Franklin Templeton Academy Online
Selecting an Equity Fund

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As a part of Saturday School, the Franklin Templeton Academy in association with Wealth Forum takes this opportunity to present a series of advisor training modules on video, one every month, on various aspects of financial planning and the investment advisory business. You could view this module and other interesting topics by visiting https://www.franklintempletonacademy.com/ and view different courses on your desktop, tablet or smartphone. Moreover, watch these videos in the language of your choice - English, Hindi, Tamil, Gujarati and Bengali. If you are a first time visitor, you need to undertake a simple one-time registration process using your ARN or EUIN before viewing the videos. Take the multiple choice quiz at the end of the module to help assess your understanding of the topic. You could even receive an e-certificate on successful completion of the course. Do write back to us with your feedback and suggestions on editor@templeton.com.

In the seventh part of our series, this month, let us discuss the module on "Selecting an Equity Fund".

Click here to understand how to select an equity fund

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Most investors and to some extent advisors heavily rely on 'past performance' to choose equity funds. However, this approach is incorrect and one needs to adopt a more holistic approach to analyse and select equity funds. This module suggests the right approach to be used by advisors and investors while selecting an equity fund besides analyzing the pitfalls in the performance based approach.The module is divided into three separate video presentations for better understanding and coverage - i) Pitfalls in Past Performance Analysis, ii) Little known Facts about Fund Star ratings, and iii) The 5Ps of Equity Fund Selection.

In the first video "Pitfalls in Past Performance Analysis", we explain the pitfalls of using past performance to select equity funds through a detailed example. The example helps to conclude that using only fund performance to select an equity fund can bias our results.It also explains why it is not enough to rely on simplified performance snapshotsand it is more important to get the complete picture.

In the second video"Little known facts about fund star ratings" we analyse the limitations of star ratings/ rankings.his videohelps you understand the limitations of star ratings besides emphasizing the need to understand their complete methodology before facing clients/ investors. The video also delves into various other aspects of star ratings that one ought to know like basis for defining a category, minimum number of funds per category, excluded categories, etc.

The third video - The 5Ps of Equity Fund Selection - explains how to combine qualitative and quantitative analysis in a 3-step process to select fundsthus making the selection process more meaningfuland robust. The 5 Ps are - People, Philosophy, Process, Portfolio and Performance.The first 3 Ps represent the core characteristics that differentiate one fund from another, particularly if these are managed by different fund houses.The last 2 Ps represent outcomes of the first 3 Ps.The video also emphasis on risk measures besides important risk ratios that can be used for analyzing funds.

Do watch these videos in detail and also encourage your team to do so. As mentioned earlier, you could view this module and other interesting topics by visiting https://www.franklintempletonacademy.com/
and view different courses on your desktop, tablet or smartphone. Moreover, watch these videos in the language of your choice - English, Hindi, Tamil, Gujarati and Bengali. If you are a first time visitor, you need to undertake a simple one-time registration process using your ARN or EUIN before viewing the videos. Take the multiple choice quiz at the end of the module to help assess your understanding of the topic. You could even receive an e-certificate on successful completion of the course. Do write back to us with your feedback and suggestions on editor@templeton.com.

Click here to understand how to select an equity fund

Learn from videos in the language of your choice : English, Hindi, Tamil, Gujarati or Bengali

Sign In and view the videos.

New to FTA Online? Get registered in 60 seconds and then view the videos

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