download - franklin templeton investments india

Distributor information

Advisor Code* Sub-broker/Branch Code* Representative Code*

* AMFI Registered Distributors

Existing Unitholders (Please provide the following details in full)

First Applicant Name

Customer Folio No. Account No.

New Unit Holder Information

(To be filled in Block Letters. Use one box for one alphabet leaving one box blank between name and surname)

Name of First/Sole Applicant

Proof of KYC enclosed* �� Date of Birth# D D M M Y Y Y Y

PAN (Mandatory) Enclosed: �� PAN Card Copy �� Proof of Identity & Address^ Gender: �� Male �� Female

Status: �� Resident Individual �� NRI/PIO �� HUF �� Sole Proprietorship �� Minor through Guardian#

�� Others (Please specify)________________________________________________________________________________________________________

Nationality __________________________________________________ Country of Residence_______________________________________________

Name of Second Applicant



Status: �� Resident Individual �� NRI/PIO �� HUF �� Others (Please specify)____________________________________________________


Name of Third Applicant



Status: �� Resident Individual �� NRI/PIO �� HUF �� Others (Please specify)_____________________________________________________


Name of Guardian

Proof of KYC enclosed* �� Date of Birth D D M M Y Y Y Y


Status: �� Resident Individual �� NRI/PIO �� HUF �� Others (Please specify)____________________________________________________


Relationship with Minor �� Father �� Mother �� Guardian (Please specify relationship)____________________ �� Proof of relationship enclosed**^Allowed only for investments through Micro SIP in lieu of KYC and PAN. *Please provide copy of the KYC acknowledgement issued by CVL (Mandatory for all Investors (including Sikkim Resident) irrespective of the amount ofinvestment).For investments through Micro SIP, address proof and identity proof is required to be submitted #Date of Birth and Document proof – mandatory for investments through Minors and investments in TIPP (in TIPP, onlyindividuals may invest). **Please provide following documents for evidencing the relationship:- Father/Mother – Photocopy of the certificate mentioning the date of birth of the Minor and Parent’s Name; Legal Guardian – Court Order

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered distributor) directly by theinvestor, based on the investor’s assessment of various factors including service rendered by the ARN Holder.

Application Form

Sl.No.

I/We would like to invest in the following schemes to meet my/our life goalsPlease fill the details of the goal(s), scheme name(s) and investment amount below

Goal Retirement Child's Future 1 Wealth Builder 1 Child's Future 2 Wealth Builder 2

Additional Details e.g. Deepa's Marriage e.g. Home/Car e.g. Sania’s Education e.g. Vacation

Fund / Scheme NamePlan/Options

Amount in Rs. Amount in Rs. Amount in Rs. Amount in Rs. Amount in Rs.(Please tick (� ) anyone)

1) �� Growth �� DR �� DP Amount in Rs. Amount in Rs. Amount in Rs. Amount in Rs. Amount in Rs.












Total Regular Investment per Goal

Total Regular Investment in all Goals ( in figures )

Regular Investment

Amount Invested________________________________(DD Charges)__________________________________Net Amount______________________________________

Payment Details Cheque/DD No._______________________________ Bank______________________________________________________________________________

Branch____________________________________________________________________________Bank A/C No._________________________________________________

Please register my Pay-in bank details also as one of the banks in my/our account/folio based on the payment instrument attached. Please refer the instruction for supporting document required forregistering Bank Mandate. (Please tick �� ) I / We do not wish to register this bank as additional bank in my/our account details.

Instructions: 1. For SIP investments with: (i) Current date - Please provide Single Cheque (for the first installment) with SIP ECS form. (ii) Future date - Please fill the SIP (ECS/Direct Debit) form along with the Application form. Note: SIP

will start after 30 days2. In case you are investing via both Regular and SIP simultaneously (where the SIP will start after 30 days), please provide a single cheque for the Regular amount, along with the completed SIP (ECS/Direct Debit) Mandate form.3. Cheque for the investment should be made in favour of “Franklin Templeton Family Solutions”4. For payments by demand draft please attach a certificate from the banker or Challan (instruction to bank) or passbook/bank statement evidencing the debit for issuance.

Franklin Templeton ‘Easy’ Services

Address (Please provide your address details even if you have already submitted your KYC acknowledgement)

City State Country Pincode

Overseas Address for NRIs/PIOs

City State Country Pin/Zip

Contact Details (Please provide your contact details even if you have already submitted your KYC acknowledgement)

Contact Name

TelSTD Code Office Residence Fax

Email Mobile

Bank Details (Mandatory - For new investors) - For registration of bank details, please attach a cancelled cheque leaf and for more information please refer the instruction under section “Registration of Bank Mandate”.

Bank Name

Account No. BranchPlease provide the full account number

Branch Address City Pin

Account type For Residents �� Savings �� Current For Non-Residents �� NRO �� NRE �� Others _______________________________________

*RTGS code *NEFT code *MICR code

Please provide a cancelled, signed cheque of the bank account you wish to register. The registered bank will be the default bank and all redemptions / dividends proceeds will be processed into default bankthrough electronic payment facility. I/We DO NOT wish to avail Electronic Payment Facility (Please tick) [��]. Please verify and ensure the accuracy of the bank details provided above and as shown inyour account statement. Franklin Templeton cannot be held responsible for delays or errors in processing your request if the information provided is incomplete or inaccurate.

(Do not abbreviate)

(In case of Non-Individual)

1. Franklin Templeton Easy e-Update: Receive account statements, annual reports andother information instantly by Email *

�� I / We wish to receive the above by email mentioned in the contact details�� I / We do not wish to receive the above by email mentioned in the contact details

2. Franklin Templeton Easy Web: Access your account and transact online atwww.franklintempletonindia.com using your HPIN�� Yes, I would like to receive my HPIN

3. Franklin Templeton Easy Call: Just call 1800 425 4255 or 6000 4255 to access youraccount using TPIN ______________________�� Yes, I would like to receive my TPIN

4. Franklin Templeton Easy Mobile: Get instant SMS alerts to confirm your transactions *I/We wish to register for SMS updates on my/our mobile phone mentioned in the contactdetails. �� Yes �� No* Note:Where the investor has not opted for any option or has opted for both options, theapplication will be processed as per the default option, i.e., receive the account statement,annual report and other correspondence by E-mail and receive SMS updates on mobile.

*Note: For more details on RTGS/NEFT/MICR codes, please refer detailed instructions.

Goal Retirement Child's Future 1 Wealth Builder 1 Child's Future 2 Wealth Builder 2

Additional Details e.g. Deepa's Marriage e.g. Home/Car e.g. Sania’s Education e.g. Vacation

Fund / Scheme NamePlan/Options SIP Amount Rs. SIP Amount Rs. SIP Amount Rs. SIP Amount Rs. SIP Amount Rs.

(Please tick (� ) anyone) (per installment) (per installment) (per installment) (per installment) (per installment)













Total SIP Investment per Installment per Goal

Total SIP Investment per Installment in all Goals ( in figures )

DR-Dividend Reinvestment, DP-Dividend Payout.

SIP Investment

Third Party Payment Documents

KYC Proof enclosed (tick below as appropriate) - Person making payment �� Payment by Parents/Grand-Parents/related persons on behalf of a Minor in consideration of naturallove and affection or as gift �� Custodian on behalf of an FII or a Client �� Payment by Employer on behalf of Employee - under Payroll deductions

Declaration - Attached �� Declaration from Beneficiary �� Declaration from Third Party (Custodian, Employer or Parents/Grand-Parents/related persons on behalf of a minorin consideration of natural love and affection or as gift for a value not exceeding Rs.50,000/-).

Relationship with Investor _______________________________________________________________________________________________________________________

DD against Cash (Please attach): �� Banker CertificateDD against Debit Bank (Please attach): �� Banker Certifcate or �� A copy of the passbook/bank statement evidencing the debit for issuance of a DD or �� Challan

Multiple Bank Registration Form Provided ��

Nomination Details (To be signed by all the joint holders irrespective of the mode of holdings. In case of more than one nominee, please submit a separate form available with any of our ISCs or on our website).

Goal 1Nominee Name & Address___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Guardian name & address (if nominee is a minor)___________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________ Signature of Nominee / Guardian_____________________________________________________Nominee Date of Birth____________________________(mandatory for minor). �� Proof of minor DOB submitted. Witness Name and Address____________________________________________________________________________________________________________________________________________________________________________________________Signature of Witness_______________________________________�� I/We do not wish to nominate any person for my investments. Signature of Investor(s)_____________________________________________________________________

Goal 2Nominee Name & Address___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Guardian name & address (if nominee is a minor)___________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________Signature of Nominee / Guardian_____________________________________________________Nominee Date of Birth____________________________(mandatory for minor). �� Proof of minor DOB submitted. Witness Name and Address____________________________________________________________________________________________________________________________________________________________________________________________Signature of Witness_______________________________________�� I/We do not wish to nominate any person for my investments. Signature of Investor(s)_____________________________________________________________________Note: Please submit a separate Nomination form incase of nominations more than 2 Goals.

Declaration

Having read and understood the contents of the Statement of Additional Information, Scheme Information Document of the Fund, the Key Information Memorandum and the Addenda issued till date, I/ we hereby apply to the Trustees of Franklin Templeton Mutual Fund for units of scheme(s) of Franklin Templeton Mutual Fund as indicated above, and agree to abide by the terms, conditions, rules andregulations of the Fund as on the date of this investment and confirm that the monies invested in the fund legally belong to me / us. I / We have not received nor been induced by any rebate or gifts, directlyor indirectly in making this investment. * I / We confirm that I am / we are Non-Resident Indians / Persons of Indian Origin but not United States persons within the meaning of Regulation (S) under the United States Securities Act of 1933, asamended from time to time, and I / We hereby further confirm that the monies are remitted from abroad through approved banking channels or from my/our monies in my/our NRE/NRO Account.I/We hereby declare that all the particulars given herein are true, correct and complete to the best of my/our knowledge and belief. I further agree not to hold Franklin Templeton Investments liable for anyconsequences in case of any of the above particulars being false, incorrect or incomplete.I hereby undertake to promptly inform the mutual fund of any changes to the information provided hereinabove andagree and accept that the Mutual Funds, their authorised agents, representatives, distributors ('the Authorised Parties') are not liable or responsible for any losses, costs, damages arising out of any actionsundertaken or activities performed by them on the basis of the information provided by me as also due to my not intimating / delay in intimating such changes. I hereby authorize the mutual fund todisclose, share, remit in any form, mode or manner, all / any of the information provided by me to Authorised Parties including Financial Intelligence unit-India (FIU-IND) including all changes, updatesto such information as and when provided by me without any obligation of advising me/us of the same. I hereby agree to provide any additional information / documentation that may be required by theAuthorised Parties, in connection with this application." I have read and understood the terms and conditions of the Family Solutions facility and agree to abide by the terms, conditions, rules and regulations of the said Facility as may be prescribed by Franklin Templeton Mutual Fund from time to time. I understand that the recommendation givenis based on the inputs provided by me/us and that there is no assurance or guarantee that the goal(s) will be achieved. I agree not to hold Franklin Templeton Mutual Fund or the Sponsor, the AMC, the Trustee or any of their directors, employees, affiliates or representatives responsible forany consequences arising out of my investments under the said Facility including non achievement of goals and loss of profit or principal.I/We confirm that the subscription money paid is in accordance with the requirements regarding 3rd party payment for subscriptions The ARN holder has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst which the Scheme is being recommended to me/us

Date:______________________________Place ______________________________________________________________________________ * Applicable to Non-Resident investors

Disclaimer: In the event of any KYC Application Form being subsequently rejected for lack of information / deficiency / insufficiency of mandatory documentation, the investment transaction may be cancelled and the amount may be redeemed at applicable NAV, subject to paymentof exit load, wherever applicable. However, in case of subscriptions in scheme where Units are under a lock – in period as prescribed in the respective Scheme Information Documents (including ELSS Schemes) or a New Fund Offer, allotment may be done only on confirmationfrom the Central Agency that the KYC is final and if the Central Agency informs that the KYC is cancelled, the original amount invested may be refunded.

Signatures

___________________________________First/Sole Applicant/Guardian

___________________________________Second Applicant

___________________________________Third Applicant

Acknowledgement

Received from _____________________________________________________________________________________________________________________________________________________________________________________________________________________Pin________________

Sl.No.

Mode of Operation

�� Single �� Joint �� Either or Survivor(s)

Power of Attorney (POA) Details

Name of POA Holder ___________________________________________________________________________________________________________________________

Enclosed* �� Proof of KYC PAN (Mandatory) Enclosed: �� PAN Card Copy Date of Birth: D D M M Y Y Y Y

Status: (Please tick (�)) �� Resident Individual �� NRI/PIO �� Others (Please specify)_____________________________Gender: �� Male �� Female

Payment Details

Amount _______________________________________________________ Cheque/DD No. ______________________________________________ Date __________________

Bank and Branch details ______________________________________________________________________________________________________________________________

CHECK LIST: Please ensure the following : • Application form is complete in all respects and signed by all Applicants • Bank Account details are filled • Appropriate Options are filled up • Cheques/DDs should be drawn in favour of ‘Franklin Templeton Family Solutions’. • For payment by Demand Draft, please attach a certificate from the banker inthe prescribed format confirming the account from which the funds have been remitted. • For Third Party payment, you have enclosed the 'Third Party Declaration' in the prescribed format along with theKYC acknowledgement issued by CVL for the person making the payment. • You have enclosed supporting documents for bank account details furnished in the Form. • You have provided a copy of theKYC acknowledgement or submitted the KYC Application and entered the application No. for all applicants, guardians for minors and POA holders (Refer Instructions)

Instructions

Please read the Scheme Information Document containing the terms of offer. Allapplicants are deemed to have accepted the terms subject to which the offer is beingmade and bind themselves to the terms upon signing the Application Form andtendering the payment.

