Riding the Growth wave. September 2018

Transcription

1 Riding the Growth wave September 2018

2 Growth, as the value creator Profitable Growth, not just growth Capital efficiency holds the key Looking into the future, not just present Evolving preferences, demand patterns Top down, not just bottom up Size of opportunity Trends, Tastes and Technologies Analyzing sector/industry dynamics at global level, not just domestic level Socio-political-economic factors 1

3 Growth dynamics in a Growing economy Trends Technology Rising Productivity Economic Growth Virtuous Growth Cycle Increase in discretionary spending Rising Income Infrastructure Consumption Real Estate prices rise Luxuries become necessities Tastes 2

4 A look at the Megatrends of the last decade Changing Lifestyles Demographics Consumers subscribing to Modern Retailing Need for home, increasing the real estate prices Gone are the days of booking your travel on your own, with travel advisers Increased access to financial services through Online / Mobile platforms Changing face of gaming Emergence of Urban middle class From luxury to necessity 3

5 A look at the Megatrends of the last decade Investments Capital Goods Infrastructure Construction Power Telecom Utilities Outsourcing IT/ IT Enabled services Auto Components Engineering goods Pharmaceuticals Financial Research Training & Development 4

6 Markets do respond to Growth trends But Growth pockets keep changing The top 3 best performing sectors have not been constant in last 10 years Year S&P BSE Auto S&P BSE Bankex S&P BSE Con. Dur. S&P BSE Capital Goods S&P BSE FMCG S&P BSE Health Care S&P BSE Metals S&P BSE Oil & Gas S&P BSE Power S&P BSE PSU S&P BSE Teck S&P BSE Sensex FY09-31% -41% -58% -53% -9% -25% -58% -29% -41% -28% -38% -37% FY10 154% 141% 163% 119% 42% 90% 215% 46% 69% 76% 79% 83% FY11 24% 26% 49% -5% 30% 14% -9% 2% -11% 1% 19% 13% FY12 12% -11% 3% -23% 27% 11% -29% -20% -22% -17% -7% -9% FY13 0% 13% 12% -9% 34% 22% -21% 5% -20% -11% 11% 10% FY14 35% 14% -7% 35% 19% 27% 18% 16% 7% 1% 27% 21% FY15 47% 45% 61% 45% 13% 72% -3% 0% 25% 23% 30% 27% FY16-5% -11% 11% -25% 0% -12% -16% 1% -15% -17% -1% -8% FY17 23% 34% 33% 29% 22% 1% 60% 53% 30% 45% -4% 18% FY18 10% 12% 47% 13% 12% -14% 18% 11% -5% -6% 15% 13% Best Performing 2 nd Best Performing 3 rd Best Performing Source: BSE. Returns are absolute returns. FY refers to fiscal year starting 1st April and ending on 31st March. Past performance may or may not be sustained in future Index values are calculated based on Total Return Index Values. 5

7 How can investors benefit from Growth? Presenting Franklin India Focused Equity Fund (erstwhile Franklin India High Growth Companies Fund) Product Label This product is suitable for investors who are seeking* Long term capital appreciation 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 about whether the product is suitable for them. 6

8 About the Fund 7

9 Fund Type 8

10 Investing across Market Cap 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Aug- 09 Franklin India Focused Equity Fund (FIFEF)- (Allocation to Large Cap, Mid Cap & Small Cap) Feb- 10 Aug- 10 Feb- 11 Aug- 11 Feb- 12 Aug- 12 Feb- 13 Aug- 13 Large Cap Mid Cap Small Cap Feb- 14 Aug- 14 Feb- 15 Aug- 15 Feb- 16 Aug- 16 Feb- 17 Aug- 17 Feb- 18 Aug- 18 Focused on identifying Growth opportunities irrespective of market cap Source: As per the internal classification till Dec Market capitalization is as per AMFI classification since Jan Data is as on Aug 31, The graph shows large cap, mid cap and small cap break as a % of the total equity. Portfolio holdings are subject to change. 9

11 Investment process Domestic & global economic drivers Interest rates, inflation, liquidity regulation, politics Relative valuation Macro analysis - identify sectors Micro analysisstock picking Focused Strategy Diversified equity fund that seeks to achieve capital appreciation through investments in Indian companies/sectors with focused approach of maximum 30 stocks Sustainable above average growth Competitive advantage & business strength Financial strength 10

