Franklin Technology A Acc USD is a mutual fund that invests in technology companies worldwide. This article provides an in-depth overview of the fund, its investment strategy, performance, and key considerations for investors.
Franklin Technology A Acc USD is a mutual fund managed by Franklin Templeton Investments. The fund invests in technology companies worldwide, with a focus on innovation and growth potential. In this article, we will provide an overview of the Franklin Technology A Acc USD mutual fund, including its investment strategy, performance, and key considerations for investors.
Investment Strategy
The Franklin Technology A Acc USD fund seeks to provide long-term capital growth by investing in technology companies worldwide. The fund managers focus on identifying companies that have a competitive advantage through innovation, efficiency, or market share. The fund invests in companies across different market capitalizations, including large-cap, mid-cap, and small-cap companies.
The fund managers utilize a bottom-up investment approach, which means they analyze individual companies’ fundamentals rather than macroeconomic factors. The investment team conducts thorough research and analysis to identify companies with strong growth potential, sound financials, and a proven track record of innovation.
Portfolio Composition
As of March 31, 2023, the Franklin Technology A Acc USD fund had total assets under management of $8.5 billion. The fund’s portfolio consisted of 63 holdings, with the top ten holdings accounting for 50.9% of the total portfolio.
The top three holdings of the fund were Apple Inc. (13.5%), Microsoft Corporation (12.7%), and Amazon.com Inc. (9.7%). The fund’s portfolio also includes companies such as Alphabet Inc. (6.2%), Facebook Inc. (5.2%), and Tesla Inc. (4.1%).
Performance
Over the past five years, the Franklin Technology A Acc USD fund has delivered an average annual return of 27.9%. In comparison, the fund’s benchmark, the MSCI World Information Technology Index, has returned an average annual return of 24.3% over the same period.
The fund’s performance has been driven by a strong performance from its top holdings, including Apple, Microsoft, and Amazon. These companies have benefited from the growing demand for technology products and services, especially during the pandemic. The fund’s investments in mid-cap and small-cap companies have also contributed to its strong performance.
Key Considerations for Investors
Investing in the Franklin Technology A Acc USD fund offers investors exposure to the fast-growing technology sector. However, investors should also consider the following key considerations before investing in the fund:
- Risk: The fund’s focus on technology companies makes it susceptible to market volatility and risk. Investors should have a high tolerance for risk when investing in the fund.
- Concentration: The fund’s portfolio is highly concentrated, with the top ten holdings accounting for over 50% of the portfolio. This concentration could increase the fund’s risk if any of its top holdings experience a decline in performance.
- Fees: The fund has an expense ratio of 0.84%, which is higher than the average expense ratio for technology mutual funds. Investors should carefully consider the fees and expenses associated with the fund before investing.
- Diversification: The fund’s focus on technology companies means it may not be suitable for investors seeking a diversified portfolio. Investors should consider their overall investment strategy and portfolio diversification before investing in the fund.
Franklin Technology A Acc USD
The Franklin Technology A Acc USD fund provides investors with exposure to the fast-growing technology sector. The fund’s investment strategy focuses on identifying innovative and high-growth companies worldwide. The fund has delivered strong performance over the past five years, outperforming its benchmark. More Post Visit