1. To invest under the FAMILY SOLUTIONS facility, investor will need toundertake a questionnaire. Based on the inputs provided by the investor andafter considering his investment style in light on these inputs, a set of schemesof FTMF would be recommended for investment and the amount of investment.However, the investor may opt to invest in schemes of his/her choice and suchamount as determined by him/her at his discretion.

2. The investor needs to make the application by filling the specified applicationand transaction forms of the FAMILY SOLUTIONS facility along with a singlecheque / draft for the consolidated amount of investment under the application.Currently, applications will be accepted only in physical form.

3. FAMILY SOLUTIONS applications will not be accepted through online / webbased transaction platforms (except additional purchase and redemption inexisting accounts using HPIN facility offered by FTMF). Also applicationsreceived through electronic feeds will not be accepted.

4. FAMILY SOLUTIONS transactions through the stock exchanges infrastructurewill not be accepted.

5. Notwithstanding the amount of investment recommended for each scheme inthe minimum investment amount for fresh and additional purchase shall be asspecified in the respective Scheme Information Documents. E.g. If therecommended amount of investment in a scheme is Rs.4,000/- and the minimuminvestment amount specified in the Scheme information Document of thescheme is Rs.5,000/-, the investor need to invest at least Rs.5,000/- in thescheme.

6. In case of applications for registration of Systematic Investment Plan (SIP), themode of payment of SIP installments should be ECS or Direct Debit. Post datedcheques will not be accepted.

7. Investors already having an account in any Franklin Templeton scheme canprovide either their Customer Folio Number or Account Number and firstapplicant name in the space provided. Such investors need not fill the section‘Personal Details’.

8. For investments in the name of minor and in TIPP, date of birth (DOB) isrequired). Please attached a proof of DOB is required for investment in the nameof minor.

9. The application form must be completed in BLOCK LETTERS in ENGLISH.

10. Only single cheque accepted for Family Solution transactions. Multiple chequeswill not be allowed

11. Documents to be submitted at FT Branches only. Accepting forms at CAMS &Karvy Collection Centers is currently not allowed

12. The investor cannot change or modify his goal once the FAMILY SOLUTIONSaccount has been opened

13. Mode of payment:-

a. For Resident Investors

- For Resident Investors - by local cheque/draft deposited with anyFranklin Templeton branch or transfer/ electronic transfer toFranklin Templeton Mutual Fund Account

- Cheque for the consolidated application amount (per Form)should be drawn in favour of “Franklin Templeton FamilySolution”. The fund is not obliged to represent dishonouredcheques or inform the investor / investor’s agent about it.-

b. For Non-Resident Investors:

- by NRE/NRO account cheque from a bank located at places havinga Franklin Templeton branch. Please provide a photocopy of thecheque alongwith the application form if investment is madethrough a NRE/NRO account.

- by Rupee draft purchased abroad payable at locations where theapplication is submitted to Franklin Templeton branch.

14. In case of application by a limited company or a body corporate or an eligibleinstitution or a registered society or a trust or a partnership firm under a Powerof Attorney or otherwise, the original Power of Attorney duly notarised or acertified true copy thereof or the relevant resolution or authority to make theapplication / redemption as the case may be, or certified true copy duly thereof,along with a certified copy of the Memorandum and Articles of Associationand/or bye laws and/or trust deed and/or partnership deed (as the case may be)and Certificate of Registration / Incorporation should be submitted. The officialsshould sign the application under their official designation. In case of a Trust,it shall submit a certified true copy of the resolution from the Trustee(s)authorising such purchases / redemption.

15. As per SEBI Circular SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006,FTMF hereby declare all its branch offices [Investor Service Centres (ISC)], andFTMF’s website (www.franklintempletonindia.com) as the Official Points ofAcceptance of Transactions ("OPAT") for applications under Family Solution.The "cut off time" mentioned in the Scheme Information Document shall bereckoned at these official points. All transaction (purchase/redemption/switch)applications must be demonstrably received by the Mutual Fund at these OPAT.

Further in case of transactions done through the stock exchange infrastructure,all the Eligible Stock Brokers will be considered as the OPAT for the transactionsdone under this facility. The cut-off timing and applicability of NAV for the

transaction will be determined in accordance with the provisions of SEBI circularno. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006. The day and timeof receipt of the transaction application by FTMF will be based on the timestamping as evidenced by the confirmation slip generated by the stock exchangeinfrastructure.

Know Your Customer (KYC):

All investors (including Joint holders, NRIs, POA holders and guardians in the case ofminors) must ensure completion of Know Your Customer (KYC) formalities, failingwhich the transaction may be rejected.

� Currently it is mandatory for all investors irrespective Amount of investment(including joint holders, NRIs, POA holders and guardians in the case ofminors) to submit a copy of the KYC acknowledgement received from CVL(CDSL Ventures Ltd.) or printout of KYC status downloaded from CVL website(www.cvlindia.com) towards completion of Know Your Customers (KYC)policies under the AML Laws. Applications without such documents andinformation may be rejected.

� For applications by minors, copy of KYC Acknowledgement of the guardianmust be submitted along with the Application / Transaction Form else theapplication may be rejected.

� In case of applications under a Power of Attorney( POA), copy of KYCAcknowledgement of the investors and the POA holders must be submittedalong with the Application / Transaction Form else the transaction may berejected.

Default Options:

The following defaults will apply to the processing of applications, where required, inaddition to the defaults already mentioned in the KIM:

In the event of any KYC Application being subsequently rejected for lack of information/ deficiency / insufficiency of mandatory documentation, the investment transactionmay be cancelled and the amount may be redeemed at applicable NAV, subject topayment of exit load, wherever applicable. Such redemption proceeds will bedespatched within a maximum period of 21 days from date of acceptance of application.

New Purchases:

• Only single cheque accepted for Family Solution transactions. Multiple chequeswill not be allowed

• If the Scheme name in the application is different from the scheme name in thecheque, the transaction will be processed as per the application.

Additional Purchases:

� If an investor provides all details, including Goal, scheme plan, option, and thereis only one existing account matching this in the folio, the purchase will beprocessed into that account.

� If there are multiple matching accounts in Folio (FAMILY SOLUTIONS & NonFAMILY SOLUTIONS), the purchase will be processed into the FAMILYSOLUTIONS account with the same goal.

� If an investor only provides the scheme name, but not the plan and or option,transactions will be processed based on the following rule:

- If there is one FAMILY SOLUTIONS account of the scheme in that folio, thetransaction will be processed into that account irrespective of whether it is thedefault option

� If an investor does not provide their bank details in an additional purchase innew scheme, the default bank details from the last transacted account will beused

� In case the amount of the cheque or the payment instrument / advice differsfrom the amount of the application, the application would be rejected if theamount is less than the amount mentioned in application form. In case theamount of cheque / payment instrument is more than the amount mentioned inthe application form, the excess amount will be refunded without anycompensation or interest thereof.

Redemptions/Exchanges:

• Switches from Non FAMILY SOLUTIONS to FAMILY SOLUTIONS and viceversa are allowed

• The Switch request (with Goal Sheet) can be placed while opening the FAMILYSOLUTIONS account

• The Switch request can be placed at a later date also

• Switches in scheme from one goal to another goal are allowed

• Partial switch from Non FAMILY SOLUTIONS or FAMILY SOLUTIONS toFAMILY SOLUTIONS account are currently not allowed.

• Investors must provide the account number from which redemption or switchout is to be effected, in case they hold multiple accounts of the same scheme ina folio. If Franklin Templeton is unable to determine the single specific accountto be redeemed / switched out from the information provided, the request wouldbe treated as ambiguous and hence rejected.

• In the case of a Switch / Exchange, if the request does not specify the destinationscheme account number but only provides the scheme name, the NIGO rules aslisted above for Additional purchases would apply.

• If the number of units and all units is mentioned in the request for redemptionor Switch, all units (Cleared units) will be considered. Where the number ofunits and an amount is mentioned, the number of units (cleared units) will beconsidered.

• Redemption/Switch requests will be processed only if either amount or unitsare clearly mentioned.

• Switch transactions will be processed only if the day is a BUSINESS DAY forboth the Source and Destination Schemes.

• If for a switch transaction, the source account number does not match with thesource scheme name (wherever given) or if the destination account numberdoes not match with the destination scheme name (wherever given), the requestwould be treated as ambiguous and hence rejected.

• If folio number given is without a scheme name or account number and thereare two or more schemes or accounts available under the folio, the request wouldbe treated as ambiguous and hence rejected.

• If the account number is valid but does not belong to the folio number given inthe application, then the transaction will be processed in the given accountnumber.

Systematic Investment Plan (SIP) under FAMILY SOLUTIONS

• Investor can choose to invest via an SIP in Family Solutions – Available throughthe ECS facility only. Post dated Cheque will not be accepted for FAMILYSOLUTIONS SIP transactions.

• Each FAMILY SOLUTIONS SIP form allows up to 4 schemes across goals. Foradditional SIPs in the same Family Solutions Application, the investor will needto fill additional SIP ECS forms.

• Each SIP ECS form should have the same date, frequency and tenure. Hence, ifthe investor chooses to have different dates, frequency or tenures he/she needsto fill up another SIP ECS form.

• If the SIP dates are different in a particular goal/across goals submitted througha single ECS form, it will be rejected

• In case of Lump sum and Future Dated SIP, Single Cheque (lump sum amountonly) with FAMILY SOLUTIONS SIP ECS form will be accepted (Note: SIP willstart after 30 days)

• All installments should be for the same amount.

• All the SIP dates across goals should be uniformly i.e. either the 1st, 7th, 10th,20th or 25th of a month.

Systematic Transfer Plan (STP) under FAMILY SOLUTIONS

• FAMILY SOLUTIONS accounts need to be created prior to the STP

• Investor can start an STP from Non FAMILY SOLUTIONS funds into selectedFAMILY SOLUTIONS funds

• The STP will have to be from accounts within the same folio since inter-foliotransactions are not allowed

• STP is allowed from one scheme to another scheme only (one to many is allowedwith Fixed amount STP and not with capital appreciation).

General

1. Investors can avail online Account Access and full transaction capabilities, onour website www.franklintempletonindia.com. The HPIN Facility is currentlyavailable to all individual and non-individual investors other than thosetransacting through Channel Partners, on FTMF’s website for all schemes forsubscription, redemption or exchange. Investors can also tag together, and viewfrom a single location, all their accounts (with the same order of names andmode of holding). In addition, a family access facility allows investors toconsolidate holdings across investors if they desire. HPIN application forms areavailable for download from the website, or by sending an email [email protected]. On receipt and verification of the form, investors willbe issued an HPIN - using this, investors must create a username and passwordto access the. For performing transactions through the HPIN facility, investorsare required to furnish verified PAN and KYC acknowledgement issued by CVL,failing which the facility may be restricted to a "View Only" facility.

2. Franklin Templeton has also introduced a facility for distributors to view theirclient accounts or transact on the web on behalf of their clients.

Instructions on RTGS, NEFT, MICR codes

• Investors are requested to provide their bank's Indian Financial System code(IFSC), Real Time Gross Settlement (RTGS) or National Electronic FundTransfer (NEFT) / Magnetic Ink Character Recognition (MICR) code(s).

• Investors need to provide a copy of cheque leaf (where the IFSC/MICR code isprinted) or banker's confirmation for verification of the code.

• Investors are requested to note that RTGS and NEFT codes may be different forthe same bank/branch. Please contact your bank for the details of the same.

• Payment through RTGS can only be made when the amount paid is not less thanRs.1,00,000 Payment through NEFT / ECS can be made for all paymentsirrespective of value.

• RTGS / NEFT / ECS are facilities offered by Reserve Bank of India (RBI), forfacilitating better customer service by direct credit of dividend/redemption to aninvestor’s bank account through electronic credit. This helps in avoiding loss ofdividend/redemption warrant in transit or fraudulent encashment. Paymentsmade through ECS/RTGS/NEFT are subject to applicable rules and policies ofRBI and the working of banking system. The Mutual Fund will endeavour toarrange such facility for payment of dividend/redemption proceeds to the Unitholders. It may be noted that there is no commitment from the Mutual Fund thatthis facility will be made available to the Unit holders for payment ofdividend/redemption proceeds.

• Any charges levied by the investor's bank for receiving payment throughECS/RTGS/NEFT will be borne by the investor. The Mutual Fund / AMC will notaccept any request for refund of such bank charges.

Systematic Investment Plan throughECS/Direct Debit (See instructions overleaf)

Advisor Name & Code* Sub Advisor Name & Code*

* AMFI Registered Distributors

SIP Details (Please note that a minimum of 30 days is required to set up the ECS/Direct Debit)

All SIP investments in this form must have the same investment frequency, SIP Date and ECS Period. In case you wish to have different investment frequency, SIP date and ECS period for any scheme, please use additional form.

Frequency: �� Monthly �� Quarterly; SIP Date: �� 1st �� 7th �� 10th �� 20th �� 25th; ECS Period: �� From: m m y y y y To: m m y y y y

Goal & Additional Details

Scheme

Plan Option

SIP Amount Rs. (per installment)

Account No. Regn. No. (for office use only)

Sl.No.

Mandatory Enclosures: If 1st installment is not by cheque

�� Blank cancelled cheque �� Copy of cheque

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered distributor) directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN Holder.

(Should be from the Bank Account from which ECS/Direct Debit is to be effected). I/We authorize FranklinTempleton Mutual Fund or their authorized service providers to Debit my/our account listed below by ECS (ElectronicClearing Services) / Direct Debit for collection of SIP payments.

Name of Sole/First Account holder Existing Unitholders’ Folio Number �� New Investors (Please also complete and submit a Application Form)Existing Unitholders’ Account Number


Scheme

Plan Option




Scheme

Plan Option




Scheme

Plan Option



Bank Details

Bank Name

Branch Name

Address

City

Account Number Account Holder Name as in Bank Account

9 Digit MICR Code

Account Type

�� Savings �� CC/OD�� Current �� NRE/NRO(please �)

Please provide the MICR Code of the bank branch from where theECS/Direct Debit is to be effected.