12 Top Down Approach Active Management through Sector Allocation Max Underweight (UW) Max UW as on Sectors Max Overweight (OW) Max OW as on Jun-11 Financials Jan Sep-16 Industrials Oct Oct-07 Materials 7.57 Mar Nov-17 Information Technology 5.18 Sep Aug-15 Health Care Apr Aug-18 Consumer Discretionary Sep Jul-09 Telecommunication Services Jul Apr-08 Energy 1.90 Jun May-13 Consumer Staples 1.40 Apr Feb-09 Utilities 2.12 Mar Jul-17 Real Estate 0.71 Nov-17 The above table indicates the active sector allocation followed by the fund manager. There can be times when the fund manager might be significantly underweight/overweight on a particular sector, based on macroeconomic conditions coupled with her/his views. Past performance may or may not be sustained in future Source: FactSet as on Aug 31, The data is taken from Sep 07 to Aug 18 (as on month ends). The overweight and underweight position is taken with respect to the index Nifty 500 and the minimum and maximum position has been highlighted for the given period. Information is historical. Portfolio holdings and sector allocation are subject to change. 11

13 The importance of Stock Selection 5 Years (ending Aug 31, 18) Attribution Analysis Asset Allocation Stock Selection Interaction Franklin India Focused Equity Fund Stock selection clearly the key contributor to performance Stock picking ability has ensured performance holds up well over the medium to long term, irrespective of how allocation decisions fared Allocation Effect: It measures the impact of decisions to overweight (OW) or underweight (UW) a particular sector relative to the benchmark. Positive allocation effect: Fund is (a) OW in a sector that outperforms (OP), and/or (b) UW in a sector that underperforms (UP), total returns of the benchmark. Negative allocation effect: Fund is (a) OW in a sector that UP, and/or (b) UW in a sector that OP, total returns of the benchmark. Selection Effect: It measures the impact of selecting securities that provide different returns for a particular sector, compared to the total benchmark returns. It evaluates the fund manager's skill in choosing securities that outperformed in a particular sector, compared to the benchmark. Interaction Effect: It measures the combined impact of allocation and selection effects. Positive interaction effect: Fund is (a) OW and OP, and/or (b) UW and UP, compared to the weights and returns of a particular sector in the benchmark. Negative interaction effect: Fund is (a) OW and UP, and/or (b) UW and OP, compared to the weights and returns of a particular sector in the benchmark. All attribution effects are computed daily and are linked through time by applying additional multi-period algorithms. Source: Factset. Past performance may or may not be sustained in future 12

14 Contributors/Detractors in last 3 years Sector Average Weight (%) FIFEF Nifty 500 Total Return (%) Average Weight (%) Total Return (%) Allocation Effect Selection Effect Interaction Effect Contributors Health Care Consumer Discretionary Industrials Information Technology Telecommunication Services Detractors Energy Materials Consumer Staples Financials Utilities Real Estate Indicates high contribution to the total effect. Past performance may or may not be sustained in future. Source: Factset as on Aug 31, Information is historical and may not reflect current or future portfolio characteristics. Portfolio holdings are subject to change. 13

