I am thinking about putting some of my $ into a FFalx (templeton) Mutual fund. I have been looking into it and just wanted opinions. Would this be a good idea if I could part with a few thousand for a few years. What are the pros and cons?
2007-11-13 07:58:10 · 6 answers · asked by sallyj 1 in Business & Finance ➔ Investing
Vanguard known for low fees and solid performance. Call them and they'll help you with your portfolio.
They're not the only game in town. Try T Rowe Price, Fidelity, ING Direct.
2007-11-13 08:06:38 · answer #1 · answered by rjrmpk 6 · 0⤊ 0⤋
Hello,
FFALX is not a bad fund, but at a 5.75% front end load and an expense ratio of 1.2%, it is quite expense for what I would consider to be a balanced fund.
FFALX is value-oriented and has considerable international exposure. Value and international funds have performed extremely well over the past several years. I suspect that having considerable international and value exposure contributed to FFALX having very good numbers over the past few years. Value funds, however, have been poor performers in 2007 and so has FFALX, according to Morningstar.com. It is important to point out that this fund is a combination of 3 Franklin funds. Mutual Shares, Templeton Growth, and Franklin Income.
If you are looking for a balanced fund, you might consider looking at the funds offered by Vanguard, Fidelity and T. Rowe Price.
I hope this helps.
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net
2007-11-14 00:54:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Nobody can tell you what mutual fund will work the best for you. I would do some research on the funds you are interested in and go from there. Franklin is a very sound fund company.
Morningstar is a non bias 3rd party fund rating company. They rank mutual funds from 1 to 5 stars depending on their extensive research. I would use that as a starting place.
Getting started is the best way to learn!
2007-11-13 08:17:43 · answer #3 · answered by scott s 2 · 0⤊ 0⤋
I would find out the goal of the mutual fund before you invest !! Is it income, value or a growth fund !?!? Income is great for decent dividend CASH returns...Growth usually has NO dividends whatsoever...all the profits are pumped right back into the fund...and/or stock, if you were to invest in a stock like CISCO (CSCO: Nasdaq). CISCO has fantastic earnings, BUT pumps all of its profits right back into future capital investments, for future growth of the stock. The company is on a ride UP !! Utility stocks usually pay dividends and NOT growth...and utility stocks are usually regulated by local gov'ts, in which the guarantee a 4-6% dividend return. VALUE stocks/funds are a mix.
What is your time horizon !?!? (retirement, or when do you need the money ?!?!) Do you plan to use the proceeds of your investments to purchase a car or house...or for LONG-term savings for retirement as a nest egg !!
Tech stocks...are going to be key...for future growth !! Remember, the growth of a stock can be PULLED down by a BAD MARKET !!...If you receive dividends, you have already pocketed/realized the gain in CASH (C--A---S---H) which either you put in your checking/savings or bought something !!
good luck.
2007-11-13 08:20:30 · answer #4 · answered by zman_tech 1 · 0⤊ 0⤋
Respectable performing fund, but with a 5.75% load & a 1.2% expense ratio.
Better funds out there (in my opinion). Check out Vanguard's Star fund - VGTSX, TRowe Price's Balance fund RPBAX & Fidelity's Balanced FBALX.
2007-11-13 09:54:16 · answer #5 · answered by exactduke 7 · 0⤊ 0⤋
I prefer Vanguard....I say go with (VGENX) Vanguard Energy Fund.
I think Franklin Templeton has high fees.
2007-11-13 08:02:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