Franklin Templeton Sees 'Respectable' Equity Returns Despite High Valuations

Equity returns in the next three years won't be as good as the last three years, according to R Janakiraman, chief investment officer for emerging markets equity at Franklin Templeton MF.

"There will be respectable equity returns over the next three years. It will not be as good as the last three years, but it will be better than other asset classes," he said, during the launch of Franklin Templeton's multicap fund offering.

While equity returns have outpaced corporate earnings growth in recent years, investors should prepare for a potential reversal, he said.

Janakiraman attributed the high market valuations to India's early-stage growth phase expected to span nearly five years. He said a surge in initial public offerings will absorb the influx of investments.

Avinash Satwalekar, president of Franklin Templeton, underlined the firm's recent achievement of crossing Rs 1 lakh crore in assets under management. He hinted at plans for multiple fixed income fund launches in the current quarter but refrained from providing specifics.

The multicap fund offering, opening on July 8 and closing on July 22, will offer units priced at Rs 10 each.

(With inputs from PTI.)