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For Broker/Professional Use Only

India Equity Markets – A Perspective

October 2015

For Broker/Professional Use Only 1

1

Agenda

Global Overview•

Global Economy•

US Fed Rate Hike•

China Slowdown Concerns•

Global Markets

India Macro & Markets Overview•

India’s Global Competitiveness•

Indian Economy•

Indian Corporate Earnings & Margins•

Indian Markets & Valuations•

Outlook

Franklin India Equity Funds: Performance and Portfolio Summary


Global Overview


3

Global Economy Global growth downgraded a bit, but expected to recover in 2016

The IMF downgraded its global growth forecast marginally in its October update, citing weak commodity prices and a slowdown in China.

‒

Global growth forecasted at 3.1% in 2015 and 3.6% in 2016 (both downgraded by 0.2% from July forecast). ‒

Growth in advanced economies is expected to pick up, with US leading the pack with a GDP growth of 2.6% in 2015 and 2.8% in 2015. Canada saw the sharpest downgrade in this pack from the July forecast.

‒

In China, growth is expected to slowdown to 6.8% in 2015 and 6.3% in 2016.‒

Emerging markets like Brazil, Russia, South Africa see sharp downgrades in growth from July forecast.‒

India’s GDP growth projected to rise to 7.5% in 2016 from 7.3% in 2015.

Source: IMF World Economic Outlook (WEO) October 2015, * P=Based on Projections

Global GDP growth (%)


US Fed Rate HikeAround the corner, or is it ?

•

US Fed kept rates unchanged in its Sep meeting, citing that recent global developments may restrain economic activity and are likely to put further downward pressure on inflation in the near term.

•

Fed Chair Janet Yellen

maintained that the Fed is on track to raise rates this year, although she acknowledged that any economic surprises may lead them to change

the plan.

•

Fed fund futures curve points to a delay in hiking rates, compared to projections in Aug & Sep.

•

The US 10 year treasury yield hardened leading up to the Sep meeting, but has eased post that.

Source: Bloomberg

US 10-yr bond yieldFed Fund Futures Curve (in %)

Source: Bloomberg, Morgan Stanley Research, October’ 2015


China Slowdown ConcernsChina’s central bank cuts rates again

Another dual cut from PBoC

•

China stepped up monetary easing with its 6th

interest-rate cut in a year to combat deflationary pressures and a slowing economy.

•

The People’s Bank of China (PBoC) also scrapped a deposit-rate ceiling that limited the rate banks could pay savers, saying the move was made possible by a decline

in market-based interest rates.

Source: PBoC, Credit Suisse October’ 2015Source: NBS, Credit Suisse October’ 2015

Growth Slowdown in China, GDP deflator drops to negative


6

Global Markets Under pressure during the September quarter

Global equity markets were under pressure during the September quarter, led by weakness in emerging markets.

China (represented by the Shanghai Composite index) was among the bottom performers during the quarter, on the back of slowing economic data.

The Russian market also closed with large losses on the back of soft crude oil prices .

Indian markets also closed in the red during the quarter, but managed to fare better than peer EMs.

% Returns of International Indices (in base currency)

Source: Morningstar Direct, Returns are ended September 30, 2015. Data is sorted in descending order on the basis of 3 months return


India Macro Overview


•

As per World Economic Forum’s global competitiveness analysis, India’s ranking improved by 16 places to 55 out of a total of 140 countries in 2015, reversing a 5-year decline trend.

•Within the Asia region and among the BRIC nations, India’s ranking saw the largest improvement in 2015, and is largely in line with Asia’s average.

•Ranking improved across all categories in 2015 Vs 2014, except ‘Financial Market Development’.

8

India’s Global Competitiveness Ranking has improved after 5 years of decline

India’s Global Competitiveness Ranking Trend

Source: World Economic Forum, Morgan Stanley Research, October’15. *The data labels represent India’s rank by total number of countries considered.

India’s Competitiveness Ranking - By Category


•

Gross Value Added (GVA) growth by industry, which is a more robust indicator of activity, rose to 7.1%YoY in 1Q FY16 (April –

June) from 6.1%YoY in previous quarter.–

Helped primarily by increased growth seen in agriculture and industrial sectors

•GDP by expenditure (at market prices) came in below market expectations at 7.0%YoY in 1Q FY16, from 7.5%YoY in previous quarter.

–

Was lower primarily due to negative contribution from exports

9

Indian Economy GVA growth suggests pick-up in activity

India Qrtly GVA & GDP Trend (% YoY)

Source: Government data. Motilal Oswal Research, August’15


10

Indian Economy High frequency indicators also point to a recovery, albeit uneven

Industrial Production Growth % YoY, 3mma

Source: Morgan Stanley Research, October’15

Passenger Car Sales Growth % YoY, 3mma

Two-Wheeler Sales Growth % YoY, 3mma Steel Production & Demand Growth % YoY, 3mma


•

Fiscal deficit in control due to control on expenditure & acceleration in tax and non-tax revenue.

•

The govt. in a comfortable position to achieve the FY16 deficit target of 3.9%.

•

Current account deficit has also narrowed considerably over time, but widened a bit recently due to rising trade deficit—on the back of an export slowdown.

11

Indian Economy Twin deficits in control now

Source: CEIC, Morgan Stanley Research, October’ 2015

Fiscal Deficit - 12-mth trailing sum (% of GDP) Current Account Deficit – Qtrly, Annualised (% of GDP)


•

Growth from Asia ex-Japan region has especially slowed down—led by China.

•

Weaker demand from EM also adversely affecting export performance.

•

Weak external demand and slow recovery in domestic demand has kept domestic capacity utilization low.

12

Exports Weak external demand weighing on export growth

Source: CEIC, Ministry of Commerce, Morgan Stanley Research, October’ 2015

Export Growth YoY %,3MMA Exports by Destination


•

CPI Inflation still continues to be benign, but ticked up to 4.4%YoY in Sep 2015 from a revised 3.7%YoY in the previous month. It

has moderated significantly from a high of ~11% in Nov 2013 . -

Tick up in inflation during Sep was primarily due to unwinding of favourable base effect, as expected.-

Food inflation rose to 3.9%YoY from 2.2%YoY in previous month, and core inflation also rose marginally.

•

As per RBI, the inflation target for Jan 2016 stands reduced to 5.8%, and for FY17 end at 5%. Focus would now shift to bring down inflation to the mid-point of the inflation band (i.e. 4%) by FY18 end.

13

Inflation Inflation remains in control; favourable base effect to unwind going forward

Source: CEIC, Morgan Stanley Research, October’ 2015.

