Franklin India Prima Plus*

Transcription

1 Franklin India Prima Plus* Add Scale & Scope to your portfolio November 2017 *Please refer Slide 9 for Product Label 0

2 What do Multi-caps offer? Diversification across SECTORS Relatively lower volatility Diversification across STOCKS Multi-Caps offer Market Resilience Diversification across MARKET CAP Balanced Performance The characteristics mentioned are relative to large caps/mid caps. 1

3 Diversify your portfolio across SECTORS* Large Caps < 18 Multi Caps > Mid Caps Nifty 50 + Nifty Free Float Midcap 100 = Exposure to 16 Sectors (12 common & 4 different sectors in Nifty Free Float Midcap 100) But.. Nifty 500 = Exposure to 18 Sectors Source(latest available data): As on Oct 17. *For sector data and Large Caps, Multi-Caps and Midcaps are represented by Nifty 50, Nifty 500 and Nifty Free Float Midcap 100, respectively 2

4 Diversify your portfolio across STOCKS < > Large Caps 501 Multi Caps Mid Caps Nifty 50 + Nifty Free Float Midcap 100 = 150 stocks However, Nifty 500 is the most diversified index with exposure across 501 stocks Source: NSE, as on October 17. Large Caps, Multi-Caps and Midcaps are represented by Nifty 50, Nifty 500 and Nifty Free Float Midcap 100, respectively. 3

5 Diversify your portfolio across MARKET CAP Market Cap range as on October 2017 Large Caps 40.3K cr 596K cr Market Cap in INR Thousand Crores (K Crs) Multi-Caps 0.24K cr 596K cr Market Cap in INR Thousand Crores (K Crs) Midcaps 4.3K cr 133K cr Market Cap in INR Thousand Crores (K Crs) Multi caps cover a very wide market cap range Source: NSE, Capitaline for Market Cap range. Data is as on October 17. Large Caps, Multi-Caps, and Midcaps are represented by Nifty 50, Nifty 500, and Nifty Free Float Midcap 100, respectively. 4

6 Balanced Performance Calendar year returns for Large Caps, Multi Caps and Mid Caps (%) Index CY 02 CY 03 CY 04 CY 05 CY 06 CY 07 CY 08 CY 09 CY 10 CY 11 CY 12 CY 13 CY 14 CY 15 CY 16 Large Caps Multi-Caps Midcaps Balanced performance Multi Caps have generally been the balanced performers While there is opportunity to benefit from upside, the downside appears limited Past Performance may or may not be sustained in future. Source: NSE. Absolute returns are shown here. Large Caps, Multi-Caps and Midcaps are represented by Nifty 50, Nifty 500 and Nifty Free Float Midcap 100, respectively. 5

7 Market resilience 120% 100% 80% 60% 40% 20% 0% 44% 60% 80% 40% 36% 34% 79% 71% 105% 10% 9% 4% 42% 32% 28% 37% 31% 26% -20% -40% -60% -80% -36% -48% Tech Crash & 9/11 Recovery post 9/11 Tech Crash and 9/11: 11 th Feb st Sep 01. Recovery Post 9/11: 21 st Sep th Jan 04. India Re-rating: 14 th Jan 04-8 th Jan 08. Global Crisis Lows: 8 th Jan 08-9 th Mar 09. India Re-rating Historically Multi caps have displayed resilient performance across market cycles Past Performance may or may not be sustained in future. -53% -58% -63% Global crisis lows Post Crisis Peak: 9 th Mar 09 9 th Nov % -19% -24% Post-Crisis Peak High inflation, slowing growth Nifty 50 Nifty 500 Nifty Free Float Midcap 100 High inflation, slowing growth: 9 th Nov th Jan 12 Rebound in US and QE3 buoying global rally: 30 th Jan th Jun 13 Rebound in US and QE3 buoying global rally Post European Crisis -12% -19% -21% Chinese economic Slowdown Global Liquidity and Domestic Reforms Post European Crisis: 28 th Jun th Feb 15 Chinese economic Slowdown: 27 th Feb th Feb 16 Global Liquidity and Domestic Reforms: 29 th Feb st Oct 17 Source: NSE. Returns are compounded and annualised for period over 1 year and are as on end of Oct 17. Midcap, Large Cap, and Multi Cap are represented by Nifty Free Float Midcap 100, Nifty 50, Nifty 500. Data for Nifty Free Float Midcap 100 is not available for tech crash & 9/11 as the index data is available from January 1, The above graph depicts performance of various indices in the time periods which have displayed significant market movement due to change in domestic/global macroeconomic variables. 6

