Franklin Templeton MF launches Sapphire Equity Long-Short SIF strategy

Franklin Templeton MF launches its first specialised investment fund, Sapphire Equity Long-Short SIF, using a quantitative strategy with selective shorting to manage downside risks

Franklin Templeton Mutual Fund (MF) on Wednesday announced the launch of its first specialised investment fund (SIF), Sapphire Equity Long-Short SIF, a long-short equity offering that will take a quantitative approach to invest across large-, mid- and small-cap space. The scheme will also take selective short positions to manage downside risks.

 

According to the fund house, the scheme's multi-factor model will evaluate stocks using over 40 indicators across quality, value, sentiment and alternative data, including forward-looking earnings and momentum signals. "The framework systematically scores and ranks stocks for both long exposure and selective short positioning, enabling a more balanced response to shifts in the market," said Arihant Jain, portfolio manager, Sapphire Equity Long-Short SIF.

 

 

The fund, which will be benchmarked against the Nifty 500 total return index, plans to use its ability to short selectively to generate additional alpha (excess returns over the benchmark). "What differentiates a SIF strategy from a conventional mutual fund is that SIFs can potentially take advantage of market shifts by taking short positions up to 25 per cent of their net assets, which can help reduce downside risk during market corrections,” said Avinash Satwalekar, president, Franklin Templeton – India.

 

The new fund offer will open on April 10 and close on April 24, 2026.