Franklin India Multi Factor Fund

Franklin India Multi Factor Fund has delivered a 1Y SIP XIRR of -13.22%, significantly underperforming the sectoral/thematic category average of 10.7%. However, on a lump-sum basis it has consistently beaten the NIFTY 50 across all periods, with positive alpha at every horizon (2.46% over 1Y, 0.78% over 3Y) and higher CAGR than the benchmark in each window. Calendar year returns have been weak, with -10.02% in 2026 and just 0.92% in 2025.

The fund's beta of 0.9752 indicates it moves almost in line with the NIFTY 50, while a downside capture of 93.0% versus upside capture of 97.06% suggests it loses slightly less than the market in declines but also participates somewhat less in rallies. The maximum drawdown of -13.79% lasted 88 days with no recorded recovery yet, indicating investors are currently in an unrealized loss phase. Positive alpha across all time horizons points to modest risk-adjusted outperformance versus the benchmark despite near-market volatility.

The portfolio is well diversified across 88 holdings, with the top 10 positions comprising only about 33% of NAV. Banks dominate at 19.4%, followed by Finance at 7.5% and Pharmaceuticals at 6.4%, so financials collectively represent the largest exposure at roughly 27%. Core holdings include HDFC Bank (5.9%), ICICI Bank (5.08%), and Reliance Industries (4.24%), giving the fund a large-cap oriented, multi-factor character despite its sectoral/thematic classification.

The fund's 1Y SIP XIRR of -13.22% trails the category average of 10.7% by a wide margin, placing it among the weaker performers in the near term. Its lump-sum benchmark record is more encouraging, with the fund beating the NIFTY 50 CAGR across 1Y through 15Y windows, though the alpha narrows over longer horizons (from 2.46% at 1Y to 0.03% at 15Y). Investors should note that multi-factor strategies may lag momentum-driven thematic peers during narrow market rallies.

This fund suits investors seeking diversified, factor-based equity exposure with a low expense ratio of 0.66% and tolerance for near-market volatility, including drawdowns exceeding 10%. A minimum horizon of 5-7 years is appropriate, given that lump-sum CAGRs remain negative even over multi-year windows in the current data. It is not ideal for investors chasing high short-term thematic returns, as recent SIP performance has badly lagged the category.

• Consistent positive alpha versus NIFTY 50 across all measured horizons, from 2.46% over 1Y to 0.03% over 15Y
• Lower downside capture of 93.0% versus upside capture of 97.06%, indicating better-than-market loss containment
• Highly diversified portfolio of 88 holdings with a competitive expense ratio of 0.66%

• 1Y SIP XIRR of -13.22% trails the category average of 10.7% by nearly 24 percentage points
• Maximum drawdown of -13.79% has not yet recovered after 88 days, and lump-sum CAGRs remain negative across all horizons
• Heavy financial sector exposure of roughly 27% (Banks 19.4% plus Finance 7.5%) creates concentration risk