8 In percentage Volatility* year volatility 5-year volatility Large Cap Multi - cap Midcap Historically Multi caps have generally been less volatile than Midcaps Past Performance may or may not be sustained in future. Source: NSE; Data is taken as on October 31, Large Caps, Multi-Caps and Midcaps are represented by Nifty 50, Nifty 500, and Nifty Free Float Midcap 100, respectively. * Volatility is based on standard deviation. Standard deviation is calculated on rolling returns which are taken in monthly steps for the period Jan 2001 till Sep 2017 for both 3 and 5 year period. 7

9 Illustration Long term investment in large caps, midcaps and a large cap biased Multi-cap portfolio *Period: 31 st Jan st Oct 2017 Large Caps Portfolio(Multicap)** Midcaps Returns (in CAGR) 12.81% 15.60% 18.45% Volatility (as measured by Standard Deviation) 23.39% 24.97% 28.28% Multi Caps have generally given balanced performance over a long period of time Past Performance may or may not be sustained in future. Source: Bloomberg. *Data period is taken from Large Caps are represented by Nifty 50, Midcaps are represented by Nifty Free Float Midcap 100. ** Portfolio is invested in following proportion: 60% Nifty % Nifty Free Float Midcap 100. CAGR returns are shown for the above mentioned period. 8

10 Presenting Franklin India Prima Plus Product Label This product is suitable for investors who are seeking* Long term capital appreciation Primarily a large cap fund with some allocation to small/mid cap stocks *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 9

11 About the fund Blend of Growth and Value Large Cap biased fund Franklin India Prima Plus Benefits from Stock selection Rolling Returns Resilient over market cycles 10

12 Size Fund type Investment Style Franklin India Prima Plus Growth Blend Value Blend of Growth and Value Large Large Cap biased fund Benefits from Stock selection Medium Rolling Returns Resilient over market cycles Small 11

13 True to the label Franklin India Prima Plus(FIPP)- (Allocation to Large Cap, Mid Cap & Small Cap) Franklin India Prima Plus Blend of Growth and Value Large Cap biased fund Benefits from Stock selection Rolling Returns Resilient over market cycles 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Oct- 07 Average Allocation to large caps on a monthly basis has been around 66% for last 10 years Apr- 08 Oct- 08 Apr- 09 Oct- 09 Apr- 10 Oct- 10 Apr- 11 Oct- 11 Apr- 12 Large Cap Mid Cap Small Cap Oct- 12 Apr- 13 Oct- 13 Apr- 14 Oct- 14 Apr- 15 Oct- 15 Apr- 16 Oct- 16 Apr- 17 Oct- 17 Source: Internal calculations for large, mid and small cap classification. Data is as on Oct 17. Information is historical and may not reflect current or future portfolio characteristics. Portfolio holdings are subject to change. The graph shows large cap, mid cap and small cap break as a % of the total equity. 12

14 Stock selection is the key Franklin India Prima Plus Blend of Growth and Value Large Cap biased fund Benefits from Stock selection Rolling Returns Resilient over market cycles 5 Years (ending Oct 31, 17) Attribution Analysis Allocation Effect Selection Effect Interaction Effect Franklin India Prima Plus 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. Past performance may or may not be sustained in future Source: Factset. 13