India CPI Inflation % (YoY) CPI Contribution Analysis % (YoY)


14

Capex cycle Is showing some signs of recovery, although it may take some time

New Investment Projects (Rs in Bn)Projects under implementation* (YoY %)

Source: CMIE, Morgan Stanley Research, October’15. *Includes all govt. or private projects that were announced/proposed.

•

Projects under implementation has been improving, although private projects led slowdown in quarter ended Sep 2015.

•

Total new projects announced has also been rising and increased to more than Rs. 1 trillion on a 4-quarter trailing basis—the highest since Sep 2011.


15

Capex cycle (Contd.) Is showing some signs of recovery, although it may take some time

Capital Goods Imports (% YoY, 3MMa)Engineering & Construction Co. Order Flows

Source: CMIE, Morgan Stanley Research, October’15.

•

Engineering and construction company order book has continued to

expand for 4 consecutive quarters (ended Jun 15). However, order inflows have moderated in QE Mar-15 & QE Jun-15.

•

Capital goods imports have also been declining.


India Corporate Earnings


India Corporate Earnings Nifty FY16 Earnings have been downgraded by 22% over past year

13% contributed by global cyclicals

Nifty FY16 Earnings Downgrade Trend

Of the 22% downgrade,

Quarterly downgrade composition

Source: Motilal Oswal Research, October’ 2015. Based on Motial Oswal Research estimates.


FY16 PAT Growth ContributorsGlobal Cyclicals are expected to lag

Segment-wise contribution to FY16 PAT growth

Estimated PAT growth for FY16

Source: Motilal Oswal Research, October’ 2015. Based on Motial Oswal Research estimates.


Sensex Earnings Per Share (EPS) Trend – INR, % YoY

India Corporate EarningsEarnings growth is expected to pick-up, going forward

Note: CAGR means Compound Annual Growth RateSource: Motilal Oswal Research, October’ 2015 , EPS data for FY16 and FY17 are estimates

•

The earnings downgrade cycle appears to have stabilized and growth is expected to accelerate, going forward (in FY16-FY17).

•

As a cyclical recovery gains pace, margin expansion could resume.


Nifty Profit After Tax Growth (% YoY)

India Corporate Earnings - Way ForwardProfitability and margins also expected to improve going forward

Source: Motilal Oswal Research, October’ 2015. LPA = Long Period Average, E= estimated

Nifty EBITDA Margin (%)


India Markets & Valuations


•

Indian equity markets were under pressure during the quarter, on

the back of correction in global markets, and increasing worries of a slowdown in China.

•

Defensives and export-oriented sectors like consumer staples, healthcare, and technology fared better during the quarter. Sectors like metals, energy, and telecom were among the bottom performers.

22

Indian Markets Defensives outperform during the quarter

India Markets – Sector-wise Performance

Source: MSCI, Morgan Stanley Research. Returns are ended September 2015


Foreign Flows Foreign portfolio flows have turned negative in recent months

23

FPI Flows into Equity & Debt ($ bln)

•

FDI inflows hit record high in FY15. Gross FDI inflows are up ~19%YoY on 12-month trailing sum basis ended Aug 2015.

•

Foreign portfolio investor (FPI) flows into equity were robust in beginning of 2015, but have turned negative in recent months.

Source: SEBI, NSDL, Morgan Stanley Research’ October 2015

Gross FDI Flows ($ bln)


Domestic Flows Domestic equity flows continue to be strong

24

Net Flow into Domestic Equity Funds (INR in bln)

Source: AMFI, Motiilal Oswal Research October’ 2015

•

Inflows into domestic equity funds have picked up strongly since

May 2014, and have recently counter-balanced the outflows from foreign portfolio investors.

•

CYTD in 2015 (upto Sep) net inflows into domestic equity funds stands at INR 700 bln, outstripping last calendar year’s flow by a significant amount.


25

Indian Market Valuations Now slightly above the long term average

1-Year Forward PE of BSE Sensex Vs. 10 Year Avg.

Source: Bloomberg, Morgan Stanley Research. Data updated to Sep 30, 2015


26

Indian Market Valuations Valuation gap between mid-caps & large-caps has mostly closed

CNX Midcap (1-Year Forward PE ) Discount/Premium to Nifty Index

Source: Bloomberg, Morgan Stanley Research. Data updated to Sep 30, 2015


27

Sector Valuations Current

sector valuations Vs. 2003-2007 peak & averageCurrent Valuations (1-Year Forward P/E Ratio) Vs Valuations during

Previous Rally (2003-07) Peak & Average

Source: MSCI, Datastream,Citi Research. Current Valuations are as of Sep 30, 2015

•

Valuations of most sectors (except consumer staples, healthcare,

materials) are still quite far away from 2003-07 peak multiples.

Current 2003-07 Avg % difference 2003-07 peak % differenceMSCI India 16.88 14.8 14% 22.0 -23%

Cons. Disc. 14.54 14.2 2% 19.8 -27%

Cons. Staples 30.77 19.0 62% 29.2 5%Energy 9.62 11.9 -19% 21.2 -55%

Healthcare 26.57 20.5 30% 26.8 -1%

Industrials 21.71 16.0 35% 30.8 -30%IT 17.60 20.8 -15% 26.4 -33%

Materials 14.62 9.8 49% 13.0 13%

Telecom 20.50 14.1 45% 27.7 -26%Utilities 11.15 11.8 -6% 27.9 -60%

Financials 14.49 14.4 1% 28.4 -49%


Outlook

•

We believe that despite recent market volatility, India seems to

be better placed on the back of improved macroeconomic variables.

•

Although the recovery is yet to gather momentum, the building blocks required for sustainable economic recovery seem to be in place.

•

While corporate capex has been weak due to low capacity utilization, govt. spending has bounced back wherein the quality of spending is much better given the govt.’s focus on capital spending.

•

While, urban discretionary demand has shown decent signs of revival, the rural demand has been weak owing to slowdown in rural wage growth and rural inflation.

–

However, moderation in interest rates is likely to translate into reduced cost of borrowing and hence would bode well for household spending, thereby providing some impetus for consumption led recovery

•

Earnings growth has been flat, but expected to pick-up, and revert back to its long term average of 15% over the next few years. Equity markets will take cue from that.

•

Going ahead, interest rates are expected to play a pivotal role in shaping up the corporate earnings as well as stimulating the consumer spending.

•

At this juncture, our portfolios are positioned for domestic cyclical recovery, by betting on high quality businesses with sustainable earnings growth, and return on capital.


Franklin India Equity Funds


30

Franklin Templeton (FT) : Equity Funds

•

FT has a broad range of equity funds.