15 Scheme Performance As on Aug 31, 2018 Scheme NAV as on Aug 31, 2018 Returns Compounded Annualised Growth Rate Performance (%) Last 1 Year Last 3 Years Last 5 Years Since inception Current Value of Current Value of Current Value of Current Value of Investment of Returns Investment of Returns Investment of Returns Investment of Rs Rs Rs Rs Franklin India Focused Equity Fund*** (FIFEF) - Growth % 10, % 14, % 31, % 40, B:Nifty % 11, % 15, % 25, % 29,595 AB:Nifty % 11, % 15, % 22, % 28,865 Performance of Top 3 and bottom 3 schemes managed by the fund managers of the scheme Franklin India Bluechip Fund (FIBCF) % 11, % 13, % 23, % 1,164, B:Nifty 100## $ 22.55% 12, % 15, % 22, % 168,000 AB:Nifty 50 * 19.40% 11, % 15, % 22, % 151,405 Franklin India Technology Fund (FITF) - ^^^ % 13, % 14, % 19, % 331, B: S&P BSE TECK # $ 39.49% 13, % 13, % 19,249 NA NA AB:Nifty 50 * 19.40% 11, % 15, % 22, % 178,398 Franklin India Equity Fund (FIEF)*** % 11, % 14, % 27, % 621, B:Nifty 500 $ 16.33% 11, % 15, % 25, % 125,655 AB:Nifty 50 * 19.40% 11, % 15, % 22, % 116,368 Franklin India Dynamic PE Ratio Fund of Funds (FIDPEF) - Growth % 10, % 13, % 19, % 81, B : CRISIL Hybrid Aggressive Index 11.75% 11, % 14, % 21, % 65,490 AB : S&P BSE Sensex 23.20% 12, % 15, % 22, % 97,981 Franklin Asian Equity Fund (FAEF) - Growth % 10, % 14, % 15, % 22, B: MSCI Asia (ex Japan) Standard Index 14.47% 11, % 15, % 16, % 28,137 AB:Nifty % 11, % 15, % 22, % 22,375 Franklin India Multi Asset Solution Fund (FIMAS) - Growth** % 10, % 12,149 N.A. N.A. 5.85% 12, B : CRISIL Hybrid Aggressive Index 11.75% 11, % 14,430 N.A. N.A % 14,513 Additional Benchmark N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Past performance may or may not be sustained in future. Fund Managers: FIFEF: Roshi Jain (Managing Since 09-Jul-12) & Anand Radhakrishnan (Managing Since 02-May-16), FIBCF: Anand Radhakrishnan (Managing Since 31-Mar-07) & Roshi Jain (Managing Since 02-May-16), FIEF: Anand Radhakrishnan (Managing Since 31-Mar-07) & R. Janakiraman(Managing Since 01-Feb-11), FAEF: Roshi Jain (Managing Since 01-Feb-11), FITF: Anand Radhakrishnan (Managing Since 01-Mar-07) & Varun Sharma (Managing Since 30-Nov-15), FIMAS: Anand Radhakrishnan (Managing Since 27-Feb-15), FIDPEF: Anand Radhakrishnan (Managing Since 01-Feb-11). B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. The FIFEF fund manager Anand Radhakrishnan & Roshi Jain manages 7&4 schemes/plans of Franklin Templeton Mutual Fund respectively. Period for which scheme s performance has been provided is computed basis last day of the month-end preceding the date of advertisement. The top three and bottom three funds managed by the fund manager(s) have been derived on the basis of the since inception returns. Different plans have a different expense structure. The performance details provided herein are of Regular Plan. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. 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 for details on performance of all schemes (including Direct Plans). # Index is adjusted for the period January 31, 2000 to May 26, 2017 with the performance of S&P BSE Information Technology. ## Index adjusted for the period December 1, 1993 to June 4, 2018 with the performance of S&P BSE Sensex. **This scheme has been in existence for more than 1 year but less than 5 years.^^^ As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception are not available. Benchmark returns calculated based on Total Return Index Values. ***The features of few Schemes including category of schemes (like Scheme Name, Investment Objective, Benchmark etc.) has undergone changes with effect from June 4, For details, please refer '@ As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR in FIBCF: $ S&P BSE Sensex PRI values from to , S&P BSE Sensex TRI values from to and Nifty 100 TRI values since , * Nifty 50 PRI values from to and TRI values since ; FIEF: $ Nifty 500 PRI values from to and TRI values since , * Nifty 50 PRI values from to and TRI values since ; FITF: $ S&P BSE Information Technology PRI values from 01/02/1999 to 23/08/2004; S&P BSE Information Technology TRI values from 23/08/2004 to 29/05/2017 and S&P BSE TECK TRI values since 29/05/2017, *Nifty 50 PRI values from to and TRI values since Inception Date

16 Rupees Portfolio Journey Movement of Rs. 10,000 invested in FIFEF, Nifty 500 & Nifty FIFEF: Rs. 40, B: Nifty Rs. 29,595 AB: Nifty 50 - Rs. 28,865 0 Aug-07 Sep-08 Nov-09 Dec-10 Jan-12 Feb-13 Mar-14 Apr-15 May-16 Jul-17 Aug-18 FIFEF B: Nifty 500 AB: Nifty 50 Past performance may or may not be sustained in future. The graph shows the movement of Rs.10,000 invested in FIFEF Growth Plan, Nifty 500, and Nifty 50 since inception of the fund. B: Benchmark and AB: Additional Benchmark. Inception Date: July 26, Performance is as on Aug 31, Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Please refer for details on performance of all schemes (including Direct Plans). Benchmark values are calculated based on Total Return Index Values. 15

