bankfdsjune30,2003

There’s life beyond bank FDs

Bank FDs

+ve’s

• Capital safetyUpto Rs.1 lakh per account under Deposit Insurance and Credit Guarantee Corporation of India

• Returns Guaranteed• Different maturity buckets for different

investment horizons

Bank FDs

-ve’s

• Poor LiquidityNormally, premature withdrawal attracts penal interest

• Tax-inefficient Returns hardly keep pace with inflation

For illustration purposes only. Assuming Section 80L limit of Rs.12,000 exhausted

• Renewal requiredDon’t renew, and you lose interest

Investor Tax Slab30% 20%

Pre-tax returns 6.5% 6.5%Returns after taxes 4.55% 5.2%Current inflation rate 5.0% 5.0%

Franklin Templeton’s Income and Liquid Schemes

Solution…

Capital Safety• High AAA exposure

• Track record of stability Historically, over any 1 year investment horizon, the NAV has always appreciatedThe longest period for which the NAV performance of TIIF was negative is 98 days. Thus, no investor in this scheme has seen capital erosion for an investment made for 99 days or above

Templeton India Income Builder Account (TIIBA)

Templeton India Income Fund (TIIF)

Templeton Floating Rate Income Fund – Long Term (TFIF- LT)

93.0% 91.2% 90.4%Data as of June 30, 2003

TIIBA TIIF TFIF - LT107 days 99 days 1 day

Based on rolling returns from inception of these schemes to 30.6.2003. Scheme, Inception date - TIIBA, 23.6.1997; TIIF, 5.3.1997; TFIF, 11.2.2002. Load has not been taken into consideration. Past performance may or may not be sustained in future.

Franklin Templeton Income and Liquid schemes

Return Potential

• Historical rolling returns are an indicator of the return potential of non guaranteed schemes

1 year 3 yearsMax. Ret.

Min.Ret.

Avg.Ret.

Max. Ret.

Min.Ret.

Avg.Ret.

TIIF* 18.7% 9.4% 13.6% 14.8% 12.0% 13.5%TIIBA* 20.4% 9.6% 14.0% 15.8% 11.8% 13.6%TFIF(LT)* 7.5% 7.0% 7.3% N.A N.A N.A

Rolling returns from the respective inception dates of the schemes till 30.6.2003 * Annualised & Compounded Past performance may or may not be sustained in future.


Consistent Performance• Both in absolute terms, and vis-à-vis benchmark

One Year

Three years

FiveYears

Inception

Templeton India Income Fund (TIIF) 14.0% 13.7% 13.6% 13.7%Templeton India Income Builder Account (TIIBA)

15.7% 14.9% 13.8% 14.2%

Crisil Composite Bond Fund Index 12.8% N.A N.A N.A

Annualised & Compounded returns based on 30.6.2003 Growth Plan NAVs: Scheme Name, NAV - TIIBA, Rs.22.2291; TIIF, Rs.22.5666; TGSF, Rs.21.009; TFIF (LT), Rs. 11.0184; TFIF (ST), Rs. 10.9951; TISTIP, Rs.1119.5247; TILF, Rs.15.1850. Past performance may or may not be sustained in future.

Templeton Government Securities Fund (TGSF)

23.4% 21.8% - 20.2%

I-Sec Composite Index 17.0% N.A N.A N.ATempleton Floating Rate Income Fund – Long Term (TFIF-LT)

7.1% - - 7.1%

Templeton Floating Rate Income Fund – Short Term (TFIF-ST)

6.6% - - 7.0%

Templeton India Short Term Income Plan (TISTIP)

8.2% - - 8.3%

Templeton India Liquid Fund (TILF) 6.3% 7.8% 8.7% 8.6%Crisil Liquid Fund Index 5.5% N.A N.A N.A


Choice• Range of schemes to suit different investment

horizons

Whatever your time frame, you’ll find a suitable scheme

Investment Horizon* Scheme3 days to 3 months Templeton India Treasury Management Account

(TITMA), Templeton India Liquid Fund (TILF)Upto 3 months Templeton India Government Securities Fund –

Treasury Plan (TGSF - TP)3 to 6 months Templeton Floating Rate Income Fund – Short

Term (TFIF - ST)3 months to 1 year Templeton India Short-Term Income Plan (TISTIP)6 months to 1 year Templeton Floating Rate Income Fund – Long

Term (TFIF - LT)1 year and above Templeton India Income Fund (TIIF), Templeton

India Income Builder Account (TIIBA), Templeton India Government Securities Fund (TGSF)

* Recommended investment horizon


Tax-efficient returns

Bank FDs Mutual FundInvestor’s tax bracket

30% 20% Growth Plan

Dividend Plan

Pre-tax return 6.5% 6.5% 6.5% 6.5%Post-tax return 4.55% 5.2% 5.85% 5.76%Inflation 5.0% 5.0% 5.0% 5.0%

For illustrative purposes only. Please note that the actual returns may vary. Under the growth plan, long term capital gains tax @ 10% (without surcharge) has been considered assuming a one year plus horizon. Under the dividend plan, it is assumed that the entire gains are distributed.


