Franklin Templeton rolls out multi-asset fund blending equity, debt & gold to tackle volatility

Syllad | The Rising MeghalayaJuly 10, 2025

Franklin Templeton (India) has announced the launch of the Franklin India Multi Asset Allocation Fund (FIMAAF) — an open-ended fund designed to invest across equities, debt, and commodities to help investors manage volatility and reduce downside risk while enjoying equity taxation benefits.

The New Fund Offer (NFO) opens on July 11 and closes on July 25, with units priced at Rs. 10 per unit.

Built around a proprietary asset class selection model, FIMAAF aims for long-term capital growth by dynamically allocating assets. The equity portion will follow a blend of growth and value strategies, investing across large, mid, and small caps. The fund also includes allocations to fixed income instruments, money markets, and commodities like gold, creating a diversified portfolio intended to perform across market cycles.

Avinash Satwalekar, President of Franklin Templeton – India, said the fund is tailored for today’s volatile environment. “With elevated equity valuations and stabilizing bond yields, combining equities with debt and commodities like gold gives investors a better risk-adjusted return profile,” he said. The fund employs a flexible allocation strategy supported by Franklin Templeton’s proprietary global model, which combines macroeconomic data with insights from the investment team.

Janakiraman R, CIO – Emerging Markets Equity, highlighted the need for multi-asset exposure. “Equity remains essential for growth, but its volatility calls for balance. With modest earnings growth and geopolitical tensions, debt and gold help cushion risks,” he explained. The fund will use a QGSV framework (Quality, Growth, Sustainability, and Valuation) for stock selection, ensuring diversification across sectors and market caps.

Rahul Goswami, CIO – Fixed Income India, emphasized the importance of shifting allocations. “Over two decades, no single asset class has consistently outperformed. A flexible mix of equity, debt, and commodities provides a more resilient approach,” he said. The debt portion will focus on AAA-rated instruments, guided by in-house research that goes beyond credit ratings.

FIMAAF offers investors an all-in-one, actively managed portfolio crafted to navigate market shifts while targeting consistent long-term growth.