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Muni - Bonds fund seekers may want to consider taking a look at Franklin Arizona Tax-Free Income A (FTAZX). FTAZX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify FTAZX in the Muni - Bonds category, an area rife with potential choices. Muni - Bonds funds focus their investments on debt securities issued by state and local governments. These are typically used to pay for the construction of infrastructure, the operation of public schools, and other municipal functions. These securities can come in the form of revenue bonds, which are backed by taxes, as well as " general obligation " bonds that are not backed by a defined source. Investors are usually interested that come with most municipal bonds, which can be especially important for those in higher tax brackets.
History of Fund/Manager
Franklin is responsible for FTAZX, and the company is based out of San Mateo, CA. Franklin Arizona Tax-Free Income A made its debut in September of 1987, and since then, FTAZX has accumulated about $319.55 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.67%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -0.58%, which places it in the middle 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. Over the past three years, FTAZX's standard deviation comes in at 7.5%, compared to the category average of 13.05%. The fund's standard deviation over the past 5 years is 6.56% compared to the category average of 13.5%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.79, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, FTAZX has a negative alpha of -0.35, which measures performance on a risk-adjusted basis.