Franklin rolls out new multi-asset fund

Franklin Templeton (India) has announced the launch of the Franklin India Multi-Asset Allocation Fund (FIMAAF), a new open-ended hybrid scheme that aims to provide long-term capital appreciation by investing across equities, debt, and commodities.

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The New Fund Offer (NFO) opens on July 11, 2025, and will close on July 25, 2025, with units priced at ₹10 each during the offer period.

Investors can begin with a minimum initial investment of ₹5,000, with additional purchases allowed from ₹1,000 onwards. The Systematic Investment Plan (SIP) option starts at just ₹500.

The scheme’s benchmark comprises a mix of 65% Nifty 500, 20% Nifty Short Duration Index, 5% domestic gold prices, 5% domestic silver prices, and 5% iCOMDEX Composite Index, reflecting its multi-asset composition.

An exit load of 0.50% is applicable if more than 10% of the invested units are redeemed within one year from the date of allotment. However, up to 10% of units can be redeemed without any load, and redemptions after one year carry no exit load.

The fund will follow a dynamic asset allocation strategy, diversifying investments across large-cap, mid-cap, and small-cap equities using both growth and value investing styles. It will also allocate to debt instruments, money market securities, and commodities such as gold and silver, providing investors with a balanced and risk-adjusted return profile, according to a statement.

“In the current volatile market environment, combining equities, fixed income, and commodities can deliver superior risk-adjusted returns,” said Avinash Satwalekar, President of Franklin Templeton – India.

He added that the fund will leverage a flexible allocation strategy, supported by Franklin Templeton’s proprietary global model that integrates macroeconomic indicators with qualitative insights from its portfolio managers.

Janakiraman R, Chief Investment Officer – Emerging Markets Equity-India at Franklin Templeton, explained the investment rationale behind the multi-asset approach. “Equity remains essential for portfolio growth but is prone to short-term corrections. With challenges such as modest earnings, high valuations, and global uncertainties, asset classes like debt and gold — which have low correlation with equities — can reduce portfolio volatility. FIMAAF uses a QGSV framework (Quality, Growth, Sustainability, Valuation) for bottom-up stock selection across sectors and market caps.”

Rahul Goswami, CIO – India Fixed Income at Franklin Templeton, added: “an optimally diversified portfolio helps balance returns and reduce downside risk. The debt allocation of FIMAAF will be actively managed to ensure liquidity and quality, with a focus on AAA-rated instruments identified through in-house research.”

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