Equity Markets - A Perspective
2Agenda Market Environment  – Global and India FT Funds  – Franklin India Bluechip Fund  – Franklin India Prima Plus  – Fr...
Market Environment
4Global markets: Sentiment improves         2011    2012YTD  15                        12.78                              ...
5Global issues : De-leveraging & EuropeSource: Thomson Reuters, Credit Suisse Research   Source: IIF   Banks and consumers...
6India Markets: 2011/12                                                                        Trend in FII flows into equ...
7India Economy: Growth slowdown                         Key drivers - GDP growth                                        IM...
8Concerns: Inflation                                                    Inflation Trends (WPI Headline/WPI Core/CPI)      ...
9Concerns: Twin deficits Fiscal Deficit         Fiscal consolidation interrupted by global financial crisis – stimulus onl...
10India: Key Drivers – Consumption & Infrastructure Spend                         Population Profile                      ...
11India: Key Drivers – Savings                         Trend in Savings and Investment                                    ...
12Corporate India: Faring relatively well                                                                                 ...
13India Currency: Recent Weakness                                               INR has weakened considerably             ...
14Market Valuations          Key Valuation Metrics – BSE Sensex (as of Aug 9, 2012)                        Current        ...
15What should investors do?    Invest for the long term           Oft repeated cliché – but a simple and effective way to ...
16What should investors do?  Stay invested during volatile times – timing the markets is futile      Market moves tend to ...
FT – Equity – Focus Funds
18FT: Equity Funds  FT has a broad range of equity funds to suit the current environment and future opportunities  All the...
19Franklin India Bluechip FundFund Description   Open-end fund with clear focus on large cap companies,              Growt...
20Franklin India Bluechip Fund Top 10 holdings                               Sector                    Share of           ...
21Franklin India Bluechip FundLong-term Cumulative Fund Performance (as of Jun 29, 2012)Refer Annexure for detailed perfor...
22Franklin India Bluechip Fund       Market Resilience (as of Jun 29, 2012)                                              D...
23Franklin India Bluechip Fund                                    Performance Attribution By Sector - 1 year ended July 20...
24Franklin India Bluechip Fund                                              Performance Attribution By Stock – 1 year ende...
25Franklin India Prima PlusFund Description   Open-end diversified equity fund investing predominantly in                G...
26Franklin India Prima Plus  Top 10 holdings                                       Sector                      Share of   ...
27Franklin India Prima Plus Long-term Cumulative Fund Performance (as of Jun 29, 2012) Refer Annexure for detailed perform...
28Franklin India Prima Plus         Market Resilience (as of Jun 29, 2012)                                              Da...
29Franklin India Prima Plus                                Performance Attribution By Sector – 1 year ended July 2012     ...
30Franklin India Prima Plus                                       Performance Attribution By Stock – 1 year ended July 201...
31Franklin India Flexi Cap FundFund Description   Open-end fund with the flexibility to buy into companies                ...
32Franklin India Flexi Cap Fund   Top 10 holdings                                         Sector                         S...
33Franklin India Flexi Cap Fund Long-term Cumulative Fund Performance (as of Jun 29, 2012) Refer Annexure for detailed per...
34Franklin India Flexi Cap Fund    Market Resilience (as of Jun 29, 2012)                                           Date  ...
35Franklin India Flexi Cap Fund                                Performance Attribution By Sector – 1 year ended July 2012 ...
36Franklin India Flexi Cap Fund                                               Performance Attribution By Stock – 1 year en...
37Summary Cautious optimism in global markets on hopes of policy support India like other EMs has witnessed a slowdown in ...
38Risk factorsScheme Classification and Objective: Franklin India Bluechip Fund (FIBCF) is an open ended growthscheme with...
Annexure
SCHEME PERFORMANCEFranklin India Bluechip Fund (FIBCF) - Growth Option                                                    ...
SCHEME PERFORMANCEFranklin Asian Equity Fund (FAEF) - Growth Option                                                       ...
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
Franklin Templeton Quarterly Report - Equity Report - August 2012
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Quarterly Report (August 2012) from Franklin Templeton on Indian Equity Markets

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Franklin Templeton Quarterly Report - Equity Report - August 2012

  1. 1. Equity Markets - A Perspective
  2. 2. 2Agenda Market Environment – Global and India FT Funds – Franklin India Bluechip Fund – Franklin India Prima Plus – Franklin India Flexi Cap Fund Summary
  3. 3. Market Environment
  4. 4. 4Global markets: Sentiment improves 2011 2012YTD 15 12.78 11.53 9.68 8.38 10 6.79 5.51 5.536.48 4.71 2.84 3.94 3.20 5 0 ‐5 ‐4.36 ‐10 ‐9.41 ‐9.58 ‐15 ‐20 ‐17.34 ‐20.41 ‐19.16 ‐25 ‐21.68 ‐24.64 ‐30 MSCI AC Dow Jones S&P 500 Nikkei FTSE MSCI EM MSCI AC BSE SSE Jakarta World Eurotop AxJ Sensex Composite Composite 100 Source: Bloomberg, Stock Exchanges. As of July 30, 2012 Hopes of stimulus measures and receding worries around Eurozone crisis helped global equities rebound Gains in EM economies curbed by concerns about growth slowdown India has managed to outperform peers and developed markets (local currency basis)
  5. 5. 5Global issues : De-leveraging & EuropeSource: Thomson Reuters, Credit Suisse Research Source: IIF Banks and consumers are reducing leverage and governments are looking to adopt austerity measures – impacting growth Europe : Economic data remains weak Policy newsflow has turned positive
  6. 6. 6India Markets: 2011/12 Trend in FII flows into equities ($ mln) 35000 % returns 2012YTD* 2011 29321 30000 BSE Sensex 11.53 -24.64 25000 S&P CNX Nifty 13.08 -24.62 17783 20000 17639 S&P CNX 500 14.70 -27.19 15000 10799 10519 CNX Midcap 17.29 -31.00 10000 8064 BSE Smallcap 16.18 -42.61 5000 0Source: BSE & NSE. *As of July 31, 2012 -512 -5000 -10000 -15000 -12179 2005 2006 2007 2008 2009 2010 2011 YTD 2012 Source: SEBI, As of July 31, 2012 In recent months, global developments along with concerns about domestic policies have weighed on the markets. Indices are broadly trading above 2011 end levels with mid/small cap stocks outperforming Amongst sectors, tech/telecom stocks have underperformed FII flows have picked up since mid/late June and, are quite strong for 2012 - +$10.5 bln
