At Franklin Templeton, we have always believed that the litmus test for the domestic mutual fund industry would be to expand the distribution network to sub-urban and rural areas where most of the small investors live.

Our product range currently consists of 33 products across asset classes with three of our flagship equity funds having a performance track record of over a decade. The investment philosophy that follows a disciplined approach to investing with a strong process orientation is the common thread running through all our schemes. The key guiding principle to our investment philosophy is-maximize the risk-adjusted returns for our investors in the respective asset classes and create wealth for them over the long-term.

While broad economy and sector trends serve as a broad guideline, Franklin Templeton portfolio managers are essentially `bottom-up' investors, focusing more on individual stocks and their potential to deliver long-term capital appreciation. The emphasis is more on in-house research and looking beyond published reports, as often there is more to a company's story than what numbers alone reveal. While quantitative analysis using proprietary research model serves as a first stage filter, the research team and portfolio managers speak with key management and observe operations on-site to get a meaningful insight into a company's ability to translate vision into reality.

The overall objective is to minimize both liquidity and credit risk. Our fixed income team looks to arrive at a general maturity/duration range for the portfolio in relation to the market based on its interest rate outlook, which is arrived at after a rigorous and close monitoring of various macro variables. The shifts within this range are then determined by short-term cyclical trends in the economy. The team looks to manage interest rate risk across different asset classes and duration buckets, in order to optimize risk-adjusted returns. All the investment options are thoroughly analyzed to ensure that credit risk is kept at the minimum level. Any major shifts in portfolio strategy are based on long-term trends, as opposed to short-term aberrations in interest rates.

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