73% |
30-Day Standardized Yield (As of 09/ | Expense Ratio | Beta(3-Year)12 (As of 09/30/20) | |
---|---|---|---|
Advisor Class (FRIAX)2 | 3.48% | 0.47% | 1.09 |
Class A (FKIQX)9 | 3.11% | 0.72% | 1.08 |
Annual Total Returns – Advisor Class13
1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 |
---|---|---|---|---|---|---|---|---|---|
3.04% | 19.96% | 4.31% | -4.21% | -12.34% | 25.82% | 22.63% | 8.66% | 8.36% | 28.56% |
1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 |
19.58% | 1.14% | 36.07% | 15.35% | 15.51% | 18.36% | 19.65% | 4.87% | 8.81% | 12.67% |
1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 |
-8.77% | 41.15% | 15.24% | 21.53% | -6.38% | 21.29% | 10.45% | 18.04% | 1.12% | -0.58% |
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
20.29% | 0.81% | -0.92% | 31.32% | 12.40% | 2.01% | 19.39% | 5.08% | -30.27% | 35.43% |
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
13.15% | 2.51% | 14.48% | 14.50% | 3.86% | -7.75% | 16.61% | 8.62% | -5.22% | 16.02% |
Advisor Class Shares are only offered to certain eligible investors as stated in the prospectus. They are offered without sales charges or Rule12b-1 fees. The fund offers multiple share classes, which are subject different fees and expenses that will affect their performance. Please see the prospectus for details.
Learn more about Franklin Income Fund and how it might help with your journey.
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The figures shown represent performance of a hypothetical investment and withdrawals to illustrate how this fund may fit as part of a well-diversified retirement income investment portfolio. The hypothetical illustration is provided for general educational purposes only and does not constitute investment or tax advice.
It’s important to note that the amounts withdrawn do not represent dividends or income, but, rather, the proceeds from the sale of shares. This illustration assumes sufficient shares are sold from the shareholder’s account at the time of each withdrawal to provide for the withdrawal amount. Please note that this hypothetical investment does not take into account federal, state or municipal taxes. If taxes were taken into account, the hypothetical values shown would have been lower. The results of the withdrawals could vary substantially depending on investment performance of the fund during the period. The amount chosen for withdrawal impacts the value remaining at the end of the period. In a period of declining market values, continued withdrawals could eventually exhaust the principal. If withdrawals were made at other times and/or in different amounts, the results would be different. Investing in a Franklin Templeton fund does not guarantee one’s retirement income needs will be met.
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. As a financial professional, only you can provide your customers with personalized advice and investment recommendations tailored to their specific goals, individual situation, and risk tolerance.
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