FRANKLIN TEMPLETON INVESTMENTS

MUTUAL FUNDS - Breaking Myths..

A Mutual fund is not an Equity fund in the first place.

A Mutual fund is a common pool of money into which investors place their contribution that are to be invested in accordance with a stated objective The ownership of the Mutual Fund is thus joint or mutual; the fund belongs to all investors

MUTUAL FUNDS - Breaking Myths..

A single investors ownership of the fund is in the same proportion as the amount of contribution made by him or her bears to the total amount of the fund

A mutual fund uses the money collected from investors to buy those assets which are specifically permitted by its stated investment objectives, e.g. Equity fund buys equity assets, Debt funds buys debt instruments, etc.

Graphically speaking...

Step 1 : Make investments

MF

Step 5: Returns provided to investors

Investor community
Step 4: Expenses deducted from the returns

Earnings to the Fund House/ Distributor

Various Assets

Even I can do it. Why should I go to a Mutual Fund. Mutual Funds offer you a host of benefits. Portfolio Diversification Professional Management

Liquidity

Mutual Funds

Affordability Reduction in transaction cost

Convenience & flexibility

Mutual Funds: The risk return trade-off..

Investment horizon Hedge Funds
Sector Funds Growth Funds
Index,Value, Growth, Aggressive

Balanced Funds
Ratio of Debt : Equity

Debt Funds
Gilt Funds, Bond Funds, Hi Yield Funds

Liquid Funds Risk

THE NINTH WONDER OF THE WORLD...

Rupee Cost Averaging It can make you wealthy over time

Rupee Cost Averaging by way of Systematic investment plan (SIP)

12
NAV - 10 Units - 100 NAV - 10 Units - 100 NAV - 10 Units - 100

11

NAV - 12 Units - 83.3

10

9
NAV - 8 Units - 125

8 1-Jan-01

1-Feb-01

1-Mar-01 1-Apr-01 1-May-01

Average Price per unit: Rs. 10.00 Average Cost per unit : Rs. 9.83

Rupee Cost Averaging

Make the Volatility of the Market work for you

By investing a fixed amount at regular intervals, you buy more units when prices are low and buy less units when prices are high Thus your Average Cost could be less than the Average Price and your chances to gain increase without having to monitor or predict the markets.

Systematic Investment Plan

Investing could never be more simple

Here is a simple solutionAn SIP with Franklin Templeton Funds

Easy & Flexible Affordable savings Choice of Debt v/s Equity Risk reduction through diversification Liquidity

Systematic Investing made easy

Features of SIP
Minimum investment of Rs. 500 on a monthly or quarterly basis. Post-dated cheques (dated 1st or 7th of each month) for one year / six months accepted Cheques drawn in favour of Franklin Templeton Funds payable anywhere in India Cheques presented on 1st/7th of each month dates mentioned and allotted units (based on the prices prevalent on that day) added to the investors account (subject to the realisation of cheques) Invest into one or more of Franklin Templeton Funds with just one cheque A statement of account provided for each transaction

SIP in an equity fund

Volatile but healthy returns over the long-term If you had invested in Franklin India Bluechip Fund.
Monthly investment No. of investment periods (Since January 1997) * Total investment Value of investment (as of Navember 29, 2002) Return on investment Rs. 1000 71 months Rs. 71,000 Rs. 1,28,781 20.05%

This example is provided for illustrative purposes only and returns are computed on XIRR basis. Loads are not taken into consideration. The past performance of the mutual fund is not necessarily indicative of future performance of the scheme.

* The scheme became open-ended in January, 1997.

Tax planning
Section 88 of the Income Tax

The choices from Franklin Templeton

Franklin India Taxshield
An actively managed Equity Linked Savings Scheme

Franklin India Index Tax Fund

A passive (indexed) Equity Linked Savings Scheme

Templeton India Pension Plan

An asset allocation fund to help plan for your retirement

FRANKLIN INDIA TAXSHIELD

Section 88 Fund

Investment Objective: To provide medium to long term growth of capital along with

income tax rebate

Investment Style: Growth by maintaining a diversified portfolio pf equities across sectors and market cap ranges

Fund Category :

