Franklin Templeton Predicts Respectable Equity Returns Amid Market Highs

Franklin Templeton MF officials predict that equity market returns in the next three years will be respectable but not as lucrative as the past three years. Despite high valuations, the market is in early growth stages. The firm has surpassed Rs 1 lakh crore in AUM and plans new fund launches.

Franklin Templeton Mutual Fund officials have forecasted that equity market returns over the next three years will be respectable, albeit not as stellar as the previous three years. Addressing high market valuations, Chief Investment Officer R. Janakiraman highlighted that India is in the nascent stages of a growth phase expected to last around five years. He also dismissed concerns about overvaluation, noting that new IPOs are helping absorb increased investments.

Janakiraman made these remarks on a day when benchmark indices hit new all-time highs, sparking fresh queries about high valuations. He suggested that investors should prepare for returns aligning more closely with earnings growth rather than the substantial outperformance seen recently.

Franklin Templeton's President, Avinash Satwalekar, announced that the firm crossed the Rs 1 lakh crore milestone in assets under management. He also hinted at the launch of multiple fixed income funds in the coming quarter, though he withheld specific details. The firm's new multicap fund offering will open on July 8 and close on July 22, with units available at Rs 10 each.

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