Fixed Income Markets A Perspective

Fixed Income Markets A Perspective

2 Agenda Market Environment Global and India FT Funds Templeton India Low Duration Fund Templeton India Short Term Income Plan Templeton India Income Opportunities Fund Templeton India Corporate Bond Opportunities Fund Summary

Market Environment

4 Global Scenario Selected Countries - Balance Sheet Size of Central Banks (% of GDP), 1999 2012 Q1 Note: data ending in Q1 2012 for the US, in Q4 2011 for the rest. Source: National Central Banks, National Statistics Offices, and Citi Investment Research and Analysis Source: JP Morgan Developed Markets : Monetary policies remain very accommodative and evaluating additional stimulus to avoid deflation Emerging Markets : Growth slowdown and fall in inflation has led many countries to reduce benchmark rates further Interest rate differential between developed and emerging market economies remains high Focus is shifting from austerity to supporting growth and financial market stability

5 Global Scenario 10-year benchmark bond yields Jul 31 2012 Dec 31 2011 Dec 30 2010 US 1.49 1.88 3.29 Canada 1.69 1.94 3.12 UK 1.47 1.98 3.40 Japan 0.80 0.98 1.12 Germany 1.30 1.83 2.96 Source: Financial Times Benchmark bond yields have retreated from highs due to Growth slowdown and expectations of additional monetary stimulus Leading central banks ECB and US Federal Reserve have indicated that they will announce additional measures to address the economy and markets Indications that policy markers are working on long lasting solutions for the Europe crisis

6 India: Macro pressures RBI Policy Rates Source: RBI, Bloomberg, CEIC, Morgan Stanley Research Source: Factset, RBI, CEIC, Morgan Stanley Research After cumulative rate hike of 375 bps, RBI cut repo rate by 50 bps in April But remains concerned about inflation drivers and high fiscal deficit - policy on hold A better domestic government policy environment can provide more room for further rate cuts to boost economic growth Market yields have started to ease

7 India: Growth moderation Quarterly GDP growth trends (%yoy) Latest GDP data points to further slowdown in the economy Capex slowdown due to policy issues Effect of monetary tightening FY13 Growth expectations have been downgraded Policy issues need to be sorted to revive investment spending Source: JP Morgan

8 India Headwinds: Inflation Source: CEIC, RBI, Morgan Stanley Research Inflation - Fast growing economies tend to experience higher inflation Mixed trends witnessed last couple of months Core inflation off peaks, but price rises on the food & fuel fronts can add pressure Urgent need to address supply bottlenecks to correct the supply-demand imbalances Additional upside risk to food prices from weak monsoons

9 India Headwinds: Twin Deficits Deficit has impacted capex Trends in Current Account Deficit (US$ bln, % GDP) Source: Budget Documents, CSO, CIEC, Morgan Stanley Research. E = MS Estimates Source: RBI, CIRA Fiscal Deficit: Higher subsidy bill and government spending could continue to push up deficit This seems to have had an impact on private borrowing costs Current Account Deficit (CAD): High oil prices and gold imports weighed on current account balance Recent trends of decline in gold imports positive, though fall in exports concerning Foreign Capital Inflows important to fund CAD Balance of Payments improved in Jun 12 due to the same

10 India Markets: Liquidity Trends in Interbank Liquidity Credit and Deposit Growth have picked up a bit Source: Bloomberg, Morgan Stanley Research Source: RBI, Morgan Stanley Research Systemic liquidity deficit has reduced in July and short term rates have dipped May be attributed to positive capital inflows and waning seasonal liquidity pressures Despite slowdown, credit growth remains robust (+17%) and is ahead of deposit growth Credit-deposit ratio though off all-time highs, remains elevated RBI has been conducting OMOs to address liquidity and has cut SLR to free up resources for productive sectors of the economy Has also announced a range of measures to boost foreign capital inflows

11 Indian Markets: Recent trends G-sec Yield Curve (%) Corporate Bond Spreads (in bps) 9.0 190 8.5 165 8.0 140 7.5 115 7.0 1 year gilt 3 year gilt 5 year gilt 10 year gilt 30 year gilt 90 1 year AAA 3 year AAA 5 year AAA 31 Dec 10 31 Dec 11 31 Mar 12 31 Jul 12 31 Dec 10 31 Dec 11 31 Mar 12 31 Jul 12 Yields at the longer end of the curve remain elevated Shorter-end of the curve (1-year) has outperformed longer-end Longer end expected to remain volatile push-pull effects from expectations of rate cuts, OMOs and fiscal situation On the corporate bond spreads front Relatively higher spreads at the short end (1-yr) segment looks attractive Opportunity for bottom-up credit research to take advantage of mis-priced securities Source: Bloomberg. As of July 31, 2012

12 Indian Markets: Capital flows FII flows ($ mln) 35000 30000 29320.79 25000 20000 17783.3 17639.21 15000 10000 5000 0-5000 10799.1-1223 8064.3 882 2337 2698 1079 10131 8394-511.75 10519.10 4439-10000 -15000-12179.2 2005 2006 2007 2008 2009 2010 2011 YTD 2012 2012YTD flows into debt remain positive led by positive yield differential Source: SEBI. As of July 2012

FT Fixed Income - Focus Funds

14 FT: Fixed Income Focus FT has a broad range of fixed income funds to suit the current uncertain macro environment Open-end funds better placed vis-à-vis closed end in current circumstances Can take advantage of shift in monetary policy bias Funds investing in short-dated securities and focused on corporate bonds better placed, given downside risks on the fiscal front FT offers a range of funds that can suit your investment horizon - Fund Description Recommended Investment Horizon Templeton India Low Duration Fund (TILDF) Templeton India Short Term Income Plan (TISTIP) Templeton India Income Opportunities Fund (TIIOF) Templeton India Corporate Bond Opportunities Fund (TICBOF) Invests in a mix of money market and shortterm debt instruments Invests in short term corporate debt securities Focused on high accrual paper towards the short end of the curve including PTCs Focused on high-yielding corporate bonds at the medium to long end of the curve At least 3 months At least 9 months At least 18 months 30 months or more

15 Templeton India Low Duration Fund (TILDF) An open-end fund investing in a mix of money market and short-term debt securities Ideal for investors with a conservative risk profile and short investment horizon Maintains a low duration such that interest rate sensitivity is low while offering relatively higher accruals Top 5 Holdings Holding Instrument Type Co. Description Rating % Share Hindustan Petroleum Corporation Money Market State-owned Oil Refining & Marketing Company CRISIL A1+ 9.47% Reliance Capital Money Market NBFC - engaged in varied financial services activities including asset management; mutual funds; portfolio management services; pension funds; life/ general insurance; PE & proprietary investments; stock broking and distribution of financial products CARE A1+ 8.37% Reliance Infrastructure Money Market Infrastructure firm into power generation, road construction, rapid transit systems, airports, and other projects FITCH A1+ 8.21% Edelweiss Capital Money Market NBFC - engaged in asset management; life/ general insurance; commercial finance; stock broking; depository services; PE & proprietary investments; distribution of financial products CRISIL A1+ 6.61% Essel Corporate Resources Corporate Debt Is one of the primary holding companies of the Essel Group BW A- (SO) 5.75% As of July 31, 2012. Source: Company websites/ documents and rating documents as may be issued by rating agencies These securities represent the five largest holdings held in the Fund as of the date indicated and do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change.