•

All these funds focus on long term fundamentals and stock picking –

essential to identify quality companies in this environment

•

Some of the funds in our equity range have a performance track record of around 20 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 allocation to small/mid cap stocks that have high long term potential

September 29, 1994

Franklin India Flexi Cap Fund Invests in companies across the market range

March 2, 2005

Franklin India Prima Fund Open-end fund that invests in mid & small cap stocks

December 1, 1993

Franklin India Smaller Companies Fund

Open-end fund that primarily invests in small cap & mid cap companies

January 13, 2006

Franklin India High Growth Companies Fund

Invests in Indian companies/sectors with high growth rates or potential

July 26, 2007

Past performance may or may not be sustained in future.


Risk Reward Potential

Franklin India Bluechip Fund

Franklin India Prima Plus

Franklin India Flexi Cap Fund



Franklin India Prima Fund

Rew

ard

Risk

Income

Hybrid

Diversified Equity

Sector

Liquid

The bell curve depicts normal distribution of prospective retu rn outcomes. Wider the bell curve; wider is the range or distribution of prospective returns.

(Not scaled)


32

Equity Product Labels

Fund This product is suitable for investors who are seeking*

Franklin India Bluechip Fund (FIBCF)

•

Long term capital appreciation•

A fund that invests in large cap stocks

Franklin India Prima Plus (FIPP)

•


Primarily a large cap fund with some allocation to small/mid cap stocks

Franklin India Flexi Cap Fund (FIFCF)

•


A fund that invests in stocks of companies across the market cap range

Franklin India Prima Fund (FIPF)

•


A fund that invests in mid and small cap stocks

Franklin India Smaller Companies Fund (FISCF)

•


A fund that invests primarily in small and mid cap companies

Franklin India High Growth Companies Fund (FIHGCF)

•


A fund that invests in stocks of companies/sectors with high growth rates or above average potential

*Investors should consult their financial advisors if in doubt whether a product is suitable for them.


33


Growth Blend Value

Large

Medium

Small

Fund Description Open-end fund with clear focus on large cap companies, irrespective of market conditions

Inception Date December 1, 1993

Assets Rs. 6499.41 crores (September 30, 2015)

Managed by Anand Radhakrishnan, Anand Vasudevan

Investment Style Blend of ‘growth’

and ‘value’

Salient Points •

One of the oldest funds with a consistent performance track record across market cycles – 21 years plus!

•

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 Sep’15

Style Consistency


34


These securities represent the ten largest holdings held in the Fund as of the date indicated. All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation to subscribe or transact in these securities. Sector classification based on AMFI.

Top 10 holdings Sector Share of equity AUM

HDFC Bank Banks 7.65%

Infosys Software 6.97%

ICICI Bank Banks 4.91%

Cognizant Technology (USA) Software 4.66%

Bharti Airtel Telecom -

Services 4.00%

Indusind Bank Banks 3.92%

Dr Reddy‘s Laboratories Pharmaceuticals 3.84%

Axis Bank Banks 2.82%

Larsen And Toubro Construction Project 2.74%

Yes Bank Banks 2.69%

Total 44.20%

Sector Allocations Share of equity AUM

Banks 27.81%

Software 16.91%

Auto 8.67%

Pharmaceuticals 8.15%

Cement 5.80%

Consumer Non Durables 5.52%

Petroleum Products 5.01%

Telecom -

Services 4.00%

Construction Project 2.74%

Industrial Products 2.19%

Total 86.81%

As of Sep 30, 2015


Scheme NAV as on Sep 30, 2015

Discrete Returns (%)

Since inception till Sep 30, 2015

Value of Investment

of Rs.10,000 since

inception

Inception DateSep 30, 2014 to Sep

30, 2015Sep 30, 2013 to Sep

30, 2014Sep 28, 2012 to Sep

30, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* ReturnsFranklin India Bluechip Fund (FIBCF) - Growth 346.7231 314.2892 10.32% 222.2478 41.41% 223.6095 -0.61% 10 22.43% 831,721 1.12.1993

B:S&P BSE SENSEX - - -1.79% - 37.41% - 3.29% - 9.95% 79,429AB:CNX NIFTY - - -0.20% - 38.87% - 0.56% - 9.92% 78,861

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the schemeFranklin India Taxshield (FIT)-Growth 420.7988 362.2352 16.17% 227.6271 59.14% 227.1513 0.21% 10 25.46% 420,799 10.04.1999B:CNX 500 - - 3.59% - 46.08% - -2.49% - 14.69% 95,728AB:CNX NIFTY - - -0.20% - 38.87% - 0.56% - 13.45% 80,017Franklin Infotech Fund (FIF) – Growth 118.9714 109.7392 8.41% 81.6113 34.47% 63.9488 27.62% 10 20.34% 237,975 22.8.1998B: S&P BSE Information Technology # - - 8.33% - 36.33% - 32.36% - N.A. N.A.AB:CNX NIFTY - - -0.20% - 38.87% - 0.56% - 13.91% 92,921Franklin India Prima Plus (FIPP) – Growth 437.7350 375.2566 16.65% 236.0835 58.95% 235.1855 0.38% 10 19.70% 437,735 29.9.1994B:CNX 500 - - 3.59% - 46.08% - -2.49% - 8.99% 61,074AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 8.95% 60,612Franklin India Life Stage Fund of Funds (FILSF) - The 50s Plus Floating Rate Plan – Growth

29.0311 26.6347 9.00% 22.9798 15.90% 21.6267 6.26% 10 9.95% 29,031 9.7.2004

Benchmark$ - - 6.56% - 14.75% - 7.59% - 9.30% 27,141Additional Benchmark - - N.A - N.A - N.A - N.A N.A

Franklin India Fixed Tenure Fund – Series XVII (FIFTF XVII) – Growth 13.0661 12.0392 8.53% 10.3948 15.82% N.A N.A 10 9.63% 13,066 2.11.2012

Benchmark$ - - 8.73% - 16.76% - N.A - 10.42% 13,345AB: Crisil 10 Year Gilt Index - - 13.76% - 6.85% - N.A - 7.66% 12,397FILSF - The 50s Plus Plan – Growth 27.5826 24.9554 10.53% 21.3279 17.01% 20.7591 2.74% 10 8.95% 27,583 1.12.2003Benchmark$ - - 9.68% - 16.49% - 3.53% - 8.45% 26,127Additional Benchmark - - N.A - N.A - N.A - N.A N.A