I have read and understood the terms and conditions of the Family Solutions facility and agree to abide by the terms, conditions, rules and regulations of the said Facility as may be prescribed by Franklin Templeton Mutual Fund from time to time.Having read and understood the contents of the Statement of AdditionalInformation, Scheme Information Document of the Fund, the Key Information Memorandum and the Addenda issued till date, I/we hereby apply to the Trustees of Franklin Templeton Mutual Fund for registration of Systematic Investment Plan (SIP) through ECS / Direct Debit as indicated above, and agree to abide bythe terms, conditions, rules and regulations of the Fund and the SIP through ECS/Direct Debit as on the date of this investment. I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed or wrongly effected or not effected at all for reasons of incomplete or incorrect information,I/We will not hold Franklin Templeton Investments, its authorised representatives, appointed service providers or the Bank responsible. I/We further undertake that any changes in my/our Bank details will be informed to the Fund immediately. I/We have read and agreed to the terms and conditions mentioned overleaf. I/Weconfirm that the funds invested legally belong to me/us and that I/we have not received nor been induced by any rebate or gifts, directly or indirectly in making this investment. *I/We confirm that I am/we are Non-residents of Indian National / Origin but not United States persons within the meaning of Regulation (s)under the United States Securities Act of 1933, as amended from time to time and that I/We hereby confirm that the funds are remitted from abroad through approved banking channels or from my/our funds in my/our NRE/NRO Account. The ARN holder has disclosed to me/us all the commissions (in the form of trailcommission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst which the Scheme is being recommended to me/us I/We confirm that I/we do not have any other existing Systematic Investment Plan (SIP) with Franklin Templeton Mutual Fund which togetherwith this proposed SIP will result in aggregate investments exceeding Rs.50,000/- in a year. Further, I/we understand and accept that in case Franklin Templeton Mutual Fund processes the first Micro SIP installment and the application is subsequently found to be incomplete in any respect or not supported by adequatedocumentation or if the existing aggregate investment installments together with this proposed SIP installments exceeds Rs.50,000/- in a year, the Micro SIP registration will be cancelled for future installments and no refund shall be made for the units already allotted.

* Applicable to Non Resident Investors

Date Signature of the Investor(s) 1. 2. 3.

Signatures of Bank Account holders

1st Holder/Guardian

2nd Holder

3rd Holder

Authorisation of the Bank Account Holders

This is to inform that I/We have registered for RBI’s Electronic Clearing Service (Debit Clearing) and that my/our payment towards my/our investmentin Franklin Templeton Mutual Fund shall be made from my/our below mentioned bank account number with your bank. I/We authorize FranklinTempleton Asset Management (India) Pvt. Ltd. (Investment Manager of Franklin Templeton Mutual Fund) acting through their service providers andrepresentative carrying this ECS mandate form to get it verified and executed. Mandate verification charges if any, may be charged to my/our account

Bank Account Number

Banker’s Attestation (For bank use only)

Certified that the signature of account holder and the details of Bank account and its MICR code are correct as per our records Signature of Authorised Official from Bank (Bank Stamp and Date) Bank Account No.

Acknowledgement Slip for SIP through ECS/Direct Debit (To be filled in by investor )

Investor’s Name

Customer Folio Date D D M M Y Y Y Y

Franklin Templeton InvestorService Center Signature & Stamp

Sl.No.

FRANKLIN TEMPLETON BRANCH OFFICES

Ahmedabad: 202, 2nd Floor, Abhijeet-III, Opp. Mayor’s Bungalow, (Near Mithakali Six Roads), Ahmedabad 380 009 ; Bangalore: Niton Compound, 11, Palace Road,

Entrance from Cunningham Road, Near Carmel College, Bangalore 560 052.; Bhubaneswar: No.77, Kharavel Nagar, Unit III, Janapath, Bhubaneswar 751 001; Chandigarh:

S.C.O. 373-374, 1st Floor, Sector 35-B, Chandigarh 160 022; Chennai: Century Centre, 75, T.T.K Road, Alwarpet, Chennai 600 018; Cochin: 41/418-C, First Floor, Chicago

Plaza, Rajaji Road, Ernakulam, Cochin - 682035.; Coimbatore: 424-C, Red Rose Towers, 2nd Floor, D.B.Road, R.S.Puram, Coimbatore 641 002.; Dehradun: Office No.

10, Ground Floor, Shiva Palace, 57/19 Rajpur Road, Dehradun 248001; Hyderabad: First Floor, Amit Plaza, No.6-3-885/7C, Somajiguda Circle, Hyderabad 500082.; Indore:

101, Starlit Towers, 29/1 Y.N Road, Opp. State Bank Of Indore Head Office, Indore - 452001.;Jaipur: 250, 2nd Floor, Ganpati Plaza, M I Road, Jaipur 302 001.; Jalandhar:

BX III 455, Shakti Tower, Upper Basement, Below Vishal Mega Mart, G. T. Road, Jalandhar 144001.; Kanpur: Office No.208-09, 14/113, KAN Chambers, Civil Lines,

Kanpur- 208001; Kolkatta: 2D & 2E, Landmark Building, 2nd Floor, 228-A, A.J.C Bose Road, Kolkatta 700 020.; Lucknow: 2, Uttam Palace, 1st Floor, 3 Sapru Marg,

Lucknow 226 001; Ludhiana: SCO-37, 1st Floor, Feroze Gandhi Market, Ludhiana 141 001; Madurai: No.210/20, 1st Floor,Petchiamman Padithurai Road, Near AR Plaza,

Madurai – 625001.; Mangalore: 1st Floor, Manasa Towers, M.G. Road Kodialbail, Mangalore 575 003; Mumbai: Mittal Tower, Office No. A/31, A/32 & A/35, 3rd Floor

Mittal Tower – ‘A’ Wing Opp. Vidhan BhavanNariman Point, Mumbai 400021 Bandra Kurla Complex, Level 4, Wockhardt Towers, East Wing, Mumbai 400 051.; Nagpur:

Shop No. 3 & 4, Ground Floor, Maharshi Shivpad Complex, Plot No. 262, West High Court Road, Bajaj Nagar, Nagpur 440 010.; Nasik: S-6, Suyojit Trade Centre, Opp.

Rajiv Gandhi Bhavan, Sharanpur Road, Nasik 422 002.; New Delhi: F-126, 12th Floor, Himalaya House, Kasturba Gandhi Marg, New Delhi 110 001.; Patna: 505, Ashiana

Hariniwas Apartments, Dak Bungalow Road, Patna 800 001. ; Pune: 401, Karan Salene, 187, Bhandarkar Road, Pune 411 004.; Rajkot: 528, Star Plaza, 5th Floor,

Phulchhab Chowk, Rajkot 360 001.; Raipur: 244, Rishabh Complex, 2nd Floor, M.G. Road, Raipur 492 001.; Salem: 214 / 215, Second Floor, Kandaswarna Shopping

Mall, Sarada College Road, Salem 636 016.; Surat: 404-405, Lalbhai Contractor Complex, Opp. Library, Nanpura, Surat 395 001.; Trichy: Jenne Plaza, Ground Floor,

5/C, 28 Bharathiar Salai, Contonment, Trichy 620 001.; Vadodara: First Floor-Spentha Complex, Opp. Pizza Hut, Near Ambedkar Circle, Race Course, VADODARA-

390007.; Varanasi: 4th Floor, Kuber Complex, Rathyatra Crossing, Varanasi 221 010.; Vijayawada: "White House" 1st Floor, Room #2 M.G.Road, Vijayawada 520 010.;

Visakhapatnam: 204, First Floor, Eswar Plaza, Dwarakanagar, Visakhapatnam 530016.

For any queries, our investor line is available to assist you at 1-800-425 4255 or 6000 4255 (please prefix the city STD code if calling from a mobile phone) Local

call rates apply, from 8 a.m to 9 p.m, Monday to Saturday. Alternatively, you can also e-mail us at [email protected]

SIP Payment through Electronic ClearingServices/Direct DebitGeneral Instructions:

1) This facility is offered to investors having Bank accountsin select cities mentioned below. The cities in the list maybe modified/updated/ changed/removed at any time infuture entirely at the discretion of Franklin TempletonInvestments without assigning any reasons or priornotice. SIP instructions for investors in such cities viaECS/Direct Debit route will be discontinued.

2) The bank branch provided for ECS/Direct Debit shouldparticipate in the local MICR clearing. The investor shallinform their Bankers about the ECS/Direct Debitmandate and Franklin Templeton will not liable for anytransaction failures due to rejection by the investorsbank/branch.

3) SIP through ECS/Direct Debit is available only on 1st /7th / 10th / 20th / 25th of the month. In case these daysare non business days for the scheme, then SIP will beprocessed on the next business day.

4) The investor agrees to abide by the terms and conditionsof ECS/Direct Debit facility of Reserve Bank of India(RBI).

5) Investor will not hold Franklin Templeton Investmentsand its service providers responsible if the transaction isdelayed or not effected by the investor Bank or if debitedin advance or after the specific SIP date due to variousreasons.

6) Franklin Templeton reserves the right to reverseallotments in case the ECS debit is rejected by the bankfor any reason whatsoever.

7) Franklin Templeton Investments shall not be responsibleand liable for any damages/compensation for any loss,damage etc., incurred by the investor. The investorassumes the entire risk of using the ECS/Direct Debitfacility and takes full responsibility for the same.

8) The AMC/Trustees reserve the right to discontinue ormodify the SIP facility at any time in future on aprospective basis.

9) Franklin Templeton Investments reserves the right todiscontinue the SIP in case of Direct Debit through ECS/ Direct Debit routes are rejected by the investor bank forany reasons.

10) For load details, please refer to the Key InformationMemorandum .

11) Franklin Templeton Investments reserves the right to

reject any application without assigning any reasonthereof.

12) For intimating the change in bank particulars, please tick thebox provided overleaf under the ‘Bank Details’. Also fillup allthe relevant details as applicable. Changes in the ECS BankMandate request should be submitted 30 days in advance andcancellation of ECS should be submitted 15 days in advance.

13) Please contact Franklin Templeton ISC / visitwww.franklintempletonindia.com for updated list ofbanks / branches eligible for Direct Debit Facility.

14.) In case of micro SIPs, please provide any one of thefollowing photo identification documents as mentionedbelow:

Voter Identity Card, Driving License, Government / Defenseidentification card, Passport, Photo Ration Card, PhotoDebit Card (Credit card will not be accepted)., EmployeeID cards issued by companies registered with Registrar ofCompanies, Photo Identification issued by Bank Managersof Scheduled Commercial Banks / Gazetted Officer / ElectedRepresentatives to the Legislative Assembly / Parliament, IDcard issued to employees of Scheduled Commercial / State/ District Co-operative Banks., Senior Citizen / FreedomFighter ID card issued by Government., Cards issued byUniversities / deemed Universities or institutes understatutes like ICAI, ICWA, ICSI., Permanent RetirementAccount No (PRAN) card issued to New Pension System(NPS) subscribers by CRA (NSDL)., Any other photo IDcard issued by Central Government / State Governments/Municipal authorities / Government organizations likeESIC / EPFO.

Terms and Conditions for Systematic Investment Planthrough ECS / Direct Debit (please read this with GeneralInstructions)

1) Minimum Investments: 12 instalments of Rs.500/- (or) 6instalments of Rs.1000/-. All Instalments should be of thesame amount. In FTLF 12 installments of Rs.2000/- (or)6 instalments of Rs.4000/-, in FTDPEF 12 installments ofRs.1000/- (or) 6 installments of Rs. 2000/- and in TGSF-PF Plan 12 instalments of Rs.10,000/- or 6 instalments ofRs.20,000/-.

2) To effect ECS/Direct debit, investors must provide acancelled cheque or copy thereof or the firstinvestment must be by means of cheque from thataccount. Banker’s attestation is recommended forPayable at par cheque.

3) Existing investors must provide their Folio Number /

Account number and need not fill up a CommonApplication Form.

4) New investors who wish to enroll for SIP throughECS/Direct Debit should also fill up the CommonApplication form in addition to this form.

5) The SIP through ECS/Direct Debit Form, and theCommon Application Form (in case of new investors),along with the necessary cheque or copy thereof shouldbe submitted at least 30 days in advance of the date ofthe first ECS/Direct Debit Transaction.

6) For further details of the Scheme features likeminimum amounts, risk factors etc, investors should,before investment, refer to the Scheme InformationDocument(s), Key Information Memorandum andAddenda issued till date available free of cost at any ofthe Investor Service Centers or distributors or fromthe website www.franklintempletonindia.com.

List of cities where SIP through ECS Debit isavailable:

Agra, Ahmedabad, Allahabad, Amritsar, Anand, Asansol,Aurangabad, Bangalore, Bardhaman, Baroda, Belgaum,Bhavnagar, Bhilwara, Bhopal, Bhubaneshwar, Bijapur,Bikaner, Calicut, Chandigarh, Chennai, Cochin,Coimbatore, Cuttack, Dargeeling, Davangere, Dehradun,Delhi, Dhanbad, Durgapur, Erode, Gadag, Gangtok, Goa,Gorakhpur, Gulbarga, Guwahati, Gwalior, Haldia, Hubli,Hyderabad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu,Jamnagar, Jamshedpur, Jodhpur, Kakinada, Kanpur,Kolhapur, Kolkata, Kota, Lucknow, Ludhiana, Madurai,Mandya, Mangalore, Mumbai, Mysore, Nagpur, Nasik,Nellore, Patna, Pondicherry, Pune, Raichur, Raipur,Rajkot, Ranchi, Salem, Shimla, Shimoga, Sholapur,Siliguri, Surat, Thirupur, Tirupati, Trichur, Trichy,Trivandrum, Tumkur, Udaipur, Udipi, Varanasi,Vijaywada and Vizag

List of banks / branches for SIP through DirectDebit /Standing Instructions Facility isavailable.