16 Templeton India Low Duration Fund (TILDF) Composition by Assets (as of July 2012) Composition by Ratings (as of July 2012) Portfolio Characteristics Positioning Matrix Average Maturity 0.28 yrs Yield to Maturity 9.97%* Modified Duration 0.25** yrs Asset size (Rs. Crs) 2,614.76 As of July 31, 2012 * Pre-fund expenses **Modified duration of floating rate securities is calculated based on the next reset date.

17 Templeton India Low Duration Fund (TILDF) Long-term Fund Performance (as of Jun 29, 2012) Refer Annexure for detailed performance disclosures NAV as at Jun 29, 2012 (Rs.): 11.8653 Fund Manager: Sachin Padwal-Desai, Umesh Sharma NAV Per Unit (Rs.) TILDF - Growth Crisil Short-Term Bond Fund Index # 1 year T-Bill Last 1 year (Jun 30, 2011 to Jun 29, 2012) 10.7794 10.17% 8.81% 7.73% Since inception till Jun 29, 2012 10 9.27% 7.80% 6.08% Current Value of Standard Investment of Rs. 10000 Since inception (26.7.2010) 11,865 11,559 11,207 Past performance may or may not be sustained in the future. Load has not been taken into consideration. Inception Date: July, 26, 2010. # Index adjusted for the period April 1, 2002 to November 29, 2010 with the performance of Crisil MIP Blended Index. Returns greater than 1 year period are compounded annualized.

18 Templeton India Short Term Income Plan (TISTIP) An open-end fund focusing on corporate bonds at the short end of the curve Positioned between a long bond and a liquid fund Consistent long-term track record and is well suited for investors with moderate risk profile Top 5 Holdings: Holding Instrument Type Co. Description Rating % Share Reliance Capital Money Market NBFC - engaged in varied financial services activities including asset management; mutual funds; portfolio management services; pension funds; life/ general insurance; PE & proprietary investments; stock broking and distribution of financial products ICRA A1+ 5.62% Tata Teleservices Money Market A wireless telephony service provider CARE A1+ 5.27% Reliance Infrastructure Money Market Infrastructure firm engaged in Power generation, road construction, rapid transit systems, airports, and other projects FITCH A1+ 5.24% Magma Fincorp Corporate Debt NBFC- catering to individual and corporate customers. It offers commercial vehicle financing, construction equipment financing and car financing. CARE AA+ 4.88% Fullerton India Credit Company Corporate Debt NBFC - provides commercial vehicle financing, construction equipment financing and passenger car financing ICRA AA+ 4.46% Oriental Bank of Commerce As of July 31, 2012 Money Market A mid-sized public sector bank in India CRISIL A1+ Source: Company websites/ documents and rating documents as may be issued by rating agencies 3.96% These securities represent the five largest holdings held in the Fund as of the date indicated and do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change.

19 Templeton India Short Term Income Plan (TISTIP) Composition by Assets (as of July 2012) Composition by Ratings (as of July 2012) Portfolio Characteristics Average Maturity 0.96 yrs Yield to Maturity 10.21%* Modified Duration 0.86** yrs Asset size (Rs. Crs) 5,678.66 As of July 31, 2012 * Pre-fund expenses. Positioning Matrix Credit Quality High Medium Low High Medium Low Interest Rate Sensitivity **Modified duration of floating rate securities is calculated based on the next reset date.

20 Templeton India Short Term Income Plan (TISTIP) Long-term Fund Performance (as of Jun 29, 2012) Refer Annexure for detailed performance disclosures Growth Option NAV as at Jun 29, 2012 (Rs.) Retail: 2189.4411 Fund Manager: Umesh Sharma, Sachin Padwal-Desai NAV Per Unit (Rs.) TISTIP Retail Plan Growth Crisil Short-Term Bond Fund Index 1 year T-Bill Last 1 year (Jun 30, 2011 to Jun 29, 2012) 2002.0946 9.36% 8.81% 7.73% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 1878.2807 7.97% 7.19% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 1729.2472 8.18% 6.40% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 1404.9431 9.27% 7.49% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 1034.51 7.78% 6.40% 5.29% Since inception till Jun 29, 2012 1000 7.81% N.A. 5.33% Last 2 years 11,657 11,489 11,250 Last 3 years 12,661 12,047 11,471 Last 5 years 15,584 14,353 13,088 Last 10 years 21,164 18,606 16,756 Since inception (31.1.2002) 21,894 N.A 17,184 Past performance may or may not be sustained in the future. Load has not been taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Returns greater than 1 year period are compounded annualized.

21 Templeton India Income Opportunities Fund (TIIOF) Open end income fund that strives to generate higher yields with relatively lower interest rate risks Current portfolio focus on high yield securities including securitized debt Retail focused fund with restrictions on large inflows/ outflows to increase efficiency to deliver better returns Top 5 Holdings: Holding Instrument Type Co. Description Rating % share CLSS 5 Trust 2011/ CLSS 10 Trust 2011/ CLSS 6 Trust 2011 Single Loan PTC Underlying - Tata Teleservices, a wireless telephony service provider CARE A+(SO) 15.06% Magma Fincorp Corporate Debt NBFC- catering to individual and corporate customers. It offers commercial vehicle financing, construction equipment financing and car financing. CARE AA+ 8.44% CLSS 15 Trust 2011/ CLSS 2 Trust 2011/ CLSS 8 Trust 2010/ CLSS 2 Trust 2011 Single Loan PTC Underlying North Delhi Power, a JV between Tata Power Company and Government of NCT of Delhi Distributes electricity in the North & North West areas of Delhi ICRA AA- 5.79% Fullerton India Credit Company Corporate Debt NBFC - provides commercial vehicle financing, construction equipment financing and passenger car financing ICRA AA+ 4.75% JM Financial Products As of July 31, 2012. Corporate Debt NBFC engaged in varied financial services activities including borrowing/ lending activities including loan against securities, IPO funding, ESOP financing. Source: Company websites/ documents and rating documents as may be issued by rating agencies These securities represent the five largest holdings held in the Fund as of the date indicated and do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change. ICRA AA+ 4.79%