Past performance may or may not be sustained in future. Fund Managers: FIBCF: Anand Radhakrishnan & Anand Vasudevan, FIT: Anand Radhakrishnan & Anil Prabhudas, FIPP: Anand Radhakrishnan & R. Janakiraman, FIF: Anand Radhakrishnan, FILSF: Equity-Anand Radhakrishnan; Debt-Sachin Padwal-Desai, Pallab Roy, FIFTF: Equity-Anand Radhakrishnan, Anil Prabhudas; Debt-Umesh Sharma, Pallab Roy. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). $Benchmark: The 50s Plus Plan -

20% S&P BSE Sensex+ 80% Crisil Composite Bond Fund Index; The 50s Plus Floating Rate Plan -

20% S&P BSE Sensex + 80% Crisil Liquid Fund Index. FIFTF XVII :

20% CNX 500 + 80% Crisil Short-Term Bond Fund Index. Discrete 12 months performance is absolute and since inception returns are compounded annualized. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom three funds managed by the fund manager(s) have been derived on the basis of the

since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans). # Index adjusted for the period September 16, 2005 to April 15, 2015 with the performance of S&P BSE IT Index

Scheme Performance As on Sep 30, 2015


Franklin India Bluechip Fund36

Market Resilience (as of Sep 30, 2015)

Past performance may or may not be sustained in future. Compounded and annualized for more than 1 year period. Inception Date: December 1, 1993 Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark; AB: Additional Benchmark.

Initial Rise: 1st

Dec ‘93-

12th

Sep ’94. Mid 90s Crash: 12th Sep’94-4th

Dec’96. Tech Bubble Peak: 4th

Dec ’96 –

11th

Feb ‘00. Tech Crash and 9/11: 11th

Feb ’00 –

21st

Sep ‘01.Recovery Post 9/11: 21st

Sep ‘01 –

14th

Jan ’04.

India Re-rating: 14th

Jan ‘04-

10th

May ‘06. 2008 Peak: 10th

May ‘06-

8th

Jan ‘08.Global Crisis Lows: 8th

Jan’08-

9th

Mar ‘09. Post Crisis Peak: 9th

Mar ‘09 –

9th

Nov ‘10. Current: 9th

Nov ‘10 –

30th

Sep ‘15.

92%

‐19%

74%

‐33%

78%

40%

32%

‐50%

79%

9%

22%

41%

‐21%

27%

‐40%

45%

36%

35%

‐55%

76%

5% 10%

37%

‐22%

29%

‐36%

44%

32% 36%

71%

5% 10%

‐53%

‐80%

‐60%

‐40%

‐20%

0%

20%

40%

60%

80%

100%

120%

Initial Rise

Mid‐90s crash

Tech bub

ble

peak

Tech Crash &

9/11

Recovery post

9/11

India Re

‐rating

2008

Peak

Glob

al crisis

lows

Post‐Crisis Pe

ak

Curren

t

Returns since

inception

FIBCF‐Growth % change B: S&P BSE Sensex % change AB: CNX Nifty % change


37

Past performance does not guarantee future results. Sector classification based on AMFI. Source: FactSet.


Performance Contribution by Sector (%) – 1 year ended Sep 30, 2015

6.40

3.71

2.17

1.51

0.72

0.19

0.08

-0.16

-0.71

-1.52

-2.00 -1.00 -- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Financials

Information Technology

Health Care

Industrials

Consumer Staples

Utilities

Materials

Energy

Telecommunication Services

Consumer Discretionary


38


Growth Blend Value

Large

Medium

Small

Fund Description Open-end diversified equity fund investing predominantly in large cap stocks with some exposure to mid/small cap stocks

Inception Date September 29, 1994

Assets Rs. 5566.45 crore (Sep 30, 2015)

Managed by Anand Radhakrishnan, R. Janakiraman

Investment Style Primarily ‘growth’

Salient Points Has a long track performance track record of 21 yearsFocuses 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

Style Consistency

Source: Morningstar. From Sep’94 to Sep’15


39






Indusind Bank Banks 3.72%

Bharti Airtel Telecom -

Services 3.70%

Dr Reddy'S Laboratories Pharmaceuticals 2.99%


Kotak Mahindra Bank Banks 2.57%

Torrent Pharmaceuticals Pharmaceuticals 2.32%

Larsen And Toubro Construction Project

2.30%

Total 35.80%

Top Sector Allocation Share of equity AUM

Banks 25.89%

Software 10.98%


Auto 7.29%

Auto Ancillaries 5.54%

Telecom -

Services 4.54%


Cement 4.16%



Total 78.62%

As of Sep 30, 2015



Past performance may or may not be sustained in future. Fund Managers: FIPP: Anand Radhakrishnan & R. Janakiraman, FIT: Anand Radhakrishnan & Anil Prabhudas, FIBCF: Anand Radhakrishnan & Anand Vasudevan, FIPF: Roshi Jain & R. Janakiraman, FILSF: Equity-Anand Radhakrishnan; Debt-Sachin Padwal-Desai, Pallab Roy, FIFTF: Equity-Anand Radhakrishnan, Anil Prabhudas; Debt-Umesh Sharma, Pallab Roy. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). $Benchmark:

The 50s Plus Plan -

20% S&P BSE Sensex+ 80% Crisil Composite Bond Fund Index; The 50s Plus Floating Rate Plan -

20% S&P BSE Sensex + 80% Crisil Liquid Fund Index. FIFTF XVII: 20% CNX 500 + 80% Crisil Short-Term Bond Fund Index. Discrete 12 months performance is absolute and since inception returns are compounded annualized. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom three

funds managed by the fund manager(s) have been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans).

Scheme Performance As of Sep 30, 2015

SchemeNAV as on

Sep 30, 2015

Discrete Returns (%)Since inception till

Sep 30, 2015

Value of Investment of

Rs.10,000 since

inception

Inception DateSep 30, 2014 to Sep 30,

2015Sep 30, 2013 to Sep

30, 2014Sep 28, 2012 to Sep

30, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* Returns

Franklin India Prima Plus (FIPP) - Growth 437.7350 375.2566 16.65% 236.0835 58.95% 235.1855 0.38% 10 19.70% 437,735 29.9.1994B:CNX 500 - - 3.59% - 46.08% - -2.49% - 8.99% 61,074AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 8.95% 60,612

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the scheme

Franklin India Taxshield (FIT)-Growth 420.7988 362.2352 16.17% 227.6271 59.14% 227.1513 0.21% 10 25.46% 420,799 10.04.1999B:CNX 500 - - 3.59% - 46.08% - -2.49% - 14.69% 95,728AB:CNX NIFTY - - -0.20% - 38.87% - 0.56% - 13.45% 80,017Franklin India Bluechip Fund (FIBCF) – Growth 346.7231 314.2892 10.32% 222.2478 41.41% 223.6095 -0.61% 10 22.43% 831,721 1.12.1993

