Franklin Templeton Launches Multi-Factor Fund NFO: Key Details & Insights

Franklin Templeton Mutual Fund is launching the Franklin India Multi-Factor Fund (FIMF), a new fund offer (NFO) designed for investors seeking to grow their wealth over the long term. 

• The NFO opens on November 10, 2025
• The NFO closes on November 24, 2025.

What Exactly is the Franklin India Multi-Factor Fund?

At its core, the Franklin India Multi-Factor Fund is an open-ended equity scheme. This means you can invest in it or redeem your units at any time. The fund's main goal is to help investors achieve long-term capital appreciation by strategically investing in a diverse range of equity and equity-related instruments. It stands out by using a sophisticated, multi-factor-based quantitative investment strategy.

This fund is particularly suited for investors who are aiming for significant growth over an extended period and are comfortable with an investment approach driven by a Multi-Factor Quant model.

The Investment Strategy: A Smart Approach to Growth

The fund employs an active investment strategy that cleverly combines both fundamental and behavioural insights. It uses a proprietary Multi-Factor Quant model, which looks at various forward and backwards-looking factors to make informed investment decisions. The philosophy here is simple yet powerful: strong underlying fundamentals at the individual company level are what truly drive long-term returns. This is why the fund takes a "bottom-up" approach, focusing on selecting individual securities with strong potential to deliver better risk-adjusted returns.

Leading the charge for the Franklin India Multi-Factor Fund is Mr. Arihant Jain, the dedicated Fund Manager since its inception. With 8 years of valuable experience in the financial world, Mr. Jain brings a strong academic background to his role, holding a Bachelor of Engineering (Hons) from BITS Pilani and being a CFA Charter Holder from the CFA Institute.

How Your Money Will Be Allocated

Under normal market conditions, the fund has a clear plan for how it will invest your money:

Important Investment Guidelines

To maintain a disciplined investment approach, the scheme has specific rules, especially concerning money market instruments. It will not make new investments in these instruments exceeding:

• 10% of its Net Asset Value (NAV) in debt and money market securities rated AAA; or
• 8% of its NAV in debt and money market securities rated AA; or
• 6% of its NAV in debt and money market securities rated A and below issued by a single issuer.

Flexible Plans and Options for Every Investor

The Franklin India Multi-Factor Fund offers a variety of plans and options to cater to different investor preferences:

• Growth Plan: For those who want their returns to be reinvested and grow over time.
• Income Distribution cum capital withdrawal (IDCW) Plan: For investors who prefer to receive regular payouts, with options for reinvestment or direct payout.
• Direct - Growth Plan: A direct version of the Growth Plan.
• Direct - IDCW Plan: A direct version of the IDCW Plan, also with reinvestment and payout options.

All these plans invest in the same portfolio, and each unit has a face value of Rs.10. When you apply, it's important to clearly indicate your chosen plan and option. If you don't specify, the fund will default to the Direct Plan, and for the option, it will assume Growth (if Growth or IDCW isn't indicated) or Reinvestment of Income Distribution cum capital withdrawal option (if payout or reinvestment isn't indicated).

Getting Started: Minimum Investment Details

Investing in the Franklin India Multi-Factor Fund is accessible. The minimum amount for a fresh purchase is Rs.5,000/-, and you can make additional purchases for as little as Rs.1,000/-. If you prefer to invest systematically, a Systematic Investment Plan (SIP) can be started with just Rs.500. Any amount above this minimum can be invested in multiples of Re. 1/-. There's no upper limit on how much you can invest, though the fund reserves the right to adjust these limits in the future. When it comes to taking your money out, redemptions are allowed for Rs.1,000/- and in multiples of Re. 1/-.

Understanding the Risks Involved

It's crucial to understand that all investments carry some level of risk, and equity-oriented funds like this one are no exception. The Franklin India Multi-Factor Fund's riskometer clearly indicates that the risk of the scheme is Very High. Similarly, its benchmark, the BSE 200 TRI, also falls into the Very High Risk category. This means there's a higher potential for both gains and losses.

Taxation: What You Need to Know

Understanding the tax implications of your investment is important. Here’s a simplified look at the tax rates for equity-oriented funds:

*Please note: The 12.5% rate for Long Term Capital Gains (LTCG) applies when the LTCG exceeds Rs. 1,25,000 in a financial year.

Final takeaway

Franklin India Multi-Factor Fund is an open-ended, equity-thematic NFO (Nov 10–24, 2025) run by Arihant Jain using a proprietary multi-factor quant model. It has high equity exposure (min 80%), structured minimums (Fresh Rs.5,000/-, SIP Rs.500), clear issuer-level money-market limits, and carries a Very High risk tag. Suitable for investors with a long horizon who understand quant strategies and equity volatility.

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