Franklin Small Cap Value R6: A Comprehensive Guide

Franklin Small Cap Value R6 is a mutual fund offered by Franklin Templeton Investments. It invests in small-cap stocks that the fund's managers believe are undervalued. The fund has a long history of outperforming its benchmark, the Russell 2000 Value Index.

Fund Overview

• Fund Name: Franklin Small Cap Value R6
• Ticker Symbol: FRMVX
• Expense Ratio: 0.99%
• Minimum Investment: $1,000
• Investment Objective: To seek long-term capital appreciation by investing in small-cap value stocks.
• Benchmark: Russell 2000 Value Index

Investment Strategy

Franklin Small Cap Value R6 invests in small-cap stocks that are believed to be undervalued. The fund's managers use a bottom-up approach to stock selection, focusing on companies with strong fundamentals, attractive valuations, and potential for growth. The fund typically holds a concentrated portfolio of around 50-75 stocks.

Performance

Franklin Small Cap Value R6 has a long history of outperforming its benchmark. Over the past 10 years, the fund has returned an average of 10.6% per year, compared to 7.8% for the Russell 2000 Value Index.

Fees

Franklin Small Cap Value R6 has an expense ratio of 0.99%. This means that for every $10,000 invested in the fund, you will pay $99 in annual fees.

Minimum Investment

The minimum investment for Franklin Small Cap Value R6 is $1,000. This makes the fund accessible to a wide range of investors.

How to Invest

You can invest in Franklin Small Cap Value R6 through a variety of channels, including:

• Online: You can open an account online at Franklin Templeton's website.
• Phone: You can call Franklin Templeton at 1-800-342-5236 to open an account.
• Financial Advisor: You can work with a financial advisor to open an account and invest in Franklin Small Cap Value R6.

Things to Consider Before Investing

Before investing in Franklin Small Cap Value R6, you should consider the following:

• Investment Objective: The fund's investment objective is to seek long-term capital appreciation. This means that the fund may not be suitable for investors who are looking for short-term gains.
• Risk Tolerance: Small-cap stocks are more volatile than large-cap stocks. This means that the fund may experience more ups and downs than a fund that invests in large-cap stocks.
• Time Horizon: Franklin Small Cap Value R6 is a long-term investment. The fund may not be suitable for investors who need to access their money in the short term.

Is Franklin Small Cap Value R6 Right for You?

Franklin Small Cap Value R6 is a good option for investors who are looking for a long-term investment in small-cap value stocks. The fund has a long history of outperforming its benchmark, and it has a reasonable expense ratio. However, it is important to remember that all investments carry some risk, and you should carefully consider your investment objectives and risk tolerance before investing.

Common Mistakes to Avoid

There are a few common mistakes that investors make when investing in small-cap value stocks. These include:

• Investing too much: Small-cap stocks are more volatile than large-cap stocks. This means that you should not invest more than you can afford to lose.
• Trading too often: Small-cap stocks can be volatile, and it is important to avoid trading too often. This can lead to unnecessary losses.
• Chasing performance: It is important to remember that past performance is not a guarantee of future results. Do not chase after funds that have performed well in the past, as they may not continue to do so in the future.

Pros and Cons

Pros:

• Long history of outperforming its benchmark
• Reasonable expense ratio
• Diversified portfolio of small-cap value stocks

Cons:

• Small-cap stocks are more volatile than large-cap stocks
• Not suitable for investors who need to access their money in the short term
• May not be suitable for investors with a low risk tolerance

FAQs

1. What is the investment objective of Franklin Small Cap Value R6?
The investment objective of Franklin Small Cap Value R6 is to seek long-term capital appreciation by investing in small-cap value stocks.

2. What is the benchmark for Franklin Small Cap Value R6?
The benchmark for Franklin Small Cap Value R6 is the Russell 2000 Value Index.

3. What is the expense ratio for Franklin Small Cap Value R6?
The expense ratio for Franklin Small Cap Value R6 is 0.99%.

4. What is the minimum investment for Franklin Small Cap Value R6?
The minimum investment for Franklin Small Cap Value R6 is $1,000.

5. Is Franklin Small Cap Value R6 a good investment for me?
Franklin Small Cap Value R6 is a good investment for investors who are looking for a long-term investment in small-cap value stocks. However, it is important to remember that all investments carry some risk, and you should carefully consider your investment objectives and risk tolerance before investing.

6. How can I invest in Franklin Small Cap Value R6?
You can invest in Franklin Small Cap Value R6 through a variety of channels, including online, by phone, or through a financial advisor.

7. What are some common mistakes to avoid when investing in small-cap value stocks?
Some common mistakes to avoid when investing in small-cap value stocks include investing too much, trading too often, and chasing performance.

8. What is the difference between small-cap value stocks and large-cap value stocks?
Small-cap value stocks are stocks of small companies that are believed to be undervalued. Large-cap value stocks are stocks of large companies that are believed to be undervalued.

Tables

Table 1: Franklin Small Cap Value R6 Performance

Table 2: Franklin Small Cap Value R6 Holdings

Table 3: Franklin Small Cap Value R6 Fees

Table 4: Franklin Small Cap Value R6 Investment Minimums