A mutual fund offers investors access to full-time, professional money managers who have the expertise, experience and resources to actively buy, sell, and monitor investments.
A mutual fund is a type of investment in which investors pool their money together to buy a portfolio of stocks, bonds or other securities in order to take advantage of diversification and professional portfolio management at a reasonable cost. Securities in actively managed funds are selected by a team of investment managers and research analysts. Investing in mutual funds enables those investing a modest amount of money to benefit from the same advantages enjoyed by large institutional investors.
The “net asset value” (NAV), or price of a fund, is calculated at the end of each trading day by dividing the total value of the securities in the portfolio by the number of the fund's outstanding shares. The NAV changes each day based on the value at market close of the individual securities held by the fund.
- Advantages
- Tax Considerations
- Fees & Expenses
Advantages
Mutual funds have several advantages over holding individual securities in your investment portfolio.
Professional Management
Diversification
Mutual funds enable you to hold a wide variety of securities at a much lower cost than you could on your own. If one investment decreases in value, another investment in the portfolio may increase. By holding shares in various types of funds, you can take advantage of opportunities in many asset classes across changing market environments.
Affordability
Mutual funds enable even small investors to take advantage of professional asset management and diversification with low investment minimums. Compared to most funds, it would require a larger investment, and incur greater costs, to purchase directly all of the individual securities held by a single mutual fund.
Liquidity and convenience
Most mutual funds allow investors to buy and sell shares on any business day. Many funds enable you to set up a regular, automatic purchase program to help you build a nest egg. They also allow you to automatically reinvest interest, dividends, and capital gains in order to buy even more shares.
Why Choose Franklin Templeton Mutual Funds?
While many companies offer mutual funds, very few companies can rival Franklin Templeton’s more than 70 years of experience. During that time, we’ve managed through all kinds of markets—up, down, and everything in between. And we’re always preparing for what may come next. This depth of experience, combined with our strength as one of the world’s largest asset managers, has earned Franklin Templeton the trust of investors around the world.
Commitment to Active Management
While we believe there can be a role for passive investing in investors’ portfolios, our belief in the value of active management has consistently been fundamental to our investment approach. Active asset management provides the potential for outperformance and risk diversification relative to the broad market.
Decades of Specialized Expertise
Each of our experienced investment teams provides their own unique style and perspective, building portfolios based on proprietary methodologies. Our multiple manager structure brings together specialized investment teams with distinct styles to offer clients a full range of investment capabilities.
Global Integrated Platform
To give clients around the world access to our best products and ideas, our investment teams are supported by a global platform that includes rigorous compliance and active risk management. That around-the-clock support allows our investment teams to focus on research and portfolio management.
Types of Mutual Funds
Franklin Templeton offers a wide selection of mutual funds designed to meet different investor goals. Most fall into one of four categories:
How to Invest in Mutual Funds
Share this page with your financial advisor or open an account from our website.
Tax Considerations
Mutual funds are required to periodically distribute their dividends, interest, and capital gains, if any, to their investors. This is usually done monthly, quarterly, or annually. Like individual stocks and bonds, these distributions are subject to taxation. Dividend and interest income is generally taxed at your ordinary income tax rate. Distributions of capital gains from the sale of securities by the fund may be taxed as ordinary income or as a long-term capital gain, depending on how long the securities were held by the fund.
Investors may also be subject to ordinary income tax or capital gains taxes when selling fund shares based on how long the shares were held. Dividend distributions from mutual funds that invest in municipal bonds are generally exempt from federal income tax and in some cases by state income tax as well, depending on the fund. Capital gains distributions generally are taxable. Taxes on mutual funds held in an individual retirement account or other tax-advantaged account are generally deferred until the holder begins withdrawing money from the account.
Why Choose Franklin Templeton Mutual Funds?
While many companies offer mutual funds, very few companies can rival Franklin Templeton’s more than 70 years of experience. During that time, we’ve managed through all kinds of markets—up, down, and everything in between. And we’re always preparing for what may come next. This depth of experience, combined with our strength as one of the world’s largest asset managers, has earned Franklin Templeton the trust of investors around the world.
Commitment to Active Management
While we believe there can be a role for passive investing in investors’ portfolios, our belief in the value of active management has consistently been fundamental to our investment approach. Active asset management provides the potential for outperformance and risk diversification relative to the broad market.
Decades of Specialized Expertise
Each of our experienced investment teams provides their own unique style and perspective, building portfolios based on proprietary methodologies. Our multiple manager structure brings together specialized investment teams with distinct styles to offer clients a full range of investment capabilities.
Global Integrated Platform
To give clients around the world access to our best products and ideas, our investment teams are supported by a global platform that includes rigorous compliance and active risk management. That around-the-clock support allows our investment teams to focus on research and portfolio management.
Types of Mutual Funds
Franklin Templeton offers a wide selection of mutual funds designed to meet different investor goals. Most fall into one of four categories:
How to Invest in Mutual Funds
Share this page with your financial advisor or open an account from our website.
Fees & Expenses
Mutual funds charge fees to cover their expenses, which include professional management, transaction costs for buying and selling securities, fund accounting, legal and other general operating expenses. Investors may incur a sales charge when they buy fund shares. Alternatively, they may be charged a redemption fee if they sell their shares before holding them for a stated period of time.
The expense ratio for each fund states the annual percentage charged by the fund to cover its expenses. Fees and expenses will detract from the fund’s returns.
Why Choose Franklin Templeton Mutual Funds?
While many companies offer mutual funds, very few companies can rival Franklin Templeton’s more than 70 years of experience. During that time, we’ve managed through all kinds of markets—up, down, and everything in between. And we’re always preparing for what may come next. This depth of experience, combined with our strength as one of the world’s largest asset managers, has earned Franklin Templeton the trust of investors around the world.
Commitment to Active Management
While we believe there can be a role for passive investing in investors’ portfolios, our belief in the value of active management has consistently been fundamental to our investment approach. Active asset management provides the potential for outperformance and risk diversification relative to the broad market.
Decades of Specialized Expertise
Each of our experienced investment teams provides their own unique style and perspective, building portfolios based on proprietary methodologies. Our multiple manager structure brings together specialized investment teams with distinct styles to offer clients a full range of investment capabilities.
Global Integrated Platform
To give clients around the world access to our best products and ideas, our investment teams are supported by a global platform that includes rigorous compliance and active risk management. That around-the-clock support allows our investment teams to focus on research and portfolio management.
Types of Mutual Funds
Franklin Templeton offers a wide selection of mutual funds designed to meet different investor goals. Most fall into one of four categories:
How to Invest in Mutual Funds
Share this page with your financial advisor or open an account from our website.
This website does not provide investment advice or investment recommendations. It is intended for educational and informational purposes only.
This website does not provide investment advice or investment recommendations. It is intended for educational and informational purposes only.
Management fees and other expenses and, in some cases, sales loads are associated with mutual fund investments. Investors' returns are reduced by these fees and expenses. Funds are offered through prospectuses, which contain detailed information about a fund's goals, charges, expenses and risks. They should be read carefully before investing.
All investments involve risks, including possible loss of principal.
All investments involve risks, including possible loss of principal.
Diversification does not guarantee a profit or protect against a loss.