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

16 Scheme Performance As of October 31, 2017 Scheme NAV as on Oct 31, 2017 Compounded Annualised Growth Rate Performance (%) Since inception Value of Investment of Last 1 year (Oct 28, Last 3 Years (Oct 31, Last 5 Years (Oct 31, Inception Date till Oct 31, 2017 Rs.10,000 since inception 2016 to Oct 31, 2017) 2014 to Oct 31, 2017) 2012 to Oct 31, 2017) NAV* Returns NAV* Returns NAV* Returns NAV* Returns Franklin India Prima Plus (FIPP) - Growth % % % % 574, B:Nifty % % % % 84,116 AB:Nifty % % % % 78,809 Performance of Top 3 and bottom 3 schemes managed by the fund managers of the scheme Franklin India Taxshield (FIT)-Growth % % % % 543, B:Nifty % % % % 131,845 AB:Nifty % % % % 104,040 Franklin India Bluechip Fund (FIBCF) - Growth % % % % 1,091, B:S&P BSE SENSEX % % % % 100,864 AB:Nifty % % % % 102,537 Franklin India Prima Fund (FIPF)- Growth % % % % 948, B:Nifty % % % % 108,449 B: Nifty Free Float Midcap % % % - N.A^^^ N.A^^^ AB:Nifty % % % % 102,537 Franklin India Life Stage Fund of Funds (FILSF) - The 50s Plus Floating Rate % % % % 34, Plan - Growth Benchmark$ % % % % 32,042 Additional Benchmark - - N.A - N.A - N.A - N.A N.A FILSF - The 50s Plus Plan - Growth % % % % 33, Benchmark$ % % % % 31,892 Additional Benchmark - - N.A - N.A - N.A - N.A N.A Franklin India Multi Asset Solution Fund (FIMAS) - Growth** % N.A N.A N.A N.A % 12, B :CRISIL Balanced Fund Aggressive Index % - N.A - N.A % 12,468 Additional Benchmark - - N.A - N.A - N.A - N.A N.A Past performance may or may not be sustained in future. Fund Managers: Fund Managers: FIPP: Anand Radhakrishnan (Managing Since 31-Mar-07) & R. Janakiraman (Managing Since 01-Feb-11), FIT: Lakshmikanth Reddy (Managing Since 02-May-16) & R. Janakiraman (Managing Since 02-May-16), FIBCF: Anand Radhakrishnan (Managing Since 31-Mar-07) & Roshi Jain (Managing Since 02-May-16), FIPF: R. Janakiraman (Managing Since 11-Feb-08) & Hari Shyamsunder (Managing Since 02-May-16), FIMAS: Anand Radhakrishnan (Managing Since 27-Feb-15), FILSF: Equity-Anand Radhakrishnan (Managing Since 01-Feb-11); Debt-Sachin Padwal-Desai (Managing Since 07-Aug-06), Pallab Roy (Managing Since 25-Jun-08). B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). The FIPP fund manager Anand Radhakrishnan & R. Janakiraman manages 12 & 6 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. $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. 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). ** This scheme has been in existence for more than 1 year but less than 3 years/5 years. ^^^ As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception are not available. 15

17 Sep-94 Jul-95 May-96 Mar-97 Jan-98 Nov-98 Sep-99 Jul-00 May-01 Feb-02 Dec-02 Oct-03 Aug-04 Jun-05 Apr-06 Feb-07 Dec-07 Oct-08 Jul-09 May-10 Mar-11 Jan-12 Nov-12 Sep-13 Jul-14 May-15 Mar-16 Dec-16 Oct-17 Rupees Over 23 years of wealth creation Movement of Rs. 10,000 invested in FIPP Growth option, Nifty 500 & Nifty FIPP: Rs. 574, B: Nifty 500: Rs. 84,116 AB: Nifty 50: Rs. 78,809 FIPP 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 FIPP Growth option, Nifty 500 and Nifty 50 since inception of the fund. B: Benchmark and AB: Additional Benchmark. Inception Date: September 29,1994. Period: Sep 29, 1994 to Oct 31, Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. 16

18 Absolute Returns (%) Calendar Year Performance (10) (60) 2017 YTD FIPP-Growth (16) (48) (5) (32) (16) (23) B: Nifty (1) (27) (57) (23) (24) 98 (9) 12 (8) (34) AB: Nifty (4) (25) (52) (16) (15) 67 (18) 20 (1) (23) Outperformance over B (5) (1) 11 5 (16) 9 (8) (8) (8) 11 Outperformance over AB (1) (1) (3) (17) (7) (15) 0 Past performance may or may not be sustained in future. The graph shows calendar year performance for FIPP Growth option, Nifty 500 and Nifty 50. B: Benchmark and AB: Additional Benchmark. Inception Date: September 29,1994. YTD performance is as of Oct 31, Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. The superlative performance shown in 1999, 2003 and 2009 was on account of overall sharp rise in stock prices coupled with stock selection and fund s overweight position in outperforming sectors. 17

