MUTHX
Franklin Mutual Shares-Z
Introduction to Franklin Mutual Shares-Z
Franklin Mutual Shares-Z (MUTHX) is an aggressive mutual fund managed by Franklin Templeton Investments, designed to achieve capital appreciation with a secondary focus on income. This fund is particularly appealing to investors who are willing to embrace higher risk for the potential of substantial returns. With an expense ratio of 0.75%, MUTHX offers a competitive cost structure within its category. The fund’s strategy involves a diversified portfolio with a significant allocation to U.S. equities, aiming to capitalize on market opportunities for growth and income.
At A Glance
Executive Summary
MUTHX offers aggressive growth with a 0.75% expense ratio, focusing on financials and healthcare. Ideal for high-risk investors seeking capital appreciation.
Aggressive growth potential with high 1-year return of 30.49%. Strong sector allocation in financials and healthcare. Competitive expense ratio of 0.75% for its category.
High volatility with a max drawdown of -6.1%. Negative alpha and Sharpe ratio indicate underperformance. Lower correlation with benchmark may not suit all investors.
Performance Analysis: A Year of Impressive Returns
MUTHX has demonstrated remarkable performance over the past year, achieving a 1-year return of 30.49%, which is noteworthy for an aggressive fund. This performance, however, should be viewed in the context of its benchmark, the S&P 500 Total Return Index, which posted a 1-year return of 37.62%. While MUTHX has not outperformed its benchmark, its returns are still impressive compared to similar funds in its category. The fund’s annualized returns over five years stand at 8.03%, and since inception, it has achieved a return of 9.47%, indicating a strong long-term growth trajectory.
Sector Allocation: A Focus on Financials and Healthcare
The sector allocation of MUTHX reveals a strategic focus on financials and healthcare, which together constitute over 35% of the fund’s portfolio. Financials, at 19.03%, and healthcare, at 16.07%, are the largest sectors, reflecting the fund’s strategy to leverage these industries’ growth potential. This allocation is complemented by significant investments in industrials and technology, which account for 15.86% and 10.59% of the portfolio, respectively. This diversified sector approach aims to balance risk and reward, providing exposure to both stable and high-growth industries.
Risk Metrics: Understanding Volatility and Drawdown
Investors should be aware of the risk metrics associated with MUTHX, which highlight its aggressive nature. The fund has a beta of 0.73, indicating lower volatility compared to the market, yet it has a negative alpha of -7.17%, suggesting underperformance relative to its benchmark. The Sharpe ratio of -0.65 further underscores the fund’s risk-adjusted return challenges. Additionally, the fund experienced a maximum drawdown of -6.1%, with a recovery length of three months, emphasizing the potential for significant short-term losses. These metrics are crucial for investors to consider when evaluating the fund’s suitability for their risk tolerance.
Top Holdings: Strategic Investments in Leading Companies
MUTHX’s top holdings include major corporations such as Bank of America Corp (2.85%), JPMorgan Chase & Co (2.80%), and Medtronic PLC (2.49%). These investments reflect the fund’s strategy to invest in established companies with strong market positions and growth potential. The inclusion of companies like Chevron Corp and The Walt Disney Co further diversifies the portfolio, providing exposure to energy and entertainment sectors. This strategic selection of top holdings is designed to enhance the fund’s growth prospects while maintaining a balanced risk profile.
Comparative Analysis: How MUTHX Stacks Up Against Peers
When compared to similar funds, MUTHX holds its ground with a competitive expense ratio of 0.75% and a yield of 1.71%. Its 1-year return of 30.49% surpasses that of Columbia Capital Alloc Aggress-A (26.14%) and Franklin Growth Allocation-A (26.97%). However, it slightly lags behind the Sit Balanced fund, which achieved a 1-year return of 28.17%. Despite this, MUTHX’s focus on aggressive growth and income makes it a compelling choice for investors seeking higher returns in exchange for increased risk. The fund’s performance metrics and strategic sector allocations provide a solid foundation for its competitive positioning.
Investor Suitability: Who Should Consider MUTHX?
MUTHX is best suited for investors with a high-risk tolerance who are seeking aggressive growth and income. The fund’s focus on financials and healthcare, along with its diversified sector allocation, offers potential for substantial returns. However, the associated volatility and risk metrics, such as the negative alpha and Sharpe ratio, indicate that this fund may not be suitable for conservative investors. Those who are comfortable with short-term fluctuations and are looking for long-term capital appreciation may find MUTHX to be an attractive addition to their portfolio.
Conclusion: The Unique Appeal of Franklin Mutual Shares-Z
In conclusion, Franklin Mutual Shares-Z (MUTHX) stands out as an aggressive mutual fund with a focus on growth and income. Its strategic sector allocation, competitive expense ratio, and impressive 1-year return make it a noteworthy option for high-risk investors. While the fund’s risk metrics highlight potential challenges, its long-term performance and diversified portfolio offer a compelling case for those seeking substantial returns. Investors who are willing to embrace the fund’s volatility and are focused on capital appreciation will find MUTHX to be a valuable component of their investment strategy.
Similar Securities
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.
OAAIX: Invesco Select Risk High Growth Inv-A | Aggressive Growth Strategy
OAAIX offers aggressive growth with a 70% U.S. and 30% international equity split, outperforming peers with a 23.73% 1-year return.
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.
MUTHX: Franklin Mutual Shares-Z | Aggressive Growth and Income Fund
MUTHX offers aggressive growth with a 0.75% expense ratio, focusing on financials and healthcare. Ideal for high-risk investors seeking capital appreciation.
TRSGX: TRPrice Spectrum Moderate Growth | Balanced Aggressive Fund
TRSGX offers a balanced aggressive approach with 80% equity, 20% bonds, and a 0.78% expense ratio, ideal for growth-focused investors.
Futher Reading
https://finance.yahoo.com/quote/MUTHX/”>Yahoo: Franklin Mutual Shares-Z
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.