  7. 7. 7India Economy: Growth slowdown Key drivers - GDP growth IMF Growth Projections – July 2012 Outlook % GDP growth 2012 2013 World 3.5 3.9 Advanced 1.4 1.9 Economies - US 2.0 2.3 - Euro-area -0.3 0.7 - Japan 2.4 1.5 Developing 5.6 5.9 Economies - Brazil 2.5 4.6 - India 6.1 6.5Real GDP at market prices. Source: CLSA Asia-Pacific Markets, CEIC. As of July 2012 - China 8.0 8.5 Despite slowdown, growth rate still remains ahead of many peers Weakness largely due to slowdown in investment (combination of policy issues, interest rates and slowing growth) Persistently high inflation levels is weighing on household savings
  8. 8. 8Concerns: Inflation Inflation Trends (WPI Headline/WPI Core/CPI) Source: CEIC, Ministry of Commerce & Industry – Office of the economic advisor, CLSA Asia-Pacific Markets Inflation: Headline numbers moving up due to food prices – further rainfall deficit can add further pressure Weakness in rupee has added imported inflation pressures – global energy prices have been under pressure Core inflation is trending lower
  9. 9. 9Concerns: Twin deficits Fiscal Deficit Fiscal consolidation interrupted by global financial crisis – stimulus only partially rolled back For FY13 government has projected lower deficit, but depends on revenues and ability to curb subsidies. Rs. bn FY13P FY12 FY11 FY10 FY09 FY08 FY07 FY06 Revenue 9774 7968 8237 6060 5470 5858 4408 3593 Expenditure 14909 13187 11973 10245 8840 7127 5834 5057 Fiscal Gap -5136 -5220 -3736 -4185 -3370 -1270 -1426 -1464 Fiscal Gap (as % of GDP) 5.1% 5.9% 4.9% 6.5% 6.0% 2.5% 3.3% 4.0% Source: Budget Documents, CIRA Current Account Deficit (CA Deficit): Has worsened in recent times mainly due to expansion in gold imports Lower crude prices and fall in gold imports could help narrow deficit in FY13 $ bn FY12 FY11 FY10 FY09 FY08 FY07 FY06 Exports 310 250 182 189 166 129 106 Imports 499 381 301 309 258 191 157 Invisibles 112 85 80 92 76 52 42 CA Deficit (% of GDP) -4.2% -2.7% -2.8% -2.3% -1.3% -1.0% -1.2% CA Deficit excluding -1.0% -1.3% -1.6% -1.5% -0.9% -0.4% -0.7% gold (as % of GDP) Source: RBI, IIFL. Excluding gold reflects net gold imports
  10. 10. 10India: Key Drivers – Consumption & Infrastructure Spend Population Profile Trend in infrastructure spendingSource: UN-World Population Prospects, CLSA Asia-Pacific Markets, Dec 2011 Source: Morgan Stanley Research, Sep 2011 Economy will benefit from positive demographic trends Higher share of working age population Rise in income levels to boost consumption Infrastructure spending has slowed in recent times. Will remain a key driver, as addressing infrastructural bottlenecks is critical to sustain economic growth
  11. 11. 11India: Key Drivers – Savings Trend in Savings and Investment Source: CSO, Citigroup. As of Feb 2012 India’s high savings ratio is a positive, given the large financing needs Can facilitate high investment rates without adding to current account deficit Need to encourage flows into productive financial assets High share of household savings in physical assets such as gold and real estate Statutory investment requirements in government securities means a significant share of private savings is diverted to fund deficit
  12. 12. 12Corporate India: Faring relatively well Corporate India’s Profits: Less volatile than most markets India Earnings Growth (%) MSCI Index/ Trends in EPS Standard Annual Coefficient Growth over 15 years Deviation EPS of variation growth India 14% 8% 1.75 China 42% 1% 30.52 Brazil 40% 10% 4.02 Russia 431% 13% 33.32 EM 28% 7% 3.79 ACWI 31% 6% 4.01 US 31% 6% 5.29Source: FactSet, MSCI, IBES Estimates, Company data, Capitaline, Morgan Stanley DM 32% 6% 5.25Research. May 2012 Source : Capitaline, CEIC, MS Research. As of Jul 2012 Despite challenges, Corporate India Gross debt/equity for more than 9,000 listed Indian companies continues to deliver healthy earnings growth Balance sheets remain in good shape - some capital intensive sectors/companies exceptions Environment ideal for bottom up stock pickers Source : CMIE, ACE Equity, CLSA Asia-Pacific Markets As of Jan 2012
  13. 13. 13India Currency: Recent Weakness INR has weakened considerably Source: JP Morgan Rupee’s sharp decline mainly due to widespread risk aversion in global markets Currencies of other nations with current account deficits also exhibited sharp volatility Policymakers have taken steps to boost capital flows – revised guidelines on GAAR awaited Weak rupee could boost export competitiveness
  14. 14. 14Market Valuations Key Valuation Metrics – BSE Sensex (as of Aug 9, 2012) Current Median Current/ Current as SD Markets are trading below long-term Median from Average averages both on absolute & relativePE (trailing) 14.8 16.6 0.9 -0.6 valuation basis12M Fwd PE 12.5 13.2 0.9 -0.3P/B 2.2 2.4 0.9 -0.4Dividend Yield 2.2% 2.1% 1.1 0.1P/Cash 10.2 10.1 0.9 -0.2P/Sales 1.2 1.3 0.7 -0.6EV/EBIDTA 8.4 10.5 1.0 -1.0 Note: Median/Average for BSE Sensex since Dec 1992 Source: Factset, MSCI, Bloomberg, Morgan Stanley Research. *Data as of July 12, 2012
  15. 15. 15What should investors do? Invest for the long term Oft repeated cliché – but a simple and effective way to invest in equity markets While markets always fluctuate the possibility of losing money always diminishes as the investment horizon increases Maximum Minimum Average of Possibility of Possibility of Returns Returns rolling returns making money losing money 1 year 264.77% -56.26% 17.95% 61.30% 38.70% 3 years 62.16% -18.52% 13.09% 76.85% 23.15% 5 years 47.22% -7.81% 11.92% 84.54% 15.46% 7 years 29.34% -7.55% 11.91% 86.87% 13.13% 10 years 20.69% -2.81% 10.72% 97.51% 2.49%Annualized and Compounded Returns on BSE Sensex; Period – 02-Jan-1991 to 31-July-2012. Source: BSE.
  16. 16. 16What should investors do? Stay invested during volatile times – timing the markets is futile Market moves tend to be sharp and quick over shorter time frames Hence missing a few of the best days in the market can reduce overall return potential Period of investment – 10 Average annual return on years ended July 31, 2012 the BSE Sensex Stayed Fully Invested 19.14% Missed the best 5 days 13.85% Missed the best 10 days 10.50% Missed the best 20 days 4.80% Missed the best 30 days 0.14% Missed the best 40 days -3.66% The table is for illustrative purposes only. Source: BSE.
