For Safe Plays, Try Franchise Funds

Ownership of investments with strong franchises might supply comfort during these uncertain economic times.

For example, Subway sells franchises for submarine sandwich shops, while Nike(NKE Quote) has established itself as a leading sports shoe and athletic wear franchise. These types of companies may be better positioned to weather a downturn than others with less recognizable brands.

A number of mutual funds describe themselves as investors in "franchise" securities. For the most part, they take the word to mean companies with such a strong association with a product or service that their names and their industries are intertwined in the minds of the public.

For fund investors who feel most comfortable with funds that hold shares in established leaders in their respective fields, we parsed TheStreet.com Ratings database of open-end funds for those with the word "franchise" in their names or their investment objective statements. ...