Franklin Utilities Fund

New investors must invest in new Class A shares. This A1 share class is available only for existing investors as of 9/7/18.

New investors must invest in new Class A shares. This A1 share class is available only for existing investors as of 9/7/18.

Fund Description

The fund seeks capital appreciation and current income by investing predominantly in the securities of public utility companies, with a focus on companies operating in the U.S. electricity and gas sector.

Strategy Statement

"Over the fund's 60-year history, we've remained committed to our investment approach, working to provide investors with current income and relatively low volatility during various economic conditions."


John Kohli, CFA

John Kohli, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 1998
Blair Schmicker, CFA

Blair Schmicker, CFA®

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2009


Overall Morningstar Rating As of 06/30/2021

Rating Category: Utilities

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 06/30/2021

Years Ratings Funds
in category
3 Stars
3 Stars
3 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


  • We search for solid opportunities in the utilities arena with a specific focus on the U.S. electricity and gas sector.
  • Our investment process is rooted in fundamental, bottom-up research, which involves speaking with a company's key management and observing its operations on location.
  • Generally, we favor regulated utility companies due to their more predictable earnings and cash flow.


  • Income component. Due to the nature of the utilities industry, our fund has historically paid an attractive quarterly dividend.
  • Diversification. By adding investments from different sectors to your portfolio, you may take advantage of rotating economic cycles.
  • Increasing Demand. Investors may capitalize on an increasing demand for basic utilities.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Investing in a fund concentrating in the utilities sector involves special risks, including increased susceptibility to adverse economic and regulatory developments affecting the sector.
  • Stocks historically have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term.
  • Securities issued by utility companies have been historically sensitive to interest rate changes.
  • When interest rates fall, utility securities prices, and thus a utilities fund’s share price, tend to rise; when interest rates rise, their prices generally fall.
  • These and other risks are described more fully in the fund’s prospectus.

Minimum Investment


How Financial Professionals Help You

Speak with your financial professional about whether this fund is appropriate for you.

Learn more from FINRA about How to Find and Work with an Investment Professional.