Fund Introduction
Franklin Templeton India announced the launch of the Franklin India Multi-Factor Fund (FIMF), an open-ended equity scheme. This fund will operate by using
a data-driven, multi-factor quantitative investment model. The primary objective is to generate long-term capital appreciation through investments in equity and related instruments. The fund's approach involves selecting stocks based on four key factors: Quality, Value, Sentiment, and Alternatives (QVSA). The investment universe will comprise the top 500 Indian companies by market capitalization, blending quantitative insights with the expertise of the fund manager. The New Fund Offer (NFO) began on November 10, 2025, and will be available for subscription until November 24, 2025. Units are priced at Rs 10 each.
Investment Strategy
The fund's strategy hinges on a systematic, data-driven approach to stock selection. This method focuses on a multi-factor quantitative model, combining several factors. These factors include Quality, Value, Sentiment, and Alternatives. This method aims to provide a comprehensive investment solution. Adam Petryk, executive vice president and head of Franklin Templeton Investment Solutions, emphasized that the global team manages assets worth over $98 billion using a similar systematic and data-oriented approach. By integrating stock-specific indicators such as Return on Equity (ROE), valuation, and earnings momentum with forward-looking signals and macroeconomic insights, the fund offers a strategy adaptable to market changes. The fund manager, Arihant Jain, explained that the portfolio construction will be based on a disciplined, quantitative framework evaluating over 40 factors. These factors are grouped under Quality, Value, Sentiment, and Alternatives. The strategy aims to mitigate the risks associated with single-factor approaches.
Expert Insights
Avinash Satwalekar, President of Franklin Templeton–India, highlighted the role of technology and artificial intelligence in shaping investment strategies. He pointed out that advancements in these areas have made it possible to design data models. These models help in identifying investment opportunities effectively. The Franklin India Multi-Factor Fund showcases the integration of technology in investment strategies, providing a comprehensive solution. This integrates advanced technology and data analytics, supported by expert human oversight. The fund will be benchmarked against the BSE 200 TRI, and it will have an exit load of 0.5% if redeemed within a year. According to the company, the scheme aims to achieve long-term capital appreciation through equity and related instruments.