B:S&P BSE SENSEX - - -1.79% - 37.41% - 3.29% - 9.95% 79,429AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861Franklin India Prima Fund (FIPF)-Growth 654.7305 549.4691 19.16% 303.7211 80.91% 296.1198 2.57% 10 21.10% 654,731 1.12.1993B:CNX 500 - - 3.59% - 46.08% - -2.49% - 9.91% 78,741B:CNX Midcap - - 13.72% - 63.17% - -10.75% - N.A N.AAB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861Franklin India Life Stage Fund of Funds (FILSF) - The 50s Plus Floating Rate Plan – Growth

29.0311 26.6347 9.00% 22.9798 15.90% 21.6267 6.26% 10 9.95% 29,031 9.7.2004

Benchmark$ - - 6.56% - 14.75% - 7.59% - 9.30% 27,141Additional Benchmark - - N.A - N.A - N.A - N.A N.AFranklin India Fixed Tenure Fund – Series XVII (FIFTF XVII) – Growth 13.0661 12.0392 8.53% 10.3948 15.82% N.A N.A 10 9.63% 13,066 2.11.2012

Benchmark$ - - 8.73% - 16.76% - N.A - 10.42% 13,345AB: Crisil 10 Year Gilt Index - - 13.76% - 6.85% - N.A - 7.66% 12,397FILSF - The 50s Plus Plan - Growth 27.5826 24.9554 10.53% 21.3279 17.01% 20.7591 2.74% 10 8.95% 27,583 1.12.2003Benchmark$ - - 9.68% - 16.49% - 3.53% - 8.45% 26,127Additional Benchmark - - N.A - N.A - N.A - N.A N.A


Franklin India Prima Plus41


Past performance may or may not be sustained in future. Compounded and annualized for more than 1 year period. Inception Date: September 29, 1994. Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark; AB: Additional Benchmark.

Mid 90s Crash: 29th Sep’94-4th


Dec ’96 –

11th


Feb ’00 –

21st


Sep ‘01 –

14th

Jan ’04. India Re-rating: 14th Jan ‘04-

10th May ‘06.

2008 Peak: 10th

May ‘06-

8th


Jan’08-

9th


Mar ‘09 –

9th


Nov ‘10 –

30th

Sep ‘15.

‐22%

72%

‐38%

70%

45%

38%

‐50%

75%

13% 20%

‐28%

40%

‐48%

60%

34%

38%

‐58%

79%

5% 9%

‐21%

29%

‐36%

44%

32% 36%

‐53%

5% 9%

71%

‐80%

‐60%

‐40%

‐20%

0%

20%

40%

60%

80%

100%

120%

Mid‐90s crash

Tech bub

ble

peak

Tech Crash &

9/11

Recovery post

9/11

India Re

‐rating

2008

Peak

Glob

al crisis

lows

Post‐Crisis Pe

ak

Curren

t

Returns since

inception

FIPP‐Growth % change B: CNX 500 % change AB: CNX Nifty % change


42




5.77

3.82

3.10

2.45

1.87

1.50

0.87

0.08

0.01

-0.65

-1.00 -- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Financials

Industrials

Health Care



Materials

Consumer Staples

Energy

Utilities



43


Growth Blend Value

Large

Medium

Small

Fund Description Open-end fund with the flexibility to buy into companies across market caps

Inception Date March 2, 2005


Managed by R. Janakiraman, Roshi Jain & Anand Vasudevan


and ‘value’

Salient Points •

Well-diversified portfolio -

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

Source: Morningstar. From Mar’05 to Sep’15

Style Consistency


44


As of Sep 30, 2015





Cognizant Technology (USA)

Software 4.51%



Dr Reddy‘s Laboratories Pharmaceuticals 3.47%

Amara Raja Batteries Auto Ancillaries 3.39%


State Bank Of India Banks 2.83%

Total 44.43%


Banks 25.37%

Software 11.59%


Auto 8.43%



Telecom -

Services 4.18%


Cement 3.51%

Gas 2.44%

Total 80.26%




Past performance may or may not be sustained in future. Fund Managers: FIFCF: Anand Vasudevan, Roshi Jain & R. Janakiraman, FIF-FUSOF/FAEF: Roshi Jain, FIBCF: Anand Radhakrishnan & Anand Vasudevan, FIPF/FIHGCF: Roshi Jain and R.

Janakiraman, FIOF: R. Janakiraman & Anil Prabhudas. # Scheme benchmark, index adjusted for the period February 21, 2000 to March 10, 2004 with the performance of ET Mindex. *NAV (beginning of period). B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. Discrete 12 months performance is absolute and since inception returns are compounded annualized. Dividends assumed to be reinvested and Bonus is adjusted. Load is not taken into consideration. The top three and bottom three funds managed by the fund manager(s) have been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans).


Discrete Returns (%)Since inception till

Sep 30, 2015

Value of Investment of

Rs.10,000 since

inception

Inception DateSep 30, 2014 to Sep 30,

2015Sep 30, 2013 to Sep

30, 2014Sep 28, 2012 to Sep

30, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* Returns

Franklin India Flexi Cap Fund (FIFCF) - Growth 61.2858 53.2203 15.15% 32.7437 62.54% 32.9476 -0.62% 10 18.68% 61,286 2.3.2005

B:CNX 500 - - 3.59% - 46.08% - -2.49% - 12.98% 36,411AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 13.43% 37,974

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the schemeFranklin India Bluechip Fund (FIBCF) – Growth 346.7231 314.2892 10.32% 222.2478 41.41% 223.6095 -0.61% 10 22.43% 831,721 1.12.1993

B:S&P BSE SENSEX - - -1.79% - 37.41% - 3.29% - 9.95% 79,429AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861Franklin India Prima Fund (FIPF)-Growth 654.7305 549.4691 19.16% 303.7211 80.91% 296.1198 2.57% 10 21.10% 654,731 1.12.1993B:CNX 500 - - 3.59% - 46.08% - -2.49% - 9.91% 78,741B:CNX Midcap - - 13.72% - 63.17% - -10.75% - N.A N.AAB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861Franklin India Feeder - Franklin U. S. Opportunities Fund (FIF-FUSOF) – Growth 19.5547 17.9822 8.74% 16.2441 10.70% 10.9346 48.56% 10 20.17% 19,555 6.2.2012