Banks Branches

• IDBI Bank, HDFC Bank, IndusInd bank, All BranchesKotak Mahindra Bank & Axis Bank

• Royal Bank of Scotland (RBS) All Branches(only for RBS Customers)

• Bank of India, Bank of Baroda, State Select Branches Bank of India & Punjab National Bank (where core banking

facility is available)• ICICI Bank Branches not covered under

ECS Locations

2

FRANKLIN INDIA BLUECHIP FUND (FIBCF)

INVESTMENT OBJECTIVE

An open-end growth scheme with an objective primarily toprovide medium to long-term capital appreciation.

ASSET ALLOCATION PATTERN OF THE SCHEME:

Types of Instruments Normal Allocation(% of Net Assets)

Equities Above 60%Debt* Upto 40%Money market instruments Upto 15%

* includes Securitised Debt up to 40%

INVESTMENT STRATEGY

Please refer to Page No. 11&12

PLANS AND OPTIONS

1. Growth Plan 2. Dividend Plan (with Payout (DP) andReinvestment (DR) options)

MINIMUM APPLICATION AMOUNT/ NUMBER OF UNITS.

Purchase: Rs.5,000 and multiples of Re.1.Additional Purchase: Rs.1,000 and multiples of Re.1.Repurchase:Minimum of Rs.1,000/-

BENCHMARK INDEX

BSE Sensex

NAME OF THE FUND MANAGER(S)

Anand Radhakrishnan & Roshi Jain (dedicated forinvestment in Foreign Securities)

EXPENSES OF THE SCHEME

i) Load Structure

Entry Load Nil

Exit Load In respect of each purchaseof Units - 1% if the Unitsare redeemed/switched-outwithin one year ofallotment.

ii) Recurring expenses 1.87%(Actual Expenses for thefinancial year endingMarch 2010)

PERFORMANCE OF THE SCHEME: AS OF MARCH 31, 2010

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)

Last 1 year 90.74% 80.54%Last 3 years 16.45% 10.25%Last 5 years 25.34% 21.96%Since inception 26.51% 10.78%

Inception Date: December 1, 1993

YEAR-WISE RETURNS FOR THE LAST 5 FINANCIAL YEARS

Past performance may or may not be sustained in future.Based on Growth Plan NAVs. Bonus is adjusted and dividendsdeclared are assumed to be reinvested

No. of Folios: Please refer to Page No. 11&12

Assets Under Management (AUM): Please refer to Page No. 11&12

TEMPLETON INDIA GROWTH FUND (TIGF)


An open-end growth scheme with the objective to providelong-term capital growth to its unitholders.



Equities & Equity 85%linked securitiesDebt securities / 15%Money market instruments

Note: Debt includes Securitised Debt.

INVESTMENT STRATEGY


PLANS AND OPTIONS



Purchase: Rs.5,000 and multiples of Re.1. AdditionalPurchase: Rs.1,000 and multiples of Re.1Repurchase:Minimum of Rs.1,000/-

BENCHMARK INDEX

BSE Sensex, MSCI India Value


Dr. J. Mark Mobius


i) Load Structure

Entry Load Nil

Exit Load In respect of eachpurchase of Units - 1%if the Units areredeemed/switched-outwithin one year ofallotment.

ii) Recurring expenses (Actual 2.29%Expenses for the financialyear ending March 2010)

PERFORMANCE OF THE SCHEME: AS OF MARCH31, 2010

Compounded Scheme Benchmark BenchmarkAnnualised Returns(%) Returns(%) Returns(%)Returns BSE Sensex MSCI India

Value

Last 1 year 110.71% 80.54% 93.83%Last 3 years 22.31% 10.25% 18.09%Last 5 years 26.22% 21.96% 27.47%Since inception 20.63% 12.77% N.A

Inception Date: September 10, 1996

YEAR-WISE RETURNS FOR THE LAST 5 FINANCIALYEARS

Past performance may or may not be sustained in future.Based on Dividend Plan NAVs. Bonus is adjusted anddividends declared are assumed to be reinvested



TEMPLETON INDIA EQUITY INCOME FUND (TIEIF)


An open-end diversified equity fund that seeks to provide acombination of regular income and long-term capitalappreciation by investing primarily in stocks that have acurrent or potentially attractive dividend yield.


Types of Instruments Normal Allocation(% of Net Assets)#

Equities and Equity 70% - 100%Linked instruments,out of which

Large companies 20%-75%Other Indian companies 0%-25%Foreign securities as 0%-50%permitted by SEBI/RBI

Debt securities, Money market 0%-30%instruments and Cash*

# including investments in ADR/GDR/Foreign Securities/FCCBs and anyother instruments as may be permitted by SEBI/RBI upto 50%of the netassets of the scheme, exposure in derivatives upto a maximum of 50%* including securitised debt upto 30%

INVESTMENT STRATEGY


PLANS AND OPTIONS


MINIMUM APPLICATION AMOUNT/ NUMBER OFUNITS.

Purchase: Rs.5,000 and multiples of Re.1. AdditionalPurchase: Rs.1,000 and multiples of Re.1Repurchase:Minimum of Rs.1,000/-

BENCHMARK INDEX

BSE 200


Dr. J. Mark Mobius assisted by Chetan Sehgal, VikasChiranewal (dedicated for investment in Foreign Securities)

EXPENSES OF THE SCHEMEi) Load Structure

Entry Load: NilExit Load: In respect of each purchase

of Units - 1% if the Units areredeemed/switched-outwithin one year of allotment.




Last 1 year 103.55% 92.87%Last 3 years 15.91% 12.19%Last 5 years N.A. N.A.Since inception 17.23% 12.22%

Inception Date: May 18, 2006


*For schemes/plans launched during the year the returns arefrom inception date.Past performance may or may not be sustained in future.Based on Growth Plan NAVs.



FRANKLIN INDIA PRIMA FUND (FIPF)

INVESTMENT OBJECTIVEAn open-end growth scheme with an objective to providemedium to long-term capital appreciation as a primaryobjective and income as a secondary objective.



Equities Above 60%

Debt* Upto 40%

Money market instruments Upto 15%

* Includes Securitised Debt up to 40%

INVESTMENT STRATEGY


PLANS AND OPTIONS1. Growth Plan 2. Dividend Plan (with Payout (DP) andReinvestment (DR) options)

MINIMUM APPLICATION AMOUNT/ NUMBER OF UNITS.Purchase: Rs.5,000 and multiples of Re.1. AdditionalPurchase: Rs.1,000 and multiples of Re.1Repurchase:Minimum of Rs.1,000/-

BENCHMARK INDEXS&P CNX 500NAME OF THE FUND MANAGER(S)K. N. Sivasubramanian, R.Janakiraman & Roshi Jain(dedicated for investment in Foreign Securities)


i) Load Structure

Entry Load: Nil

Exit Load: In respect of each purchaseof Units - 1% if the Units areredeemed/switched-outwithin one year of allotment.







Past performance may or may not be sustained in future.Based on Growth Plan NAVs.

No. of Folios: Please refer to Page No. 11&12Assets Under Management (AUM): Please refer to Page No. 11&12

FRANKLIN INDIA PRIMA PLUS (FIPP)


An open end growth scheme with an objective to providegrowth of capital plus regular dividend through adiversified portfolio of equities, fixed income securities andmoney market instruments.



Equities At least 40%Debt* Up to 40%Money Market Instruments Up to 20%

*Includes Securitised Debt up to 40%

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2. Dividend Plan (with Payout (DP) andReinvestment (DR) Options)


Purchase: Rs.5,000 and multiples of Re.1; AdditionalPurchase: Rs.1,000 and multiples of Re.1; Repurchase:Minimum of Rs.1,000

BENCHMARK INDEX

S&P CNX 500


Sukumar Rajah, Anand Radhakrishnan & Roshi Jain(dedicated for investment in Foreign Securities)

EXPENSES OF THE SCHEMEi) Load StructureEntry Load: Nil

Exit Load: In respect of eachpurchase of Units -1% if the Units areredeemed/switched-out within one yearof allotment.

ii) Recurring expenses 1.93%(Actual Expenses for thefinancial year ending March 2010)








Assets Under Management (AUM): Please refer to Page No.11&12

FRANKLIN INDIA FLEXI CAP FUND (FIFCF)


An open-end diversified equity fund that seeks to providemedium to long-term capital appreciation by investing instocks across the entire market capitalization range.



Equities and Equity 75% - 100%Linked instruments#out of which

Large Cap 20%-100%Mid Cap 0%-70%Small Cap 0%-40%

Debt securities* 0% - 25%Money Market Instruments 0% - 25%

# including investments in ADR/GDR up to 50%, exposure inderivatives upto a maximum of 50%*including securitised debt upto 25%

INVESTMENT STRATEGY


PLANS AND OPTIONS


The Key Information Memorandum is dated April 29, 2010. This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing.For further details of the Scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc. investorsshould, before investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centres or distributors orfrom the website www.franklintempletonindia.com. This KIM shall remain effective until a 'material change' (other than a change in fundamental attributes and within the purview of the KIM)occurs and thereafter Material changes will be filed with SEBI.

The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities andExchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.

Sponsor: Templeton International Inc., Florida, USA. Asset Management Company: Franklin Templeton Asset Management (India) Pvt. Ltd.

FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT LTD

FRANKLIN TEMPLETON MUTUAL FUND

KEY INFORMATION MEMORANDUM AND APPLICATION FORMOffer for units on an ongoing basis at a Net Asset Value (NAV) based price

3



BENCHMARK INDEX

S&P CNX 500


K.N. Sivasubramanian, Sukumar Rajah & Roshi Jain(dedicated for investment in Foreign Securities)


i) Load Structure

Entry Load: Nil

Exit Load: In respect of each purchase ofUnits - 1% if the Units areredeemed/switched-out withinone year of allotment.

ii) Recurring expenses 1.88%(Actual Expenses forthe financial yearending March 2010)


Absolute Returns Scheme BenchmarkReturns (%) Returns (%)

Last 1 Year 99.39% 87.95%

Last 3 Years 14.44% 11.08%

Last 5 Years 24.93% 19.45%

Since inception 23.60% 18.44%

Inception Date: March 2, 2005





FRANKLIN ASIAN EQUITY FUND (FAEF)


An open-end diversified equity fund that seeks toprovide medium to long term appreciation throughinvestments primarily in Asian Companies / sectors(excluding Japan) with long term potential acrossmarket capitalisation.



Equities and Equity 70% - 100%Linked instruments

- Domestic securities 0% - 40%

- Foreign Securities@ 50% - 100%

Domestic Debt securities* and 0% - 30%Money Market Instruments

@ including investments in units/securities of overseasmutual funds/unit trusts and such other foreign securities/instruments as may be permitted by SEBI/RBI# exposure in derivatives up to a maximum of 50%* including securitised debt up to 30%

The scheme would predominantly invest in ForeignSecurities of Asian companies (excluding Japan) andother companies that are benefiting from growth inAsian economies.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan 2.Dividend Plan (with Payout andReinvestment Option).



BENCHMARK INDEX

MSCI Asia (ex-Japan) Standard Index


Sukumar Rajah assisted by Ms. Roshi Jain (dedicated formaking investment in Foreign Securities)


i) Load Structure

Entry Load Nil

Exit Load In respect of each purchaseof Units - 1% if the Unitsare redeemed/switched-outwithin one year ofallotment.




Last 1 year 42.35% 49.37%Since inception 0.22% -0.70%

Inception Date: January 16, 2008


*For schemes/plans launched during the year the returnsare from inception date.Past performance may or may not be sustained in future.Based on Growth Plan NAVs.



FRANKLIN INDIA HIGH GROWTH COMPANIESFUND (FIHGCF)


An open-end diversified equity fund that seeks to achievecapital appreciation through investments in Indiancompanies/sectors with high growth rates or potential.

ASSET ALLOCATION PATTERN OF THE SCHEME


Equities and Equity 70% - 100%Linked Instruments

Debt securities* and 0% - 30%Money Market Instruments

# including investments in Foreign Securities as may bepermitted by SEBI/RBI up to 35% of the net assets of thescheme, exposure in derivatives up to a maximum of 50%* including securitised debt up to 30%

INVESTMENT STRATEGY


PLANS AND OPTIONS1. Growth Plan; 2. Dividend Plan (with Payout (DP) andReinvestment (DR) Options)

MINIMUM APPLICATION AMOUNT/ NUMBER OF UNITS.Purchase: Rs.5,000 and multiples of Re.1; AdditionalPurchase: Rs.1,000 and multiples of Re.1; Repurchase:Minimum of Rs.1,000

BENCHMARK INDEXS&P CNX 500

NAME OF THE FUND MANAGER(S)K.N. Sivasubramanian, Anand Radhakrishnan & RoshiJain (dedicated for investment in Foreign Securities)


i) Load Structure

Entry Load: Nil





Last 1 Year 116.32% 7.79%Since inception 87.95% 4.34%

Inception Date: July 26, 2007





FRANKLIN INDIA INDEX FUND (FIIF)


An open end index linked growth scheme with the objectiveto invest in companies whose securities are included in theNifty and subject to tracking errors, endeavouring to attainresults commensurate with S&P CNX Nifty Index under NSENifty Plan, and to provide returns that, before expenses,closely correspond to the total return of common stocks asrepresented by the BSE Sensex under BSE Sensex Plan.


NSE NIFTY PLAN:


Securities covered by the Nifty Up to 100%Money Market instruments, Up to 5%convertible bonds & cashincluding money at call butexcluding subscription andRedemption Cash Flow

BSE SENSEX PLAN:


Securities covered by the BSE Sensex Up to 100%Money Market instruments, Up to 20%convertible bonds and othersecurities including cash atcall but excluding subscriptionand redemption Cash Flow.

The Scheme may invest in index futures, stock futuresand options contracts, warrants, convertible securities,swap agreements or other derivative products, as andwhen introduced.

