Franklin India Multi-Factor Fund - Regular (IDCW)

The Fund will follow an active investment strategy that aims to blend fundamental and behavioural perspectives through the use of multiple forward and backward-looking factors embedded in a proprietary developed Multi-Factor Quant model. The investment belief supports that underlying fundamental strength at the security level is the driver of long-term returns. Hence, the Bottom-up approach has been considered as a key driver to achieve relatively better risk adjusted returns. A stock must have appropriate market capitalization, meet a minimum liquidity threshold, and have a sufficient history of reliable financial data in order to be included in the investable universe for the portfolio. The stock selection process is dynamic, in an attempt to ensure that investment decisions are based on current information. The Factor library utilised in the model used by the Fund has been well researched, broad and deep and has a sound economic rationale for its contribution which allows to build a comprehensive view around the relative attractiveness of each stock in the universe. The Quant model uses four primary factors: Quality, Value, Sentiment, and Alternatives. Each factor encompasses a wide range of sub-factors/metrics, some of which are proprietary and derived from rigorous research. These factors help in decision-making through multiple dimensions: