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Franklin Federal Tax Free Income Fund (FKTIX) Diversifiers

Mutual Fund · Currency in USD · Last updated Jun 5, 2026

The fund invests at least 80% of its total assets in investment grade municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Although the fund tries to invest all of its assets in tax-free securities, it is possible that up to 20% of its total assets may be in securities that pay interest that may be subject to the federal alternative minimum tax and, although not anticipated, in securities that pay taxable interest.

Looking to diversify beyond FKTIX? The mutual funds below have the lowest correlation with FKTIX — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from FKTIX.

Best Diversifiers for FKTIX

13 mutual funds have low correlation with FKTIX (below 0.3), 1 of which are negatively correlated. The least correlated is DFA California Municipal Real Return Portfolio (DCARX) (Municipal Bonds) with a 1Y correlation of -0.02, down from 0.21 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
DCARX
DFA California Municipal Real Return Portfolio-0.020.170.21
97
Municipal BondsFKTIX vs DCARX
DMREX
DFA Municipal Real Return Portfolio0.020.200.23
96
Municipal BondsFKTIX vs DMREX
DFSMX
DFA Short Term Municipal Bond Portfolio0.150.260.35
99
Municipal BondsFKTIX vs DFSMX
USMSX
JPMorgan Ultra-Short Municipal Fund0.150.300.37
99
Municipal BondsFKTIX vs USMSX
FRIAX
Franklin Income Fund Advisor Class0.170.310.24
90
Diversified PortfolioFKTIX vs FRIAX
See all 26 diversifiers for FKTIX

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Low-Correlation Stock Ideas

If you're looking for individual stocks that move independently from FKTIX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FKTIX and solid risk/return profiles. The least correlated is Exxon Mobil Corporation (XOM) (Energy) with a 1Y correlation of -0.22, down from -0.08 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
XOM
Exxon Mobil Corporation-0.22-0.09-0.08
86
Energy

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