Franklin Templeton Unveils New Multi-Factor Equity Scheme in India for Sustainable Returns
Franklin Templeton (India) has unveiled the Franklin India Multi-Factor Fund (FIMF), a new open-ended equity scheme designed to leverage a data-driven, multi-factor quantitative investment model. This innovative fund aims to generate long-term wealth by selecting stocks based on four key factors: Quality, Value, Sentiment, and Alternatives (QVSA). The New Fund Offer (NFO) will be available for subscription from November 10 to November 24, 2025, with an initial unit price set at Rs 10.
Investment Strategy and Framework
The Franklin India Multi-Factor Fund is structured to include stocks from the top 500 Indian companies by market capitalization. This approach combines quantitative insights with the expertise of fund managers to create a robust investment strategy. Avinash Satwalekar, president of Franklin Templeton–India, highlighted the role of advancements in technology and artificial intelligence in developing data models that identify investment opportunities. He emphasized that the fund exemplifies the integration of technology into investment strategies, offering a comprehensive solution that merges advanced analytics with human oversight.
Adam Petryk, executive vice president and head of Franklin Templeton Investment Solutions, noted that the global team manages assets exceeding $98 billion, employing a systematic and data-oriented approach. The fund aims to provide Indian investors with a strategy that is both data-driven and adaptable to evolving market conditions. By utilizing stock-specific indicators such as return on equity (ROE), valuation, and earnings momentum, the fund seeks to create a diversified portfolio that can withstand market fluctuations.
Portfolio Construction and Risk Management
Fund manager Arihant Jain explained that the portfolio will be constructed using a disciplined, quantitative framework that evaluates over 40 factors categorized under Quality, Value, Sentiment, and Alternatives. Jain stated that investing across multiple factors, including quality, value, momentum, and low volatility, can help mitigate the risks associated with relying on a single factor approach. This multi-faceted strategy aims to enhance the potential for long-term capital appreciation through equity and related instruments.
The fund is designed to be flexible, allowing it to adjust to changing market dynamics while maintaining a focus on long-term growth. The systematic approach to portfolio construction is intended to provide investors with a balanced risk-return profile, making it an appealing option for those looking to invest in the Indian equity market.
Fund Details and Future Plans
The Franklin India Multi-Factor Fund will reopen for continuous sale and repurchase starting December 2, 2025. It will be benchmarked against the BSE 200 Total Return Index (TRI) and will impose an exit load of 0.5% for redemptions made within the first year. This structure is designed to encourage long-term investment while providing liquidity options for investors.
Franklin Templeton has a strong presence in India, managing a diverse range of mutual funds through 39 offices and over 100 collection centers. Globally, Franklin Resources, Inc. operates in more than 150 countries, overseeing assets totaling $1.66 trillion as of September 30, 2025. The launch of the Franklin India Multi-Factor Fund reflects the company’s commitment to innovation and its focus on delivering value to investors in a rapidly changing financial landscape.
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