Tracking Error: The performance of the Scheme may notbe commensurate with the performance of the Nifty orSensex on any given day or over any given period. Suchvariations, referred to as tracking error, are expected to bearound 2% per annum, but may vary substantially due toseveral factors.

INVESTMENT STRATEGY


PLANS AND OPTIONSBSE Sensex Plan: 1. Growth Plan (GP); 2. Dividend Plan(with Reinvestment (DR) and Payout (DP) options)NSE Nifty Plan: 1. Growth Plan (GP); 2. Dividend Plan(with Reinvestment (DR) and Payout (DP) options)



BENCHMARK INDEX

BSE Sensex (BSE Sensex Plan), S&P CNX Nifty (NSE Nifty Plan)


Anil Prabhudas & Roshi Jain (dedicated for investment inForeign Securities)


i) Load Structure

Entry Load: Nil

Exit Load: 1% (if redeemed within 30days from the date ofallotment)

ii) Recurring expenses BSE Sensex Plan - 1.00%(Actual Expenses for the NSE Nifty Plan - 1.00%financial year endingMarch 2010)


BSE Sensex Plan (Inception Date: 27.8.2001)



NSE Nifty Plan (Inception Date: 4.8.2000)

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 72.98% 73.76%Last 3 years 10.49% 11.14%Last 5 years 20.93% 20.85%Since inception 15.77% 15.37%





FRANKLIN INDIA OPPORTUNITIES FUND (FIOF)


An open-end diversified growth scheme, with an objectiveto generate capital appreciation by capitalizing on long -term growth opportunities in the Indian economy.



Equities Upto 100%Money market instruments Upto 35%

Under normal circumstances at least 65% of the scheme’sassets will be invested in equities.

INVESTMENT STRATEGY


PLANS AND OPTIONS




BENCHMARK INDEX

BSE 200


Chakri Lokapriya & Roshi Jain (dedicated for investmentin Foreign Securities)


i) Load Structure

Entry Load: Nil




Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns# (%)

Last 1 year 76.46% 92.87%Last 3 years 6.84% 12.19%Last 5 years 21.68% 20.44%Since inception 11.26% -4.16%

Inception Date: Feb. 21, 2000. Index adjusted for the

period February 21, 2000 to March 10, 2004 with theperformance of ET Mindex





FRANKLIN INFOTECH FUND (FIF)


An open-end growth scheme with an objective to providelong-term capital appreciation by investing primarily in theinformation technology industry.



Equities / Equity related Upto 100%InstrumentsMoney market instruments Upto 60%

Under normal circumstances at least 65% of the totalassets will be invested in the equities of the Informationtechnology industry.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2. Dividend Plan (with Payout (DP) andReinvestment (DR) options)


Purchase: Rs.5,000 and multiples of Re.1

Additional Purchase: Rs.1,000 and multiples of Re.1

Repurchase: Minimum of Rs.1,000

BENCHMARK INDEX

BSE IT Index


Anand Radhakrishnan, Murali Yerram & Roshi Jain(dedicated for investment in Foreign Securities)


i) Load Structure

Entry Load Nil

Exit Load In respect of eachpurchase of Units - 1%if the Units areredeemed/switched-out within one year ofallotment.

ii)Recurring expenses(Actual 2.45%Expenses for the financialyear ending March 2010)

PERFORMANCE OF THE SCHEME: AS OF MARCH 31,2010

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 130.10% 129.14%Last 3 years 2.00% 2.25%Last 5 years 14.66% 14.15%Since inception 22.99% N.A

Inception Date: August 22, 1998





FRANKLIN FMCG FUND (FFF)


An open end growth scheme with an objective to providelong term capital appreciation by investing primarily in theshares of companies operating in the Fast MovingConsumer Goods (FMCG) industry.



Equities / Equity Upto 100%related InstrumentsMoney market Upto 35%instruments

Under normal circumstances at least 65% of the totalassets will be invested in the equities of the FMCGindustry.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2.Dividend Plan (with Payout (DP) andReinvestment (DR) options)


Purchase: Rs.5,000 and multiples of Re.1Additional Purchase: Rs.1,000 and multiples of Re.1Repurchase: Minimum of Rs.1,000

4

BENCHMARK INDEX

ET Brandex


Anil Prabhudas & Roshi Jain (dedicated for investment inForeign Securities)


i) Load StructureEntry Load NilExit Load In respect of each

purchase of Units - 1% ifthe Units are redeemed/switched-out within oneyear of allotment.



Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 68.57% 38.37%Last 3 years 17.49% 13.02%Last 5 years 21.93% 20.23%Since inception 16.34% 7.66%






FRANKLIN PHARMA FUND (FPF)


An open-end growth scheme with an objective to providelong-term capital appreciation by investing in shares ofcompanies operating in pharmaceutical/life sciencesindustry.



Equities / Equity related Upto 100%InstrumentsMoney market instruments Upto 35%

Under normal circumstances at least 65% of the totalassets will be invested in the equities of thepharmaceutical and life sciences industry.

INVESTMENT STRATEGY


PLANS AND OPTIONS1. Growth Plan; 2. Dividend Plan (with Payout (DP)and Reinvestment (DR) options)

MINIMUM APPLICATION AMOUNT/ NUMBER OFUNITS.Purchase: Rs.5,000 and multiples of Re.1


Repurchase: Minimum of Rs.1,000

BENCHMARK INDEXET Pharma

NAME OF THE FUND MANAGER(S)Anand Radhakrishnan & Roshi Jain (dedicated forinvestment in Foreign Securities)


i) Load Structure

Entry Load Nil

Exit Load In respect of eachpurchase of Units - 1%if the Units areredeemed/switched-out within one year ofallotment.

ii) Recurring expenses (Actual 2.50%

Expenses for the financialyear ending March 2010)


Compounded Scheme Benchmark

Annualised Returns Returns (%) Returns (%)

Last 1 year 141.30% 96.33%

Last 3 years 23.58% 14.66%

Last 5 years 23.73% 17.28%




Past performance may or may not be sustained infuture. Based on Growth Plan NAVs.



FT INDIA BALANCED FUND (FTIBF)


An open end balanced scheme with an objective to providelong-term growth of capital and current income byinvesting in equity and equity related securities and highquality fixed income instruments. The high quality fixedincome securities would include AAA rated corporate debt,PSU bonds, central and state government securities andmoney market instruments.



Equity and Equity 51% to 70%related securities

Fixed Income* and Money 30% - 50%market instruments

* including high quality securitised debt up to amaximum limit of 10% of the scheme’s corpus.

Within the allocation towards fixed income instruments,up to 90% may be invested in Government securities(Central / State Government) securities supported byunconditional guarantee of the respective governments.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2. Dividend Plan (with Payout (DP) andReinvestment (DR) options)


Purchase: Rs.5,000 and multiples of Re.1Additional Purchase: Rs.1,000 and multiples of Re.1Repurchase: Minimum of Rs.1,000

BENCHMARK INDEX

Crisil Balanced Fund Index


Anand Radhakrishnan (Equity), Vivek Ahuja & SachinPadwal-Desai (Debt).


i) Load StructureEntry Load NilExit Load In respect of each

purchase of Units - 1% ifthe Units are redeemed/switched-out within oneyear of allotment.



Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 55.20% 47.31%Last 3 years 12.08% 11.36%Last 5 years 18.84% 15.91%Since inception 15.77% N.A






TEMPLETON INDIA CHILDREN’S ASSET PLAN (TICAP)


An open-end balanced scheme, whose objective is toprovide regular income under the Education Plan andDividend option of Gift Plan and capital appreciationunder the Growth option of Gift Plan.


Instruments Profile Normal Allocation (% of Net Assets)Education Plan Gift Plan

Debentures (investment 80% - 100% 25% - 60%grade, privately placed etc.),Bonds issued by publicsector units, other fixedincome instruments* andMoney market instrumentsEquities and Equity Linked 0% - 20% 40% - 75%instruments

*Fixed income instruments would include debentures (investmentgrade, privately placed etc), bonds issued by public sectorundertakings, high quality securitised debt (up to a maximum limit of10% of the scheme’s corpus), Central and State Government securitiesand Money Market instruments. Within the allocation towards fixedincome instruments, up to 90% may be invested in the securities ofCentral / State Governments, which are unconditionally guaranteedBoth the Plans have separate portfolios. On an average at least80% of the corpus under Education Plan will be invested infixed income instruments and under Gift Plan, at least 65% ofthe corpus will be invested in equities.INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Education Plan (EP); 2. Gift Plan (GP) (with Growthand Dividend options. Dividend declared is compulsorilyreinvested.)


Purchase: Rs.2,000 and multiples of Re.1Additional Purchase: Rs.500 and multiples of Re.1Repurchase: Minimum of Rs.500

BENCHMARK INDEXEducation Plan : Crisil MIP Blended IndexGift Plan: Crisil Balanced Fund Index

LOCK IN PERIODAll subscriptions in TICAP are locked in till thebeneficiary child attains 18 years of age.

NAME OF THE FUND MANAGER(S)Anand Radhakrishnan (Equity), Vivek Ahuja & SachinPadwal-Desai (Debt).


Entry Load: Nil

Exit Load: Nil

ii) Recurring expenses (Actual 2.25% (EP/GP)Expenses for the financialyear ending March 2010)


Compounded Scheme BenchmarkAnnualised Returns (%) Returns (%)Returns EP GP CMBI CBFI

Last 1 year 14.76% 58.08% 14.25% 47.31%Last 3 years 6.58% 10.76% 8.47% 11.36%Last 5 years 8.23% 14.77% 8.24% 14.03%Since inception 9.98% 12.74% N.A. N.A

Inception Date: June 5, 1998, EP: Education Plan; GP: GiftPlan; CMBI: Crisil MIP Blended Index; CBFI: Crisil BalancedFund Index. Benchmark Index has been adjusted for the 10%S&P CNX Nifty + 90% Crisil Composite Bond Fund Index forthe period March 28, 2002 to September 9, 2005.





FRANKLIN BUILD INDIA FUND (FBIF)


An open-end equity fund which seeks to achieve capitalappreciation through investments in companies engagedeither directly or indirectly in infrastructure-related activities.


Instruments As % of Net Assets #(Min. – Max.)

Equities and Equity 70% - 100%Linked instruments- Infrastructure- 65% - 100%related companies

- Other companies 0% - 35%Debt securities* and MoneyMarket Instruments 0% - 30%

# including investments in Foreign Securities as may bepermitted by SEBI/RBI up to 35% of the net assets of thescheme, exposure in derivatives up to a maximum of 50%

* including government securities and securitised debt up to 30%

INVESTMENT STRATEGY


PLAN AND OPTIONS1. Growth Plan 2. Dividend Plan (with Reinvestment Optionand Payout Option).

MINIMUM APPLICATION AMOUNT/NUMBER OFUNITSPurchase: Rs.5,000/- and multiples of Re.1.Additional purchase: Rs.1,000 and multiples of Re.1Repurchase: Minimum of Rs.1,000/-

BENCHMARK INDEXS&P CNX 500

NAME OF THE FUND MANAGER (S)Anand Radhakrishnan and Roshi Jain (dedicated forinvestments in Foreign Securities)


Entry Load: NIL

Exit Load: In respect of each purchase ofUnits – 1% if the Units areredeemed/switched-out withinone year of allotment

ii) Recurring expenses 2.26%(Actual expenses forthe financial yearending March 2010):






*For schemes/plans launched during the year the returnsare from inception date.Past performance may or may not be sustained in future.

Based on Growth Plan NAVs.



FRANKLIN INDIA TAXSHIELD (FIT)


An open end Equity Linked Savings scheme with anobjective to provide medium to long-term growth of capitalalong with income tax rebate.



Equity / Equity related Up to 100%instrumentsPSU Bonds / Debentures Up to 20%Money Market Instruments Up to 20%

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2.Dividend Plan (with Payout (DP) andReinvestment (DR) options)


Purchase: Rs.500 and multiples of Rs.500Additional Purchase: Rs.500 and multiples of Rs.500Repurchase: Minimum of Rs.500

BENCHMARK INDEX

S&P CNX 500LOCK IN PERIODAll subscriptions in FIT are subject to a lock-in-period of 3years from the date of allotment and the unitholder cannotredeem, transfer, assign or pledge the units during this period.NAME OF THE FUND MANAGER(S)Anand Radhakrishnan


Entry Load: Nil

Exit Load: Nil





Inception Date: April 10, 1999





TEMPLETON INDIA PENSION PLAN (TIPP)


An open-end tax saving scheme whose objective is toprovide investors regular income under the Dividend Planand capital appreciation under the Growth Plan.



Equities, preference shares Up to 40%and equity related instruments

Debentures* (Investment grade, Up to 100%privately placed etc.), Bondsissued by Public Sector Unitsand Money Market Instruments

* including securitised debt up to 40%

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2.Dividend Plan Dividend declared iscompulsorily reinvested till investor attains 58 years of age.

On attaining 58 years of age (subject to completion oflock-in period and minimum target investment), theinvestor can avail any of the following options: PensionOption, Lump sum Option, Combination Option andFlexible Option.


Purchase: Rs.500 and multiples of Re.1 AdditionalPurchase: Rs.500 and multiples of Re.1Repurchase:Minimum of Rs.500/-Minimum target investment: Rs.10,000 before the age of60 years

BENCHMARK INDEX

40% of S&P CNX 500 and 60% of Crisil Composite BondFund Index

LOCK IN PERIODAll subscriptions in TIPP are locked in for a period of 3full financial years.NAME OF THE FUND MANAGER(S)

Anand Radhakrishnan (Equity), Vivek Ahuja & SachinPadwal-Desai (Debt).


i) Load Structure

Entry Load: Nil

Exit Load: (Subject to 3% (if redeemed before thethe completion of lock- age of 58 years)inperiod and minimum NIL (if redeemed aftertarget investment) the age of 58 years)



Compounded Scheme BenchmarkAnnualised Returns (%) Returns (%)Returns

Last 1 year 29.44% 35.03%Last 3 years 8.54% 10.52%Last 5 years 11.18% 12.36%Since inception 13.97% N.A


5





FT INDIA DYNAMIC PE RATIO FUND OF FUNDS (FTDPEF)


An open-end Fund of Funds Scheme with an objective toprovide long-term capital appreciation with relatively lowervolatility through a dynamically balanced portfolio ofequity and income funds.