B:Russell 3000 Growth - - 9.62% - 16.25% - 42.51% - 22.45% 20,943Additional Benchmark - - N. A - N.A - N.A - N.A N.AFranklin India High Growth Companies Fund (FIHGCF) – Growth 28.6594 24.7647 15.73% 13.9523 77.50% 13.3094 4.83% 10 13.73% 28,659 26.7.2007

B:CNX 500 - - 3.59% - 46.08% - -2.49% - 6.90% 17,267AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 6.85% 17,206Franklin India Opportunities Fund (FIOF) – Growth 55.3437 48.2262 14.76% 29.9373 61.09% 31.1428 -3.87% 10 11.58% 55,344 21.2.2000

B:S&P BSE 200# - - 3.08% - 42.50% - -1.11% - -0.05% 9,919AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 10.16% 45,332Franklin Asian Equity Fund (FAEF) - Growth 14.2654 15.5379 -8.19% 14.5960 6.45% 11.9289 22.36% 10 4.72% 14,265 16.1.2008

B: MSCI Asia (ex Japan) Standard Index - - -9.13% - 4.30% - 21.90% - 4.64% 14,189AB: CNX Nifty - - -0.20% - 38.87% - 0.56% - 3.86% 13,392


Franklin India Flexi Cap Fund46

Past performance may or may not be sustained in future. Compounded and annualized for more than 1 year period. Inception Date: March 02, 2005 Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark, AB: Additional Benchmark


India Re-rating: 2nd Mar ‘05-

10th May ‘06.

2008 Peak: 10th

May ‘06-

8th


Jan’08-

9th


Mar ‘09 –

9th


Nov ‘10 –

30th

Sep ‘15.

80%

31%

‐55%

91%

11% 19%

61%

38%

‐58%

79%

5%

13%

63%

36%

‐53%

71%

5%

13%

‐80%

‐60%

‐40%

‐20%

0%

20%

40%

60%

80%

100%

120%

India Re‐rating 2008 Peak Global crisis lows Post‐Crisis Peak Current Returns sinceinception

FIFCF‐Growth % change B: CNX 500 % change AB: CNX Nifty % change


Franklin India Flexi Cap Fund47

Performance Contribution (%) by Sector – 1 year ended Sep 30, 2015


7.04

4.28

2.96

2.93

0.83

0.42

0.08

-0.11

-0.46

-0.61

-1.00 -- 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

Financials

Health Care

Industrials


Energy

Utilities

Consumer Staples

Materials




48


Growth Blend Value

Large

Medium

Small

Fund Description Open-end fund that primarily invests in mid & small cap stocks

Inception Date December 1, 1993


Managed by R. Janakiraman & Roshi Jain


and ‘value’

Salient Points •

First private sector open-end fund in India and has a performance track record across market cycles –

21 years plus.

•

Portfolio focus on mid/small caps –

these companies typically exhibit higher growth rates than well-established large cap companies

•

We prefer companies that demonstrate leadership potential and present optimal investment opportunities on fundamental as well as liquidity/valuation parameters

•

Fund is suitable for investors with a higher risk appetite and investment horizon of at least 3 to 5 years

Style Consistency

Source: Morningstar. From Jan’94 to Sep’15


49


As of Sep 30, 2015






IndusInd Bank Banks 2.58%

Repco Home Finance Finance 2.54%

Finolex Cables Software 2.54%

Mindtree Software 2.54%

FAG Bearings (India) Industrial Products 2.44%

Kansai Nerolac Paints Consumer Non Durables

2.24%

Total 28.10%


Banks 16.61%

Finance 8.45%



Software 7.08%


Auto 3.97%


Consumer Durables 3.07%

Transportation 3.06%

Total 66.83%







Value of Investment

of Rs.10,000 since

inception


30, 2015Sep 30, 2013 to Sep

30, 2014Sep 28, 2012 to Sep

30, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* ReturnsFranklin India Prima Fund (FIPF)-Growth 654.7305 549.4691 19.16% 303.7211 80.91% 296.1198 2.57% 10 21.10% 654,731 1.12.1993B:CNX 500 - - 3.59% - 46.08% - -2.49% - 9.91% 78,741B:CNX Midcap - - 13.72% - 63.17% - -10.75% - N.A N.AAB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the schemeFranklin India Feeder - Franklin U. S. Opportunities Fund (FIF-FUSOF) – Growth 19.5547 17.9822 8.74% 16.2441 10.70% 10.9346 48.56% 10 20.17% 19,555 6.2.2012

B:Russell 3000 Growth - - 9.62% - 16.25% - 42.51% - 22.45% 20,943Additional Benchmark - - N. A - N.A - N.A - N.A N.A

Franklin India Prima Plus (FIPP) – Growth 437.7350 375.2566 16.65% 236.0835 58.95% 235.1855 0.38% 10 19.70% 437,735 29.9.1994B:CNX 500 - - 3.59% - 46.08% - -2.49% - 8.99% 61,074AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 8.95% 60,612Franklin India Flexi Cap Fund (FIFCF) – Growth 61.2858 53.2203 15.15% 32.7437 62.54% 32.9476 -0.62% 10 18.68% 61,286 2.3.2005

B:CNX 500 - - 3.59% - 46.08% - -2.49% - 12.98% 36,411AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 13.43% 37,974Franklin India High Growth Companies Fund (FIHGCF) – Growth 28.6594 24.7647 15.73% 13.9523 77.50% 13.3094 4.83% 10 13.73% 28,659 26.7.2007




Past performance may or may not be sustained in future. Fund Managers: FIPF/FIHGCF: R. Janakiraman & Roshi Jain, FIFCF: Anand Vasudevan, Roshi Jain & R. Janakiraman, FIF-

FUSOF/FAEF: Roshi Jain, FIOF: R Janakiraman & Anil Prabhudas, FIPP: Anand Radhakrishnan & R. Janakiraman. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). Discrete 12 months performance is absolute and since inception returns are compounded annualized. Load is

not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom three

funds managed by the fund manager(s) have been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to

www.franklintempletonindia.com for details on performance of all

schemes (including Direct Plans). # Index adjusted for the period February 21, 2000 to March 10, 2004 with the performance of ET Mindex.


Franklin India Prima Fund51

Past performance may or may not be sustained in future. Compounded and annualized for more than 1 year period. Inception Date: December 1, 1993 Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark, AB: Additional Benchmark


Initial Rise: 1st

Dec ‘93-

12th

Sep ’94. Mid 90s Crash: 12th Sep’94-4th


Dec ’96 –

11th


Feb ’00 –

21st


Sep ‘01 –

14th

Jan ’04.