19 The advantage of long term investing Franklin India Prima Plus Growth Option 100.0% Historical instances of +ve performance Historical instances of ve performance 80.0% 76.9% 60.0% 94.6% 5.4% 56.8% 100% 0% 100% 0% 100% 0% 40.0% 39.9% 41.1% 24.3% 23.7% 23.6% 24.7% 20.0% 0.0% -20.0% 11.2% 7.1% 3.2% 3 Year 5 Year 7 Year 10 Year -14.0% 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 (3,5,7 and 10 years). Please turn overleaf for performance data of Benchmark and Additional Benchmark 18

20 The advantage of long term investing Nifty 500* Nifty 50** 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% 65.2% 48.1% 81.4% 93.5% 94.8% 100% 18.6% 6.5% 30.2% 5.2% 23.9% 0% 13.4% 13.4% 13.6% 15.0% 3.0% 3 Year 5 Year 7 Year 10 Year -3.6% -8.5% -23.5% Maximum Returns Minimum Returns 70.0% 60.0% 58.6% 50.0% 44.5% 40.0% 84.8% 93.7% 96.4% 100% 30.0% 15.2% 6.3% 28.4% 3.6% 0% 20.6% 20.0% 12.1% 12.2% 12.5% 13.9% 10.0% 0.0% 2.8% 3 Year 5 Year 7 Year 10 Year -10.0% -5.6% -5.0% -20.0% -16.4% -30.0% 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 (3,5,7 and 10 years) 19

21 Returns (%) Market resilience (as of October 31, 2017) (20) (40) (60) (80) P1 P2 P3 P4 P5 P6 P7 P8 P10 P11 P12 P13 P14 FIPP-Growth (22) 72 (38) (50) 75 (12) (12) B: Nifty 500 (28) 40 (48) (58) 79 (19) 9 32 (19) AB: Nifty 50 (21) 29 (36) (53) 71 (16) (21) 26 9 Outperformance over B (4) (5) 10 Outperformance over AB (1) 43 (2) (0) 10 P1: Mid 90s Crash: 29th Sep 94-4 th Dec 96. P2: Tech Bubble Peak: 4 th Dec th Feb 00. P3: Tech Crash and 9/11: 11 th Feb st Sep 01. P4: Recovery Post 9/11: 21 st Sep th Jan 04. P5: India Re-rating: 14 th Jan 04-8 th Jan 08. P6: Global Crisis Lows: 8 th Jan 08-9 th Mar 09. P7: Post Crisis Peak: 9 th Mar 09 9 th Nov 10. P8: High inflation, slow growth: 9 th Nov th Jan 12 P10: Rebound in US and QE3 buoying global rally: 30 th Jan th Jun 13 P11: Post European Crisis: 28 th Jun th Feb 15 P12: Chinese economic Slowdown: 27 th Feb th Feb 16 P13: Global Liquidity and Domestic Reforms: 29 th Feb st Oct 17 P14: Since Inception: 29 th Sep 1994 till 31 st Oct 17 Past performance may or may not be sustained in future. FIPP growth option is taken for calculations. Returns are compounded and annualized for more than 1 year period. Inception Date: September 29, 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. 20

22 SIP Returns as on October 31, 2017 If you had invested Rs every month in FIPP- Growth FIPP 1 year 3 year 5 year 7 year 10 year Total amount Invested (Rs) Total value as on Oct 31, 2017 (Rs) Since Inception 120, , , ,000 1,200,000 2,760, , , ,780 1,598,983 2,902,558 59,108,652 Returns 22.20% 14.51% 19.02% 18.06% 16.83% 22.07% Total value of B:Nifty , , ,329 1,416,737 2,352,777 17,486,719 B:Nifty 500 Returns 28.92% 16.39% 16.42% 14.67% 12.91% 13.86% Total value of AB:Nifty , , ,597 1,293,210 2,143,477 14,507,016 AB:Nifty 50 Returns 24.80% 13.01% 13.01% 12.11% 11.17% 12.57% Past performance may or may not be sustained in future. B: Benchmark, AB: Additional Benchmark. Inception Date: September 29, Returns over 1 year period are compounded annualized. Calculations assume investment on the 1st business day of every month. Dividends are assumed to be reinvested and bonus is adjusted.. Load is not taken in to consideration. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of the fund is not strictly comparable. 21

