Franklin Growth Allocation Fund Class R6 (FTGMX)

Overview

The fund operates as a "fund of funds," an investment strategy that involves holding a portfolio of other investment funds rather than investing directly in stocks, bonds, or other securities. This approach allows the fund to diversify its investments across a variety of asset classes by leveraging the expertise of other funds, primarily those managed by Franklin Templeton and Legg Mason, including mutual funds and ETFs (Exchange-Traded Funds). The fund is managed with a general asset allocation guide, aiming typically to invest 80% of its assets in equity funds and 20% in fixed-income funds. However, this allocation is flexible, allowing the fund's investment manager to adjust the percentages according to market conditions without needing approval from shareholders. These adjustments can vary up to 10% from the specified allocation percentages, providing the fund with the flexibility to respond to changing economic landscapes.

Products and Services

• Equity Funds Investment

  This service involves investing primarily in a diverse range of equity funds, making up about 80% of the fund's total investments. Equity funds, which invest in stocks, are carefully selected primarily from Franklin Templeton and Legg Mason's fund families. This approach aims to provide growth through capital appreciation, leveraging the potential of the equity markets while managing risk through diversification.

• Fixed-Income Funds Investment

  Comprising roughly 20% of the fund's portfolio, this service focuses on investing in fixed-income funds. These funds, which invest in bonds and other debt instruments, offer a more stable income stream compared to equity investments. This allocation aims to balance the overall investment portfolio, adding a layer of risk management by countering the volatility generally associated with equity investments.