Mumbai, stock market returns for investors in the next three years will not be as good as the last three years, a senior official at Franklin Templeton MF said on Wednesday.
However, its chief investment officer for emerging market equities, R Janakiraman, told reporters that returns will be "respectable" and outperform other asset classes.
The comments were made on a day when benchmark indices hit a new all-time high and at a time when concerns are emerging about high valuations in the stock market.
Janakiraman said market valuations are high because India is in the early stages of a growth phase, which will last almost five years, and he too has tried to address concerns about too much money by chasing too few stocks.
Pointing to the large number of initial public offerings lately, he said new public companies are creating avenues to absorb the additional sums of money being invested.
Over the past few years, equity returns have been better than corporate earnings growth, and investors will need to be prepared for the situation to now change the other way around.
"There will be respectable equity returns in the next three years. It won't be as good as the last three years, but it will be better than other asset classes," he said, while speaking at the launch of the asset manager's multi-cap fund offering. .
Like his peers, half of the assets under management will be invested in small- and mid-cap stocks, he said, adding that exposure to large-cap bonds will act as a risk mitigant.
However, as India grows further, "we will see many names gaining in the small and mid-cap space, underscoring the importance of the segment for an investor," he said.
The asset manager's chairman Avinash Satwalekar said Franklin Templeton again crossed the assets under management milestone of Rs 1 lakh crore about ten days ago. In March, he was the 15th largest asset manager in the country.
He also said the company is considering launching multiple bond funds this quarter, but declined to give details.
The new multicap fund offering will open on July 8 and close on July 22, and a single unit will be available for Rs 10.
However, its chief investment officer for emerging market equities, R Janakiraman, told reporters that returns will be "respectable" and outperform other asset classes.
The comments were made on a day when benchmark indices hit a new all-time high and at a time when concerns are emerging about high valuations in the stock market.
Janakiraman said market valuations are high because India is in the early stages of a growth phase, which will last almost five years, and he too has tried to address concerns about too much money by chasing too few stocks.
Pointing to the large number of initial public offerings lately, he said new public companies are creating avenues to absorb the additional sums of money being invested.
Over the past few years, equity returns have been better than corporate earnings growth, and investors will need to be prepared for the situation to now change the other way around.
"There will be respectable equity returns in the next three years. It won't be as good as the last three years, but it will be better than other asset classes," he said, while speaking at the launch of the asset manager's multi-cap fund offering. .
Like his peers, half of the assets under management will be invested in small- and mid-cap stocks, he said, adding that exposure to large-cap bonds will act as a risk mitigant.
However, as India grows further, "we will see many names gaining in the small and mid-cap space, underscoring the importance of the segment for an investor," he said.
The asset manager's chairman Avinash Satwalekar said Franklin Templeton again crossed the assets under management milestone of Rs 1 lakh crore about ten days ago. In March, he was the 15th largest asset manager in the country.
He also said the company is considering launching multiple bond funds this quarter, but declined to give details.
The new multicap fund offering will open on July 8 and close on July 22, and a single unit will be available for Rs 10.