23 Consumer Discretionary Health Care Telecommunication Services Industrials Financials Real Estate Information Technology Utilities Consumer Staples Materials Energy Underweight In (%) Overweight Fund Facts: Overweights/Underweights as on October 31, Source: Factset as on Oct 31, 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. 22

24 Consistent Dividend History Record date Dividend Per Unit(Rs.) (A) Record date Nav(Rs.) - Dividend Option (B) Record date Nav(Rs.) - Direct Dividend Option Dividend Yield* (A/B) 2017 March % 2016 February % 2015 February % 2014 February % 2013 February % 2012 March N.A 10% 2011 February N.A 11% 2010 February N.A 19% 2009 February N.A 13% 2008 February N.A 15% 2007 March N.A 10% 2006 November N.A 15% 2005 November N.A 19% 2004 October N.A 17% 2004 March N.A 11% 2003 August N.A 11% 2002 March N.A 13% 2001 January N.A 15% 2000 October N.A 17% 1999 September N.A 11% 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. 23

25 24 Portfolio Composition Top 10 holdings Sector Share of equity AUM Top Sector Allocation Share of equity AUM HDFC Bank Banks 9.18% Bharti Airtel Telecom Services 4.21% ICICI Bank Banks 4.19% Infosys Software 3.98% Yes Bank Banks 3.86% Larsen & Toubro Construction Project 3.72% Axis Bank Banks 2.79% Mahindra & Mahindra Auto 2.79% Kotak Mahindra Bank Banks 2.69% Cadila Healthcare Ltd Pharmaceuticals 2.34% Total 39.73% Total (Equity) 93.92% Banks 27.81% Pharmaceuticals 8.82% Auto 8.68% Software 8.62% Consumer Non Durables 6.58% Construction Project 5.74% Telecom - Services 4.21% Cement 3.51% Finance 3.00% Consumer Durables 2.64% Total 79.62% 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 October 31, 2017

26 Why invest in FIPP 1 Provides an opportunity to participate in wealth creating companies (generate return on capital in excess of their cost of capital) with potential of high growth 2 Benefit from Blend Investment style (combination of Growth and Value) 3 Large Cap biased portfolio with focus on Bottom up stock selection 4 Long term performance record (over 23 years)+ dividend track record of over 19 years. 25

27 Fund Characteristics as on October 31, Investment Objective To provide growth of capital plus regular dividend through diversified portfolio of equities, fixed income securities and money market instruments. Inception Date September 29, 1994 Assets Rs. 11, crore (October 31, 2017) Managed by Investment Style Anand Radhakrishnan, R. Janakiraman. Srikesh Nair (dedicated fund manager for foreign securities) Blend of growth & value Minimum Amount Benchmark Nifty 500 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/-. Volatility Measures (3 years) (October 31, 2017) Portfolio Turnover (October 31, 2017) Exit Load Standard deviation: 3.68% Beta: 0.86 Sharpe Ratio*: % 1% if the units are redeemed/switched-out within one year of allotment *Annualised. Risk free rate assumed to be 6.00% (FBIL overnight MIBOR)

28 Reward Risk Reward Matrix for select FT Equity Funds 27 Thematic Franklin Build India Fund Franklin India Smaller Companies Fund Franklin India Prima Fund Diversified Equity Franklin India High Growth Companies Fund Franklin India Taxshield Hybrid Income Franklin India Prima Plus Fund Franklin India Bluechip Fund Franklin India Flexi Cap Fund Liquid Risk 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. 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. 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. Scheme Classification and Objective: Franklin India Prima Plus (FIPP): An open-end growth scheme with an objective to provide growth of capital plus regular dividend through a diversified portfolio of equities, fixed income securities and money market instruments. 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. 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. 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. 29