17 Absolute Returns (%) Calendar Year Returns (20) (40) (60) 2018 YTD FIFEF-Growth (3) (25) (58) B: Nifty (26) (56) AB: Nifty (3) (24) (51) Outperformance over B (9) (0) (0) (0) 8 (1) Outperformance over AB (15) (1) (4) 21 (7) Past performance may or may not be sustained in future. The chart shows calendar year returns for FIFEF Growth Plan, Nifty 500, and Nifty 50 since inception of the fund. B: Benchmark and AB: Additional Benchmark. Inception Date: July 26, YTD Performance is as of Aug 31, Please refer for details on performance of all schemes (including Direct Plans). The superlative performance shown in 2009 and 2014 was on account of overall sharp rise in stock prices coupled with stock selection and fund s overweight position in outperforming sectors. 16 Benchmark returns calculated based on Total Return Index Values.

18 The advantage of long term investing Franklin India Focused Equity Fund Growth Option Historical instances of +ve performance 45.0% 40.0% 41.3% Historical instances of ve performance 35.0% 97.4% 30.0% 2.6% 28.3% 28.3% 100% 100% 25.0% 0% 0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% 17.5% 18.0% 17.7% 9.8% 0.3% 3 Year 5 Year 7 Year -4.1% Maximum Returns Minimum Returns Average Returns Past performance may or may not be sustained in future. Period to Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Returns greater than 1 year period are compounded annualized. Note: The above graph shows the performance on a daily rolling return basis to compute returns for respective periods (3, 5 and 7 years). Please turn overleaf for performance data of Benchmark and Additional Benchmark. 17

19 The advantage of long term investing Nifty 500 * Nifty 50 ** 35.0% 30.5% 30.0% 25.0% 94.9% 22.1% 97.5% 20.8% 100.0% 20.0% 5.1% 2.5% 0% 15.0% 11.5% 11.7% 11.4% 10.0% 5.0% 3.9% 0.0% -5.0% 3 Year 5 Year 7 Year -4.2% -1.4% -10.0% Maximum Returns Minimum Returns Average Returns 35.0% 30.0% 28.8% 99.3% 25.0% 21.8% 99.9% 0.7% 19.8% 100% 20.0% 0.1% 0% 15.0% 10.7% 11.1% 10.8% 10.0% 4.9% 5.0% 0.0% 3 Year 5 Year 7 Year -5.0% -2.0% 0.0% Maximum Returns Minimum Returns Average Returns Historical instances of +ve performance Historical instances of ve performance Past performance may or may not be sustained in future. Period to Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Returns greater than 1 year period are compounded annualized. *Benchmark. **Additional Benchmark. Note: The above graph shows the performance on a daily rolling return basis to compute returns for respective periods (3, 5 and 7 years). Benchmark returns calculated based on Total Return Index Values. 18

20 Returns (%) Market resilience (as of Aug 31, 2018) (20) (40) (60) (80) P1 P2 P3 P4 P5 P6 P7 P8 P9 FIFEF-Growth 44 (62) 99 (21) (18) B: Nifty (58) 81 (19) (18) AB: Nifty (53) 73 (15) (20) Outperformance over B 1 (4) 18 (3) 7 25 (0) (3) 3 Outperformance over AB 7 (9) 26 (6) (2) 3 P1: India Re-rating: 26 th July 07-8 th Jan 08. P2: Global Crisis Lows: 8 th Jan 08-9 th Mar 09. P3: Post Crisis Peak: 9 th Mar 09 9 th Nov 10. P4: High inflation, slow growth: 9 th Nov th Jan 12 P5: Rebound in US and QE3 buoying global rally: 30 th Jan th Jun 13 P6: Post European Crisis: 28 th Jun th Feb 15 P7: Chinese economic Slowdown: 27 th Feb th Feb 16 P8: Global Liquidity and Domestic Reforms: 29 th Feb st Aug 18 P9: Since Inception till 31 st Aug 18 Past performance may or may not be sustained in future. FIFEF- Growth option is taken for calculations. Returns are compounded and annualized for more than 1 year period. Inception Date: July 26, Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark, AB: Additional Benchmark. The above graph depicts performance of the fund vis-à-vis benchmark and additional benchmark in the specified time periods which have displayed significant market movement due to change in domestic/global macroeconomic variables. Benchmark returns calculated based on Total Return Index Values. 19