22 Templeton India Income Opportunities Fund (TIIOF) Composition by Assets (as of July 2012) Composition by Ratings (as of July 2012) Portfolio Characteristics Average Maturity 1.31 yrs Yield to Maturity 10.57%* Modified Duration 1.14** yrs Asset size (Rs. Crs) 2,695.75 As of July 31, 2012 * Pre-fund expenses. **Modified duration of floating rate securities is calculated based on the next reset date. Positioning Matrix Credit Quality High Medium Low High Medium Low Interest Rate Sensitivity

23 Templeton India Income Opportunities Fund (TIIOF) Long-term Fund Performance (as of June 29, 2012) Refer Annexure for detailed performance disclosures NAV as at June 29, 2012 (Rs.): 12.2992 Fund Manager: Umesh Sharma, Sachin Padwal-Desai NAV Per Unit (Rs.) TIIOF - Growth Crisil Short-Term Bond Fund Index 10 year dated GOI security Last 1 year (Jun 30, 2011 to Jun 29, 2012) 11.2387 9.44% 8.81% 7.10% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 10.5377 8.04% 7.19% 4.41% Since inception till Jun. 29, 2012 10 8.45% 6.75% 4.23% Current Value of Standard Investment of Rs. 10,000 Last 2 years 11,672 11,489 10,901 Since inception (11.12.2009) 12,299 11,812 11,114 Past performance may or may not be sustained in the future. Load has not been taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Returns greater than 1 year period are compounded annualized.

24 Templeton India Corporate Bond Opportunities Fund (TICBOF) Open end income fund investing predominantly in corporate securities with medium to long term maturity while capping the average maturity at 36 months. Focuses on securities with higher accrual and the potential for capital gains given its maturity profile. Retail focused fund with restrictions on large inflows/ outflows to increase efficiency to deliver better returns. Top 5 Holdings Holding Instrument Type Co. Description Rating % share Fullerton India Credit Company Corporate Debt NBFC - provides commercial vehicle financing, construction equipment financing and passenger car financing ICRA AA+ 7.40% Au Financiers (India) Corporate Debt Rajasthan based NBFC provides commercial vehicle financing, car financing, SME loans and loans against property. CRISIL A 6.86% Mahindra World City (Jaipur) Corporate Debt Company is promoted by Mahindra Group and Rajasthan State Industrial Development & Industrial Corporation to develop an integrated business city with an SEZ in Jaipur CRISIL A 5.51% Cholamandalam Investment & Finance Corporate Debt An NBFC engaged in providing vehicle financing, home loans, corporate financing, gold loans as well as distribution/advisory services CRISIL AA- 5.21% Indostar Capital Finance Corporate Debt Is an NBFC mainly into institutional lending Established by Ashmore Group, Everstone Capital Management and PE arm of Goldman Sachs CARE AA- 4.76% As of July 31, 2012 Source: Company websites/ documents and rating documents as may be issued by rating agencies These securities represent the five largest holdings held in the Fund as of the date indicated and do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Holdings are subject to change.

25 Templeton India Corporate Bond Opportunities Fund (TICBOF) Composition by Assets (as of July 2012) Composition by Ratings (as of July 2012) Portfolio Characteristics Average Maturity 2.46 yrs Yield to Maturity 10.78%* Modified Duration 2.21** yrs Asset size (Rs. Crs) 1,822.93 As of Jul 31, 2012 * Pre-fund expenses. **Modified duration of floating rate securities is calculated based on the next reset date. Positioning Matrix Credit Quality High Medium Low High Medium Low Interest Rate Sensitivity

26 Summary Global central banks, including those in Emerging Markets, maintain easing bias After the 50 bps rate cut in April, RBI is on hold due to inflation/deficit Rupee recovered a bit, but direction depends on global events The longer-end of the gilt yield curve expected to be volatile due to the high fiscal deficit/ government borrowings RBI has cut SLR and will provide additional liquidity support through OMOs, if required Given the current macro-economic environment, investors should look at investing in open-end funds focused on High accruals: high coupon payments as well as capital gains as and when the interest rate cycle turns Shorter-end of the curve: as short-maturity securities likely to outperform long-end as monetary policy eases Corporate debt: can take advantage of spread opportunities prevalent in such securities and higher yields FT has a range of offerings with strong track record to suit varied time horizons and navigate through the current environment

27 Disclaimer Scheme Classification and Investment Objective: Templeton India Short-Term Income Plan (TISTIP) is an open end income scheme to provide stable returns by investing in fixed income securities. Templeton India Income Opportunities Fund (TIIOF) is an open-end income scheme that seeks to provide regular income and capital appreciation by investing in fixed income securities across the yield curve. Templeton India Corporate Bond Opportunities Fund (TICBOF) is an open end income fund which seeks to provide regular income and capital appreciation through a focus on corporate securities. Templeton India Low Duration Fund (TILDF) is an open-ended income scheme having an objective to earn regular income for investors through investments primarily in highly rated debt securities. Load Structure: TISTIP: Entry : Nil. Exit : 0.50% if redeemed within 9 Months. TIIOF: Entry: Nil. Exit: 3% if redeemed within 6 months, 2% if redeemed after 6 months but within 12 months, 1% if redeemed after 12 months but within 18 months; TICBOF: Entry: Nil. Exit load: 3% if redeemed within 12 months from the date of allotment; 2% if redeemed after 12 months but within 24 months from the date of allotment 1% if redeemed after 24 months but within 30 months from the date of allotment. TILDF: Entry Load: Nil. Exit Load: 0.50% if redeemed / switched out within 3 months of allotment. 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.