  17. 17. FT – Equity – Focus Funds
  18. 18. 18FT: Equity Funds FT has a broad range of equity funds to suit the current environment and future opportunities All these funds focus on long term fundamentals and stock picking – essential to identify quality companies in this environment The equity fund range consists of funds that have a performance track record of around 19 years and core investment team has remained unchanged for most of this period. Fund Investment focus Inception date Franklin India Bluechip Fund Invests in large cap companies December 1, 1993 Franklin India Prima Plus Primarily a large cap fund with some September 29, 1994 allocation to small/mid cap stocks that have high growth potential Franklin India Flexi Cap Fund Invests in companies across the market March 2, 2005 range
  19. 19. 19Franklin India Bluechip FundFund Description Open-end fund with clear focus on large cap companies, Growth Blend Value irrespective of market conditions LargeInception Date December 1, 1993 MediumAssets Rs. 4,802.65 crores (July 31, 2012) SmallManaged by Anand Radhakrishnan, Anand Vasudevan Style ConsistencyInvestment Style Blend of ‘growth’ and ‘value’Salient Points One of the oldest funds with a consistent performance track record across market cycles – 19 year track record! Remains true to its label Normally has about 35 to 40 stocks in its portfolio Adopts a buy-hold strategy and has low portfolio churn ratio Suitable as a core holding for all equity portfolios Source: Morningstar From Dec’93 to Jul’12
  20. 20. 20Franklin India Bluechip Fund Top 10 holdings Sector Share of Top Sector Allocations Share of equity AUM equity AUM ICICI Bank Banks 8.10% Banks 25.84% Bharti Airtel Telecom – Services 6.75% Telecom - Services 9.02% Infosys Software 5.80% Pharmaceuticals 8.91% HDFC Bank Banks 5.14% Software 8.53% Grasim Cement 4.66% Power 7.07% Reliance Industries Petroleum Products 3.87% Petroleum Products 5.93% Oil & Natural Gas Oil 3.27% Cement 5.88% Corporation Consumer Non Durables 5.71% Kotak Mahindra Bank Banks 3.01% Auto 4.19% Dr. Reddys Pharmaceuticals 2.86% Oil 3.53% IndusInd Bank Banks 2.78% Rest 15.39% Total 46.24% Total 100.00% As of July 31, 2012 These securities represent the ten largest holdings held in the Fund as of the date indicated. These securities do not represent all of the securities purchased, sold or Recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change.
  21. 21. 21Franklin India Bluechip FundLong-term Cumulative Fund Performance (as of Jun 29, 2012)Refer Annexure for detailed performance disclosuresGrowth Option NAV as at June 29, 2012: (Rs.) 209.5208 Fund Manager: Anand Radhakrishnan, Anand Vasudevan Growth Plan NAV Per FIBCF BSE Sensex S&P CNX Nifty Unit (Rs.)Last 1 year (Jun 30, 2011 to Jun 29, 2012) 216.5858 -3.26% -7.51% -6.53%Last 2 years (Jun 30, 2010 to Jun 29, 2012) 196.4388 3.28% -0.77% -0.32%Last 3 years (Jun 30, 2009 to Jun 29, 2012) 151.4629 11.42% 6.34% 7.15%Last 5 years (Jun 29, 2007 to Jun 29, 2012) 142.4306 8.02% 3.53% 4.09%Last 10 years (Jun 28, 2002 to Jun 29, 2012) 21.95 25.28% 18.29% 17.42%Last 15 years (Jun 30, 1997 to Jun 29, 2012) 13.57 25.68% 9.85% 10.42%Since inception till Jun 29, 2012 10 23.46% 9.38% 9.32%Current Value of Standard Investment of Rs. 10000 invested at the beginning of the periodLast 2 years 10,666 9,847 9,937Last 3 years 13,833 12,026 12,302Last 5 years 14,710 11,897 12,224Last 10 years 95,454 53,718 49,905Last 15 years 308,854 40,953 44,271Since inception as on (1.12.93) 502,687 52,946 52,372Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested andBonus is adjusted. Refer annexure performance of other funds managed by the fund manager/s. Returns greater than 1 year period arecompounded annualized.
  22. 22. 22Franklin India Bluechip Fund Market Resilience (as of Jun 29, 2012) Date FIBCF BSE Sensex S&P CNX Nifty % change % change % change Inception 1-Dec-93 N.A N.A N.A Initial Rise 12-Sep-94 91.50% 40.66% 37.40% Fall 04-Dec-96 -38.22% -40.72% -43.09% Rise 05-Aug-97 47.01% 65.68% 61.54% Fall 20-Oct-98 18.07% -39.22% -36.48% Tech rally peak 11-Feb-00 233.94% 114.66% 117.14% 11/9 impact 21-Sep-01 -47.94% -56.18% -51.36% Recovery 14-Jan-04 279.97% 138.22% 132.05% India Re-rating 10-May-06 118.15% 103.62% 89.40% Precrisis Peak 08-Jan-08 57.86% 65.50% 67.49% Fall after peak 09-Mar-09 -54.97% -60.91% -59.08% Market Peak 09-Nov-10 165.08% 156.51% 144.90% Current 29-Jun-12 -9.84% -16.73% -16.23% Returns since inception* 29-Jun-12 23.46% 9.38% 9.32% Past performance may or may not be sustained in future. *Compounded and annualized. Dividends are assumed to be reinvested and bonus is adjusted. Refer annexure for performance information of other funds managed by the fund manager/s.
  23. 23. 23Franklin India Bluechip Fund Performance Attribution By Sector - 1 year ended July 2012 Telecommunication Services ‐3.08 Utilities ‐1.11 Industrials ‐0.81 Information Technology ‐0.36 Energy 0.17 Cash & Other Net Assets 0.64 Consumer Discretionary 0.79 Health Care 0.80 Consumer Staples 0.87 Materials 1.62 Financials 1.93 ‐4.00 ‐3.00 ‐2.00 ‐1.00 ‐‐ 1.00 2.00 3.00 Past performance does not guarantee future results. Source: FactSet.
  24. 24. 24Franklin India Bluechip Fund Performance Attribution By Stock – 1 year ended July 2012 Top Three Contributors Grasim Industries One of the largest players in cement and monopoly in viscose staple fibre in India Is a value buy within the cement space and its VSF business offers downside protection during downcycles in cement Kotak Mahindra Bank Well positioned to take advantage of the ongoing rise in financial inclusion and shift in savings preference from traditional bank deposits to market linked instruments HDFC Bank Amongst the largest Indian private banks and have a strong retail franchise Bet on rising penetration of financial services Bottom Three Contributors Bharti Airtel Leading wireless telecom services company and a play on rising penetration of data/broadband connections Could benefit from any consolidation in the industry Regulatory uncertainty has weighed on the stock and sector Crompton Greaves Engineering solutions company and a play on the long-term investment story Stock has been impacted by capex slowdown and stiff competition concerns Infosys One of the largest software companies in India and a key beneficiary of the outsourcing trend Stock has been under pressure as challenging demand environment weighs on earnings Past performance does not guarantee future results. Source: FactSet. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation.