India Re-rating: 14th

Jan ‘04-

10th

May ‘06. 2008 Peak: 10th

May ‘06-

8th


Jan’08-

9th


Mar ‘09 –

9th


Nov ‘10 –

30th

Sep ‘15.

103%

‐29%

56%

‐47%

115%

50%

27%

‐64%

104%

16% 21%36

%

‐29%

40%

‐48%

60%

34%

38%

‐58%

79%

5% 10%

N.A

N.A

N.A

N.A

80%

39%

41%

105%

6% N.A

37%

‐22%

29%

‐36%

44%

32%

36%

‐53%

71%

5% 10%

‐63%

‐80%

‐60%

‐40%

‐20%

0%

20%

40%

60%

80%

100%

120%

140%

Initial Rise

Mid‐90s crash

Tech bub

ble

peak

Tech Crash &

9/11

Recovery post

9/11

India Re

‐rating

2008

Peak

Glob

al crisis

lows

Post‐Crisis Pe

ak

Curren

t

Returns since

inception

FIPF‐Growth % change B: CNX 500 % change B: CNX Midcap % change AB: CNX Nifty % change


52




6.79

5.47

2.80

2.02

1.75

1.66

0.67

0.16

-0.27

-1.00 -- 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

Financials

Industrials

Health Care

Materials



Utilities

Energy



53

Franklin India Smaller Companies FundGrowth Blend Value

Large

Medium

Small

Fund Description Open-end fund that primarily invests in small cap and mid cap stocks

Inception Date January 13, 2006 (launched as a closed end scheme and converted into an open-end one effective Jan, 14 2011)


Managed by R. Janakiraman & Roshi Jain


and ‘value’

Salient Points •

Portfolio focus primarily on small caps –

Fund takes relatively higher exposure to small cap companies as compared to Prima Fund

•

Smaller companies defined as companies with market capitalization below that of 100th

Stock of CNX 500

•

Bottom-up approach to stock selection –

strong impetus on quality

•

Fund is suitable for investors with a higher risk appetite and investment horizon of at least 3 to 5 years

Source: Morningstar. From Jan’06 to Sep’15

Style Consistency


54


As of Sep 30, 2015


Finolex Cables Industrial Products 3.31%


FAG Bearings (India) Industrial Products 2.49%

Repco Home Finance Finance 2.44%

Voltas Construction Project 2.30%

Atul Chemicals 2.30%



Karur Vysya Bank Banks 2.00%


Total 23.79%



Banks 13.44%

Media & Entertainment 6.34%

Software 5.48%

Industrial Capital Goods 4.81%

Construction 4.49%

Chemicals 3.94%

Finance 3.94%



Total 66.77%






Value of Investment

of Rs.10,000 since

inception


30, 2015Sep 30, 2013 to Sep

30, 2014Sep 28, 2012 to Sep

30, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* ReturnsFranklin India Smaller Companies Fund (FISCF) - Growth 38.4634 32.4596 18.50% 15.9357 103.69% 15.5537 2.46% 10 14.87% 38,463 13.1.2006

B:CNX Midcap - - 13.72% - 63.17% - -10.75% - 12.28% 30,826AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 11.13% 27,885

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the schemeFranklin India Prima Fund (FIPF)-Growth 654.7305 549.4691 19.16% 303.7211 80.91% 296.1198 2.57% 10 21.10% 654,731 1.12.1993B:CNX 500 - - 3.59% - 46.08% - -2.49% - 9.91% 78,741B:CNX Midcap - - 13.72% - 63.17% - -10.75% - N.A N.AAB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861Franklin India Feeder - Franklin U. S. Opportunities Fund (FIF-FUSOF) – Growth 19.5547 17.9822 8.74% 16.2441 10.70% 10.9346 48.56% 10 20.17% 19,555 6.2.2012

B:Russell 3000 Growth - - 9.62% - 16.25% - 42.51% - 22.45% 20,943Additional Benchmark - - N. A - N.A - N.A - N.A N.AFranklin India Prima Plus (FIPP) – Growth 437.7350 375.2566 16.65% 236.0835 58.95% 235.1855 0.38% 10 19.70% 437,735 29.9.1994B:CNX 500 - - 3.59% - 46.08% - -2.49% - 8.99% 61,074AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 8.95% 60,612Franklin India High Growth Companies Fund (FIHGCF) – Growth 28.6594 24.7647 15.73% 13.9523 77.50% 13.3094 4.83% 10 13.73% 28,659 26.7.2007




Scheme PerformanceAs on Sep 30, 2015

Past performance may or may not be sustained in future. Fund Managers: FISCF/FIPF/FIHGCF: R. Janakiraman & Roshi Jain, FIPP: Anand Radhakrishnan & R. Janakiraman, FIF-

FUSOF/FAEF: Roshi Jain, FIOF: R Janakiraman & Anil Prabhudas. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). Discrete 12 months performance is absolute and since inception returns are compounded annualized. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom three funds managed by the fund manager(s) have

been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans). # Index adjusted for the period February 21, 2000 to March 10, 2004 with the performance of ET Mindex.


Franklin India Smaller Companies Fund56

Past performance may or may not be sustained in future. Compounded and annualized for over 1 year period. Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark and AB: Additional Benchmark. Inception Date: January 13, 2006


India Re-rating: 13th Jan ‘06-

10th May ‘06.

2008 Peak: 10th

May ‘06-

8th


Jan’08-

9th


Mar ‘09 –

9th


Nov ‘10 –

30th

Sep ‘15.

15% 27

%

‐65%

103%

19%

15%26

% 41%

‐63%

105%

6%

12%

32% 36%

‐53%

71%

5%

11%

‐80%

‐60%

‐40%

‐20%

0%

20%

40%

60%

80%

100%

120%

India Re‐rating 2008 Peak Global crisis lows Post‐Crisis Peak Current Returns sinceinception

FISCF‐Growth % change B: CNX Midcap % change AB: CNX Nifty % change


Franklin India Smaller Companies Fund57



5.85

5.52

3.98

2.30

1.69

1.39

0.28

-0.15

-0.26

-0.46

-1.00 -- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Industrials

Financials


Materials


Utilities

Health Care


Consumer Staples

Energy


58


Growth Blend Value

Large

Medium

Small

Fund Description An open-end diversified equity fund that seeks to achieve capital appreciation through investments in Indian companies/sectors with high growth rates or potential

Inception Date July 26, 2007


Managed by Roshi Jain & R. Janakiraman

Investment Style Primarily ‘growth’

Salient Points •

Primary focus will be to identify ‘high growth’

companies, especially in sectors witnessing above-average growth.

