FLSHX vs. FRHMX

Last updated Jun 3, 2026

FLSHX (Franklin LifeSmart 2040 Retirement Target Fund) and FRHMX (Fidelity Managed Retirement Income Fund Class K6) are both Target Retirement Date funds. Over the past 5 years, FLSHX returned 9.04%/yr vs 2.99%/yr for FRHMX. A 0.71 correlation means they provide meaningful diversification when combined. Both charge a 0.25% expense ratio.

Performance

FLSHX vs. FRHMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin LifeSmart 2040 Retirement Target Fund (FLSHX) and Fidelity Managed Retirement Income Fund Class K6 (FRHMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLSHX achieves a 9.89% return, which is significantly higher than FRHMX's 3.92% return.

FLSHX

• 1D: 0.34%
• 1M: 4.01%
• YTD: 9.89%
• 6M: 10.85%
• 1Y: 24.25%
• 3Y*: 17.63%
• 5Y*: 9.04%
• 10Y*: 10.43%

FRHMX

• 1D: 0.03%
• 1M: 1.13%
• YTD: 3.92%
• 6M: 4.37%
• 1Y: 10.44%
• 3Y*: 7.68%
• 5Y*: 2.99%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FLSHX vs. FRHMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FLSHX Franklin LifeSmart 2040 Retirement Target Fund	9.89%	19.16%	13.73%	17.66%	-16.84%	16.35%	15.32%	7.58%
FRHMX Fidelity Managed Retirement Income Fund Class K6	3.92%	10.02%	4.50%	8.28%	-11.48%	2.98%	8.79%	3.17%

Correlation

The correlation between FLSHX and FRHMX is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (All Time) Calculated using the full available price history since Aug 2, 2019	0.71

The correlation between FLSHX and FRHMX shifts across timeframes, from 0.71 (all time) to 0.82 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FLSHX vs. FRHMX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FLSHX

FLSHX Risk / Return Rank: 68
FLSHX Sharpe Ratio Rank: 71
FLSHX Sortino Ratio Rank: 67
FLSHX Omega Ratio Rank: 67
FLSHX Calmar Ratio Rank: 63
FLSHX Martin Ratio Rank: 71

FRHMX

FRHMX Risk / Return Rank: 72
FRHMX Sharpe Ratio Rank: 75
FRHMX Sortino Ratio Rank: 78
FRHMX Omega Ratio Rank: 77
FRHMX Calmar Ratio Rank: 63
FRHMX Martin Ratio Rank: 68

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FLSHX vs. FRHMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin LifeSmart 2040 Retirement Target Fund (FLSHX) and Fidelity Managed Retirement Income Fund Class K6 (FRHMX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FLSHX	FRHMX	Difference
Sharpe ratio Return per unit of total volatility	2.45	2.51	-0.07
Sortino ratio Return per unit of downside risk	3.43	3.71	-0.28
Omega ratio Gain probability vs. loss probability	1.46	1.50	-0.05
Calmar ratio Return relative to maximum drawdown	3.03	3.07	-0.04
Martin ratio Return relative to average drawdown	13.54	13.17	+0.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLSHX vs. FRHMX - Sharpe Ratio Comparison

The current FLSHX Sharpe Ratio is 2.45, which is comparable to the FRHMX Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of FLSHX and FRHMX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FLSHX	FRHMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.51	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.57	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.65	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.82	-0.24

Drawdowns

FLSHX vs. FRHMX - Drawdown Comparison

The maximum FLSHX drawdown since its inception was -36.65%, which is greater than FRHMX's maximum drawdown of -15.96%. Use the drawdown chart below to compare losses from any high point for FLSHX and FRHMX.

Drawdown Indicators

	FLSHX	FRHMX	Difference
Max Drawdown Largest peak-to-trough decline	-36.65%	-15.96%	-20.69%
Max Drawdown (1Y) Largest decline over 1 year	-8.16%	-3.42%	-4.74%
Max Drawdown (3Y) Largest decline over 3 years	-13.07%	-4.90%	-8.17%
Max Drawdown (5Y) Largest decline over 5 years	-36.65%	-15.96%	-20.69%
Max Drawdown (10Y) Largest decline over 10 years	-36.65%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.20%	-3.51%	-4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.83%	0.80%	+1.03%

Volatility

FLSHX vs. FRHMX - Volatility Comparison

Franklin LifeSmart 2040 Retirement Target Fund (FLSHX) has a higher volatility of 2.96% compared to Fidelity Managed Retirement Income Fund Class K6 (FRHMX) at 1.67%. This indicates that FLSHX's price experiences larger fluctuations and is considered to be riskier than FRHMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLSHX	FRHMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.96%	1.67%	+1.29%
Volatility (6M) Calculated over the trailing 6-month period	8.24%	3.43%	+4.81%
Volatility (1Y) Calculated over the trailing 1-year period	10.18%	4.16%	+6.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.72%	5.29%	+12.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.07%	5.15%	+10.92%

FLSHX vs. FRHMX - Expense Ratio Comparison

Both FLSHX and FRHMX have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

FLSHX vs. FRHMX - Dividend Comparison

FLSHX's dividend yield for the trailing twelve months is around 5.68%, more than FRHMX's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLSHX Franklin LifeSmart 2040 Retirement Target Fund	5.68%	6.40%	3.27%	2.66%	4.16%	23.09%	3.21%	2.60%	4.75%	2.02%	1.63%	2.98%
FRHMX Fidelity Managed Retirement Income Fund Class K6	3.26%	3.22%	3.24%	3.02%	4.77%	3.78%	2.61%	1.95%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLSHX and FRHMX in my portfolio?

FLSHX and FRHMX have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLSHX or FRHMX?

FLSHX has higher volatility (2.96%) compared to FRHMX (1.67%). In terms of maximum drawdown, FLSHX dropped -36.65% vs FRHMX's -15.96%.

Which has better risk-adjusted returns?

FRHMX currently has the higher Sharpe Ratio (2.51 vs 2.45), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.