  25. 25. 25Franklin India Prima PlusFund Description Open-end diversified equity fund investing predominantly in Growth Blend Value large cap stocks with some exposure to mid/small cap stocks LargeInception Date September 29, 1994 MediumAssets Rs. 1,827.26 crores (Jul 31, 2012)Managed by Anand Radhakrishnan, R. Janakiraman SmallInvestment Style Primarily ‘growth’ Style ConsistencySalient Points Has a long track performance track record of 18years plus ! Focuses on Wealth creating companies (generate return on capital in excess of their cost of capital) with high growth High growth companies in emerging sectors Typically large/mid cap stock ratio of 80/20 Suitable for investors having moderate to aggressive risk profile with an investment horizon of at least 3 years Source: Morningstar Since Inception to Jun 2012
  26. 26. 26Franklin India Prima Plus Top 10 holdings Sector Share of Top Sector Allocation Share of equity AUM equity AUM ICICI Bank Banks 7.99% Banks 22.34% Bharti Airtel Telecom – Services 6.52% Pharmaceuticals 12.09% Infosys Software 5.51% Telecom – Services 8.33% HDFC Bank Banks 5.03% Software 7.33% Grasim Industries Cement 4.59% Cement 6.78% Indus Ind Bank Banks 3.00% Auto Ancillaries 4.78% Kotak Mahindra Bank Banks 2.83% Consumer Non Durables 4.61% Reliance Industries Petroleum Products 2.65% Auto 4.45% Dr. Reddys Pharmaceuticals 2.64% Petroleum Products 4.33% Bosch Auto Ancillaries 2.34% Minerals/Mining 3.93% Total 43.11% Total 78.97% As of Jul 31, 2012 These securities represent the ten largest holdings held in the Fund as of the date indicated. These securities do not represent all of the securities purchased, sold or Recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change.
  27. 27. 27Franklin India Prima Plus Long-term Cumulative Fund Performance (as of Jun 29, 2012) Refer Annexure for detailed performance disclosures Growth Plan NAV as at June 29, 2012: (Rs.) 217.1948 Fund Manager: Anand Radhakrishnan, R. Janakiraman Growth Plan NAV Per FIPP S&P CNX 500 S&P CNX Nifty Unit (Rs.) Last 1 year (Jun 30, 2011 to Jun 29, 2012) 223.3016 -2.73% -7.79% -6.53% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 202.8684 3.47% -2.87% -0.32% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 154.5570 12.01% 6.33% 7.15% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 156.0141 6.83% 2.84% 4.09% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 22.79 25.26% 18.34% 17.42% Last 15 years (Jun 30, 1997 to Jun 29, 2012) 7.54 25.10% 11.98% 10.42% Since inception till Jun 29, 2012 10 18.92% 7.86% 8.16% Current Value of Standard Investment of Rs. 10000 invested at the beginning of the period Last 2 years 10,706 9,434 9,937 Last 3 years 14,053 12,020 12,302 Last 5 years 13,921 11,503 12,224 Last 10 years 95,303 53,965 49,905 Last 15 years 288,057 54,637 44,271 Since inception (29.09.94) 217,195 38,326 40,253 Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Refer annexure for performance of other funds managed by the fund manager/s. Returns greater than 1 year period are compounded annualized.
  28. 28. 28Franklin India Prima Plus Market Resilience (as of Jun 29, 2012) Date FIPP S&P CNX 500 S&P CNX Nifty % change % change % change Inception 29-Sep-94 N.A. N.A. N.A. Fall 04-Dec-96 -41.20% -51.26% -39.90% Rise 05-Aug-97 43.03% 58.98% 61.54% Fall 20-Oct-98 4.40% -33.87% -36.48% Tech rally peak 11-Feb-00 277.33% 176.49% 117.14% 11/9 impact 21-Sep-01 -53.70% -64.60% -51.36% Recovery 14-Jan-04 240.68% 197.02% 132.05% India Re-rating 10-May-06 138.10% 97.93% 89.40% Pre-crisis Peak 08-Jan-08 71.93% 70.16% 67.49% Fall after peak 09-Mar-09 -55.79% -63.98% -59.08% Market Peak 09-Nov-10 155.14% 164.30% 144.90% Current 29-Jun-12 -10.00% -19.77% -16.23% Returns since inception* 29-Jun-12 18.92% 7.86% 8.16% Past performance may or may not be sustained in future. *Compounded and annualized. Dividends are assumed to be reinvested and bonus is adjusted. Refer annexure for performance information of other funds managed by the fund manager/s.
  29. 29. 29Franklin India Prima Plus Performance Attribution By Sector – 1 year ended July 2012 Telecommunication Services ‐3.29 Consumer Discretionary ‐2.40 Utilities ‐0.62 Information Technology ‐0.39 Energy ‐0.32 Industrials ‐0.04 Consumer Staples 0.39 Cash & Other Net Assets 0.55 Health Care 1.06 Materials 2.22 Financials 2.62 ‐4.00 ‐3.00 ‐2.00 ‐1.00 ‐‐ 1.00 2.00 3.00 Past performance does not guarantee future results. Source: FactSet.
  30. 30. 30Franklin India Prima Plus Performance Attribution By Stock – 1 year ended July 2012 Top Three Contributors CRISIL India’s largest ratings agency with strong parentage (Standard & Poor’s) Well-placed to gain from increased activity in the capital markets and policy changes driving expansion of service offerings Grasim Industries One of the largest players in cement and near monopoly in viscose staple fibre in India Is a value buy within the cement space and its VSF business offers downside protection during downcycles in cement HDFC Bank Amongst the largest Indian private banks and has a strong retail franchise Bet on rising penetration of financial services Bottom Three Contributors TV18 Broadcast Pan-media house with dominant presence in broadcasting and strong bouquet of offerings Underperformance led by concerns about slowing ad spends and debt levels Bharti Airtel Leading wireless telephony company Well placed to benefit from any consolidation in the industry and rising penetration of data/broadband connections Regulatory uncertainty has weighed on the stock and sector Infosys One of the largest software companies in India and a key beneficiary of the outsourcing trend Stock has been under pressure as challenging demand environment weighs on earnings Past performance does not guarantee future results. Source: FactSet. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation.
