Is Franklin Convertible Securities A (FISCX) a Strong Mutual Fund Pick Right Now?

Having trouble finding a Convertible Bonds fund? Franklin Convertible Securities A (FISCX) is a potential starting point. FISCX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.History of Fund/ManagerFranklin is based in San Mateo, CA, and is the manager of FISCX. Franklin Convertible Securities A debuted in April of 1987. Since then, FISCX has accumulated assets of about $942.05 million, according to the most recently available information. The fund's current manager, Alan E. Muschott, has been in charge of the fund since July of 2002.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. FISCX has a 5-year annualized total return of 11.42% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 5.51%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.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. Compared to the category average of 13.52%, the standard deviation of FISCX over the past three years is 11.76%. Looking at the past 5 years, the fund's standard deviation is 15.55% compared to the category average of 15.1%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.74, which means it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -1.26, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FISCX is a load fund. It has an expense ratio of 0.82% compared to the category average of 0.99%. FISCX is actually cheaper than its peers when you consider factors like cost.While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, Franklin Convertible Securities A ( FISCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Franklin Convertible Securities A ( FISCX ) looks like a good potential choice for investors right now.Your research on the Convertible Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FISCX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks