Thursday, January 22, 2009

Templeton India Equity-SIP: Advice needed


SURESH wrote
Hi,

I am investing thru`SIP (for 12 months) Rs1000/pm in TEMPLETON INDIA EQUITY INCOME FUND DIVIDEND PLAN since Jan`08 but off late I have noticed that rating for this fund has gone down to 3* in money control and in value research on line it is unrated,kindly advice whether I can continue till Jan`09 or cancel and go for better MF.

Need your valuable advice.

Rgds
Suresh

SRIKANTH SHANKAR MATRUBAI advised
Dear Suresh,
Templeton India Equity Income Fund invests largely in International funds of High Yielding Dividend Stocks. This ia a good diversification and before the market termoil, the fund was doing exceeding well. Its performance lately has been lacklustre due to meltdown in stocks worldwide. Still, it has outperformed even in this downfall. And, more importantly, its recent underperformance has also been due to the Strong Dollar. As you may be aware, Dollar is expected to correct very sharply to sub 40 levels which would give a BIG boost to the NAV of the fund. As such, not only can you stay invested in the fund but also can continue the same when the time for renewal comes up.
However, it would have been better if you had given your full portfolio for a much deeper analysis.
Best of luck,
Srikanth Shankar Matrubai
Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis

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