  31. 31. 31Franklin India Flexi Cap FundFund Description Open-end fund with the flexibility to buy into companies Growth Blend Value across market caps LargeInception Date March 2, 2005 MediumAssets Rs. 1,643.60 crores (July 31, 2012)Managed by K.N. Sivasubramanian, Anand Vasudevan SmallInvestment Style Blend of ‘growth’ and ‘value’Salient Points Portfolio well-diversified across sectors - blends the typically more volatile, mid/small cap stocks with large caps, that tend to be more stable Has the ability to capture growth potential across big and small companies in a comprehensive manner Given its diversified nature, ideal as a core holding of all equity portfolios
  32. 32. 32Franklin India Flexi Cap Fund Top 10 holdings Sector Share of Top Sector Allocation Share of equity AUM equity AUM ICICI Bank Banks 9.07% Banks 25.07% Bharti Airtel Telecom – Services 8.88% Pharmaceuticals 12.59% Axis Bank Banks 7.25% Telecom - Services 8.88% Dr. Reddys Laboratories Pharmaceuticals 4.75% Power 7.28% HDFC Bank Banks 6.06% Auto 6.30% Yes Bank Banks 3.77% Cement 4.24% Infosys Software 3.17% Auto Ancillaries 3.55% Oil & Natural Gas Corp. Auto 3.07% Software 3.17% Power Grid Corporation Power 2.99% Oil 3.07% Mahindra & Mahindra Auto 2.98% Gas 3.02% Total 51.99% Total 77.17% As of July 31, 2012These securities represent the ten largest holdings held in the Fund as of the date indicated. These securities do not represent all of the securities purchased, sold orRecommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change.
  33. 33. 33Franklin India Flexi Cap Fund Long-term Cumulative Fund Performance (as of Jun 29, 2012) Refer Annexure for detailed performance disclosures Growth Plan NAV as at June 29, 2012: (Rs.) 30.8875 Fund Manager: KN Sivasubramanian, Anand Vasudevan Growth Plan NAV FIFCF S&P CNX 500 S&P CNX Nifty Per Unit (Rs.) Last 1 year (Jun 30, 2011 to Jun 29, 2012) 32.7142 -7.98% -7.79% -6.53% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 29.8221 0.47% -2.87% -0.32% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 22.2975 10.52% 6.33% 7.16% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 22.9236 5.59% 2.84% 4.09% Since inception till Jun 29, 2012 10 16.22% 11.93% 13.45% Current Value of Standard Investment of Rs. 10000 invested at the beginning of the period Last 2 years 10,094 9,434 9,937 Last 3 years 13,501 12,020 12,302 Last 5 years 13,132 11,503 12,224 Since inception (2.03.2005) 30,104 22,849 25,219Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested andBonus is adjusted. Refer annexure performance of other funds managed by the fund manager/s. Returns greater than 1 year period arecompounded annualized.
  34. 34. 34Franklin India Flexi Cap Fund Market Resilience (as of Jun 29, 2012) Date FIFCF S&P CNX 500 S&P CNX Nifty % change % change % change Inception 2-Mar-05 N.A N.A N.A India Re-rating 10-May-06 100.60% 75.80% 79.35% Precrisis Peak 08-Jan-08 57.17% 70.16% 67.49% Fall after peak 09-Mar-09 -60.59% -63.98% -59.08% Market Peak 09-Nov-10 194.89% 164.30% 144.90% Current 29-Jun-12 -17.85% -19.77% -16.23% Returns since inception* 29-Jun-12 16.22% 11.93% 13.45% Past performance may or may not be sustained in future. *Compounded and annualized. Dividends are assumed to be reinvested and bonus is adjusted. Refer annexure for performance information of other funds managed by the fund manager/s.
  35. 35. 35Franklin India Flexi Cap Fund Performance Attribution By Sector – 1 year ended July 2012 Consumer Discretionary ‐2.71 Telecommunication Services ‐2.57 Utilities ‐1.31 Industrials ‐1.27 Energy ‐0.21 Information Technology 0.13 Consumer Staples 0.27 Cash & Other Net Assets 0.51 Financials 0.77 Materials 1.04 Health Care 1.66 ‐3.00 ‐2.00 ‐1.00 ‐‐ 1.00 2.00 Past performance does not guarantee future results. Source: FactSet.
  36. 36. 36Franklin India Flexi Cap Fund Performance Attribution By Stock – 1 year ended July 2012 Top Three Contributors Amara Raja Batteries Leading player in Indian storage battery industry Play on the rising demand for automotives and telecom/ industrial growth HDFC Bank Amongst the largest Indian private banks and have a strong retail franchise Bet on rising penetration of financial services IPCA Laboratories A fully-integrated mid-size pharma company with a diversified revenue mix Re-rating potential - improving business mix, benefits from backward integration and healthy balance sheet Bottom Three Contributors TV18 Broadcast Pan-media house with dominant presence in broadcasting business and strong bouquet of offerings Underperformance led by concerns about debt levels and inter-group restructuring Infosys One of the largest software companies in India and a key beneficiary of the outsourcing trend Stock has been under pressure as challenging demand environment weighs on earnings Bharti Airtel Leading wireless telephony company Well placed to benefit from any consolidation in the industry and rising penetration of data/broadband connections Regulatory uncertainty has weighed on the stock and sector Past performance does not guarantee future results. Source: FactSet. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation.
  37. 37. 37Summary Cautious optimism in global markets on hopes of policy support India like other EMs has witnessed a slowdown in economic growth Growth likely to remain modest over the coming year or so as domestic and global factors play out There’s more headroom for monetary easing now but fiscal situation remains a concern Long-term growth story remains intact - an interplay of consumption & investment Corporate India remains in good shape – even as near term RoE trends impacted by cost pressures Current valuations offer good investment opportunities, especially bottom-up basis FT has a range of offerings with strong track record to suit different risk profiles One of the largest buy side teams – senior managers and analysts have been together for more than 16 years Tune-out short-term noise and focus on long-term potential Ignore momentum stories that reflect short-term trends and focus on building a portfolio of companies that are creating value for their shareholders Bluechip, Flexi Cap and Prima Plus funds have a long track record and have performed well across market cycles
  38. 38. 38Risk factorsScheme Classification and Objective: Franklin India Bluechip Fund (FIBCF) is an open ended growthscheme with an objective to primarily provide medium to long term capital appreciation. Franklin India FlexiCap Fund (FIFCF): An open-end diversified equity fund that seeks to provide medium to long-term capitalappreciation by investing in stocks across the entire market capitalization range. Franklin India Prima Plus(FIPP) is an open end growth fund with an objective to provide growth of capital plus regular dividendthrough a diversified portfolio of equities, fixed income securities and money market instruments. LoadStructure: FIBCF,FIPP FIFCF: Entry Load: Nil: Exit Load: In respect of each purchase of Units - 1% if theUnits are redeemed/switched-out within one year of allotment. Risk Factors: Mutual Fund investments aresubject to market risks, read all scheme related documents carefully. The NAVs of the schemes maygo up or down depending upon the factors and forces affecting the securities market. The Mutual Fund is notguaranteeing or assuring any dividend under any of the schemes and the same is subject to the availabilityand adequacy of distributable surplus. The past performance of the mutual funds managed by the FranklinTempleton Group and its affiliates is not necessarily indicative of future performance of the schemes.
