What is the PNB MetLife Multifactor Index Fund?

PNB MetLife Multifactor Index fund (SFIN: ULIF04215/06/26/MULTIFACTO117) is a passively managed fund and will be benchmarked against a customised index created and maintained by NSE Indices for PNB MetLife Life Insurance India to meet IRDAI Investment norms.

Multifactor Index Fund’s core investment strategy is to blend multiple drivers of a market than relying on a single specific factor. A passively managed fund powered by multifactor strategy combining value, momentum, quality and low volatility to deliver better risk-adjusted returns. This fund strategy aims to deliver potentially superior risk-adjusted returns by smoothing out the cyclical under-performance that may come by relying on a single factor. In other words, this fund within the same asset class, helps an investor in diversifying their portfolio by include a range of sectoral exposure and multi factor investment strategy.

PNB MetLife Multifactor Index fund (SFIN: ULIF04215/06/26/MULTIFACTO117) can be availed with Unit Linked Insurance Plan (ULIP), in which you also get Life Cover, along with long term wealth creation opportunity.

Key Benefits with ULIP:

• 10X Life Cover
• 15.73% Annualized Index Returns (Past 5-Year return of Multifactor Index as on 31st March 2026) ^
• Zero Tax on Long Term Capital Gains (LTCG)
• Inherent benefits of multifactor investment strategy

What are the factors of a Multifactor Fund Strategy?

There are four factors that are calculated separately for selecting the stocks for investment – Momentum, Quality, Value and Low Volatility. Let’s understand each of these factors in detail:

Momentum: This factor targets the stocks that have recently performed well and are expected to continue with the same momentum in the short to medium term. Its core philosophy fundamentally rests on the strategy of ‘buying high and selling higher”

Quality: This strategy drives the stock selection of companies with exceptionally strong fundamentals such as low debt, consistent earnings and usually high profitability. These stocks help in limiting losses during the downturn times.

Value: This philosophy helps in identification of stocks that are currently trading at lower price relative to their fundamental business metrics. It operates on the core belief that the stock is currently under-valued and its intrinsic value will be unlocked soon.

Low Volatility: This factor focusses on identification of stocks that are less volatile and delivering more consistent earnings than the broader market. This too helps in cushioning the portfolio during the downturn times while still offering steady risk-adjusted returns over the long term.

What makes multi-factor investing an "All-Weather" strategy?

Let us understand by a simple example the core philosophy behind multifactor investment strategy. If you were to create a high performing cricket team, you will not bet only on a batsman performance. To increases the chances of a winning team, you will need a mix of performing batsman, spinners, fast bowlers and strong fielders. A winning team needs everyone to play to their strengths and weathers all odds.

Multifactor index fund works on the same principle. It does not bet on a single operating factor but relies on multiple factors largely momentum, value, quality and low volatility, for the stock selection so that the fund portfolio delivers a much all-rounded performance in the form of returns.

Fund Snapshot & New Fund Launch Details

Who Should Invest in PNB MetLife Multifactor Index Fund?

Multifactor Index Fund can be considered by investors who:

• Understands the concept of multifactor investing and believe in it
• Has a long-term view of wealth creation
• Understands that market goes through cycles and remains unfazed by market fluctuations
• Is comfortable with ULIPs and understand there is an in-built life cover. And there may be some additional charges for the risk cover.

Key Benefits of Investing in the PNB MetLife Multifactor Index Fund

PNB MetLife Multifactor Index fund (SFIN: ULIF04215/06/26/MULTIFACTO117) is based on multifactor investing. Here are some of the key benefits of this strategy:

Mitigates Style Risk via Multi-Cycle Outperformance: Different investment styles thrive in different economic phases: Value tends to lead during recoveries, Quality and Low Volatility protect capital in downturns, and Momentum captures gains during bull runs. Combining them ensures you aren't stuck holding a single underperforming style when the market shifts.

Broadens Portfolio Diversification Beyond Asset Classes: True diversification requires more than just mixing geographies or sectors. Blending distinct equity factors adds a layer of structural diversification, preventing a portfolio from being over-exposed to a single market anomaly or behavioural trend.

Automates Dynamic Rebalancing and Risk Control: Multi-factor strategies continuously evaluate individual factor performance and volatility. This allows the portfolio to automatically scale back on overextended or deteriorating styles and reallocate capital into historically stable or strengthening factors.

