Data Meets Equity: Franklin Templeton Launches Multi-Factor Equity Fund (FIMF) Using Quantitative Model

Data Meets Equity: Franklin Templeton Launches Multi-Factor Equity Fund (FIMF) Using Quantitative Model

#FranklinTempleton #QuantitativeFund #MultiFactorFund #NFO #FIMF #EquityScheme #QVSA #SystematicInvesting #MutualFundIndia

Chandigarh: Franklin Templeton India has announced the launch of a new offering, the Franklin India Multi-Factor Fund (FIMF). This open-ended equity scheme will employ a sophisticated, multi-factor quantitative investment strategy to generate long-term capital appreciation by investing in equity and equity-related instruments.

The New Fund Offer (NFO) for FIMF will be open for subscription from November 10 to November 24, 2025, with units priced at ₹10 each. The scheme will subsequently reopen for continuous sale and repurchase starting from December 2.

📊 The QVSA Quantitative Model

The fund’s core investment strategy is a data-driven, model-based approach that selects stocks from India’s top 500 listed companies by market capitalization. The proprietary model utilizes four key factors, known collectively as QVSA:

  • Quality
  • Value
  • Sentiment
  • Alternatives

The model evaluates over 40 quantitative and qualitative indicators and uses systematic rebalancing to manage exposure across sectors, size, and style. According to the scheme documents, this aims to maintain risk balance and minimize downside volatility. The portfolio construction also integrates robust risk management to ensure diversification and reduce unintended biases.

💡 Blending AI and Human Oversight

Commenting on the fund, Avinash Satwalekar, President, Franklin Templeton–India, emphasized the fusion of technology and human expertise. He noted that the fund combines advanced technology and data analytics with human oversight, reflecting the industry trend where quantitative modeling and Artificial Intelligence (AI) are reshaping investment management. He described the FIMF as “adaptable and risk-conscious,” aiming for consistent value delivery across various market cycles.

Adam Petryk, Executive Vice President and Head of Franklin Templeton Investment Solutions, highlighted the fund’s global backing. He stated that the fund benefits from the expertise of a global quantitative investments team managing over $98 billion. The model is designed to adjust to changing market environments by blending traditional metrics (like return on equity and valuation) with forward-looking signals and macroeconomic data.

Arihant Jain, the fund manager, explained the philosophy: “Different factors perform in different market cycles. Investing across quality, value, momentum, and low-volatility factors may help reduce the risks associated with relying on a single style.”

📋 Key Details

Feature Details
NFO Period November 10 – November 24, 2025
Unit Price (NFO) ₹10 per unit
Benchmark BSE 200 Total Return Index (TRI)
Minimum Investment ₹5,000 (NFO)
Additional Purchases ₹1,000 onwards
Exit Load 0.5% for redemptions within 1 year; Nil thereafter

#FranklinTempleton #QuantitativeFund #MultiFactorFund #NFO #FIMF #EquityScheme #QVSA #SystematicInvesting #MutualFundIndia

By MFNews

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