Franklin Templeton Mutual Fund Corporate Office: 4 th Floor, Wockhardt Towers, Bandra Kurla Complex, Bandra (East), Mumbai

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1 Franklin Templeton Mutual Fund Corporate Office: 4 th Floor, Wockhardt Towers, Bandra Kurla Complex, Bandra (East), Mumbai Addendum to the Offer Documents of schemes of Franklin Templeton Mutual Fund: i) With a view to increase the geographical reach and to spread the network, Franklin Templeton Mutual Fund (FTMF) hereby declares the following branch offices of Karvy Computershare Pvt. Ltd. (Karvy) as the Official Points of Acceptance of Transactions (OPAT) termed as Collection Centres in addition to the existing OPAT, w.e.f. July 06, The cut off time as mentioned in the Offer Documents shall be reckoned at these Collection Centres also. All purchase, redemption and exchange applications must be demonstrably received by the Mutual Fund at these Collection Centres within stipulated cut off times on a business day. Please note that these official points are purely collection centres and all the investors/distributors queries will continue to be handled by the ISCs. Name of the Branch Address Name of the Branch Address Asansol (West Bengal) Bareilly (Uttar Pradesh) Calicut 18 GT Road, 1st floor, Asansol st Floor, 165 Civil Lines Opp.Hotel Bareilly Palace Near Rly Station Bareilly P S Building, P T Usha Road, Opp. Amalapuri Colony Calicut Aurangabad (Maharashtra) Bhavnagar (Gujarat) Dharwad (Karnataka) Shop No. 214/215 Tapadiya City Centre Nirala Bazar Aurangabad /135 Madhav Darshan Waghawadi Road Bhavnagar G-7/8, Sri Banashankari Avenue Ramnagara Dharward Erode Kota (Rajasthan) No. 4, KMY Salai Veerappan Traders Complex Opp. Erode Bus Stand Sathy Road, Erode nd Floor, Al-Hatmi complex 257 Shopping Centre Kota Guntur (Andhra Pradesh) Kottayam Door No Chunduri House 10/1 Arundelpet Guntur st Floor, CSI Ascension Church Complex, Kottayam Mysore (Karnataka) L-350, Silver Tower Clock Tower Mysore Tirunelveli Jeney Building, 55/18 S N Road Near Arvind Eye Hospital Tirunelveli Tirupur RCR Complex, 254, II Floor Avanashi Road Tirupur Trichur Delma Complex (I Floor) Opp. Co-op Hospital Shornur Road, Naikkanal Trichur ii) Change in investment amount multiples: The application amount for Fresh Purchases, Additional Purchases and Switches in excess of the minimum subscription amount specified for each respective scheme stands changed to

2 Any amount in multiples of Re. 1/-, except in case of Templeton India Pension Plan (TIPP) & Franklin India Taxshield (FIT) where the same continues to be in multiples of Rs. 500/-. iii) As per SEBI Circular No. SEBI/IMD/Cir-10/22701/03 dated December 12, 2003 read with clarifications issued via SEBI Circular, no. SEBI/IMD/Cir-1/42529/05 dated June 14, 2005, the aforesaid Circular would be applicable at portfolio level. Determining the breach of the 25 % limit by an Investor The average net assets of the scheme would be calculated daily and any breach of the 25 % holding limit by an investor would be determined. At the end of the quarter, the average of daily holding by each such investor is computed to determine whether that investor has breached the 25 % limit over the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. All other provisions of the aforesaid Circular dated December 12, 2003 remain unchanged. Addendum to the Offer Documents of Franklin India Bluechip Fund (FIBCF), Templeton India Growth Fund (TIGF), Franklin India Prima Plus (FIPP), Franklin India Prima Fund (FIPF), Franklin India Flexi Cap Fund (FIFCF), Franklin India Taxshield (FIT), Franklin India Index Fund (FIIF), Franklin Infotech Fund (FIF), Franklin FMCG Fund (FFF), Franklin Pharma Fund (FPF), Franklin India Opportunities Fund (FIOF), FT India Balanced Fund (FTIBF), Templeton India Pension Plan (TIPP), Templeton India Children s Asset Plan (TICAP), FT India Life Stage Fund of Funds (FTLF), FT India Dynamic PE Ratio Fund of Funds (FTDPEF), Templeton India Income Fund (TIIF), Templeton India Income Builder Account (TIIBA), Templeton Monthly Income (TMIP), FT India Monthly Income (FTIMIP), Templeton India Government Securities Fund (TGSF), Templeton Floating Rate Income Fund (TFIF), Templeton India Short-Term Income Plan (TISTIP) and Templeton India Treasury Management Account (TITMA) With a view to enhance and standardise the services to the investors, the following changes are being made in the existing terms of Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), Systematic Withdrawal Plan (SWP) and Dividend Transfer Plan (DTP) facility w.e.f. July 6, 2005, as detailed below: a. The minimum account balance amount to start the STP facility in TISTIP, TITMA (except Institutional Plan) and Short Term Plan of TFIF stands changed from Rs. 1,00,000 to Rs. 12,000. b. For all SIP, STP and DTP purchase transactions, following entry and exit load shall be applicable: Description Schemes where the entry load for normal purchases # exceeds 1% Schemes where the entry load for normal purchases # is equal to or less than 1% Templeton India Pension Plan Proposed load structure for SIP, STP (in) and DTP (in) (Destination Schemes) transactions Entry Load Exit Load* 1% Equal to the entry load applicable to normal purchases #, as reduced by 1% 50% of the entry load Equal to 50% of the entry load purchases # purchases # Nil Equal to the entry load

