Negative interest rates are good for equities, says emerging markets veteran Mark Mobius

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Updated: February 19, 2018 3:49:33 PM

Eyeing the attractiveness of emerging markets, famous fund manager Mark Mobius on Monday announced that he will soon come out with a fund that will invest in companies which are focussed on environmental, social and governance (ESG) ideas. He also believes negative interest rates are good for equities.

Mark Mobius, Mark Mobius news, demonetisation, demonetisation updatesMark Mobius thinks that the startup ecosystem in the country is very buoyant and profitable for investors worldwide. (Reuters file photo)

Eyeing the attractiveness of emerging markets, famous emerging markets veteran Mark Mobius on Monday announced that he will soon come out with a fund that will invest in companies which are focussed on environmental, social and governance (ESG) ideas. “We are interested in companies which have potential to improve environmental practices,” Chairman at Templeton Emerging Markets Group told CNBC TV18. The fund that will be based out of London will be completely focussed on emerging markets. The fund will be an open-ended, he added further. “We will start fund with $100 million and grow from there,” Mark Mobius said.  He has also joined Mumbai-based Equanimity Investments’s investment committee, where he has already been an investor. Commenting on his latest decision he said, “ My interest in Equanimity is very great.”

Equality Investments is a venture capital fund that invests in the early stages of the businesses and helps clients to diversify their businesses. Mark Mobius thinks that the startup ecosystem in the country is very buoyant and profitable for investors.

Market outlook

Mark Mobius said that he is interested on portfolio management side. Sharing his outlook on markets going ahead, he said that negative real rate is good for equities. There is no question that interest rates are going up, Mark Mobius also said. On Rs 11,400 crore Punjab National Bank Fraud, he said that such fraud cases are prevalent globally and despite strict regulatory measures such cases are still reported worldwide. Hence, he is not too worried about the PNB situation, he said.

Over the next five years, on being driven by the economic growth, privatisation and reforms, India’s growth rate can double, Mark Mobius had said in December last year. Economic growth and reforms will be the theme of the market for the next one year, Mark Mobius had then said. He sees India’s economic growth to take-off in the near future and believes that the the latest Moody’s rating upgrade could put the country at 10 percent  growth levels.

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