Franklin California Tax-Free Income Fund Class R6 (FKTQX)

Overview

The fund primarily targets investment grade municipal securities that are exempt from federal income taxes, including the alternative minimum tax, as well as from California personal income taxes. It commits at least 80% of its total assets to such securities. However, there's flexibility for up to 20% of the assets to be allocated in securities that could be subject to the federal alternative minimum tax or, in less expected instances, to securities whose interest might be subject to other federal or state income taxes.

Products and Services

• Investment Grade Municipal Securities

  This category represents the primary focus of the fund, with at least 80% of total assets dedicated. These securities are chosen for their exemption from federal income taxes, including the alternative minimum tax, as well as exemption from California personal income taxes, making them an attractive option for tax-averse investors.

• Securities Subject to the Federal Alternative Minimum Tax

  Up to 20% of the fund's total assets may be invested in securities that yield interest potentially subject to the federal alternative minimum tax. This component offers a diversification within the tax-advantaged space, although it carries a slightly higher risk of tax liability.

• Securities Subject to Other Federal or State Income Taxes

  While not a primary focus and less anticipated, the fund retains the discretion to invest in securities that produce interest liable to other federal or state income taxes. This flexibility allows the fund to explore a wider array of investment options beyond the core tax-exempt offerings, possibly enhancing returns at the cost of higher tax implications.