Market Dips Mean Buying Opportunities, Says Franklin Templeton
Franklin Templeton India is keeping its equity portfolios fully invested, says President Avinash Satwalekar. He sees current market dips as chances to build on existing positions, trusting the firm's investment strategy. Satwalekar noted that ongoing market turbulence, fueled by geopolitical events like the West Asia conflict, is affecting investor sentiment and SIP inflows.
Don't Cancel SIPs: Avoid Missing Out on Lower Prices
Satwalekar advised investors against cancelling their SIPs, a common response to negative returns. He explained that stopping SIPs prevents investors from acquiring more units for their money during downturns – essentially missing the benefit of "rupee cost averaging." This habit, he warned, can lead to underperformance when markets rebound.
Building Wealth Through Counter-Cyclical Investing
Satwalekar pointed to historical patterns where bear markets usually last months, unlike bull markets which stretch over years. Investors, he stressed, should look beyond short-term losses and volatility. "Markets give an opportunity every five years to truly put money to work," he said, defining true wealth creation as acting decisively when others hesitate.
New Fund Aims to Reduce Downside Risk
Franklin Templeton India has introduced the Sapphire Equity Long-Short SIF, a new fund aimed at navigating volatile market conditions. The fund strategy allows taking short positions on up to 25% of net assets to help reduce losses during market downturns. Arihant Jain, Portfolio Manager for the fund, explained that its quantitative model uses diverse indicators to adapt to various market environments, with a strong emphasis on risk management.