Equity returns over next 3 years will not be as good as last three: Franklin Templeton MF

Equity market returns for investors in the next three years will not be as good as the last three years, a senior official from Franklin Templeton MF said on July 3.

Equity market returns for investors in the next three years will not be as good as the last three years, a senior official from Franklin Templeton MF said on July 3.

Its chief investment officer for emerging markets equity R Janakiraman, however, told reporters that the returns will be "respectable" and outperform other asset classes.

The comments were made on a day when the benchmark indices touched new all-time high and come at a time when concerns are being raised about the high valuations in the equity market.

Janakiraman said market valuations are high because India is in the early stages of a growth phase, which will last nearly five years, and also sought to address the concerns on too much money chasing too few stocks.

Pointing to the high number of initial public offers lately, he said the newly listed companies are creating the avenues to absorb the additional sums of money which are getting invested.

For the last few years, equity returns have been better than earnings growth in companies and the investors will have to be ready for it turning opposite now.

"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, while speaking at the launch of the asset manager's multicap fund offering.