Convenience

• You need to open an account only onceKeep adding more to the same account or withdrawwhenever you want

• No renewal worriesYour money continues to earn return for you as long as you stay invested


Matching investment avenues with investment horizons

Long term investments

• Income/Liquid schemes may not be the best solution for all your investment needs.

Short Term

Long Term

Medium Term

Otherwise

X

If Returns = Goals

Consider other alternatives that can appreciate capital

Equity oriented investments

• Equities are better suited for your long term investments

For illustration purposes only

While equities are volatile in the short-term…

Equity oriented investments

For illustration purposes only

…over the long term, the volatility evens out

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Dec

-93

Dec

-94

Dec

-95

Dec

-96

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

BLUECHIP FUND BSE SENSEX

Franklin India Bluechip Fund

Rs.10,000 invested at inception in FIBCF & BSE Sensex

Rs.68,222

Rs.10,957

Past performance may or may not be sustained in future As on June 30, 2003


Invests in large cap, well-established companies

Asset size : Rs.664 crores; Investors : 82,650

Performance Track Record

Past performance may or may not be sustained in future. Annualised compounded returns based on 30.6.2003 Growth Plan NAV of Rs. 28.44; Inception date: December 1, 1993

1 year 3 years 5 years InceptionFIBCF 29.6% 4.9% 27.4% 22.2%

BSE Sensex 11.2% -8.8% 2.1% 1.0%

Performing in down markets as well

• The following table shows the current value of Rs.10,000 invested in Bluechip and its benchmark BSE Sensex at inception and when markets were close to their peak in April 2000

Bluechip Fund(as on 30.6.2003)

BSE Sensex(as on 30.6.2003)

Rs.10000 invested in inception (Dec 1,1993)

Rs.68,222 Rs.10,957

Rs.10000 invested when market was at peak (Apr 1, 2000)

Rs.10,600 Rs.7,139

Based on 30.6.2003 Growth Plan NAV of Rs.28.44. Load is not taken into consideration. Past performance may or may not be sustained in future.


• Rolling ReturnsMax.

ReturnsMin.

ReturnsAvg.

ReturnsPossibility of making

money

Possibility of losing money

1 year 199.4% -36.4% 24.8% 64.3% 35.7%3 years 81.0% -9.6% 22.3% 78.2% 21.8%5 years 35.4% 14.0% 24.8% 100.0% 0.0%7 years 30.2% 9.5% 17.9% 100.0% 0.0%9 years 22.0% 16.0% 18.7% 100.0% 0.0%

Rolling returns are a series of returns calculated for a fixed period, within a given timeframe. The following example explains this. Over a 10 year period, there would be 365 x 5 number of days on which you can invest for a 5 year period (assuming there are no holidays). This is because it is only investments made in the first 5 years which can have 5 year returns. Thus, if you were to look at 5 year returns during this period, you would get a table of 1725 return values. This entire series of 1725 return values is called the 5 year rolling returns.

Thank You

Investment objective : Bluechip Fund – To provide medium to long term capital appreciation. Templeton India Income Fund : To generate a steady stream of income through investment in fixed income securities. Templeton India Income Builder Account : To provide regular returns to investors primarily through investments in quality fixed income instruments. Templeton India Government Securities Fund : To generate credit risk-free returns through investments in sovereign securities. Templeton Floating Rate Income Fund : To minimise the risk arising from interest rate fluctuations. Templeton India Short-Term Income Plan : To provide stable returns by investing in shorter term fixed income securities. Templeton India Treasury Management Account : To provide current income along with high liquidity. Templeton India Liquid Fund : To provide income and liquidity through investments in high quality money market and debt instruments. Risk Factors : Mutual Funds and Securities Investments are subject to market risks and the Net Asset Value of the scheme may fluctuate depending on factors affecting the capital/debt markets. Past performance is not an indicator of future performance, and there can be no assurance that the objective of the schemes can be achieved. Franklin India Bluechip Fund, Templeton India Income Fund, Templeton India Income Builder Account, Templeton India Government Securities Fund, Templeton Floating Rate Income Fund, Templeton India Short-Term Income Plan, Templeton India Treasury Management Account, Templeton India Liquid Fund, are only the name of the schemes and do not indicate the quality of the schemes, their future prospects or the returns. 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.

bankfdsjune30,2003

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