3 Description Proposed load structure for SIP, STP (in) and DTP (in) (Destination Schemes) transactions Entry Load Exit Load* purchases # ** Franklin India Taxshield 1% 1%*** * if redeemed within 2 years (730 calendar days) of the allotment date applying First in First Out basis, or in case the SIP/STP is prematurely terminated before completion of the minimum term for any reason, as the AMC may deem fit. ** investors cannot redeem before completion of the lock-in period. Additionally, an exit load applicable, if any, at the time of redemption shall be levied. *** investors cannot redeem before completion of the lock-in period. # normal purchases are purchases at the minimum subscription amount specified for each respective scheme, other than purchases through SIP, STP(in), DTP(in) or Exchange/ Switch(in) Further, for all STP (out) transactions, an exit load as applicable in the Source Scheme shall be levied. c. Only one instalment per month/quarter is allowed under one SIP registration. e.g., if for a monthly SIP the first instalment is in the month July, say 2 nd July, then the second instalment should be in August. d. If during the currency of a SIP/STP, the unitholder changes the plan or option in which he/she had invested, the same would be treated as termination of existing SIP/STP and re-registration of a new SIP/STP and all the terms and conditions of the SIP/STP like minimum term/amount etc. shall apply in both plans/options. e. If in case of a monthly/quarterly STP with Fixed Amount Option, if the unitholder specifies 30 th or 31 st of the month (28 th /29 th in case of February) as the Specified Date for the STP transaction, then the STP shall be processed on the day, which is the last business day in that month for both the schemes. f. Where the Start Date of the STP is not mentioned, then for an STP under Monthly/Quarterly option, the Start Date shall be deemed to be 15 th day of the month in which the STP is submitted, if submitted before 8 th day of the month, else the same shall be deemed to be the last business day of the month for both the schemes, provided it is submitted before 23 rd of the month. If the STP is submitted after 23 rd of the month, the Start Date shall be deemed to be 15 th day of the next month. For STP under Weekly option, the Start Date shall be deemed to be the first available STP date under Weekly Option after a period of 7 days after the date of submission of the STP request. g. Where the Start Date of the SWP is not mentioned, then the same shall be deemed to be the first available SWP date depending upon the option chosen by the unitholder, after a period of 7 days after the date of submission of the SWP request. It is clarified that the load applicable in case of a SIP/STP/SWP or DTP shall be the load prevailing on the date of the first instalment. The aforesaid changes in the SIP, STP, SWP or DTP shall be applicable only in those schemes/plans in which the respective facility is currently available. All prior investments continue to be subject to the load structure at the time of their original investments, as may be applicable. The Trustee reserves the right to increase/decrease/introduce a Load/Fee at any time in future on a prospective basis. However such increase/decrease/introduction would be subject to the limits prescribed under the Regulations. Addendum to the Offer Documents of Templeton Floating Rate Income Fund (TFIF), Templeton India Short Term Income Plan (TISTIP) and Templeton India Government Securities Fund (TGSF):

4 The minimum application amount for Fresh Purchases, Additional Purchases and Switches in TFIF Short Term Plan, TISTIP and TGSF Treasury Plan stands changed to Rs. 5,000/- from Rs. 1,00,000/- w.e.f. July 06, Addendum to the Offer Documents of Templeton India Pension Plan (TIPP) and Franklin India Taxshield (FIT): Investments in the above schemes were qualified for a tax rebate under section 88 of the Income Tax Act 1961 upto 31st March As per the Finance Act 2005, contributions to above schemes would be eligible for deduction under the new section 80C of the Income Tax Act, The necessary notification is awaited. Investors are requested to consult their tax advisor in this regard. All the other terms and conditions of the respective schemes Offer Documents will remain unchanged. This addendum forms an integral part of the respective Offer Documents issued for respective schemes read with the addenda. This addendum is dated June 29, For Franklin Templeton Asset Management (India) Pvt. Ltd. (Investment Manager of Franklin Templeton Mutual Fund) Sd/- Ravi Mehrotra Income is not assured, and is subject to the availability of distributable surplus

5 Pl. use these risk factors for advt. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. There can be no assurance that a scheme s investment objectives will be achieved. 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. The above are only the names of the schemes/plans and do not in any manner indicate the quality of the schemes/plans, their future prospects or returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to availability of distributable surplus. The investments made by the schemes are subject to external risks. The floating rate investments are subject to risks pertaining to Interest rate movement, Spread Movement, Settlement and Liquidity. The expenses of the Fund of Funds scheme will be over and above the expenses charged by the underlying schemes. The existence, accuracy and performance of the S&P CNX Nifty Index and BSE Sensex Index will directly affect the performance of Index schemes and tracking errors are inherent in any Index Fund. All subscriptions in FIT are subject to a lock-inperiod of 3 years from the date of allotment and the unitholder cannot redeem, transfer, assign or pledge the units during this period. The Trustee, AMC, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up before the completion of the lock-in period. 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. All subscriptions in TIPP are locked in for 3 full financial years. All subscriptions in TICAP are locked till the beneficiary child attains 18 years of age. Please read the offer documents carefully before investing. Statutory Details: Franklin Templeton Mutual Fund in India has been set up as a trust by Templeton International Inc. (liability restricted to the seed corpus of Rs.1 lac) with Franklin Templeton Trustee Services Pvt. Ltd. as the Trustee (Trustee under the Indian Trust Act 1882) and with Franklin Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. The Fund offers NAV s, purchases and redemptions on all business days except during the period when there is a book closure.