Annexure

SCHEME PERFORMANCE FT India Balanced Fund (FTIBF) - Growth Option NAV as at June 29, 2012: (Rs.) 49.0457 Fund Manager: Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Sachin Padwal-Desai, Umesh Sharma NAV Per Unit (Rs.) FTIBF Crisil Balanced S&P CNX Nifty Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 49.4188-0.75% -0.99% -6.53% Jun 30, 2010 to Jun 30, 2011 46.4317 6.43% 6.04% 6.30% Jun 30, 2009 to Jun 30, 2010 38.9332 19.26% 17.34% 23.80% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 2.78% 2.47% -0.32% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 8.00% 7.20% 7.15% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 36.1608 6.28% 6.18% 4.09% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 9.15 18.26% 13.76% 17.42% Since inception till Jun 29, 2012 10 13.50% N.A 10.90% Last 2 years 10563 10499 9937 Last 3 years 12597 12320 12302 Last 5 years 13563 13502 12224 Last 10 years 53602 36338 49905 Since inception (10.12.1999) 49046 N.A 36667 Templeton India Pension Plan (TIPP) - Growth Option NAV as at June 29, 2012: (Rs.) 61.7800 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Sachin Padwal-Desai, Umesh Sharma NAV Per Unit (Rs.) TIPP Benchmark* Crisil 10 Year Gilt Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 59.6498 3.57% 2.46% 7.10% Jun 30, 2010 to Jun 30, 2011 56.0680 6.39% 4.04% 1.79% Jun 30, 2009 to Jun 30, 2010 50.1204 11.87% 13.63% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 4.97% 3.25% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.22% 6.60% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 45.7729 6.17% 6.52% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 18.51 12.79% 11.89% 6.07% Last 15 years (Jun 30, 1997 to Jun 29, 2012) 10.30 12.68% N.A N.A Since inception till Jun 29, 2012 10 12.68% N.A N.A Last 2 years 11019 10660 10901 Last 3 years 12326 12113 11275 Last 5 years 13497 13721 13672 Last 10 years 33377 30788 18043 Last 15 years 59981 N.A N.A Since inception (31.3.1997) 61780 N.A N.A FT India Dynamic PE Ratio Fund Of Funds (FTDPEF) - Growth Option NAV as at June 29, 2012: (Rs.) 41.7494 Fund Manager Anand Radhakrishnan NAV Per Unit (Rs.) FTDPEF BSE Sensex Crisil Balanced Additional Fund Index Benchmark Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 40.7727 2.40% -7.51% -0.99% Not Applicable Jun 30, 2010 to Jun 30, 2011 37.8102 7.84% 6.47% 6.04% Not Applicable Jun 30, 2009 to Jun 30, 2010 32.6684 15.74% 22.13% 17.34% Not Applicable Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.08% -0.77% 2.47% Not Applicable Last 3 years (Jun 30, 2009 to Jun 29, 2012) 8.52% 6.34% 7.20% Not Applicable Last 5 years (Jun 29, 2007 to Jun 29, 2012) 26.3541 9.63% 3.53% 6.18% Not Applicable Since inception till Jun 29, 2012 10 17.92% 15.75% 12.13% Not Applicable Last 2 years 11042 9847 10499 Not Applicable Last 3 years 12780 12026 12320 Not Applicable Last 5 years 15842 11897 13502 Not Applicable Since inception (31.10.2003) 41749 35522 26987 Not Applicable FT India Life Stage Fund of Funds (FTLF) - Growth Option NAV as at June 29, 2012: (Rs.): The 20s Plan: 36.7892; The 30s Plan: 28.9758; The 40s Plan: 24.5638; The 50s Plus Plan: 19.9931; The 50s Plus Floating Rate Plan: 20.9911 Fund Manager: Equity: Anand Radhakrishnan; Debt: Sachin Padwal-Desai, Pallab Roy Current Value of Compounded Annualised Standard Investment of Growth Rate Performance Rs 10000 invested at the beginning of the period Jun 30 2011 Jun 30, 2010 Jun 30, 2009 Last Last Last Since Last Last Last since to Jun 30, 2012 to to 2 years 3 years 5 years inception 2 years 3 years 5years inception (Last 1 year) Jun 30, 2011 Jun 30, 2010 (Jun 30, (Jun 30, (Jun 29, till Jun 29, 2010 to 2009 to 2007 to 2012 IUN 29, Jun 29, Jun 29, 2012) 2012) 2012) The 20s Plan - NAV Per Unit (Rs.) 37.0857 34.2863 26.6979 24.7023 10 The 20s Plan - Returns -0.80% 8.16% 28.42% 3.59% 11.28% 8.28% 16.39% 10730 13780 14893 36789 Benchmark* -4.13% 5.75% 19.46% 0.69% 6.59% 4.84% 13.74% 10138 12111 12671 30185 The 30s Plan - NAV Per Unit (Rs.) 28.2682 26.1478 21.5864 19.2231 10 The 30s Plan - Returns 2.50% 8.11% 21.13% 5.27% 10.31% 8.54% 13.20% 11082 13423 15073 28976 Benchmark* 0.05% 5.64% 14.84% 2.80% 6.67% 6.09% 11.58% 10568 12137 13446 25606 The 40s Plan - NAV Per Unit (Rs.) 23.5706 21.9371 18.3399 15.9091 10 The 40s Plan - Returns 4.21% 7.45% 19.61% 5.82% 10.23% 9.07% 11.04% 11197 13394 15440 24564 Benchmark* 3.28% 5.21% 11.32% 4.24% 6.55% 6.68% 9.51% 10867 12097 13821 21809 The 50s Plus Plan - NAV Per Unit (Rs.)19.0068 17.8479 15.7869 13.4406 10 The 50s Plus Plan - Returns 5.19% 6.49% 13.06% 5.84% 8.19% 8.26% 8.41% 11202 12664 14875 19993 Benchmark* 5.65% 5.24% 8.22% 5.44% 6.36% 6.87% 7.80% 11118 12032 13949 19059 Additional Benchmark** Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable The 50s Plus Floating Rate Plan - NAV Per Unit (Rs.) 19.7497 18.4804 16.7910 14.2547 10 The 50s Plus Floating Rate Plan - Returns 6.29% 6.87% 10.06% 6.58% 7.73% 8.04% 9.74% 11359 12501 14726 20991 Benchmark* 5.62% 7.36% 7.07% 6.49% 6.68% 6.92% 9.08% 11339 12141 13981 20012 Additional Benchmark*** Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Inception: FTLF 20s Plan/30s Plan/40s Plan/50s plus Plan(1.12.2003); 50s plus Floating Rate Plan: 9.7.2004 Templeton India Income Fund (TIIF) - Growth Option NAV as at June 29, 2012: (Rs.) 36.9450 Fund Manager Umesh Sharma, Sachin Padwal-Desai NAV Per Unit (Rs.) TIIF Crisil Composite Crisil 10 Year Bond Fund Index Gilt Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 34.1118 8.31% 8.69% 7.10% Jun 30, 2010 to Jun 30, 2011 32.3110 5.57% 4.58% 1.79% Jun 30, 2009 to Jun 30, 2010 31.0675 4.00% 4.69% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 6.93% 6.61% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 5.95% 5.97% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 26.0989 7.19% 6.81% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 19.79 6.43% 6.05% 6.07% Last 15 years (Jun 30, 1997 to Jun 29, 2012) 10.45 8.78% N.A N.A Since inception till Jun 29, 2012 10 8.90% N.A N.A Last 2 years 11434 11366 10901 Last 3 years 11892 11900 11275 Last 5 years 14156 13909 13672 Last 10 years 18669 18002 18043 Last 15 years 35354 N.A N.A Since inception (5.3.1997) 36945 N.A N.A Templeton India Income Builder Account Plan (TIIBA) - Growth Option NAV as at June 29, 2012: (Rs.) 36.5544 Fund Manager: Umesh Sharma, Sachin Padwal-Desai NAV Per Unit (Rs.) TIIBA Crisil Composite Crisil 10 Year Bond Fund Index Gilt Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 33.0046 10.76% 8.69% 7.10% Jun 30, 2010 to Jun 30, 2011 30.9777 6.54% 4.58% 1.79% Jun 30, 2009 to Jun 30, 2010 29.4238 5.28% 4.69% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.63% 6.61% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.50% 5.97% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 25.0238 7.87% 6.81% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 19.21 6.64% 6.05% 6.07% Since inception till Jun 29, 2012 10 9.01% N.A N.A Last 2 years 11800 11366 10901 Last 3 years 12423 11900 11275 Last 5 years 14608 13909 13672 Last 10 years 19029 18002 18043 Since inception (23.6.1997) 36554 N.A N.A Templeton India Income Opportunities Fund (TIIOF) - Growth Option NAV as at June 29, 2012: (Rs.) 12.2992 Fund Manager Umesh Sharma, Sachin Padwal-Desai NAV Per Unit (Rs.) TIIOF Crisil Short-Term Crisil 10 Year Bond Fund Index Gilt Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 11.2387 9.44% 8.81% 7.10% Jun 30, 2010 to Jun 30, 2011 10.5377 6.65% 5.59% 1.79% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.04% 7.19% 4.41% Since inception till Jun 29, 2012 10 8.45% 6.75% 4.23% Last 2 years 11672 11489 10901 www.franklintempletonindia.com Franklin Templeton Investments 30