The equity allocation will be determined based on themonth-end weighted average PE ratio of the S&P CNXNifty Index (NSE Nifty). The portfolio will be rebalanced inthe first week of the following month.

If weighted average …the equity …and the debtPE ratio of NSE component componentNifty falls in this will be… (%) will be … (%)band…

Up to 12 90 – 100 0 – 10

12-16 70 – 90 10 – 30

16-20 50 – 70 30 – 50

20-24 30 – 50 50 – 70

24-28 10 – 30 70 – 90

Above 28 0 – 10 90 – 100

Underlying Schemes: The scheme will invest the Equityallocation in units of Franklin India Bluechip Fund anddebt allocation in Templeton India Income Fund.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan; 2. Dividend Plan


Purchase: Rs.5000 and multiples of Re.1


Repurchase: Minimum of Rs.1,000/-

BENCHMARK INDEX

BSE Sensex & Crisil Balanced Fund Index (CBFI)


Sukumar Rajah


i) Load Structure

Entry Load: Nil

Exit Load: In respect of eachpurchase of Units - 1%if the Units areredeemed/switched-out within one year ofallotment.


These expenses are over and above the expenses chargedby the underlying schemes.


Compounded Scheme Benchmark

Annualised Returns Returns (%) Returns (%)

BSE CBFI

Last 1 year 56.37% 80.54% 47.31%

Last 3 years 15.90% 10.25% 11.36%

Last 5 years 21.78% 21.96% 15.91%

Since inception 22.80% 21.94% 15.58%

Inception Date: October 31, 2003





FT INDIA LIFE STAGE FUND OF FUNDS (FTLF)


An open-end Fund of Funds Scheme with primaryobjective to generate superior risk adjusted returns toinvestors in line with their chosen asset allocation.


Under normal market circumstances, the investment rangewould be as follows:

Plans Equity Debt

The 20s Plan 80% 20%



The 50s Plus Plan 20% 80%

The 50s Plus Floating Rate Plan 20% 80%

The debt and equity allocation will be rebalanced once in every6 months.Each plan has a separate portfolio.

Underlying Schemes

Equity: Franklin India Bluechip Fund, Franklin IndiaPrima Fund, Templeton India Growth Fund.

Debt: Templeton India Income Fund, Templeton IndiaIncome Builder Account, Templeton Floating RateIncome Fund - Long Term Plan.

The steady state asset allocation will be as shown below:

Plan Allocation

FIBCF FIPF TIGF TIIF TIIBA TFIF-LT

The 20s Plan 50% 15% 15% 10% 10% -

The 30s Plan 35% 10% 10% 25% 20% -

The 40s Plan 15% 10% 10% 35% 30% -

The 50s Plus Plan 10% - 10% 40% 40% -

The 50s PlusFloating Rate Plan 10% - 10% - - 80%

INVESTMENT STRATEGYPlease refer to Page No. 11&12

PLANS AND OPTIONSThe 20s Plan, The 30s Plan, The 40s Plan, The 50s Planand The 50s Plus Floating Rate Plan. All with Growth andDividend Plan with Dividend Payout (DP) and DividendReinvestment (DR) options

Steady State Asset Allocation under normal conditions

Equity DebtUnderlying schemes

FIBCF FIPF TIGF TIIF TIIBA TFIF(LT)

The 20s Plan 80% 20% 50% 15% 15% 10% 10% -

The 30s Plan 55% 45% 35% 10% 10% 25% 20% -

The 40s Plan 35% 65% 15% 10% 10% 35% 30% -

The 50s Plus Plan 20% 80% 10% - 10% 40% 40% -

The 50s FloatingRate Plan 20% 80% 10% - 10% - - 80%


Purchase: Rs.5000 and multiples of Re.1Additional Purchase: Rs.1,000 and multiples of Re.1Repurchase: Minimum of Rs.1,000/-

BENCHMARK INDEX

The 20s Plan - 65% BSE Sensex + 15% S&P CNX 500 + 20%Crisil Composite Bond Fund Index; The 30s Plan - 45%BSE Sensex + 10% S&P CNX 500 + 45% Crisil CompositeBond Fund Index; The 40s Plan - 25% BSE Sensex + 10%S&P CNX 500 + 65% Crisil Composite Bond Fund Index;The 50s Plus Plan - 20% BSE Sensex + 80% CrisilComposite Bond Fund Index; The 50s Plus Floating RatePlan - 20% BSE Sensex + 80% Crisil Liquid Fund Index.


Sukumar Rajah (Equity), Sachin Padwal Desai & Pallob Roy (Debt)


i) Load Structure

Entry Load: Nil (For all plans)

Exit Load: 20’s Plan: In respect of eachpurchase of Units - 1% ifredeemed within 1 year ofallotment30’s Plan:In respect of eachpurchase of Units – 0.75% ifredeemed within 1 year ofallotment40’s Plan:In respect of eachpurchase of Units – 0.75% ifredeemed within 1 year ofallotment50’s Plus Plan and 50’s PlusFloating Rate Plan:In respect of each purchase ofUnits – 1% if redeemedwithin 1 year of allotment

ii) Recurring expenses 0.75% (The 20s Plan & The 30s(Actual Expenses for Plan),0.58% (The 40s Plan), 0.42%the financial year (The 50s Plus Plan) 0.48% (Theending March 2010) 50s Plus Floating Rate Plan)

These expenses are over and above the expenses chargedby the underlying schemes.


Compounded Last Last Last Since

Annualised Returns 1 Year 3 Years 5 Years Inception

The 20s Plan 77.46% 15.43% 20.89% 21.29%

Benchmark 64.58% 10.82% 19.04% 18.54%

The 30s Plan 53.04% 13.27% 16.32% 16.19%

Benchmark 44.31% 10.50% 15.39% 14.72%

The 40s Plan 45.90% 12.72% 13.40% 13.02%

Benchmark 29.51% 9.73% 12.02% 11.34%

The 50s Plus Plan 30.02% 10.86% 10.38% 9.44%

Benchmark 18.47% 8.62% 9.45% 8.61%

The 50s Plus

Floating Rate Plan 20.82% 10.52% 11.05% 11.15%

Benchmark 16.93% 8.39% 10.02% 10.23%

Inception Date: 20s, 30s, 40s & 50s plus Plan:December01, 2003; 50s Plus Floating Rate Plan: July 9, 2004.


Mar-06 Mar-07 Mar-08 Mar-09 Mar-10

FTLF - The 20s Plan 57.6% 6.5% 18.0% -26.5% 77.5%Benchmark 56.0% 12.5% 18.4% -30.1% 64.6%FTLF - The 30s Plan 38.7% 5.6% 13.9% -16.6% 53.0%Benchmark 37.8% 10.0% 15.7% -19.2% 44.3%FTLF - The 40s Plan 24.2% 5.4% 12.7% -12.8% 45.9%Benchmark 24.1% 7.6% 13.4% -10.0% 29.5%FTLF - The 50s plus Plan 14.2% 5.2% 10.8% -5.4% 30.0%Benchmark 15.2% 6.4% 11.1% -2.6% 18.5%FTLF - The 50s plusFloating Rate Plan 16.5% 7.3% 12.0% -0.2% 20.8%Benchmark 16.6% 8.6% 10.5% -1.4% 16.9%




TEMPLETON INDIA INCOME FUND (TIIF)


An open-end income scheme with the primary objective togenerate a steady stream of income through investment infixed income securities. This shall be the fundamentalattribute of the scheme. A secondary objective is togenerate capital appreciation.



Debt instruments including Up to 100%Corporate Debt, PSU Bonds,Gilts and Securitised debtsMoney Market Instruments & Up to 25%Cash & Deposits (includingMoney at Call, MIBOR linkedInstruments and Fixed Deposits)

Note: Debt includes Securitised Debt.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Growth Plan, 2. Dividend Plan (with Payout (DP) andReinvestment (DR) options)


Purchase: Rs.10,000 and multiples of Re.1Additional Purchase: Rs.1,000 and multiples of Re.1Repurchase: Minimum of Rs.1,000/-

BENCHMARK INDEX

Crisil Composite Bond Fund Index


Vivek Ahuja & Sachin Padwal-Desai


i) Load Structure

Entry Load: Nil

Exit Load: 0.50%, if redeemed within6 months of allotment




Last 1 year 5.57% 5.41%Last 3 years 7.60% 6.99%Last 5 years 6.05% 5.59%Since inception 9.30% N.A.






TEMPLETON INDIA INCOME OPPORTUNITIESFUND (TIIOF)


An open-end income fund which seeks to provide regularincome and capital appreciation by investing in fixedincome securities across the yield curve.


Types of Instruments Normal Allocation#(% of Net Assets)

Government Securities and/or Up to 100%securities unconditionallyguaranteed by the Central/State Government forrepayment of principaland interestDebt securities issued by Up to 100%Public SectorUndertakings (PSU)Debt securities issued by Up to 100%private sector corporateincluding banks andfinancial institutionsSecuritised Debt Up to 100%Money Market Instruments Up to 100%

# including investments in Foreign Securities as may be permitted

by SEBI/RBI up to 50% of the net assets of the scheme, exposure

in derivatives up to a maximum of 50%

INVESTMENT STRATEGY


PLANS AND OPTIONSGrowth Plan and Dividend Plan (with Payout andReinvestment Option).


Purchase: Rs.5,000/- and multiples of Re.1

Additional Purchase: Rs.1,000/- and multiples of Re.1

Further, fresh/additional purchase (including switch-in)by an investor on a single day in TIIOF will beallowed/accepted only up to Rs.5 crores per application.

Repurchase: Minimum of Rs.1,000/-

BENCHMARK INDEX

Crisil Short Term Bond Fund Index


Vivek Ahuja and Sachin Padwal-Desai


i) Load Structure

Entry Load: Nil

Exit Load: 3% if redeemed within 6months from the date ofallotment, 2% if redeemedafter 6 months but within12 months from the dateof allotment, 1% ifredeemed after 12 monthsbut within 18 monthsfrom the date of allotment







*For schemes/plans launched during the year the returns arefrom inception date.




TEMPLETON INDIA INCOME BUILDER ACCOUNT (TIIBA)


An open-end income scheme with an objective to primarlyprovide investors regular income under the Dividend Planand capital appreciation under the Growth Plan.



Debentures* (Investment grade, Up to 100%privately placed etc.), Bondsissued by Public Sector Unitsand other Fixed IncomeInstruments

Money Market Instruments Up to 20%

Shares Up to 20%

* Includes Securitised Debt up to 40%

INVESTMENT STRATEGY


PLANS AND OPTIONS1. Plan A, & 2. Plan B (each with Growth Plan (GP),Bonus Plan (BP), Annual Dividend Plan (AD), Half-yearlyDividend Plan (HD), Quarterly Dividend Plan (QD),Monthly Dividend Plan (MD) with Payout andReinvestment options under the dividend plans)

MINIMUM APPLICATION AMOUNT/ NUMBER OF UNITS.Purchase: Plan A: Rs.50,00,001. Plan B: Rs.25,000 (MD &QD); Rs.10,000 (HD, AD, BP & GP). Further, fresh/additionalpurchase (including switch-in) by an investor on a single dayin TIIBA - Plan B will be allowed/accepted only up to Rs.50Lacs per application.

Additional Purchase: Plan A and Plan B: Rs.1,000 andmultiples of Re.1 Repurchase: Minimum of Rs.1,000/-

BENCHMARK INDEXCrisil Composite Bond Fund Index

NAME OF THE FUND MANAGER(S)Vivek Ahuja & Sachin Padwal-Desai


Entry Load: Nil

Exit Load: 0.50%, ifredeemed within 6months of allotment



Compounded Scheme BenchmarkAnnualised Returns Returns(%) Returns(%)

Last 1 year 6.67% 5.41%Last 3 years 7.12% 6.99%Last 5 years 5.49% 5.59%Since inception 9.14% N.A

Inception Date: June 23, 1997





6

TEMPLETON INDIA GOVERNMENT SECURITIESFUND (TGSF)


An open end dedicated Gilts scheme with the primary objectiveto generate credit risk-free return through investments insovereign securities issued by the Central Government and/orState Government and/or any security unconditionallyguaranteed by the Central Government and/or StateGovernment for repayment of Principal and Interest.



CP/PF/ TP LT

Securities issued by Up to 100% 70%-100%the Central/StateGovernment and/orsecuritiesunconditionallyguaranteed by theCentral/StateGovernment forrepayment of principaland interest

Money market Up to 100% (to 30%instruments and meet the liquiditysecurities held under requirements ofreverse repos the scheme or to

meet thedefensive natureof the portfolio)

In normal circumstances, the average maturity of thesecurities in the Long Term Plan will be over 3 years.Treasury Plan will normally have a portfolio with ashorter maturity.Composite Plan and PF Plan have acommon portfolio. Long Term Plan and Treasury Planhave separate portfolios.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Composite Plan,(CP) with Growth and Dividendoption; 2. Treasury Plan (TP) with Growth and Dividendoption; 3. PF Plan (PF) with Growth and Dividend Plan;4. Long Term Plan (LT) with Growth, Bonus andQuarterly Dividend Options (with Payout (DP) andReinvestment (DR) facility).

PF Plan offers two additional features:

• Prescribed maturity date option• Appreciation Withdrawal Option

Highlights of TGSF - PF Plan:

A. Investors can prescribe a maturity date at the time ofinvestment, or at a later date under the feature calledPrescribed Maturity Date. Moreover, investors havethe flexibility to change the same twice a financialyear, provided the same is communicated to the fund’soffice atleast 3 business days before the maturity date.