•

Blend of top-down (macro analysis to identify sectors) and bottom-up approach (micro analysis to pick stocks within these sectors)

•

Shifts between companies and sectors to be identified based on relative valuations, liquidity and growth potential

Source: Morningstar. From Jul’07 to Sep’15

Style Consistency


59


As of Sep 30, 2015



Tata Motors Auto 6.22%


State Bank Of India Banks 6.02%


Maruti Suzuki India Auto 5.36%

TVS Motor Co Limited Auto 4.88%

Idea Cellular Telecom -

Services 4.80%


Tata Consultancy Services

Software 3.25%

Total 53.87%


Banks 28.08%

Auto 19.29%

Software 7.44%

Telecom -

Services 7.16%


Cement 4.55%



Retailing 2.97%


Total 84.43%




Past performance may or may not be sustained in future. Fund Managers: FISCF/FIPF/FIHGCF: R. Janakiraman & Roshi Jain, FIPP: Anand Radhakrishnan & R. Janakiraman, FIF-

FUSOF/FAEF: Roshi Jain, FIOF: R Janakiraman & Anil Prabhudas. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). Discrete 12 months performance is absolute and since inception returns are compounded annualized. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom three funds managed by the fund manager(s) have

been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans). # Index adjusted for the period February 21, 2000 to March 10, 2004 with the performance of ET Mindex.




Value of Investment

of Rs.10,000 since

inception


30, 2015Sep 30, 2013 to Sep

30, 2014Sep 28, 2012 to Sep

30, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* ReturnsFranklin India High Growth Companies Fund (FIHGCF) – Growth 28.6594 24.7647 15.73% 13.9523 77.50% 13.3094 4.83% 10 13.73% 28,659 26.7.2007

B:CNX 500 - - 3.59% - 46.08% - -2.49% - 6.90% 17,267AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 6.85% 17,206

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the scheme

Franklin India Prima Fund (FIPF)-Growth 654.7305 549.4691 19.16% 303.7211 80.91% 296.1198 2.57% 10 21.10% 654,731 1.12.1993

B:CNX 500 - - 3.59% - 46.08% - -2.49% - 9.91% 78,741B:CNX Midcap - - 13.72% - 63.17% - -10.75% - N.A N.AAB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 9.92% 78,861Franklin India Feeder - Franklin U. S. Opportunities Fund (FIF-FUSOF) – Growth 19.5547 17.9822 8.74% 16.2441 10.70% 10.9346 48.56% 10 20.17% 19,555 6.2.2012

B:Russell 3000 Growth - - 9.62% - 16.25% - 42.51% - 22.45% 20,943Additional Benchmark - - N. A - N.A - N.A - N.A N.AFranklin India Prima Plus (FIPP) – Growth 437.7350 375.2566 16.65% 236.0835 58.95% 235.1855 0.38% 10 19.70% 437,735 29.9.1994B:CNX 500 - - 3.59% - 46.08% - -2.49% - 8.99% 61,074AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 8.95% 60,612Franklin India Smaller Companies Fund (FISCF) - Growth 38.4634 32.4596 18.50% 15.9357 103.69% 15.5537 2.46% 10 14.87% 38,463 13.1.2006

B:CNX Midcap - - 13.72% - 63.17% - -10.75% - 12.28% 30,826AB:CNX Nifty - - -0.20% - 38.87% - 0.56% - 11.13% 27,885Franklin India Opportunities Fund (FIOF) – Growth 55.3437 48.2262 14.76% 29.9373 61.09% 31.1428 -3.87% 10 11.58% 55,344 21.2.2000




Franklin India High Growth Companies Fund61

Past performance may or may not be sustained in future. Compounded and annualized for over 1 year period. Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark and AB: Additional Benchmark. Inception Date: July 26, 2007


2008 Peak: 26th

Jul ‘07-

8th

Jan ‘08. Global Crisis Lows: 8th

Jan’08-

9th


Mar ‘09 –

9th


Nov ‘10 –

30th

Sep ‘15.

44%

‐62%

99%

14%

14%

42%

‐58%

79%

5% 7%

36%

‐53%

71%

5% 7%

‐80%

‐60%

‐40%

‐20%

0%

20%

40%

60%

80%

100%

120%

2008 Peak Global crisis lows Post‐Crisis Peak Current Returns sinceinception

FIHGCF‐Growth % change B: CNX 500 % change AB: CNX Nifty % change


Franklin India High Growth Companies Fund62



5.94

3.63

3.10

1.76

1.52

1.42

0.46

-0.12

-1.00 -- 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Financials

Industrials


Materials


Health Care

Consumer Staples



63

Risk factorsThe information contained in this presentation is not a complete

representation of every material fact regarding any industry, security or the fund and is neither an offer for units nor an invitation to invest. This communication is meant for use by the recipient and not for circulation/reproduction without prior approval. The views expressed by the portfolio managers are based on current market conditions and information available to them

and do not constitute investment advice. We have relied on third party data or information which, we believe to be correct but, we do not offer any

assurance as to the accuracy or the correctness of the same and would not accept any

liability for any loss or damage arising directly or indirectly

from action taken, or not taken, in reliance on material or information contained herein

Scheme Classification and Objective: Franklin India Bluechip Fund (FIBCF) is an open ended growth scheme with an objective to primarily provide medium to long term capital appreciation. Franklin India Prima Plus (FIPP) is an open end growth fund with an objective to provide growth of capital plus regular dividend through a diversified portfolio of equities, fixed income securities and money market instruments. Franklin India Flexi Cap Fund (FIFCF): An open-end diversified equity fund that seeks to provide medium to long-term capital appreciation by investing in stocks across the entire market capitalization range.

Franklin India Prima Fund (FIPF): An open-end diversified equity scheme, seeking to provide investors medium to long term capital appreciation as a primary objective and income as a secondary objective. Franklin India Smaller Companies Fund (FISCF): An open-end diversified equity fund that seeks to provide long term capital appreciation by investing in mid and small cap companies. Franklin India High Growth Companies Fund (FIHGCF) is an open-end diversified equity fund that seeks to achieve capital appreciation through investments in Indian companies/sectors with high

growth rates or potential.

Load Structure: Please refer to website for latest load structure of respective schemes.

Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe”

and similar expressions or variations of such expressions, are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments.


Franklin Templeton Asset Management (India) Pvt. Ltd.Indiabulls Finance Centre, Tower 2,12th

and 13th

floor, Senapati Bapat Marg, Elphinstone (W)Mumbai 400013Tel (91-22) 6751 9100Fax (91-22) 6639 1281www.franklintempletonindia.com

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