Equity returns in the next three years will not be as good as the last three years: Franklin Templeton

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A senior official of mutual fund company Franklin Templeton said that returns for investors in the equity stock market will not be as good as in the last three years in the next three years. However, R Janakiraman told reporters that the returns will be ‘decent’ and it will perform better than other asset classes.

Mumbai. Equity stock market returns for investors will not be as good as the last three years in the next three years. A senior official of mutual fund company Franklin Templeton said this on Wednesday. However, the company’s Chief Investment Officer (Emerging Market Equity) R Janakiraman told reporters that the returns will be ‘decent’ and it will outperform other asset classes. This comes on a day when standard indices touched new all-time highs and concerns are being raised about high valuations in the equity market.

Janakiraman said market valuations are high because India is in the early stages of growth, which will last about five years. He also sought to allay concerns about investing too much money in too few stocks. Pointing to the large number of initial public offerings (IPOs) recently, he said newly listed companies are creating avenues to absorb the additional money being invested.

Equity returns in companies have been better than earnings growth for the past few years and investors now need to be prepared for the opposite. “In the next three years, equities will give good returns. It will not be as good as the last three years but will be better than other asset classes,” he said at the launch of the asset management company’s ‘multicap fund’ offering. He said like competitors, half the assets under management will be invested in shares of small and mid-cap companies. He said investing in high-cap stocks will help mitigate risk.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.



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