'Shelter Russia profits'

By Stephen Womack
Updated: 05:09 EDT, 2 October 2007

Investors who have seen good profits from booming stock markets in Russia, China and India should bank some of their gains while they can.

One of the world's biggest investors in these emerging markets says growth cannot continue unchecked.

Dr Mark Mobius heads the emerging markets team at Franklin Templeton Investments, controlling almost £20bn of funds for investors including the £470m Templeton Emerging Markets investment trust.

He says: 'I would say to investors, 'You gave me ten and I've turned it into 100. Take 50 of that back now.'

Mobius says: 'I can guarantee there will be a bear market ahead. Unless you are a very long-term investor and are prepared to see assets drop 40%, then take some of your profits.'

But Mobius feels there are still good opportunities for investors. He is enthusiastic about prospects in Brazil, for example, saying it will continue to benefit from high demand for commodities in Asia. Templeton is next month launching a fund to focus on smaller companies in emerging markets.