SCHEME PERFORMANCE Since inception (11.12.2009) 12299 11812 11114 Templeton India Low Duration Fund (TILDF) - Growth NAV as at June 29, 2012: (Rs.) 11.8653 Fund Manager Sachin Padwal-Desai, Umesh Sharma NAV Per Unit (Rs.) Growth Crisil Short-Term 1 year T-Bill Bond Fund Index # Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.7794 10.07% 8.81% 7.73% Since inception from 26.7.2010 till Jun 29, 2012 10 9.27% 7.80% 6.08% Current Value of Standard Investment of Rs 10000 since inception 11865 11559 11207 Templeton India Low Duration Fund (TILDF) - Monthly Dividend (MD) NAV as at June 29, 2012: MD: 10.4268 NAV Per Unit (Rs.) MD Crisil Short-Term 1 year T-Bill Bond Fund Index # Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.3030 10.07% 8.81% 7.73% Jun 30, 2010 to Jun 30, 2011 10.1515 7.70% 6.73% 4.43% Jun 30, 2009 to Jun 30, 2010 10.4051 5.59% 7.66% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.88% 7.77% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.77% 7.73% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 10.3569 7.81% 7.81% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 10.34 6.36% 8.59% 5.29% Since inception till Jun 29, 2012 10 7.28% N.A 6.02% Last 2 years 11855 11614 11250 Last 3 years 12517 12504 11471 Last 5 years 14574 14571 13088 Last 10 years 18541 22828 16756 Since inception (7.2.2000) 23914 N.A 20653 Templeton India Low Duration Fund (TILDF) - Quarterly Dividend (QD) NAV as at June 29, 2012: (Rs.) QD: 10.5628 NAV Per Unit (Rs.) QD Crisil Short-Term 1 year T-Bill Bond Fund Index # Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.2732 10.07% 8.81% 7.73% Jun 30, 2010 to Jun 30, 2011 10.5305 7.69% 6.73% 4.43% Jun 30, 2009 to Jun 30, 2010 10.5251 5.59% 7.66% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.88% 7.77% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.77% 7.73% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 10.3772 7.81% 7.81% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 10.24 6.37% 8.59% 5.29% Since inception till Jun 29, 2012 7.30% N.A 6.02% Last 2 years 11854 11614 11250 Last 3 years 12517 12504 11471 Last 5 years 14574 14571 13088 Last 10 years 18564 22828 16756 Since inception (7.2.2000) 23959 N.A 20653 # Index adjusted for the period April 1, 2002 to November 29, 2010 with the performance of Crisil MIP Blended Index. FT India Monthly Income Plan (FTIMIP) - Growth Option NAV as at June 29, 2012: (Rs.) 30.0393 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Sachin Padwal-Desai, Umesh Sharma NAV Per Unit (Rs.) FTIMIP Crisil MIP Crisil 10 Year Blended Index Gilt Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 28.4231 5.69% 6.54% 7.10% Jun 30, 2010 to Jun 30, 2011 27.0126 5.22% 5.03% 1.79% Jun 30, 2009 to Jun 30, 2010 24.7343 9.21% 7.66% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.45% 5.78% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 6.69% 6.40% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 21.4620 6.95% 7.01% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 12.22 9.40% 8.19% 6.07% Since inception till Jun 29, 2012 10 9.81% N.A N.A Last 2 years 11120 11190 10901 Last 3 years 12145 12047 11275 Last 5 years 13997 14039 13672 Last 10 years 24582 21995 18043 Since inception (28.9.2000) 30039 N.A N.A Templeton India Government Securities Fund (TGSF) - Growth - Composite Plan (CP) NAV as at June 29, 2012: (Rs.) CP: 36.6843 Fund Manager Sachin Padwal-Desai, Umesh Sharma NAV Per Unit (Rs.) CP I-Sec Crisil 10 Year Composite Gift Index Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 33.8159 8.48% 9.79% 7.10% Jun 30, 2010 to Jun 30, 2011 32.8210 3.03% 4.87% 1.79% Jun 30, 2009 to Jun 30, 2010 32.6726 0.45% 4.49% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.72% 7.30% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 3.94% 6.36% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 24.3460 8.54% 8.23% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 17.0160 7.98% 7.59% 6.07% Since inception till Jun 29, 2012 10 10.49% N.A N.A Last 2 years 11177 11514 10901 Last 3 years 11228 12031 11275 Last 5 years 15068 14854 13672 Last 10 years 21559 20792 18043 Since inception (21.6.1999) 36684 N.A N.A Templeton India Government Securities Fund (TGSF) - Growth - PF Plan NAV as at June 29, 2012: (Rs.) PF: 16.1127 NAV Per Unit (Rs.) PF I-Sec Crisil 10 Year Composite Gift Index Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 14.8528 8.48% 9.79% 7.10% Jun 30, 2010 to Jun 30, 2011 14.4158 3.03% 4.87% 1.79% Jun 30, 2009 to Jun 30, 2010 14.3507 0.45% 4.49% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.72% 7.30% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 3.94% 6.36% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 10.6936 8.54% 8.23% 6.45% Since inception till Jun 29, 2012 10 6.03% 6.33% 4.18% Last 2 years 11177 11514 10901 Last 3 years 11228 12031 11275 Last 5 years 15068 14854 13672 Since inception (7.5.2004) 16113 16492 13964 Templeton India Government Securities Fund (TGSF) - Growth - Treasury Plan (TP) NAV as at June 29, 2012: (Rs.) TP: 18.5846 NAV Per Unit (Rs.) TP I-Sec Si-BEX 1 year T-Bill Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 17.2121 7.97% 9.30% 7.73% Jun 30, 2010 to Jun 30, 2011 16.4587 4.58% 4.25% 4.43% Jun 30, 2009 to Jun 30, 2010 15.9862 2.96% 5.49% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 6.26% 6.74% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 5.15% 6.32% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 14.1711 5.57% 7.90% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 10.3990 5.97% 7.00% 5.29% Since inception till Jun 29, 2012 10 6.15% N.A 5.31% Last 2 years 11292 11394 11250 Last 3 years 11625 12020 11471 Last 5 years 13114 14629 13088 Last 10 years 17872 19680 16756 Since inception (11.2.2002) 18585 N.A 17107 Templeton India Government Securities Fund (TGSF) - Growth - Long Term Plan (LT) NAV as at June 29, 2012: (Rs.) LT: 25.6963 NAV Per Unit (Rs.) LT I-Sec Li-BEX Crisil 10 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 23.5956 8.90% 9.72% 7.10% Jun 30, 2010 to Jun 30, 2011 22.9633 2.75% 5.40% 1.79% Jun 30, 2009 to Jun 30, 2010 22.7614 0.89% 3.96% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 5.78% 7.54% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 4.13% 6.33% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 16.5939 9.13% 8.69% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 10.69 9.16% 8.26% 6.07% Since inception till Jun 29, 2012 10 9.34% N.A 6.66% Last 2 years 11190 11564 10901 Last 3 years 11289 12022 11275 Last 5 years 15485 15176 13672 www.franklintempletonindia.com Franklin Templeton Investments 31

