Risk Table - FRANKLIN REAL ESTATE SECURITIES FUND
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Risk [Text Block] |
| Principal Risks |
Principal Risks You could lose money by investing in the Fund. Mutual fund
shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured
by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S.
government.
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| Risk Lose Money [Member] |
You could lose money by investing in the Fund.
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| Risk Not Insured [Member] |
Mutual fund
shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured
by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S.
government.
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| Real Estate Securities |
Real
Estate Securities: By concentrating in the real estate industry, the Fund carries much greater
risk of adverse developments in the real estate industry than a fund that invests in a wide variety of
industries. Because the Fund concentrates in
the real estate industry, there is also the risk that the Fund will perform poorly during a slump in
demand for real estate securities. To the extent that the Fund focuses on a particular geographical region
of a country, the Fund may be subject to greater risks of adverse developments in that area than a fund
that does not focus its investments in a particular region. Real estate values rise and fall in response
to a variety of factors, including: local, regional, national and global economic conditions; interest
rates; tax and insurance considerations; changes in zoning and other property-related laws; environmental
regulations or hazards; overbuilding; increases in property taxes and operating expenses; or value decline
in a neighborhood. When economic growth is slow, demand for property decreases and prices may decline.
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| REITs |
REITs:
A
REIT’s performance depends on the types, values and locations of the properties
and
companies
it
owns
and
how
well
those
properties
and
companies
are
managed.
A
decline
in
rental
income
may
occur
because
of
extended
vacancies,
increased
competition from other properties, tenants’ failure to pay rent or poor management. Because a REIT may be
invested in a limited number of projects or in a particular market segment, it may be more susceptible
to adverse developments affecting a single project or market segment
than
more
broadly
diversified
investments.
Loss
of status as a qualified REIT under the U.S. federal
tax
laws
could
adversely
affect
the
value
of
a
particular
REIT
or
the
market
for
REITs
as
a
whole.
These
risks
may
also
apply
to
securities
of
REIT-like
entities
domiciled
outside
the
U.S.
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| Market |
Market:
The
market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly
or unpredictably. The market value of a security or other investment may be reduced by market activity
or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all
investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more
buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up
or down due to general market or other conditions that are not specifically related to a particular issuer,
such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults
in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made
world events, such as diseases or disasters; financial, political or social disruptions, including terrorism
and war; and U.S. trade disputes or other disputes with specific countries that could result in additional
tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any
of these conditions can adversely affect the economic prospects of many companies, sectors, nations,
regions and the market in general, in ways that cannot necessarily be foreseen. Ongoing or threatened
armed conflicts throughout the world have caused and could continue to cause significant market disruptions
and volatility. The hostilities
and
sanctions resulting from those hostilities could have a significant adverse impact on certain investments
of the Fund as well as the Fund’s performance and liquidity. Stock prices tend to go
up and down more dramatically than those of debt securities. A slower-growth or recessionary economic
environment could have an adverse effect on the prices of the various stocks held by the Fund.
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| Foreign Securities (non-U.S.) |
Foreign
Securities (non-U.S.): Investing in foreign securities typically involves different risks than investing
in U.S. securities, including risks related to currency exchange rates and policies, country or government
specific issues, less favorable trading practices or regulation and greater price volatility. Certain
of these risks also may apply to securities of U.S. companies with significant foreign operations. The
risks of investing in foreign securities are typically greater in less developed or emerging market countries. Trade
disputes and the imposition of tariffs on goods and services can affect the economies of countries in
which the Fund invests, particularly those countries with large export sectors, as well as the global
economy. Trade disputes can result in increased costs of production and reduced profitability for non-export-dependent
companies that rely on imports to the extent a country engages in retaliatory tariffs. Trade disputes
may also lead to increased currency exchange rate volatility.
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| Non-Diversification |
Non-Diversification:
Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other
changes affecting individual issuers or investments than a diversified fund, which may negatively impact
the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.
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| Management |
Management:
The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund's
investment manager applies investment techniques and risk analyses in making investment decisions for
the Fund, but there can be no guarantee that these decisions will produce the desired results.
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| Cybersecurity |
Cybersecurity:
Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain
access to Fund assets, Fund or customer data (including private shareholder information), or proprietary
information, cause the Fund, the investment manager, and/or their service providers (including, but not
limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries)
to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors
from purchasing, redeeming or exchanging shares or receiving distributions. The investment manager has
limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers,
and such third party service providers may have limited indemnification obligations to the Fund or the
investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders,
and substantial costs may
be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities
in which the Fund invests are also subject to cybersecurity risks, and the value of these securities
could decline if the issuers experience cybersecurity incidents. Because technology is
frequently changing (including the development of artificial intelligence and machine learning), new
ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have
not been identified or prepared for, or that an attack may not be detected, which puts limitations on
the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises,
the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents
occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence
technologies could increase the effectiveness of cyber attacks and exacerbate the risks.
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