FRHIX

About FRHIX

Franklin High Yield Tax-Free Income Fund Class A1 is an open-end mutual fund that primarily targets a high level of current income exempt from regular federal income taxes. Designed for investors seeking tax-advantaged income, the fund primarily invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. This approach makes it particularly relevant for individuals aiming to maximize after-tax returns. The portfolio focuses on lower-rated or unrated municipal bonds, which tend to offer higher yields compared to investment-grade municipal securities, accepting increased credit risk as a trade-off for higher income potential. The fund maintains broad sector and geographic diversification, ensuring no more than 25% of assets are invested in the securities of any one state and up to 35% in those issued by U.S. territories. Managed with a long-term income perspective, the fund typically holds a large number of underlying bond positions, reflecting careful security selection and credit analysis. Its monthly income distributions and a relatively moderate expense ratio contribute to its role as a significant player in the high-yield municipal bond segment of the U.S. fixed-income market, serving investors focused on stable, tax-advantaged income streams.