Templeton India Growth

[Vicky78]

Templeton India Growth fund is one of the oldest value funds present in the country today. It has come out great in every bear market 2000- 2001 & in the first 2 quarters of this year. However in the first and second quarter of 2004 it failed to protect the downside.

During the bull run its performance has been inconsistant. But with its excellent bear market performance this fund has managed to return 24% pa for the past 10 years (above average).

Seems like a good large cap fund, but not very consistant.

What is your opinion?

[mrindia]

Originally Posted by Vicky78

Templeton India Growth fund is one of the oldest value funds present in the country today. It has come out great in every bear market 2000- 2001 & in the first 2 quarters of this year. However in the first and second quarter of 2004 it failed to protect the downside.

During the bull run its performance has been inconsistant. But with its excellent bear market performance this fund has managed to return 24% pa for the past 10 years (above average).

Seems like a good large cap fund, but not very consistant.

What is your opinion?

Hello!
No doubt its performance is impressive, but as far as 'vanila' large caps are concerned, I rate/prefer DSP top100 & HSBC Equity above TIG.
mr india

[Vicky78]

Originally Posted by mrindia

Hello!
No doubt its performance is impressive, but as far as 'vanila' large caps are concerned, I rate/prefer DSP top100 & HSBC Equity above TIG.
mr india

Yes like all DSP ML funds, DSP ML Top 100 has been very consistant.

[mayurkotlikar]

Originally Posted by Vicky78

Yes like all DSP ML funds, DSP ML Top 100 has been very consistant.

DSP T.I.G.E.R is doing pretty bad.
I have SIP in it since last Sept-2007, its losing pretty badly.

[mrindia]

Originally Posted by mayurkotlikar

DSP T.I.G.E.R is doing pretty bad.
I have SIP in it since last Sept-2007, its losing pretty badly.

Many of other 'thematic' funds r facing same fate!
mr india

[Vicky78]

Originally Posted by mayurkotlikar

DSP T.I.G.E.R is doing pretty bad.
I have SIP in it since last Sept-2007, its losing pretty badly.

DSP ML Tiger is a thematic aggressive fund. It invests in core sectors of the economy and is expected to do badly during corrections or bear phases

[mayurkotlikar]

Originally Posted by Vicky78

DSP ML Tiger is a thematic aggressive fund. It invests in core sectors of the economy and is expected to do badly during corrections or bear phases

I have seen many expert interviews on television and most of them say that DSP ML Tiger is a good fund.

Thematic or sectoral funds are more risky (than diversified ones).
Then why is this with such good ratings?

[Vicky78]

DSP ML Tiger is a very good fund. Yes it is volatile because it has a focussed mandate. If you look at the past track record this fund has performed exceptionally well though this fund is the most aggressive fund out of the DSP ML pack of funds. Hence the volatility.

With the growth projections of the Indian economy downgraded, raising interest rates, rising crude etc, infrastructure stocks (stocks that comprise of the core sectors of the economy) are getting downgraded. Hence DSP ML tiger has lost a lot in the recent crash.

This fund can be viewed as a diversified growth fund. Growth funds usually do well in the bull run and not well in a bear market. Value funds are the other way around. If remained invested for the long term, this fund should deliver in the long run.

[mayurkotlikar]

Originally Posted by Vicky78

Value funds are the other way around. If remained invested for the long term, this fund should deliver in the long run.

Value funds will be less volatile?

I will take your advice and keep my SIP in T.I.G.E.R going. My plan is to continue for at least 5 years if fund fundamentals and managers dont change

[Vicky78]

Value fund can be as much volatile as other funds but slightly uncorrelated