  39. 39. Annexure
  40. 40. SCHEME PERFORMANCEFranklin India Bluechip Fund (FIBCF) - Growth Option Jun 30, 2009 to Jun 30, 2010 175.4872 50.57% 27.41% 23.80%NAV as at June 29, 2012: (Rs.) 209.5208 Compounded Annualised Growth Rate PerformanceFund Manager: Anand Radhakrishnan, Anand Vasudevan Last 2 years (Jun 30, 2010 to Jun 29, 2012) 0.09% -2.87% -0.32% NAV Per Unit (Rs.) FIBCF BSE Sensex S&P CNX Nifty Last 3 years (Jun 30, 2009 to Jun 29, 2012) 14.68% 6.33% 7.15%Discrete 12 months performance Last 5 years (Jun 29, 2007 to Jun 29, 2012) 226.7622 3.14% 2.84% 4.09%Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 216.5858 -3.26% -7.51% -6.53% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 29.10 24.68% 18.34% 17.42%Jun 30, 2010 to Jun 30, 2011 196.4388 10.26% 6.47% 6.30% Last 15 years (Jun 30, 1997 to Jun 29, 2012) 10.06 24.34% 11.98% 10.42%Jun 30, 2009 to Jun 30, 2010 151.4629 29.69% 22.13% 23.80% Since inception till Jun 29, 2012 10 19.27% 8.97% 9.32%Compounded Annualised Growth Rate Performance Current Value of Standard Investment of Rs 10000Last 2 years (Jun 30, 2010 to Jun 29, 2012) 3.28% -0.77% -0.32% Last 2 years 10018 9434 9937Last 3 years (Jun 30, 2009 to Jun 29, 2012) 11.42% 6.34% 7.15% Last 3 years 15083 12020 12302Last 5 years (Jun 29, 2007 to Jun 29, 2012) 142.4306 8.02% 3.53% 4.09% Last 5 years 11673 11503 12224Last 10 years (Jun 28, 2002 to Jun 29, 2012) 21.95 25.28% 18.29% 17.42% Last 10 years 90961 53965 49905Last 15 years (Jun 30, 1997 to Jun 29, 2012) 13.57 25.68% 9.85% 10.42% Last 15 years 263117 54637 44271Since inception till Jun 29, 2012 10 23.46% 9.38% 9.32% Since inception (1.12.1993) 264695 49412 52372Current Value of Standard Investment of Rs 10000 Franklin India Flexi Cap Fund (FIFCF) - Growth OptionLast 2 years 10666 9847 9937 NAV as at June 29, 2012: (Rs.) 30.1038Last 3 years 13833 12026 12302 Fund Manager: K. N. Sivasubramanian, Anand VasudevanLast 5 years 14710 11897 12224 NAV Per Unit (Rs.) FIFCF S&P CNX 500 S&P CNX NiftyLast 10 years 95454 53718 49905 Discrete 12 months performanceLast 15 years 308854 40953 44271 Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 32.7142 -7.98% -7.79% -6.53%Since inception (1.12.1993) 502687 52946 52372 Jun 30, 2010 to Jun 30, 2011 29.8221 9.70% 2.31% 6.30%Templeton India Growth Fund (TIGF) - Dividend Option Jun 30, 2009 to Jun 30, 2010 22.2975 33.75% 27.41% 23.80%NAV as at June 29, 2012: (Rs.) 44.6847 Compounded Annualised Growth Rate PerformanceFund Manager: Dr. J. Mark Mobius Last 2 years (Jun 30, 2010 to Jun 29, 2012) 0.47% -2.87% -0.32% NAV Per Unit (Rs.) TIGF BSE Sensex MSCI India Value S&P CNX Nifty Last 3 years (Jun 30, 2009 to Jun 29, 2012) 10.52% 6.33% 7.15%Discrete 12 months performance Last 5 years (Jun 29, 2007 to Jun 29, 2012) 22.9236 5.59% 2.84% 4.09%Jun 30, 2011 to Jun 29, 2012 (Last 1 year)50.6031 -8.24% -7.51% -12.03% -6.53% Since inception till Jun 29, 2012 10 16.22% 11.93% 13.45%Jun 30, 2010 to Jun 30, 2011 53.7310 1.89% 6.47% -0.70% 6.30% Current Value of Standard Investment of Rs 10000Jun 30, 2009 to Jun 30, 2010 40.0034 42.61% 22.13% 31.32% 23.80% Last 2 years 10094 9434 9937Compounded Annualised Growth Rate Performance Last 3 years 13501 12020 12302Last 2 years (Jun 30, 2010 to Jun 29, 2012) -3.31% -0.77% -6.53% -0.32% Last 5 years 13132 11503 12224Last 3 years (Jun 30, 2009 to Jun 29, 2012) 10.07% 6.34% 4.68% 7.15% Since inception (2.3.2005) 30104 22849 25219Last 5 years (Jun 29, 2007 to Jun 29, 2012) 43.7906 7.59% 3.53% 4.42% 4.09% Franklin India Opportunities Fund (FIOF) - Growth OptionLast 10 years (Jun 28, 2002 to Jun 29, 2012) 13.08 23.32% 18.29% 19.34% 17.42% NAV as at June 29, 2012: (Rs.) 28.8213Last 15 years (Jun 30, 1997 to Jun 29, 2012) 11.83 16.63% 9.85% 8.86% 10.42% Fund Manager: Chakri Lokapriya, Anil PrabhudasSince inception till Jun 29, 2012 10 16.96% 10.82% N.A 11.09% NAV Per Unit (Rs.) FIOF BSE 200 # S&P CNX NiftyCurrent Value of Standard Investment of Rs 10000 Discrete 12 months performanceLast 2 years 9350 9847 8736 9937 Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 31.2132 -7.66% -7.63% -6.53%Last 3 years 13334 12026 11472 12302 Jun 30, 2010 to Jun 30, 2011 29.7045 5.08% 2.96% 6.30%Last 5 years 14419 11897 12418 12224 Jun 30, 2009 to Jun 30, 2010 24.4161 21.66% 27.22% 23.80%Last 10 years 81558 53718 58695 49905 Compounded Annualised Growth Rate PerformanceLast 15 years 100621 40953 35755 44271 Last 2 years (Jun 30, 2010 to Jun 29, 2012) -1.50% -2.48% -0.32%since inception (10.9.1996) 119035 50745 N.A 52728 Last 3 years (Jun 30, 2009 to Jun 29, 2012) 5.68% 6.56% 7.15%Franklin India Prima Plus (FIPP) - Growth Option Last 5 years (Jun 29, 2007 to Jun 29, 2012) 28.6254 0.14% 3.44% 4.09%NAV as at June 29, 2012: (Rs.) 217.1948 Last 10 years (Jun 28, 2002 to Jun 29, 2012) 4.65 19.99% 13.34% 17.42%Fund Manager: Anand Radhakrishnan, R. Janakiraman Since inception till Jun 29, 2012 10 8.94% -3.64% 9.33% NAV