Franklin High Yield Tax-Free Income Fund Class R6 is an open-end mutual fund that specializes in providing a high current yield exempt from regular federal income taxes. The fund primarily invests in lower-rated or unrated municipal securities issued by state and local governments, as well as U.S. territories. Its portfolio spans a wide array of sectors, with significant allocations to special tax, housing, healthcare, and industrial development projects, enabling broad diversification across regional and economic segments. The fund holds over 1,800 securities, reflecting a strategy focused on both income generation and risk mitigation through diversification. The primary objective of the fund is to deliver strong tax-exempt income, making it a relevant option for institutional investors seeking to optimize after-tax returns. Capital appreciation serves as a secondary goal. Notably, the fund limits exposure to any single state or territory, with a maximum of 25% per state and up to 35% for U.S. territories, further managing concentration risk. The fund’s approach allows it to participate in a variety of municipal projects, including infrastructure and community development, thereby supporting public financing and economic growth. Its role in the financial market centers around meeting the needs of investors who prioritize federally tax-exempt, high-yield income with a diversified, actively managed municipal bond portfolio.