Franklin Templeton Investments, an asset manager that oversees more than $5 billion for investors, has four top-rated mutual funds that are expected to outperform their peers, according to Zack’s Investment Research.

In a Seeking Alpha blog post, the research firm rates the following funds with a “strong buy” in its rankings of mutual funds:

Franklin California High Yield Municipal Fund A (FCAMX) seeks tax exempted high income. FCAMX invests a large share of its assets in municipal securities that pay interest, which is exempted from taxes collected by the government and the State of California. FCAMX may also invest all of its assets in instruments that provide return subject to minimum tax. FCAMX may invest a maximum of 35% of its assets in municipal bonds approved by the US territories, including Puerto Rico. The Franklin California High Yield Municipal Fund A returned 4.7% over the last one-year period.

Franklin Mutual Financial Services Fund A (TFSIX) invests a major portion of its assets in undervalued companies that are involved in the financial services domain. TFSIX may also invest in merger arbitrage securities and securities of distressed companies. TFSIX may invest a significant portion of its assets in non-US securities. The Franklin Mutual Financial Services Fund A returned 13.3% in the last one year.

Franklin California Insured Tax-Free Income Fund A (FRCIX) seeks high level of current income exempted from federal income taxes and California personal income taxes. FRCIX invests the majority of its assets in securities that pay interest free from federal income taxes. FRCIX also invests a minimum 65% of its assets in California municipal securities, while it may invest a maximum 35% of its assets in municipal securities issued by US territories. The Franklin California Insured Tax-Free Income Fund A returned 4% in the last one year.

Franklin International Small Cap Growth Fund (FKSCX) invests the majority of its assets in a wide range of tradable equity and related securities of small foreign companies. It focuses on purchasing common stock. The Franklin International Small Cap Growth Fund returned 9.5% in the last one year.

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