SCGRX
Franklin Multi-Asset Moderate Growth-A
Introduction to Franklin Multi-Asset Moderate Growth-A
The Franklin Multi-Asset Moderate Growth-A (SCGRX) is a balanced aggressive mutual fund designed to achieve long-term capital growth by investing primarily in large-cap funds. As a fund of funds, SCGRX leverages the expertise of Franklin Templeton Investments to allocate assets based on a comprehensive analysis of market and economic trends. This fund is particularly suitable for investors seeking a diversified approach to growth, with a focus on large-cap equities and a balanced exposure to various asset classes. With an expense ratio of 1.12%, SCGRX offers a competitive option for those looking to balance risk and reward in their investment portfolio.
At A Glance
Executive Summary
SCGRX offers a balanced aggressive strategy with a focus on large-cap funds, providing diversified growth potential with a 1.12% expense ratio.
Diversified large-cap exposure; Balanced aggressive strategy; Strong 1-year return of 27.22%
Higher expense ratio than peers; Negative alpha and Sharpe ratio; Recent max drawdown of -6.0%
Performance Analysis: A Strong 1-Year Return
SCGRX has demonstrated impressive performance over the past year, achieving a 1-year return of 27.22%, which is noteworthy given the fund’s balanced aggressive strategy. This performance is particularly significant when compared to its benchmark, the S&P 500 Total Return Index, which posted a 1-year return of 37.62%. While SCGRX’s return is slightly lower than the benchmark, it still outperforms many of its peers in the balanced aggressive category. This strong performance can be attributed to the fund’s strategic allocation in large-cap equities, which have benefited from favorable market conditions over the past year. Investors looking for robust short-term growth may find SCGRX’s recent performance appealing.
Portfolio Composition: A Focus on Large-Cap Equities
The portfolio of SCGRX is heavily weighted towards large-cap equities, with a significant 60.49% allocation to U.S. equities. This focus on large-cap stocks is complemented by a diverse sector allocation, with technology (26.65%), financials (15.55%), and healthcare (12.95%) being the top sectors. The fund also maintains a balanced exposure to bonds, with 20.33% of its assets in fixed income securities, providing a cushion against market volatility. This strategic allocation allows SCGRX to capitalize on growth opportunities while maintaining a level of stability, making it an attractive option for investors seeking a balanced approach to aggressive growth.
Risk Metrics: Understanding the Volatility
SCGRX exhibits a beta of 0.75, indicating lower volatility compared to the benchmark S&P 500 Total Return Index. However, the fund’s negative alpha of -10.44% and Sharpe ratio of -1.08 suggest that it has not effectively compensated investors for the risk taken. The fund’s standard deviation of 2.80% reflects moderate volatility, while its R-squared value of 90.57% indicates a high correlation with the benchmark. Despite these risk metrics, SCGRX’s downside risk is relatively contained, with a maximum drawdown of -6.0%. Investors should consider these factors when evaluating the fund’s risk-reward profile, especially in the context of its aggressive growth strategy.
Comparative Analysis: How SCGRX Stacks Up Against Peers
When compared to similar funds such as Thrivent Moderately Aggressive Alloc-A (TMAAX) and Hartford Growth Allocation-A (HRAAX), SCGRX holds its ground with a competitive 1-year return of 27.22%. However, its expense ratio of 1.12% is higher than some peers, such as Nuveen Lifestyle Growth-Inv (TSGLX) with an expense ratio of 0.81%. Despite this, SCGRX’s diversified large-cap focus and balanced aggressive strategy provide a unique value proposition. Investors should weigh the higher expense ratio against the fund’s potential for growth and its strategic asset allocation when considering SCGRX as part of their investment portfolio.
Sector Allocation: Technology and Financials Lead the Way
SCGRX’s sector allocation is a key driver of its performance, with technology (26.65%) and financials (15.55%) being the largest sectors in the portfolio. This allocation reflects the fund’s strategy to capitalize on growth sectors that have shown resilience and potential for future expansion. The inclusion of healthcare (12.95%) and industrials (11.26%) further diversifies the portfolio, providing exposure to sectors with stable growth prospects. This strategic sector allocation positions SCGRX to benefit from market trends and economic shifts, making it a compelling choice for investors seeking exposure to high-growth industries within a balanced aggressive framework.
Max Drawdown and Recovery: Navigating Market Challenges
SCGRX experienced a maximum drawdown of -6.0% over a brief period, with a peak date on July 16, 2024, and a valley date on August 5, 2024. This drawdown, while notable, was relatively short-lived, with no recovery length required, indicating the fund’s resilience in navigating market challenges. The fund’s ability to quickly rebound from this drawdown highlights its effective risk management strategies and diversified asset allocation. Investors should consider this resilience as a positive attribute, especially in volatile market conditions, as it underscores SCGRX’s capacity to manage downside risk while pursuing aggressive growth.
Conclusion: Is SCGRX the Right Fit for Your Portfolio?
SCGRX stands out as a balanced aggressive fund with a strong focus on large-cap equities and a diversified sector allocation. Its impressive 1-year return of 27.22% and strategic asset allocation make it an attractive option for growth-focused investors. However, potential investors should be mindful of the fund’s higher expense ratio and negative risk-adjusted performance metrics. SCGRX is best suited for those who are comfortable with moderate volatility and are seeking a fund that balances growth potential with a diversified approach. As always, investors should consider their individual risk tolerance and investment goals when evaluating SCGRX for their portfolio.
Similar Securities
BAAPX: BlackRock 80/20 Target Allocation-A | Aggressive Growth Fund
BAAPX offers aggressive growth with a 0.65% expense ratio, focusing on equity securities for high-risk investors.
SCGRX: Franklin Multi-Asset Moderate Growth-A | Balanced Aggressive Growth Fund
SCGRX offers a balanced aggressive strategy with a focus on large-cap funds, providing diversified growth potential with a 1.12% expense ratio.
GAIEX: American Funds Growth and Income-F2 | Balanced Aggressive Growth and Income
GAIEX offers a balanced aggressive strategy with a 1.98% yield and a competitive 0.45% expense ratio, focusing on growth and income.
AMECX: American Funds Inc Fd of America-A | Balanced Aggressive Income Fund
AMECX offers a balanced aggressive approach with a 0.58% expense ratio, focusing on income and stability. It features a diverse portfolio with a 2.63% yield.
OAAAX: Invesco Active Allocation-A | Balanced Aggressive Growth Fund
OAAAX offers a balanced aggressive strategy with a 0.98% expense ratio, focusing on U.S. equities and tactical allocations for growth and income.
Futher Reading
https://www.morningstar.com/funds/xnas/SCGRX/quote
https://finance.yahoo.com/quote/SCGRX/”>Yahoo: Franklin Multi-Asset Moderate Growth-A
https://ftcloud.fasttrack.net/web/chart/SCGRX
Disclaimer: The information provided on this website is for informational purposes only and should not be construed as financial, investment, or other professional advice. PeepFinance does not endorse or recommend any specific securities, investments, or strategies. The opinions expressed are solely those of the authors and are not intended to be used as the basis for any investment decisions. All investments carry risks, and readers are encouraged to conduct their own research or consult with a financial professional before making any financial decisions. PeepFinance and its authors are not responsible for any losses or damages arising from the use of this information.