Templeton India Growth Fund seeks long term capital appreciation primarily through investment in equities of large capitalisation out-of-favour "value" stocks. Consistent with its philosophy, the fund been only into `value' stocks with high liquidity and large-cap orientation. Almost all 35 stocks in its portfolio have a market capitalisation of over Rs 500 crore. TIGF has been an unimpressive performer till now.However, in the recent market rally mainly driven by the down beaten "value stocks", the fund has been the top gainer among open-end equity funds in the past five weeks. The fund is up 30% since April 26 till date ever since the value stocks made a comeback.
TIGF is a well-diversified portfolio of large-cap value stocks and the outlook for TIGF looks bright with the initial symptoms of improving economic fundamentals and its portfolio stocks, the fund could be on a comeback trail now. The fund holds promise only as a long-term investment. Existing investors should stay put. Investors shouldconsider some allocation to the fund for periodic investing.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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