Per Unit (Rs.) FIPP S&P CNX 500 S&P CNX Nifty Current Value of Standard Investment of Rs 10000Discrete 12 months performance Last 2 years 9703 9511 9937Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 223.3016 -2.73% -7.79% -6.53% Last 3 years 11804 12100 12302Jun 30, 2010 to Jun 30, 2011 202.8684 10.07% 2.31% 6.30% Last 5 years 10068 11847 12224Jun 30, 2009 to Jun 30, 2010 154.5570 31.26% 27.41% 23.80% Last 10 years 61981 35038 49905Compounded Annualised Growth Rate Performance Since inception (21.2.2000) 28821 6327 30105Last 2 years (Jun 30, 2010 to Jun 29, 2012) 3.47% -2.87% -0.32% # Index adjusted for the period February 21, 2000 to March 10, 2004 with the performance of ET Mindex.Last 3 years (Jun 30, 2009 to Jun 29, 2012) 12.01% 6.33% 7.15%Last 5 years (Jun 29, 2007 to Jun 29, 2012) 156.0141 6.83% 2.84% 4.09% Templeton India Equity Income Fund (TIEIF) - Growth OptionLast 10 years (Jun 28, 2002 to Jun 29, 2012) 22.79 25.26% 18.34% 17.42% NAV as at June 29, 2012: (Rs.) 19.1752Last 15 years (Jun 30, 1997 to Jun 29, 2012) 7.54 25.10% 11.98% 10.42% Fund Manager: Dr. J. Mark Mobius assisted by Chetan SehgalSince inception till Jun 29, 2012 10 18.92% 7.86% 8.16% NAV Per Unit (Rs.) TIEIF BSE 200 S&P CNX NiftyCurrent Value of Standard Investment of Rs 10000 Discrete 12 months performanceLast 2 years 10706 9434 9937 Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 20.5014 -6.47% -7.63% -6.53%Last 3 years 14053 12020 12302 Jun 30, 2010 to Jun 30, 2011 18.2134 12.56% 2.96% 6.30%Last 5 years 13921 11503 12224 Jun 30, 2009 to Jun 30, 2010 13.4542 35.37% 27.22% 23.80%Last 10 years 95303 53965 49905 Compounded Annualised Growth Rate PerformanceLast 15 years 288057 54637 44271 Last 2 years (Jun 30, 2010 to Jun 29, 2012) 2.61% -2.48% -0.32%Since inception (29.9.1994) 217195 38326 40253 Last 3 years (Jun 30, 2009 to Jun 29, 2012) 12.54% 6.56% 7.15%Franklin India Prima Fund (FIPF) - Growth Option Last 5 years (Jun 29, 2007 to Jun 29, 2012) 13.4733 7.30% 3.44% 4.09%NAV as at June 29, 2012: (Rs.) 264.6954 Since inception till Jun 29, 2012 10 11.22% 7.07% 7.51%Fund Manager: R. Janakiraman, K. N. Sivasubramanian Current Value of Standard Investment of Rs 10000 NAV Per Unit (Rs.) FIPF S&P CNX 500 S&P CNX Nifty Last 2 years 10528 9511 9937Discrete 12 months performance Last 3 years 14252 12100 12302Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 273.6303 -3.27% -7.79% -6.53% Last 5 years 14232 11847 12224Jun 30, 2010 to Jun 30, 2011 264.2304 3.56% 2.31% 6.30% Since inception (18.5.2006) 19175 15191 15577www.franklintempletonindia.com Franklin Templeton Investments 28
  41. 41. SCHEME PERFORMANCEFranklin Asian Equity Fund (FAEF) - Growth Option Jun 30, 2009 to Jun 30, 2010 143.1573 32.83% 27.41% 23.80%NAV as at June 29, 2012: (Rs.) 11.8279 Compounded Annualised Growth Rate PerformanceFund Manager: Roshi Jain Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.33% -2.87% -0.32% NAV Per Unit (Rs.) FAEF MSCI Asia S&P CNX Nifty Last 3 years (Jun 30, 2009 to Jun 29, 2012) 13.80% 6.33% 7.15% (ex Japan) Last 5 years (Jun 29, 2007 to Jun 29, 2012) 139.5850 8.60% 2.84% 4.09% Standard Index Last 10 years (Jun 28, 2002 to Jun 29, 2012) 24.5 24.00% 18.34% 17.42%Discrete 12 months performance Since inception till Jun 29, 2012 10 25.92% 14.51% 13.46%Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 11.1221 6.35% 5.14% -6.53% Current Value of Standard Investment of Rs 10000Jun 30, 2010 to Jun 30, 2011 9.8517 12.90% 18.24% 6.30% Last 2 years 11095 9434 9937Jun 30, 2009 to Jun 30, 2010 8.8466 11.36% 15.95% 23.80% Last 3 years 14738 12020 12302Compounded Annualised Growth Rate Performance Last 5 years 15115 11503 12224Last 2 years (Jun 30, 2010 to Jun 29, 2012) 9.57% 11.50% -0.32% Last 10 years 86117 53965 49905Last 3 years (Jun 30, 2009 to Jun 29, 2012) 10.17% 12.96% 7.15% Since inception (10.4.1999) 210987 60072 53140Since inception till Jun 29, 2012 10 3.84% 4.05% -2.60%Current Value of Standard Investment of Rs 10000Last 2 years 12006 12433 9937 Franklin India Index Fund Nifty Plan (FIIF-Nifty Plan) - Growth OptionLast 3 years 13370 14415 12302 NAV as at June 29, 2012: (Rs.) 41.6244Since inception (16.1.2008) 11828 11934 8893 Fund Manager: Anil Prabhudas NAV Per Unit (Rs.) FIIF - Nifty Plan S&P CNX NiftyFranklin India High Growth Companies Fund (FIHGCF) - Growth Option Discrete 12 months performanceNAV as at June 29, 2012: (Rs.) 11.9437 Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 44.4691 -6.40% -6.53%Fund Manager: K. N. Siva Subramanian, Roshi Jain Jun 30, 2010 to Jun 30, 2011 41.8199 6.33% 6.30% NAV Per Unit (Rs.) FIHGCF S&P CNX 500 S&P CNX Nifty Jun 30, 2009 to Jun 30, 2010 33.7031 24.08% 23.80%Discrete 12 months performance Compounded Annualised Growth Rate PerformanceJun 30, 2011 to Jun 29, 2012 (Last 1 year) 12.8575 -7.11% -7.79% -6.53% Last 2 years (Jun 30, 2010 to Jun 29, 2012) -0.23% -0.32%Jun 30, 2010 to Jun 30, 2011 12.0471 