Franklin Templeton had an early presence in India's investment market and was one of the first international firms to set up a local asset management business in 1995.

Its initial focus was on fixed income, as Indian equity markets were then undeveloped. Many of the early difficulties of setting up a fund were smoothed by its local partner, Hathway Investments, an asset manager whose stake it bought last year. Franklin Templeton also bolstered its presence in India in 2002 through the acquisition of Pioneer ITI, formerly part of Pioneer Group.

As well as providing local expertise, Pioneer ITI brought a strong equity team to Franklin Templeton and helped boost the asset manager's retail distribution activity and rapidly develop the mutual funds business.

Being among the first has also given it an edge, says Stephen Dover, international chief investment officer at Franklin Templeton Investments. Many of the senior managers on the ground have been together for 12 years and know the companies and the economy, he says. He sees Franklin Templeton as a long-term player in India.

It manages $7.4bn (�3.7bn, Euro4.7bn) of assets, has offices in 33 locations in India and a range of open-ended equity funds, such as the Franklin India Bluechip Fund, the Templeton India Growth Fund, launched in 1996, and the Franklin India High Growth Companies Fund, as well as debt funds.

It was also the first to set up a private pension fund in India, the Templeton India Pension Plan, in 1997, and launched a fund of funds, the FT India Life Stage Fund of Funds, in 2003.

Sukumar Rajah, chief investment officer of equity at Franklin Templeton Investments, India, has seen a shift from traditional investments such as bank deposits, property and gold, to mutual funds.

"With post-tax returns from traditional savings avenues becoming less attractive and growing investor comfort with market-linked investment products, investors are looking to professional fund managers to help them achieve their financial goals."

Early on, the asset manager set up a distributor training programme, with workshops to help financial advisers.

Mr Rajah also sees changes in the distribution landscape. "Government- owned banks with theirwide branch network are also now beginning to distribute mutual fund products," he says.

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