B. Investors can also opt for the appreciationwithdrawal option either at the time of investing or ata later date. Under the appreciation withdrawaloption, investors can choose to withdraw the capitalappreciation at three frequencies: Quarterly, Halfyearly and Annual. Investors can choose to withdrawor reinvest such appreciation back into their account.

C. For all additional purchases, the investor may chooseto provide a maturity date either at the time ofinvestment or at a later date.


Purchase:

CP/LT: Rs.10,000 and multiples of Re.1 (GP); Rs.25,000and multiples of Re.1 (DP)

TP: Rs.5,000 and multiples of Re.1;

PF Plan: Rs.25,000 and multiples of Re.1.

Additional Purchase:CP/LT: Rs.1,000 and multiples of Re.1.

TP: Rs.5,000 and multiples of Re.1.

PF Plan: Rs.5,000 and multiples of Re.1.

Repurchase: Minimum of Rs.1,000 (all plans)

BENCHMARK INDEX

I-Sec Composite Index (Composite Plan, PF Plan)I-Sec Libex (Long Term Plan)I-Sec Sibex (Treasury Plan)


Sachin Padwal - Desai & Vivek Ahuja


Entry Load: Nil (for all plans)Exit Load: (CDSC) TGSF (CP/PF): In respect of

each purchase of Units –0.50% if the Units areredeemed/ switched-outwithin 3 months ofallotmentTGSF (LT/TP): Nil

(Actual Expenses for the CP/PF: 1.45%; TP: 1.15%financial year ending LT: 1.42%March 2010)


Composite Plan - Inception Date: June 21, 1999


Last 1 year 0.72% 4.33%Last 3 years 10.41% 8.74%Last 5 years 7.82% 7.24%Since inception* 11.59% N.A.

PF Plan - Inception Date: May 7, 2004


Last 1 year 0.72% 4.33%Last 3 years 10.41% 8.74%Last 5 years 7.83% 7.24%Since inception* 6.29% 5.92%

Treasury Plan - Inception Date: February 11, 2002



Long Term Plan - Inception Date: December 7, 2001




Mar-06 Mar-07 Mar-08 Mar-09 Mar-10TGSF-Composite Plan 3.6% 4.4% 9.3% 22.3% 0.7%I Sec Composite Index 4.4% 5.6% 9.2% 12.9% 4.3%TGSF - Long Term 4.0% 5.8% 9.2% 24.0% 1.6%I Sec Libex 4.5% 6.1% 8.9% 15.3% 2.8%TGSF TP 5.2% 4.9% 6.7% 6.5% 2.9%I Sec Sibex 5.1% 5.9% 9.0% 12.3% 6.1%TGSF PF 3.6% 4.5% 9.3% 22.3% 0.7%I Sec Composite Index 4.4% 5.6% 9.2% 12.9% 4.3%




TEMPLETON INDIA SHORT-TERM INCOME PLAN (TISTIP)

INVESTMENT OBJECTIVEAn open-end income scheme with an objective to providestable returns by investing in fixed income securities.



Debentures (investment grade, Up to 100%privately placed, etc.),government securities andother fixed income instruments*Money market instruments and Up to 100%securities held under reverserepos (including debentureswith maturity less than 1 year)

* If the scheme decides to invest in securitised debt, it is theintention of the Fund Manager that such investments will notexceed 30% of the corpus of the scheme.

INVESTMENT STRATEGYPlease refer to Page No. 11&12PLANS AND OPTIONS1. Retail Plan with Growth Option (GP), Bonus Option(BP), Quarterly Dividend Option (QD) with payout andreinvestment facility, Monthly Dividend Option (MD)with Payout (DP) and Reinvestment (DR) facility, WeeklyDividend Option (WD) with Reinvestment facility only.2. Institutional Plan with Growth, Weekly Dividend (withReinvestment facility only) and Monthly Dividend (withPayout and Reinvestment facility)

MINIMUM APPLICATION AMOUNT/ NUMBER OF UNITS.Retail PlanPurchase: Rs.5,000 and multiples of Re.1Additional Purchase: Rs.5,000 and multiples of Re.1Institutional PlanPurchase: Rs.5 crores and multiples of Re.1Additional Purchase: Rs.1 crore and multiples of Re.1Repurchase: Minimum of Rs.1,000 (Retail)Minimum of Rs.1,00,000 (Institutional Plan)

BENCHMARK INDEXCrisil Short-Term Bond Fund Index

NAME OF THE FUND MANAGER(S)Vivek Ahuja & Sachin Padwal-Desai


i) Load StructureEntry Load: NIL

Exit Load: Retail Plan/InstitutionalPlan: In respect of eachpurchase of Units – 0.50% ifthe Units are redeemed/switched-out within 6months of allotment

ii) Recurring expenses Retail Plan: 1.26%(Actual Expenses for the Institutional Plan: 1.10%financial year endingMarch 2010)


TISTIP - Retail Plan

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 10.89% 5.88%Last 3 years 10.70% 8.14%Last 5 years 8.69% 6.78%Since inception 7.82% N.A.

Inception Date: January 31, 2002

TISTIP -Institutional Plan

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 11.03% 5.88%Last 3 years 10.82% 8.14%Last 5 years N.A. N.A.Since inception 9.01% 6.91%Inception Date: September 6, 2005


*For schemes/plans launched during the year the returnsare from inception date.




TEMPLETON FLOATING RATE INCOME FUND (TFIF)


An open end income scheme with the primary objective toprovide income consistent with the prudent risk from aportfolio comprising substantially of floating rate debtinstruments, fixed rate debt instruments swapped forfloating rate returns, and also fixed rate instrument andmoney market instruments.



Minimum MaximumFixed Rate debt instruments: 0% 35%

• Money market instruments(including CPs, CDs, treasurybills, bill rediscounting, giltsless than 1 year, Repos/Reverse Repos or any otherinstrument permitted byRBI/SEBI)

• Non-Money marketinstruments (including bonds& debentures of over 182days to maturity issued bycorporates or PSUs, gilts,securitised debt*, fixeddeposits or any otherinstrument permitted byRBI/SEBI)

Floating Rate debt instruments**: 65% 100%

• Money market instrumentswith residual maturity ofupto 182 days (Money at call,CPs, CDs, bill rediscounting,or any other instrumentpermitted by RBI/SEBI)

• Non-Money marketinstruments (includingfloating rate bonds &debentures issued bycorporates or PSUs, floatingrate gilts, inverse floaters,floating rate bank deposits,floating rate securitiseddebt*, fixed rate debentures/bonds with swap, miborlinked debentures or anyother instrument permittedby RBI/SEBI, fixed rate bonds& debentures with residualmaturity of upto 182 daysissued by corporates or PSUs,gilts, securitised debt*)

*Investment in securitised debts (including floatingsecuritisation) will not, normally, exceed 35% of the netassets of the scheme.** Floating rate debt instruments include fixed rateinstruments swapped for floating rate returns

Both the Plans have separate portfolios. The portfolio ofthe Short Term Plan will normally be skewed towardsshort term maturities and the portfolio of the Long TermPlan will be normally skewed towards longer termmaturities.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1. Long Term Plan (LT) with a). Retail Optionoffering Growth Option & Dividend Option(with Payout (DP) and Reinvestment (DR)facility); b). Institutional Option with Growthand Dividend Options with Payout andReinvestment facility and c). Super InstitutionalOption with Growth option and Daily DividendReinvestment Option ;

2. Short Term Plan (ST) with a). Retail Option offeringGrowth Option & Dividend Option (withReinvestment facility only) and b). InstitutionalOption with Growth and Dividend Options (withReinvestment facility only)


Long Term Plan (LT) Retail Option: Purchase: Rs.10,000and multiples of Re.1Additional Purchase: Rs.1,000 and multiples of Re.1Long Term Institutional Option:Purchase: Rs.1 crore and multiples of Re.1Additional Purchase: Rs.1crore and multiples of Re.1Long Term Super Institutional Option:Purchase: Rs.5 crores and multiples of Re.1Additional Purchase: Rs.1crore and multiples of Re.1Short Term Plan(ST) Retail Option:Purchase: Rs.5,000 and multiples of Re.1Additional Purchase: Rs.5,000 and multiples of Re.1Short Term Institutional Option:Purchase: Rs.5 crores and multiples of Re.1Additional Purchase: Rs.1crore and multiples of Re.1Repurchase (LT/ST): Minimum of Rs.1,000 (Retail Option)Minimum of Rs.1,00,000 (Institutional Plan option)Minimum of Rs.10,00,000 (LT-Super Institutional Planoption)

BENCHMARK INDEX

Crisil Liquid Fund Index


Pallab Roy & Sachin Padwal-Desai


i) Load StructureEntry Load: Nil

Exit Load: LT: 0.25% (if redeemedwithin 14 days ofallotment); ST: NIL

ii) Recurring expenses 0.75% (ST-Retail)(Actual Expenses for 1.00% (LT-Retail)the financial year ending 0.45% (ST-Insti.)March 2010) 0.64% (LT-Insti.)

0.32% (LT-Super Insti.)


ST Retail-Inception Date: February 11, 2002



ST-Institutional Option: September 2, 2005


Last 1 year 4.59% 3.69%Last 3 years 7.56% 6.65%Since inception 7.22% 6.37%

LT Retail-Inception Date: February 11, 2002



LT-Institutional Option: September 6, 2005


Last 1 year 6.18% 3.69%Last 3 years 8.16% 6.65%Since inception 7.61% 6.38%

LT-Super Institutional Option: May 9, 2007


Last 1 year 6.50% 3.69%Since inception 8.35% 6.42%


Mar-06 Mar-07 Mar-08 Mar-09 Mar-10TFIF LT - Retail 5.1% 6.9% 8.4% 9.0% 5.8%Crisil Liquid Fund Index 4.9% 6.4% 7.5% 8.8% 3.7%TFIF LT - Intitutional Plan 2.9%* 7.3% 8.9% 9.5% 6.2%Crisil Liquid Fund Index 2.8%* 6.4% 7.5% 8.8% 3.7%TFIF LT - SuperIntitutional Plan N.A N.A 7.9%* 9.8% 6.5%Crisil Liquid Fund Index N.A N.A 6.1%* 8.8% 3.7%TFIF ST - Retail 5.4% 6.9% 8.6% 9.1% 4.3%Crisil Liquid Fund Index 4.9% 6.4% 7.5% 8.8% 3.7%TFIF ST - Institutional Plan 3.2%* 7.1% 8.8% 9.4% 4.6%Crisil Liquid Fund Index 2.8%* 6.4% 7.5% 8.8% 3.7%




TEMPLETON MONTHLY INCOME PLAN (TMIP)(Income is net assured, and in subject to the availability ofdistributable surplus)


An open-ended income scheme (with no assured returns)having an objective to earn regular income for investorsthrough investments primarily in highly rated debt securities.

ASSET ALLOCATION PATTERN OF THE SCHEME


Debt including Corporate Debt, Up to 100%PSU Bonds, Gilts andSecuritised Debt

Money Market Instruments Up to 20%

Equity & Equity Linked Up to 15%

INVESTMENT STRATEGY


PLANS AND OPTIONS

Quarterly Dividend (QD) and Monthly Dividend (MD)plans (each with Reinvestment (DR) and Payout (DP)facility). Currently TMIP has pure debt portfolio.


Purchase: Rs.25,000 and multiples of Re.1(MD & QD);Rs.10,000 and multiples of Re.1 (HD & GP)AdditionalPurchase:: Rs.5,000 (MD & QD); Rs.1,000 (HD & GP)and multiples of Re.1.Repurchase: Minimum ofRs.1,000

BENCHMARK INDEX

Crisil MIP Blended Index


Equity - Anand Radhakrishnan, Roshi Jain (dedicated forinvestment in Foreign Securities);

Debt - Pallab Roy & Vivek Ahuja - Debt


i) Load Structure

Entry Load: Nil

Exit Load:(CDSC) In respect of each purchase ofUnits – 0.50% if the Units areredeemed/ switched-outwithin 3 months of allotment


7


Monthly Dividend

Inception Date: February 7, 2000


Last 1 Year 6.46% 14.25%Last 3 Years 7.32% 8.47%Last 5 Years 6.04% 8.41%Since inception 7.01% N.A.

Quarterly Dividend

Inception Date: February 7, 2000


Last 1 Year 6.46% 14.25%Last 3 Years 7.32% 8.47%Last 5 Years 6.04% 8.41%Since inception 7.03% N.A.





FT INDIA MONTHLY INCOME PLAN (FTIMIP)(Income is net assured, and in subject to theavailability of distributable surplus)


An open-end income scheme (with no assured returns)with an objective to provide regular income through aportfolio of predominantly high quality fixed incomesecurities with a maximum exposure of 20% toequities.



Fixed Income instruments * Up to 100%including cash and moneymarket instruments

Equities Up to 20%

*includes securitised debt up to 40%

INVESTMENT STRATEGY


PLANS AND OPTIONS

Plan A & Plan B, each with 1. Growth Plan, 2. BonusPlan, 3. Quarterly Dividend (QD), 4. Monthly Dividend(MD) plans (with Reinvestment (DR) and Payout (DP)options)


Purchase: Plan A :Rs.40,000 (MD&QD) Rs.20,000 (BP & GP).

Plan B :Rs.25,000 (MD & QD) Rs.10,000 (BP & GP).

Additional amount in multiples of Re.1. (all plans)

Additional Purchase: Rs.1,000 and in multiples of Re.1.(All Plans). Repurchase: Minimum of Rs.1,000

BENCHMARK INDEX

Crisil MIP Blended Index


Equity - Anand Radhakrishnan, Roshi Jain (dedicated forinvestment in Foreign Securities);

Debt - Pallab Roy & Vivek Ahuja - Debt


i) Load Structure

Entry Load: Plan A & B: Nil.