21 SIP Returns as on Aug 31, 2018 If you had invested Rs every month in FIFEF- Growth FIFEF 1 year 3 year 5 year 7 year 10 year Since Inception Total amount Invested (Rs) 120, , , ,000 1,200,000 1,340,000 Total value as on 31-Aug-2018 (Rs) 125, , ,888 1,679,953 3,204,428 3,746,014 Returns 8.40% 13.68% 16.54% 19.45% 18.67% 17.32% Total value of B: Nifty , , ,492 1,511,096 2,613,545 3,006,260 B:Nifty 500 Returns 18.07% 18.94% 16.61% 16.48% 14.88% 13.73% Total value of AB: Nifty , , ,533 1,442,208 2,480,694 2,860,099 AB: Nifty 50 Returns 24.02% 19.37% 15.43% 15.17% 13.91% 12.91% Past performance may or may not be sustained in future. B: Benchmark, AB: Additional Benchmark. Inception Date: July 26, Returns over 1 year period are compounded annualized. Calculations assume investment on the 1st business day of every month. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of the fund is not strictly comparable. Benchmark returns calculated based on Total Return Index Values. 20

22 Telecommunication Services Financials Energy Utilities Health Care Real Estate Industrials Materials Consumer Discretionary Information Technology Consumer Staples Underweight In (%) Overweight Fund Facts Overweights/Underweights as on 31 st Aug Past performance may or may not be sustained in future. Source: Factset as of 31 st Aug 18. Calculations are done for the portfolio vis a vis its benchmark index Nifty 500 for determining overweights and underweights. Information is historical and may not reflect current or future portfolio characteristics. Portfolio holdings are subject to change. 21

23 Consistent Dividend History Record Date Dividend Per Unit (Rs.) (A) Record Date Nav (Rs.) Dividend Plan (B) Record Date NAV (Rs.) Direct Dividend Plan Dividend Yield *(A/B) 2018 August % 2017 August % 2016 August % 2015 August % 2014 August % 2013 August % 2011 July N.A 4% 2010 September N.A 4% Dividends on face value of Rs.10/- Past performance may or may not be sustained in future. Pursuant to payment of dividend, the NAVs of the schemes would fall to the extent of payout and statutory levies (as applicable). *Dividend yield is mentioned for Dividend option. 22

24 Portfolio Composition 23 Top 10 holdings Sector Share of equity AUM Top Sector Allocation Share of equity AUM ICICI Bank Ltd. Banks 9.84% State Bank of India Banks 9.73% HDFC Bank Ltd. Banks 8.67% Bharti Airtel Ltd. Telecom - Services 6.31% Axis Bank Ltd. Banks 6.16% Indian Oil Corporation Ltd. Petroleum Products 4.43% Cognizant Technology (USA) Software 4.17% Abbott India Ltd Pharmaceuticals 4.16% Ultratech Cement Ltd. Cement 3.96% Tata Motors Ltd, DVR Auto 3.79% Total (Top 10) 61.24% Total (Equity) 91.42% Banks 35.19% Petroleum Products 8.09% Telecom - Services 7.88% Pharmaceuticals 6.49% Cement 6.46% Industrial Products 5.53% Software 4.17% Gas 3.91% Auto 3.79% Construction 3.18% Total 84.69% 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. As of Aug 31,

25 Why invest in FIFEF 1 Provides an opportunity to participate in Indian companies/sectors with focused approach 2 Blend of top-down (macro analysis to identify sectors) and bottom-up approach (micro analysis to pick stocks within these sectors) 3 Shifts between companies and sectors to be identified based on relative valuations, liquidity and growth potential 4 Long term performance record (over 11 years) 24

