Franklin India
Multi-Factor Fund – Key Points & Our take on BUY Rationale
1. What this Fund does?
•
A
quantitative equity fund using multi-factor stock selection (typically
quality, value, low volatility, momentum – exact factors as per AMC
methodology).
•
Uses
an objective, rules-based model to
remove human bias.
•
Managed
by Arihant Jain, CFA – 8+ years of quantitative research &
portfolio management experience.
2. Why Multi-Factor Works
Multi-Factor strategies aim to capture consistent risk-adjusted outperformance
by combining factors that work across market cycles:
•
Diversified return
drivers
Different factors work in different
environments – combining them provides smoother
returns.
•
Risk-controlled
equity exposure
Compared to pure momentum or high-beta
styles, multi-factor models often deliver:
•
Lower
drawdowns
•
Better
downside protection
•
More
stable long-term compounding
•
Data-driven &
rule-based
Removes behavioural biases such as:
•
Overconfidence
•
Chasing
fads
•
Emotional
decision-making
(Explicitly
highlighted in the AMC deck: “We may think Quant strategies are about
Humans + Technology” but they rely on
discipline & consistency.)
3. Why This Fund Is
Unique – We normally avoid NFO unless its unique
✓ First-of-its-kind multi-factor model from Franklin India
Franklin Templeton has deep global expertise
in quant & factor investing.
✓
Portfolio built on
measurable signals, not opinions
Highly disciplined stock selection with no
discretionary override.
✓ Suitable for long-term core allocation Designed
for 5+ years with potential for:
•
Improved
risk-adjusted returns
•
Reduced
volatility vs market-cap strategies
4. Key Strengths of the Fund
•
Globally tested
process
– Multi-factor investing is proven across markets for 3+ decades.
•
Better consistency vs single-factor or
thematic funds.
•
Transparent and
repeatable methodology – every stock must meet factor criteria.
•
Works well in Indian
equity markets
that have factor inefficiencies, allowing excess returns.
5. Why We Recommend a BUY (Wallet Wealth View)
Unique Quant Strategy – Justifies NFO
Participation
We
avoid most NFOs.
But this one is process-differentiated, evidence-based, and adds diversification to
traditional active funds.
Suitable for Investors Wanting Low-Emotion,
High-Discipline Equity Exposure The fund reduces the risk of
human error and style drift.
Potential for Better Long-Term Compounding Multi-factor
portfolios historically demonstrate:
• Better Sharpe ratio
• Superior downside protection
•
Consistent
approach across market cycles
Complements Existing Portfolios
It adds quant
diversification to traditional active + passive holdings.
Very High Risk Category — but for the Right
Investor Profile
Investors with 5+ year horizon and tolerance
for equity volatility can benefit from the systematic style of this fund.
(Risk-o-meter: Very High per
AMC)
For details and Investments
S.Sridharan, Founder, https://www.walletwealth.co.in/
For portfolio
guidance, contact advisor at 9940116967
Wallet Wealth LLP |
SEBI Registered Investment Advisor
2nd Floor, No.8A,
2nd Main Road, Nanganallur, Chennai – 600 061 Ph: 044-48612114
Email id: sridharan@walletwealth.co.in
You can contact
Mr.S.Sridharan for all types of investments including mutual fund investment,
medical insurance, and life insurance.
Read articles written
by Mr. S. Sridharan in Nanayam Vikatan, a leading personal financial management
magazine.
https://www.vikatan.com/author/855-sridharan-s
Disclaimer
This document is confidential and intended solely for
clients. Information is believed reliable but not guaranteed. Views are subject
to change without notice and do not constitute investment advice without
consultation.