SCHEME PERFORMANCE Last 10 years 24038 22135 18043 Since inception (7.12.2001) 25696 N.A 19769 Templeton Floating Rate Income Fund (TFIF) - Growth Option - Retail NAV as at June 29, 2012: (Rs.) Retail: 20.0497 Fund Manager Pallab Roy, Sachin Padwal-Desai NAV Per Unit (Rs.) Retail Crisil Liquid 1 year T-Bill Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 18.3062 9.52% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 17.0426 7.41% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 16.2166 5.09% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.46% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.33% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 13.7848 7.77% 6.84% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 10.29 6.89% 6.07% 5.29% Since inception till Jun 29, 2012 10 6.93% N.A 5.31% Last 2 years 11764 11649 11250 Last 3 years 12364 12032 11471 Last 5 years 14545 13928 13088 Last 10 years 19485 18036 16756 Since inception (11.2.2002) 20050 N.A 17107 Templeton Floating Rate Income Fund (TFIF) - Growth Option - Institutional Plan (IP) NAV as at June 29, 2012: (Rs.) IP: 16.7232 NAV Per Unit (Rs.) IP Crisil Liquid 1 year T-Bill Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 15.2310 9.80% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 14.1445 7.68% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 13.4147 5.44% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.73% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.62% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 11.3004 8.15% 6.84% 5.52% Since inception till Jun 29, 2012 10 7.84% 6.74% 5.35% Last 2 years 11823 11649 11250 Last 3 years 12466 12032 11471 Last 5 years 14799 13928 13088 Since inception (6.9.2005) 16723 15603 14267 Templeton Floating Rate Income Fund (TFIF) - Growth Option - Super Institutional Plan (SIP) NAV as at June 29, 2012: (Rs.) SIP: 15.2383 NAV Per Unit (Rs.) SIP Crisil Liquid 1 year T-Bill Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 13.8131 10.32% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 12.7767 8.11% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 12.0758 5.80% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 9.21% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 8.06% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 10.1223 8.52% 6.84% 5.52% Since inception till Jun 29, 2012 10 8.53% 6.89% 5.58% Last 2 years 11927 11649 11250 Last 3 years 12619 12032 11471 Last 5 years 15054 13928 13088 Since inception (9.5.2007) 15238 14089 13221 Templeton India Short Term Income Plan (TISTIP) - Growth - Retail Fund Manager Umesh Sharma, Sachin Padwal-Desai NAV as at June 29, 2012: (Rs.) Retail: 2189.4411 NAV Per Unit (Rs.) Retail Crisil Short- 1 year T-Bill Term Bond Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 2002.0946 9.36% 8.81% 7.73% Jun 30, 2010 to Jun 30, 2011 1878.2807 6.59% 5.59% 4.43% Jun 30, 2009 to Jun 30, 2010 1729.2472 8.62% 4.85% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 7.97% 7.19% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 8.18% 6.40% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 1404.9431 9.27% 7.49% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 1034.51 7.78% 6.40% 5.29% Since inception till Jun 29, 2012 1000 7.81% N.A 5.33% Last 2 years 11657 11489 11250 Last 3 years 12661 12047 11471 Last 5 years 15584 14353 13088 Last 5 years 21164 18606 16756 Since inception (31.1.2002) 21894 N.A 17184 Templeton India Short Term Income Plan (TISTIP) - Growth - Institutional Plan (IP) NAV as at June 29, 2012: (Rs.) IP: 1764.1806 NAV Per Unit (Rs.) IP Crisil Short- 1 year T-Bill Term Bond Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 1609.9361 9.58% 8.81% 7.73% Jun 30, 2010 to Jun 30, 2011 1507.2582 6.81% 5.59% 4.43% Jun 30, 2009 to Jun 30, 2010 1385.3021 8.80% 4.85% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.19% 7.19% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 8.39% 6.40% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 1123.3784 9.44% 7.49% 5.52% Since inception till Jun 29, 2012 1000 8.68% 6.94% 5.35% Last 2 years 11705 11489 11250 Last 3 years 12735 12047 11471 Last 5 years 15704 14353 13088 Since inception (6.9.2005) 17642 15799 14267 Templeton India Ultra Short Bond Fund (TIUBF) - Growth Option NAV as at June 29, 2012: (Rs.) Regular: 14.0209; IP: 14.1487; SIP: 14.2692 Fund Manager Pallab Roy, Sachin Padwal-Desai Current Value of Compounded Annualised Standard Investment of Growth Rate Performance Rs 10000 invested at the beginning of the period Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Last Last Since Last Last since to Mar 30, 2012 to to 2 years 3 years inception 2 years 3 years inception (Last 1 year) Mar 31, 2011 Mar 31, 2010 (Mar 31, (Mar 31, till Mar 30, on 18th 2010 to 2009 to 2012 Dec 2007 Mar 30, Mar 30, 2012) 2012) Regular - NAV Per Unit (Rs.) 12.7780 11.8693 11.3577 10 Regular - Returns 9.73% 7.66% 4.50% 8.69% 7.27% 7.74% 11813 12345 14021 IP - NAV Per Unit (Rs.) 12.8688 11.9297 11.3927 10 IP - Returns 9.95% 7.87% 4.71% 8.90% 7.49% 7.95% 11860 12419 14149 SIP - NAV Per Unit (Rs.) 12.9505 11.9902 11.4276 10 SIP - Returns 10.18% 8.01% 4.92% 9.09% 7.68% 8.16% 11901 12487 14269 Crisil Liquid Fund Index 8.68% 7.18% 3.29% 7.93% 6.36% 6.91% 11649 12032 13541 1 year T-Bill 7.73% 4.43% 1.97% 6.06% 4.68% 5.53% 11250 11471 12762 Templeton India Children's Asset Plan - Growth Option - Educational Plan Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Sachin Padwal-Desai, Umesh Sharma NAV as at June 29, 2012: (Rs.) Education Plan: 34.4028 NAV Per Unit (Rs.) Education Crisil MIP Crisil 10 Year Plan Blended Index Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 32.7683 4.99% 6.54% 7.10% Jun 30, 2010 to Jun 30, 2011 31.2156 4.97% 5.03% 1.79% Jun 30, 2009 to Jun 30, 2010 28.9421 7.86% 7.66% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 4.98% 5.78% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 5.93% 6.40% 4.08% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 26.4069 5.43% 7.01% 6.45% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 16.54 7.59% 7.80% 6.07% Since inception till Jun 29, 2012 10 9.17% N.A N.A Last 2 years 11021 11190 10901 Last 3 years 11887 12047 11275 Last 5 years 13028 14039 13672 Last 10 years 20800 21214 18043 Since inception (5.6.1998) 34403 N.A N.A www.franklintempletonindia.com Franklin Templeton Investments 32