Optimizes Long-Term Risk-Adjusted Returns: By pairing non-correlated characteristics, the strategy effectively smoothens the investment journey. It actively limits severe drawdowns during market corrections while maintaining competitive participation during broader market rallies.

Life Cover: On availing PNB MetLife Multifactor Index fund (SFIN: ULIF04215/06/26/MULTIFACTO117) with our ULIPs, you get Life Cover to safeguard yourself and your family against life’s uncertainties.

How the Multifactor Strategy Works?

Because Markets Don’t Follow One Pattern

Markets are unpredictable; single strategies can fail depending on the cycle. Multifactor investing blends multiple strategies to create balance.

1. Defining the Starting Universe

   The construction of index begins with a standard parent index – the Nifty 500 Index. In this establishes the broad sandbox of liquid, investable companies before any factor rules are applied.

2. Systematic Factor Scoring (The Quantitative Screen)

   Every stock in that universe is evaluated and scored mathematically using specific, verifiable metrics for each target factor. Instead of relying on human fund manager intuition, the index uses cold data:
   • Value: Evaluated via fundamental ratios like low Price-to-Earnings ($P/E$) and Price-to-Book ($P/B$).
   • Quality: Measured by corporate health metrics like high Return on Equity ($ROE$), low debt-to-equity, and stable earnings growth.
   • Momentum: Assessed by tracking securities showing the strongest relative price uptrends over the past 6 to 12 months.
   • Low Volatility: Identified by analyzing historical standard deviation and beta to find stocks with the quietest, most stable price movements.

3. Portfolio Construction: Blending the Elements

   Once scored, the index provider constructs the index using one of two primary methodologies:
   • The Combination (Top-Down) Approach: Sub-portfolios for each factor are created (e.g., 25% Value, 25% Quality) and stackeds together. Novice intuition: Buying distinct baskets of specialist stocks and mixing them in one account.
   • The Integration (Bottom-Up) Approach: Stocks are scored across all factors simultaneously, and only companies that score highly across multiple traits at once are selected. *Novice intuition: Buying "all-rounder" stocks that are simultaneously cheap, high-quality, and trending upward..

4. Mathematical Weighting Constraints

   Given IRDAI does not allow sector concentrations beyond certain limits (30% for BFSI, 15% for other sectors), the Index provider also capex the weightages by sector to ensure IRDAI compliant implementation

5. Rules-Based Periodic Rebalancing

   Factors are dynamic; a cheap stock can become expensive, or a stable stock can become volatile. To maintain its mathematical edge, the fund automatically rebalances on a fixed schedule (semi-annually). The algorithm systematically excludes stocks that have lost their factor characteristics and replaces them with new qualifiers, completely removing human emotion from the trading process.

Performance of Multifactor Index Fund

Index Performance (as of 31 March 2026)

• 15.73% CAGR (5-Year)

Example Investments

*Customised index created and maintained by NSE Indices for PNB MetLife Life Insurance India to meet IRDAI Investment norms.
*Source: Nifty500 Multifactor MQVLv 50 Index Factsheet
*Disclaimer: Past performance of the index does not guarantee future returns.

PNB MetLife Funds Performance (June 2026)

Constituents of “Multifactor Index”

Top constituents by weightage

Sector Representation

How to Invest in PNB MetLife Multifactor Index Fund?

The New fund can be availed with PNB MetLife Unit Linked Insurance Plans (ULIPs). These plans can be availed through online mode as well as offline distribution channels.

To buy online directly from the company’s website, please follow 4 simple steps:

Step 1: Click on Buy Online

Step 2: Fill in your details – Name, Mobile Number, DOB etc.

Step 3: Choose amount to invest (premium), frequency of payment, years you want to pay for, years for which you want to stay invested, fund, fund allocation etc. and check the expected returns

Step 4: Make the payment using Net-Banking, credit/debit card or UPI

Step 5: Fill up the proposal form containing personal information like address and other details like lifestyle, income and medical questions, nominee details etc.

Step 6: Complete the application by doing e-KYC (Aadhar) or c-KYC (PAN)

Step 7: Set up direct debit mandate / e-NACH for future premiums payment.

To meet our trusted representative, please call up at the contact centre or drop your lead at the form given below.

Please note: ₹10 NAV will be allotted to applications received between 15th June to 29th June, 2026 and issued on 30th June 2026, subject to fulfilment of all the requirements and final decisioning of the proposal by underwriting.

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