'Currently, there is very little valuation differentiation between value and growth stocks'

"Phenomenon", "surprise". These are two words Ajay Argal uses about Indian investors' unprecedented discipline in the equity market. That retail investors have played a major role in the rise and rise of the market in recent years is something that has pleasantly surprised the Franklin Templeton AMC's senior vice president. "This (kind of disciplined investing) has occurred for the first time in Indian markets," he quips during our hour-long conversation that covers diverse topics, ranging from his fund house's investment philosophy to his take on the new-age companies. Argal, who currently oversees five funds with assets around Rs 27,500 crore, including the four-star-rated Franklin India Focused Equity and Templeton India Value funds, also speaks about how there is "little valuation differentiation" between value and growth stocks. Here's an edited version of our conversation with him. You completed engineering at IIT and then went to IIM. What sparked your interest in the financial markets? I have always had a keen interest in numbers, and in our generation, individuals with a passion for maths and numbers often pursued careers in engineering. I had always aspired to attend IIT, and fortunately, I managed to secure admission into the aeronautical engineering department. However, I realised that, at least then, the opportunities were very limited in India, and I wanted to stay in India. Gradually, while at IIT, I enrolled in an economics course and developed a keen interest in it. Later, I decided to pursue a management course. I aimed to gain admission into the IIM, and once there, I explored a variety of subjects. In my second year, I primarily pursued finance courses, which eventually led me into the financial industry. That's how I transitioned from engineering to finance. Can you describe your investment philosophy? What types of stocks or market situations excite you the most? At Franklin Templeton, our investment philosophy prioritises growth at a reasonable price, also known as GARP. The starting point for us is always the growth outlook, but at the same time, we are conscious of valuations and not willing to get into stocks at any price. Wi