Risk: Medium to High

FIT

Risk: Medium to Low

Risk: Low to Medium

FRANKLIN INDIA TAXSHIELD

NAV PERFORMANCE

PERFORMANCE
SCHEME
Last 3 months Last 1 year Last 3 years* Since inception*

FIT(G) S&PCNX 500

- 1.01% 0.60%

9.59% 5.45%

11.22% -10.66%

26.49% 1.83%

Fund Size : Rs. 94.80 crores

* Past performance may or may not be sustained in future

*Compounded & Annualized

FRANKLIN INDIA TAXSHIELD

NAV of FIT vis--vis S&P CNX 500
( Rs.10,000 invested in FIT & S&P CNX 500)

40000 35000 30000 25000 20000 15000 10000 5000

Taxshield

S&PCNX 500

Jun-99

Jun-00

Jun-01

Aug-99

Aug-00

Aug-01

Jun-02

Aug-02

Oct-99

Oct-00

Oct-01

Dec-99

Dec-00

Dec-01

Feb-00

Feb-01

Feb-02

Apr-99

Apr-00

Apr-01

Apr-02

Oct-02

FRANKLIN INDIA INDEX TAX FUND

Index & Section 88 Fund
Investment Objective: To invest in companies comprising of the NIFTY FIFTY to attain the results commensurate with S& P CNX Index along with income tax rebate

Investment Style: Passive style of equity investing.

Fund Category :
FIITF

Risk: Medium to High

Risk: Medium to Low

Risk: Low to Medium

FRANKLIN INDIA INDEX TAX FUND

NAV PERFORMANCE

PERFORMANCE SCHEME
Last 3 months Last 6 months Last 1 year Since inception*

FIITF(G) S&PCNX NIFTY

3.81% 3.91%

2.39% 1%

-0.83% -1.5*%

-10.61% -11.92%

Fund Size : Rs. 2.58 crores Tracking error: 0.69%

* Past performance may or may not be sustained in future

*Compounded & Annualized

Fe b0
10 11 4 5 6 7 8 9

1 1

M ar -0

Ap r-0 1 M ay -0 1 Ju n01 Ju l-0 1 -0 1 -0 1 1 Au g Se p O ct -0 -0 1 -0 1 N ov ec D

FRANKLIN INDIA INDEX TAX FUND

NAV MOVEMENT

Ja n02 Fe b02 M ar -0 2 Ap r-0 2 M ay 02 Ju n02 Ju l-0 Au g Se p O N 2 -0 2 -0 2 ct -0 ov 2 -0 2

TEMPLETON INDIA PENSION PLAN

Hybrid Fund
Investment Objective: Seeks to provide regular income under dividend plan and capital

appreciation under growth plan.

Investment Style: A diversified portfolio of equities & fixed income instruments to maintain steady capital appreciation & regular income. Tax Rebate : Investments upto Rs. 70,000 qualify for tax rebate under Section 88 under I.T Act.
Risk: Medium to High

TIPP

Fund Category :

Risk: Medium to Low

Risk: Low to Medium

TEMPLETON INDIA PENSION PLAN

COMPOSITION BY ASSETS

Gilt 3%

Others 8% Equity 38%

Debt 51%

TEMPLETON INDIA PENSION PLAN

NAV PERFORMANCE

PERFORMANCE
SCHEME TIPP(G)
Last 3 months Last 1 year Last 3 years* Last 5 years* Since inception*

1.11%

9.66%

8.91%

11.26%

12.06%

Fund Size : Rs. 29.71 crores

* Past performance may or may not be sustained in future

*Compounded & Annualized

FRANKLIN TEMPLETON INVESTMENTS

Worldwide Assets under Management : USD 252.6 Billion#

34 Offices across 29 countries

India One of the largest Mutual Funds with over Rs.9,414 crores* in assets. Close to 1 million shareholder accounts Healthy asset mix and great choice in equity and fixed- income investment management style

Sizeable footprint in the country presence in 33 cities

# As on 31st October, 02

* As on 29 November,02 1 USD = Rs. 48.25

FRANKLIN TEMPLETON INDIA

Assets Under Management ( Rs. Cr) 9414
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

8194

3523 2072 36
FY'96

145
FY'97

215
FY'98

773
FY'99 FY'00 FY'01 FY'02 NOV'02

CRISIL BEST FUNDS AWARDS 2002

BEST PERFORMING OPEN END FUNDS IN 4 OUT OF 5 CATEGORIES

Equity - Templeton India Growth Fund Income - Templeton India Income Builder Account Gilt - Templeton India Government Securities Fund