6.73% 2.31% 6.30% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.29% 7.15%Jun 30, 2009 to Jun 30, 2010 8.7659 37.43% 27.41% 23.80% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 34.4184 3.87% 4.09%Compounded Annualised Growth Rate Performance Last 10 years (Jun 28, 2002 to Jun 29, 2012) 8.01 17.89% 17.42%Last 2 years (Jun 30, 2010 to Jun 29, 2012) -0.43% -2.87% -0.32% Since inception till Jun 29, 2012 10 12.72% 12.35%Last 3 years (Jun 30, 2009 to Jun 29, 2012) 10.86% 6.33% 7.15% Current Value of Standard Investment of Rs 10000Since inception till Jun 29, 2012 10 3.67% 1.64% 2.74% Last 2 years 9953 9937Current Value of Standard Investment of Rs 10000 Last 3 years 12350 12302Last 2 years 9914 9434 9937 Last 5 years 12094 12224Last 3 years 13625 12020 12302 Last 10 years 51966 49905Since inception (26.7.2007) 11944 10836 11427 Since inception (4.8.2000) 41624 40036 Franklin India Index Fund BSE Plan (FIIF - BSE Plan) - Growth OptionFranklin India Smaller Companies Fund (FISCF) - Growth Option NAV as at June 29, 2012: (Rs.) 49.2906NAV as at June 29, 2012: (Rs.) 13.5247 Fund Manager: Anil PrabhudasFund Manager: R. Janakiraman, K. N. Sivasubramanian NAV Per Unit (Rs.) FIIF - BSE Plan BSE Sensex S&P CNX Nifty NAV Per Unit (Rs.) FISCF CNX Midcap S&P CNX Nifty Discrete 12 months performanceDiscrete 12 months performance Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 53.2506 -7.44% -7.51% -6.53%Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 14.2698 -5.22% -7.77% -6.53% Jun 30, 2010 to Jun 30, 2011 49.8169 6.89% 6.47% 6.30%Jun 30, 2010 to Jun 30, 2011 13.7126 4.06% -1.96% 6.30% Jun 30, 2009 to Jun 30, 2010 40.7039 22.39% 22.13% 23.80%Jun 30, 2009 to Jun 30, 2010 9.4570 45.00% 49.82% 23.80% Compounded Annualised Growth Rate PerformanceCompounded Annualised Growth Rate Performance Last 2 years (Jun 30, 2010 to Jun 29, 2012) -0.53% -0.77% -0.32%Last 2 years (Jun 30, 2010 to Jun 29, 2012) -0.69% -4.91% -0.32% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 6.59% 6.34% 7.15%Last 3 years (Jun 30, 2009 to Jun 29, 2012) 12.67% 10.65% 7.15% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 40.7969 3.85% 3.53% 4.09%Last 5 years (Jun 29, 2007 to Jun 29, 2012) 12.2294 2.03% 4.23% 4.09% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 9.86 17.44% 18.29% 17.42%Since inception till Jun 29, 2012 10 4.78% 9.00% 10.00% Since inception till Jun 29, 2012 10 15.84% 16.52% 15.83%Current Value of Standard Investment of Rs 10000 Current Value of Standard Investment of Rs 10000Last 2 years 9863 9042 9937 Last 2 years 9894 9847 9937Last 3 years 14301 13546 12302 Last 3 years 12110 12026 12302Last 5 years 11059 12303 12224 Last 5 years 12082 11897 12224Since inception (13.1.2006) 13525 17454 18519 Last 10 years 49990 53718 49905 Since inception (27.8.2001) 49291 52527 49218Franklin Build India Fund (FBIF) - Growth OptionNAV as at June 29 30, 2012: (Rs.) 11.2923 Franklin Infotech Fund (FIF) - Growth OptionFund Manager: Anand Radhakrishnan, Roshi Jain NAV as at June 29, 2012: (Rs.) 62.4415 NAV Per Unit (Rs.) FBIF S&P CNX 500 S&P CNX Nifty Fund Manager: Anand RadhakrishnanDiscrete 12 months performance NAV Per Unit (Rs.) FIF BSE IT Index S&P CNX NiftyJun 30, 2011 to Jun 29, 2012 (Last 1 year) 11.5538 -2.26% -7.79% -6.53% Discrete 12 months performanceJun 30, 2010 to Jun 30, 2011 12.0090 -3.79% 2.31% 6.30% Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 64.9739 -3.90% -5.49% -6.53%Compounded Annualised Growth Rate Performance Jun 30, 2010 to Jun 30, 2011 56.5424 14.91% 14.68% 6.30%Last 2 years (Jun 30, 2010 to Jun 29, 2012) -3.03% -2.87% -0.32% Jun 30, 2009 to Jun 30, 2010 34.6965 62.96% 61.82% 23.80%Since inception till Jun 29, 2012 10 4.41% 2.99% 4.36% Compounded Annualised Growth Rate PerformanceCurrent Value of Standard Investment of Rs 10000 Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.09% 4.11% -0.32%Last 2 years 9403 9434 9937 Last 3 years (Jun 30, 2009 to Jun 29, 2012) 21.64% 20.59% 7.15%Since inception (4.9.2009) 11292 10867 11279 Last 5 years (Jun 29, 2007 to Jun 29, 2012) 50.6014 4.29% 3.43% 4.09% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 12.99 16.98% 14.60% 17.42%Franklin India Taxshield (FIT) - Growth Option Since inception till Jun 29, 2012 10 19.98% N.A 14.03%NAV as at June 29, 2012: (Rs.) 210.9867 Current Value of Standard Investment of Rs 10000Fund Manage:r Anand Radhakrishnan, Anil Prabhudas Last 2 years 11043 10838 9937 NAV Per Unit (Rs.) FIT S&P CNX 500 S&P CNX Nifty Last 3 years 17996 17538 12302Discrete 12 months performance Last 5 years 12340 11836 12224Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 212.5066 -0.72% -7.79% -6.53% Last 10 years 48069 39118 49905Jun 30, 2010 to Jun 30, 2011 190.1618 11.75% 2.31% 6.30% Since inception (22.8.1998) 124900 N.A 61709www.franklintempletonindia.com Franklin Templeton Investments 29

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