26 Fund Characteristics as on Aug 31, 2018 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 Assets Rs crores (Aug 31, 2018) Managed by Investment Style Minimum Amount Roshi Jain & Anand Radhakrishnan. Srikesh Nair (dedicated fund manager for foreign securities) Focused approach of max 30 stocks Subscription: Fresh Purchase - Rs.5,000/-. Additional Purchase - Rs.1,000/-. Redemption: Rs.1,000/-. The amount for subscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re. 1/-. Benchmark Nifty 500 Volatility Measures (3 years) (Aug 31, 2018) Portfolio Turnover (Aug 31, 2018) Exit Load Standard deviation: 4.37% Beta: 0.98 Sharpe Ratio*: % 1% if the units are redeemed/switched-out within one years of allotment (w.e.f. Dec 11, 2017) *Annualised. Risk free rate assumed to be 6.45% (FBIL overnight MIBOR) 25

27 Equity MFs - Positioning Thematic Asian Equity FoF Overseas Europe FoF Overseas - U.S. Thematic Technology Thematic Special Situations Thematic Infrastructure FAEF FIF-FEGF FIF-FUSOF FITF FIOF FBIF Small Cap Mid Cap Dividend Yield Value Focused ELSS Large & Mid Cap Multi Cap Large Cap Index Nifty FISCF FIPF FIT FIEAF FIEF FIBCF FIIF DIVERSIFIED TIEIF TIVF FIFEF STYLE / THEME FIIF: Franklin India Index Fund NSE Nifty Plan, FIBCF: Franklin India Bluechip Fund, FIEF: Franklin India Equity Fund, FIEAF: Franklin India Equity Advantage Fund, FIT: Franklin India Taxshield, FIFEF: Franklin India Focused Equity Fund, TIVF: Templeton India Value Fund, TIEIF: Templeton India Equity Income Fund, FIPF: Franklin India Prima Fund, FISCF: Franklin India Smaller Companies Fund, FBIF: Franklin Build India Fund, FIOF: Franklin India Opportunities Fund, FITF: Franklin India Technology Fund, FIF-FUSOF: Franklin India Feeder Franklin U.S. Opportunities Fund, FIF-FEGF: Franklin India Feeder Franklin European Growth Fund, FAEF: Franklin Asian Equity Fund 26

28 R: Risk Probability Equity MFs Risk Matrix FIF-FUSOF FIF-FEGF FAEF FIIF FIBCF FIEF FIEAF FIT FIFEF TIVF TIEIF FIPF FISCF FBIF FIOF FITF RP: Return Potential FIIF: Franklin India Index Fund NSE Nifty Plan, FIBCF: Franklin India Bluechip Fund, FIEF: Franklin India Equity Fund, FIEAF: Franklin India Equity Advantage Fund, FIT: Franklin India Taxshield, FIFEF: Franklin India Focused Equity Fund, TIVF: Templeton India Value Fund, TIEIF: Templeton India Equity Income Fund, FIPF: Franklin India Prima Fund, FISCF: Franklin India Smaller Companies Fund, FBIF: Franklin Build India Fund, FIOF: Franklin India Opportunities Fund, FITF: Franklin India Technology Fund, FIF-FUSOF: Franklin India Feeder Franklin U.S. Opportunities Fund, FIF-FEGF: Franklin India Feeder Franklin European Growth Fund, FAEF: Franklin Asian Equity Fund Note: Relative fund positioning is indicative in nature and is based on fundamental factors pertaining to relative risk return potential of 1) large caps vs mid caps vs small caps, 2) diversified vs style/theme and 3) exposure to foreign currencies. For ex: higher the mid/small cap exposure, higher the risk return potential. This is a simplified illustration of potential Risk-Return profile of the schemes and does not take into account various complex factors that may have a potential impact on the schemes. 27

29 Risk Factors The 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. Scheme Classification and Objective: Franklin India Focused Equity Fund (FIFEF): An open ended equity scheme that seeks to achieve to achieve capital appreciation through investing predominantly in Indian companies/sectors with high growth rates or potential. Load Structure: Please refer to website for latest load structure of the scheme. Risk Factors: 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. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 28

30 Franklin Templeton Asset Management (India) Pvt. Ltd. Indiabulls Finance Centre, Tower 2, 12 th and 13 th floor, Senapati Bapat Marg, Elphinstone (W) Mumbai Tel (91-22) Fax (91-22) Franklin Templeton Investments. All rights reserved.