Liquid - Templeton India Treasury Management Account

Ranking Source:CRIS-RISC (a wholly owned subsidiary of CRISIL); The Crisil awards are for the best performing open end fund in the category. The awards recognize the consistency of the scheme performance and are based on CRISIL CPRs (Composite Performance rankings) across four quarters (Sep 01, Dec 01, Mar 02 & Jun 02). The number of schemes considered for the analysis are: Equity 18; Income 16; Gilt - 6; Liquid 9. The criteria used for computing the CRISIL CPR are Superior Return Scorecard based on NAVs, Concentration, Liquidity and Asset Size of the scheme. Sales load has not been taken into consideration.

FRANKLIN TEMPLETON FUNDS RANKINGS & RATINGS

CRISIL Composite Performance Ranking
Quarter ended September,02

CPR 1 : PRIMA, FIBF, TGSF, TMA

CPR 2 : IBA , PRIMA PLUS , FTIBF

Value Research Fund Ratings

Month ended October,02

BLUECHIP,PRIMA, PRIMA PLUS TIGF,Taxshield (Open),Pension Plan,IBA,TILF,TMA

Source:

CPR : CRIS-RISC (a wholly owned subsidiary of CRISIL); The criteria used for computing the CRISIL CPR are Superior Return Scorecard based on NAVs, Concentration, Liquidity and Asset Size of the scheme. Sales load has not been taken into consideration. CPR 1 :Good performance (Top 10 % of the category) CPR 2 : Above average performance (Next 20% of the category) Star Ratings : Value Research fund rankings are based on 18 month weekly risk adjusted history of 3 years is required and for debt funds a minimum history of 18 months is required.

performance. For equity funds , a minimum performance

AWARD WINNING RESULTS

Moodys - 2001

Award Moodys Moodys Moodys

Fund Type Equity Equity Debt

Fund TIGF Bluechip Monthly Income Plan

Category 1 Year 3 and 5 years 1 year

Moodys
Moodys

Liquid

Treasury Management Account

1 year

Fund House Franklin Templeton Investments

AWARD WINNING RESULTS

S&P Micropal - 2000

Award S&P Micropal S&P Micropal S&P Micropal

Fund Type Equity Debt Fund House

Fund TIGF ,Bluechip, InfoTech,Tax shield, Tax shield 95 TIIF Erstwhile Pioneer ITI

Risk Factors
The illustrations provided herein are not intended to reflect the price movements of a particular Franklin Templeton Fund, nor are they meant to represent actual investment performance. 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 schemes 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. Franklin India Index Fund, Franklin India Balanced Fund, Franklin India Growth Fund, Templeton India Growth Fund, Templeton India Income Fund, Templeton Monthly Income Plan, Templeton India Government Securities Fund and Templeton India Liquid Fund are only the names of the schemes and do not in any manner indicate the quality of the schemes, their future prospects or returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes. The Mutual Fund is also not assuring that it will make any dividend distributions under the dividend plans of the schemes though it has every intention of doing so. All dividend distributions are subject to the investment performance of the schemes. The investments made by the schemes are subject to external risks on transferring, pricing, trading volumes, settlement risks etc. of securities and hence redemptions may be delayed inordinately. The schemes may invest in various derivative instruments including index futures which are untested instruments in India Markets and may carry high risk return ratio. In the case of Franklin India Index Fund the existence, accuracy and performance of the S&P CNX Nifty Index will directly affect the scheme performance and tracking errors are inherent in any Index Fund. All subscriptions in Franklin India Index Fund will be subject to a lock-in period of 30 business days. In the case of Franklin India Balanced Fund, in the event that the investible funds of more than 50% of the total proceeds of the scheme are not invested in equity shares, then tax exemption on income distribution may not be available to the fund. Please call the Templeton Investor Service Centre numbers to obtain a copy of the offer document and go through the same before investing. Statutory Details: 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 Templeton Trust Services Pvt. Ltd. as the trustee (Trustee under the Indian Trust Act 1882) and with Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. The Fund offers NAVs, purchases and redemptions on all business days.

THANK YOU!!!