SCHEME PERFORMANCE Templeton India Children's Asset Plan - Growth Option - Gift Plan NAV as at June 29, 2012: (Rs.) Gift Plan: 44.7741 NAV Per Unit (Rs.) Gift Plan Crisil Balanced S&P CNX Nifty Fund Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 44.6100 0.37% -0.99% -6.53% Jun 30, 2010 to Jun 30, 2011 42.1915 5.73% 6.04% 6.30% Jun 30, 2009 to Jun 30, 2010 34.8421 21.09% 17.34% 23.80% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 3.02% 2.47% -0.32% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 8.72% 7.20% 7.15% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 33.4021 6.03% 6.18% 4.09% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 16.54 10.46% 9.92% 17.42% Since inception till Jun 29, 2012 10 11.24% N.A 12.60% Last 2 years 10612 10499 9937 Last 3 years 12851 12320 12302 Last 5 years 13405 13502 12224 Last 10 years 27070 25787 49905 Since inception (5.6.1998) 44774 N.A 53134 # Benchmark Index has been adjusted for the 10% S&P CNX Nifty + 90% Crisil Composite Bond Fund Index for the period March 28, 2002 to September 9, 2005 Templeton India Treasury Management Account (TITMA) - Growth Option - Retail NAV as at June 29, 2012: (Rs.) Retail: 2677.3852 Fund Manager Pallab Roy, Sachin Padwal-Desai NAV Per Unit (Rs.) Retail Crisil Liquid 1 year T-Bill Fund Index Jun 22, 2012 to Jun 29, 2012 2672.8309 8.88% 8.31% 4.58% Jun 14, 2012 to Jun 29, 2012 2667.8036 8.74% 8.10% 1.62% May 31, 2012 to Jun 29, 2012 2658.5928 8.90% 7.46% 7.23% Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 2452.9077 9.15% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 2290.1952 7.10% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 2204.5901 3.88% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.12% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 6.69% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 1898.1954 7.11% 6.84% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 1433.31 6.44% 6.07% 5.29% Since inception till Jun 29, 2012 1000 7.19% N.A 6.33% Last 2 years 11691 11649 11250 Last 3 years 12145 12032 11471 Last 5 years 14105 13928 13088 Last 10 years 18680 18036 16756 Since inception (29.4.1998) 26774 N.A 23871 Templeton India Treasury Management Account (TITMA) - Growth Option - Institutional Plan (IP) NAV as at June 29, 2012: (Rs.) IP: 1706.9233 NAV Per Unit (Rs.) IP Crisil Liquid 1 year T-Bill Fund Index Jun 22, 2012 to Jun 29, 2012 1703.9390 9.13% 8.31% 4.58% Jun 14, 2012 to Jun 29, 2012 1700.6411 8.99% 8.10% 1.62% May 31, 2012 to Jun 29, 2012 1694.6071 9.15% 7.46% 7.23% Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 1559.9063 9.42% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 1452.7942 7.37% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 1394.9990 4.14% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.39% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 6.96% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 1195.16 7.38% 6.84% 5.52% Since inception till Jun 29, 2012 1000 6.89% 6.39% 5.22% Last 2 years 11749 11649 11250 Last 3 years 12236 12032 11471 Last 5 years 14282 13928 13088 Since inception (22.6.2004) 17069 16438 15040 Templeton India Treasury Management Account (TITMA) - Growth Option - Super Institutional Plan (SIP) NAV as at June 29, 2012: (Rs.) SIP: 1635.9088 NAV Per Unit (Rs.) SIP Crisil Liquid 1 year T-Bill Fund Index Jun 22, 2012 to Jun 29, 2012 1632.9321 9.51% 8.31% 4.58% Jun 14, 2012 to Jun 29, 2012 1629.6394 9.36% 8.10% 1.62% May 31, 2012 to Jun 29, 2012 1623.6270 9.52% 7.46% 7.23% Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 1489.5091 9.83% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 1383.0771 7.70% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 1324.7632 4.40% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 8.76% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 7.29% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 1130.4625 7.66% 6.84% 5.52% Since inception till Jun 29, 2012 1000 7.48% 6.74% 5.36% Last 2 years 11828 11649 11250 Last 3 years 12349 12032 11471 Last 5 years 14471 13928 13088 Since inception (2.9.2005) 16359 15611 14284 Templeton India Cash Management Account (TICMA) - Growth Option Fund Manager Pallab Roy, Umesh Sharma NAV as at June 29, 2012: (Rs.) 18.1636 NAV Per Unit (Rs.) TICMA Crisil Liquid 1 year T-Bill Fund Index Jun 22, 2012 to Jun 29, 2012 18.1402 6.73% 8.31% 4.58% Jun 14, 2012 to Jun 29, 2012 18.1129 6.81% 8.10% 1.62% May 31, 2012 to Jun 29, 2012 18.0638 6.95% 7.46% 7.23% Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 16.9201 7.35% 8.68% 7.73% Jun 30, 2010 to Jun 30, 2011 16.0220 5.61% 7.18% 4.43% Jun 30, 2009 to Jun 30, 2010 15.6313 2.50% 3.29% 1.97% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 6.47% 7.93% 6.06% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 5.13% 6.36% 4.68% Last 5 years (Jun 29, 2007 to Jun 29, 2012) 13.8670 5.54% 6.84% 5.52% Last 10 years (Jun 28, 2002 to Jun 29, 2012) 10.8472 5.28% 6.07% 5.29% Since inception till Jun 29, 2012 10 5.48% N.A 5.68% Last 2 years 11337 11649 11250 Last 3 years 11620 12032 11471 Last 5 years 13098 13928 13088 Last 10 years 16745 18036 16756 Since inception (23.4.2001) 18164 N.A 18560 Franklin Templeton Fixed Tenure Fund - (FTFTF IX B) - Growth Option NAV as at June 29, 2012: (Rs.) 13.0282 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF IX B - Benchmark * Crisil 10 Year 5 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 12.4987 4.24% 4.86% 7.10% Jun 30, 2010 to Jun 30, 2011 12.0141 4.03% 4.56% 1.79% Jun 30, 2009 to Jun 30, 2010 10.8377 10.85% 10.10% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 4.13% 4.71% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 6.33% 6.48% 4.08% Since inception till Jun 29, 2012 10 6.65% 5.88% 5.93% Last 2 years 10844 10964 10901 Last 3 years 12021 12072 11275 Since inception (21.5.2008) 13028 12649 12671 *25% S&P CNX 500 + 65% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - (FTFTF X C) - Growth Option NAV as at June 29, 2012: (Rs.) 13.5024 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF X C - Benchmark * Crisil 10 Year 5 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 12.9926 3.92% 4.86% 7.10% Jun 30, 2010 to Jun 30, 2011 12.5247 3.74% 4.56% 1.79% Jun 30, 2009 to Jun 30, 2010 11.1715 12.11% 10.10% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 3.83% 4.71% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 6.52% 6.48% 4.08% Since inception till Jun 29, 2012 10 8.04% 7.16% 7.43% Last 2 years 10781 10964 10901 www.franklintempletonindia.com Franklin Templeton Investments 33

