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Franklin Templeton Mutual Fund: Window to the World

Timing the markets would be tough given the complexity level of Indian markets and valuations would remain questionable as long as the growth momentum continues.

Global partnerships bring in fresh ideas and practices. But, they are best utilized when adapted to local environs. The fund house is a pioneer in best practices. The philosophy is ingrained in Harshendu Bindal, President, Franklin Templeton Investments (India); “I am a firm believer in diversification and my overseas stint has helped me in getting exposure across currencies and differentiated asset classes,” he says.

Disappointing AUM growth: Over the last few quarters, business was impacted with distributors and fund houses revamping their business models to find an optimal balance between revenues and margins. However, despite the challenges, the industry has been able to grow at a healthy rate of 12.39 per cent growth in AAUM (August 2008-August 2010), but inflows from smaller investors have tempered.

Regulatory changes: The changes are in line with the global trend of increased efforts to enhance investor focus. However, the frequency of changes could have been more gradual.

The road ahead: Our long-term objective is to build a scalable retail business in India and the focus is on enhancing our share of long-term asset flows. We are looking to leverage our global investment strengths and also provide complete investment solutions, catering to the needs of retail investors.

My investing style: My focus is on building wealth over the long term without getting distracted by short term fads and systematic investing in funds with established track record. I am also a firm believer in diversification and my overseas stint has helped me in getting exposure across currencies and differentiated asset classes.