SCHEME PERFORMANCE Last 3 years 12086 12072 11275 Since inception (11.8.2008) 13502 13080 13211 *25% S&P CNX 500 + 65% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - (FTFTF X D) - Growth Option NAV as at June 29, 2012: (Rs.) 13.6715 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF X D - Benchmark * Crisil 10 Year 5 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 13.1103 4.28% 4.86% 7.10% Jun 30, 2010 to Jun 30, 2011 12.6606 3.55% 4.56% 1.79% Jun 30, 2009 to Jun 30, 2010 11.5215 9.89% 10.10% 3.43% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 3.92% 4.71% 4.41% Last 3 years (Jun 30, 2009 to Jun 29, 2012) 5.87% 6.48% 4.08% Since inception till Jun 29, 2012 10 8.70% 8.69% 6.86% Last 2 years 10798 10964 10901 Last 3 years 11866 12072 11275 Since inception (29.9.2008) 13672 13669 12825 *25% S&P CNX 500 + 65% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund (FTFTF XII A) - Growth Option NAV as at June 29, 2012: (Rs.) 11.4688 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XII A - Benchmark * Crisil 10 Year 5 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.8996 5.22% 5.64% 7.10% Jun 30, 2010 to Jun 30, 2011 10.5518 3.30% 4.63% 1.79% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 4.25% 5.14% 4.41% Since inception till Jun 29, 2012 10 5.19% 5.66% 5.07% Last 2 years 10869 11053 10901 Since inception (15.10.2009) 11469 11607 11432 *20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - Series XII - Plan A (FTFTF XII A) - Growth Option NAV as at June 29, 2012: (Rs.) 11.1615 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XII A - Benchmark * Crisil 10 Year 3 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.6027 5.27% 5.64% 7.10% Jun 30, 2010 to Jun 30, 2011 10.2619 3.32% 4.63% 1.79% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 4.29% 5.14% 4.41% Since inception till Jun 29, 2012 10 4.68% 5.69% 4.38% Last 2 years 10877 11053 10901 Since inception (4.2.2010) 11162 11421 11084 *20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - Series XIII - Plan C (FTFTF XIII C) - Growth Option NAV as at June 29, 2012: (Rs.) 10.9240 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XIII C - Benchmark * Crisil 10 Year 5 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.4600 4.44% 4.86% 7.10% Jun 30, 2010 to Jun 30, 2011 10.1670 2.88% 4.56% 1.79% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 3.66% 4.71% 4.41% Since inception till Jun 29, 2012 10 4.13% 4.82% 5.22% Last 2 years 10745 10964 10901 Since inception (23.4.2010) 10924 11085 11176 *25% S&P CNX 500 + 65% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund Series XIV - Plan A (FTFTF XIV A) - Growth Option NAV as at June 29, 2012: (Rs.) 10.7832 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XII C - Benchmark * Crisil 10 Year 3 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.2583 5.12% 5.64% 7.10% Since inception from 21.7.2010 till Jun 29, 2012 10 3.96% 5.05% 4.80% since inception 10783 11004 10954 *20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - Series XIV - Plan A (FTFTF XIV B) - Growth Option NAV as at June 29, 2012: (Rs.) 10.7623 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XIV A - Benchmark * Crisil 10 Year 3 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.1965 5.55% 5.64% 7.10% Since inception from 6.10.2010 till Jun 29, 2012 10 4.33% 3.75% 5.39% since inception 10762 10658 10951 *20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - Series XV - Plan B (FTFTF XV ) - Growth Option NAV as at June 29, 2012: (Rs.) 10.8929 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XV - Benchmark * Crisil 10 Year 3 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.3320 5.43% 5.64% 7.10% Since inception from 7.2.2011 till Jun 29, 2012 10 6.34% 6.38% 6.11% since inception 10893 10898 10860 *20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Franklin Templeton Fixed Tenure Fund - Series XII - Plan B (FTFTF XII B) - Growth Option NAV as at June 29, 2012: (Rs.) 11.3237 Fund Manager Equity:Anand Radhakrishnan, Anil Prabhudas; Debt:Umesh Sharma, Pallab Roy NAV Per Unit (Rs.) FTFTF XII B - Benchmark * Crisil 10 Year 3 Year Gift Index Jun 30, 2011 to Jun 29, 2012 (Last 1 year) 10.7499 5.34% 5.64% 7.10% Jun 30, 2010 to Jun 30, 2011 10.4142 3.22% 4.63% 1.79% Last 2 years (Jun 30, 2010 to Jun 29, 2012) 4.28% 5.14% 4.41% Since inception till Jun 29, 2012 10 4.86% 5.47% 4.75% Last 2 years 10873 11053 10901 Since inception (16.11.2009) 11324 11498 11291 *20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualized Performance of close-ended funds are not strictly comparable with that of open-ended schemes since its investment strategy is primarily buy-and-hold whereas opened-ended schemes are actively managed Given the asset allocation, hybrid fund performance are not comparable with pure equity/debt fund performance and that of Additional Benchmarks For liquid funds, the less than 1 year returns are simple annualised Performance of dividend plan/option would be net of distribution tax Load has not been taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. www.franklintempletonindia.com Franklin Templeton Investments 34