Exit Load: Plans A & B:In respect of eachpurchase of Units - 1% ifthe Units are redeemed/switched-out within oneyear of allotment




Last 1 year 19.70% 14.25%

Last 3 years 9.23% 8.47%

Last 5 years 9.13% 8.41%

Since inception 10.86% N.A.

Inception Date: September 28, 2000.





TEMPLETON INDIA TREASURY MANAGEMENTACCOUNT (TITMA)


An open end Liquid scheme with an objective to providecurrent income along with high liquidity.



Money Market Instruments 70% - 100%

Debentures (investmment 0% - 30%grade, privately placed etc.)*

*Including securitised debt upto 30%

The fund will under normal circumstances, invest at least70% of its corpus in money market instruments,Government of India seucirites, Zero couponbonds/treasury bills etc and not more than 30% of thecorpus in debentures (including public sectorbonds/corporate debtentures). Within the allocationtowards fixed income instruments, up to 30% may beinvested in Government securities (Central/StateGovernment) securities supported by unconditionalguarantee of the respective governments.

INVESTMENT STRATEGY


PLANS AND OPTIONS

1.Liquid Plan (LP) with Daily Dividend ReinvestmentOption, Weekly Dividend (Reinvestment & Payout) andGrowth Option. 2.Regular Plan (RP) with Daily DividendReinvestment Option, Weekly Dividend (Reinvestment& Payout) and Growth Option. 3.Institutional Plan (IP)and 4. Super Institutional Plan (Super IP) each with DailyDividend Reinvestment Option, Weekly Dividend(Reinvestment & Payout) and Growth Option


Purchase: Regular: 1 Lac (Rs.10 crores in WDP)

Liquid: 25,000/- (Rs.10 crores in WDP)

Institutional: 1 crore

Super Institutional: 5 crores

Additional amount in multiple of Re.1 (all plans)

Additional Purchase: Regular: 1 Lac (Rs.5 crores in WDP)

Liquid: 5,000/- (Rs.5 crores in WDP)

Institutional: 1 crore

Super Institutional: 1 crore

Additional amount in multiple of Re.1 (all plans)

Repurchase: Minimum of Rs.1,000 (LP & RP); IP - Rs.1lakh; Super IP-Rs. 10 Lakhs.

BENCHMARK INDEX



Pallab Roy & Sachin Padwal-Desai


Entry Load: Nil.

Exit Load: Nil.

ii) Recurring expenses Regular Plan: 0.85%.(Actual Expenses for Institutional Plan: 0.60%.the financial year Super Institutional Plan:ending March 2010) 0.38%. Liquid Plan: 1.10%


Regular Plan - Inception Date April 29, 1998

Compounded Scheme BenchmarkAnnualised Returns (%) Returns# (%)ReturnsLast 1 year 4.13% 3.69%Last 3 years 6.76% 6.65%Last 5 years 6.47% 6.24%Since inception 7.10% N.A.

Institutional Plan - Inception Date June 22, 2004

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns# (%)Last 1 year 4.39% 3.69%Last 3 years 7.03% 6.65%Last 5 years 6.73% 6.24%Since inception 6.48% 5.96%

Liquid Plan - Inception Date September 17, 2004

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns# (%)Last 1 year 3.87% 3.69%Last 3 years 6.49% 6.65%Last 5 years 6.20% 6.24%Since inception 6.04% 6.06%

Super Institutional Plan - Inception Date Sep. 2, 2005

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns# (%)Last 1 year 4.63% 3.69%Last 3 years 7.25% 6.65%Last 5 years N.A. N.A.Since inception 7.07% 6.37%


Mar-06 Mar-07 Mar-08 Mar-09 Mar-10TITMA - Regular Plan 5.2% 6.9% 7.8% 8.4% 4.1%Crisil Liquid Fund Index 4.9% 6.4% 7.5% 8.8% 3.7%TITMA - Instituitional Plan 5.4% 7.1% 8.1% 8.7% 4.4%Crisil Liquid Fund Index 4.9% 6.4% 7.5% 8.8% 3.7%TITMA - Liquid Plan 4.9% 6.6% 7.5% 8.2% 3.9%Crisil Liquid Fund Index 4.9% 6.4% 7.5% 8.8% 3.7%TITMA - Super Instituitional Plan 3.2%* 7.3% 8.3% 8.9% 4.6%Crisil Liquid Fund Index 2.8%* 6.4% 7.5% 8.8% 3.7%




TEMPLETON INDIA ULTRA-SHORT BOND FUND (TIUBF)


An open end income scheme with an objectove to providea combination of regular income and high liquidity byinvesting primarily in a mix of short term debt and moneymarket instruments.



Debt securities* with maturity 70% - 100%up to 12 months and MoneyMarket Instruments

Debt securities* with maturity 0% - 30%over 12 months

* including Government Securities and Securitised Debt upto 100%, exposure in derivatives up to a maximum of 50%,investments in Foreign Securities as may be permitted bySEBI/RBI up to 50% of the net assets of the scheme.

INVESTMENT STRATEGY


PLANS AND OPTIONS1.Retail Plan 2.Institutional Plan 3.Super InstitutionalPlan each with Growth Option, Weekly Dividend Option(with reinvestment and payout facility) and DailyDividend Reinvestment Option.

MINIMUM APPLICATION AMOUNT/ NUMBER OF UNITS.Retail Plan:Purchase: Rs.25,000 and multiples of Re.1Additional Purchase: Rs.25,000 and multiples of Re.1Repurchase: Minimum of Rs.1000Institutional Plan:Purchase: Rs.1 crore and multiples of Re.1Additional Purchase: Rs.1crore and multiples of Re.1Repurchase: Minimum of Rs.1 lakh.Super Institutional Plan:Purchase: Rs.5 crores and multiples of Re.1Additional Purchase: Rs.1crore and multiples of Re.1.Repurchase: Minimum of Rs.10 lakhsBENCHMARK INDEXCrisil Liquid Fund Index

NAME OF THE FUND MANAGER(S)Pallab Roy & Sachind Padwal Desai


Entry Load: Nil

Exit Load: 0.25% (if redeemedwithin 7 days from thedate of allotment)

ii) Recurring expenses (Actual Retail: 0.76%Expenses for the financial Institutional: 0.56%year ending March 2010) Super Insti.: 0.36%


Retail Plan: Inception Date: December 18, 2007

Compounded Scheme BenchmarkAnnualised Returns Returns (%) Returns (%)Last 1 year 4.81% 3.69%Since inception 7.27% 6.35%

Institutional Plan: Inception Date: December 18, 2007


Super Institutional Plan: Inception Date: December 18, 2007



*For schemes/plans launched during the year the returnsare from inception date.




TEMPLETON INDIA MONEY MARKET ACCOUNT(TIMMA)


An open end Liquid scheme with an objective to provideinvestors with a high degree of liquidity combined withcurrent income through investment in high quality moneymarket instruments such as treasury bills, datedgovernment securities having an unexpired maturity upto 1year, call money, rated commercial papers, trade/commercialbills accepted/co-accepted by banks, repos, certificates ofdeposit and other money market instruments that may benotified by RBI/SEBI from time to time.



Money Market Instruments 100%(including cash/call money)

Being a Money Market fund, the porfolio will be investedin money market instruments.

INVESTMENT STRATEGY


PLANS AND OPTIONS

Bonus Plan and Dividend Plan with Reinvestment facilityonly.


Purchase: Rs.5,000 and multiples of Re.1. AdditionalPurchase: Rs.1,000 and multiples of Re.1. Repurchase:Minimum of Rs.1,000. Fresh/Additional purchase(including switch-in) by an investor on a single day ineach Plan of TIMMA will be allowed/accepted only up toRs. 5 Crores per application.BENCHMARK INDEX


LOCK-IN PERIOD

All subscriptions in TIMMA are locked in for a period of15 days from the date of allotment.


Pallab Roy & Vivek Ahuja


i) Load Structure

Entry Load: Nil

Exit Load: Nil



Compounded Scheme BenchmarkAnnualised Returns (%) Returns (%)ReturnsLast 1 year 4.31% 3.69%Last 3 years 7.03% 6.65%Last 5 years 6.18% 6.24%Since inception 5.41% N.A.



Past performance may or may not be sustained in future.Based on Dividend Plan NAVs.



COMMON FEATURES FOR ALL SCHEMES

Risk Profile of the SchemeMutual Fund Units involve investment risks including thepossible loss of principal. Please read the SID carefully fordetails on risk factors before investment. Scheme specific RiskFactors are summarized below:Different types of securities in which the scheme would investcarry different levels and types of risks. Accordingly thescheme's risk may increase or decrease depending upon itsinvestment pattern.Trading volumes, settlement periods and transfer proceduresmay restrict liquidity of investments in equity and equity-related securities.Performance of the relevant indices will have a direct bearing onthe performance of the index schemes. Tracking errors areinherent in any indexed fund and such errors may cause thescheme to generate returns, which are not in line with theperformance of the relevant index or one or more securitiescovered by/included in the relevant index.In case of sector funds, the schemes would primarily invest inthe respective industry / sector thereby restricting thediversification of the scheme. Therefore, the performance ofthe scheme would be dependent upon the performance andmarket price movements of companies in the saidindustry/sector. Hence, movements in the NAV of theschemes would be more volatile compared to the NAV of ascheme with a more diversified portfolio.In case of FBIF, the investments under the scheme are orientedtowards equity and equity linked instruments of companiesengaged in the infrastructure related activities and hence will beaffected by risks associated with the infrastructure industries.The performance of the Scheme would be dependent upon theperformance and market price movements of companies in theinfrastructure industry. Amongst the infrastructure industries asmentioned under the investment strategy, the majority of theequity / equity linked investments could be concentrated undera single or a few sectors.Investments in debt instruments are subject to various riskssuch as credit/default risk, interest rate risk, reinvestment risk,liquidity risk etc. E.g. corporate bonds carry a higher amount ofrisk than Government securities. Further even among corporatebonds, bonds which are AAA rated are comparatively less riskythan bonds which are AA rated.Credit risk: This refers to the risk that an issuer of a fixedincome security may default (i.e. will be unable to make timelyprincipal and interest payments on the security). The schemesmay predominantly invest in AAA / AA / A and/or P1+/P1 ratedsecurities. In case of TIIOF, the scheme may predominantlyinvest in AA / A rated securities which carry a higher credit riskcompared to AAA rated securities. These securities carryrelatively higher possibility of a default.Interest rate risk: This risk results from changes in demand andsupply for money and other macroeconomic factors and createsprice changes in the value of debt instruments. Consequently,the NAV of the scheme may be subject to fluctuation. Prices oflong term securities generally fluctuate more in response tointerest rate changes than do short-term securities. This mayexpose the schemes to possible capital erosion.Liquidity Risk: This refers to the ease with which a security canbe sold at or near to its valuation yield-to-maturity (YTM).Liquidity risk is today characteristic of the Indian fixed incomemarket.Market risk: This risk arises due to price volatility due to suchfactors as interest sensitivity, market perception or the creditworthiness of the issuer and general market liquidity, change ininterest rate expectations and liquidity flows. Market risk is a

8

risk which is inherent to investments in securities. This mayexpose the schemes to possible capital erosion.Reinvestment risk: This risk refers to the interest rate levels atwhich cash flows received for the securities in the Scheme isreinvested. The risk is that the rate at which interim cash flowscan be reinvested may be lower than that originally assumed.Different types of Securitised Debts in which the scheme wouldinvest carry different levels and types of risks. Presently,secondary market for securitised papers is not very liquid.There is no assurance that a deep secondary market will developfor such securities.Money market securities, while fairly liquid, lack a well-developed secondary market, which may restrict the sellingability of the scheme.In case of investments in foreign securities, there may be risksassociated with currency movements, restrictions onrepatriation and transaction procedures in overseas market aswell as country related risks.Derivatives are high risk, high return instruments. A small pricemovement in the underlying security could have a large impacton their value and may also result in a loss.The tax benefits available under the ELSS and other tax savingschemes are as available under the present taxation laws and areavailable only to certain specified categories of investors andthat is subject to fulfillment of the relevant conditions. In viewof the individual nature of tax consequences, eachInvestor/Unitholder is advised to consult his/her ownprofessional tax advisor. The Trustee, AMC, their directors ortheir employees shall not be liable for any of the taxconsequences that may arise, in the event that the Scheme iswound up before the completion of the lock-in period. Investorsare requested to review the prospectus carefully and obtainexpert professional advice with regard to specific legal, tax andfinancial implications of the investment/participation in thescheme.There is no assurance or guarantee that the objectives of thescheme will be achieved. The past performance of the mutualfunds managed by the Franklin Templeton Group and itsaffiliates is not necessarily indicative of future performance ofthe scheme.Risk Mitigation Factors:EquityLiquidity Risk: The fund will try to maintain a proper asset-liability match to ensure redemption payments are made ontime and not affected by illiquidity of the underlying stocks.Concentration Risk: Except in case of sector funds and FBIF, theschemes will endeavour to have a well-diversified equityportfolio comprising stocks across various sectors of theeconomy. This would aid in managing concentration risk andsector-specific risks.Generally, diversification across market cap segments also aidsin managing volatility and ensuring adequate liquidity at alltimes.Derivatives Risk: The fund will endeavour to maintainadequate controls to monitor the derivatives transactionsentered into.DebtInterest Rate Risk: In case of income (debt) schemes, the Fundseeks to mitigate this risk by keeping the maturity of theschemes in line with the interest rate expectations. In case ofTIIOF, the Fund seeks to mitigate this risk by maintaining a lowto medium portfolio maturity. In case of liquid schemes, thematurity of such scheme is low as these schemes can only investin securities with up to 91 days maturity.Credit risk or default risk: The schemes may predominantlyinvest in AAA / AA / A and/or P1+/P1 rated securities. In case ofTIIOF, the scheme may predominantly invest in AA / A ratedsecurities which carry a higher credit risk compared to AAArated securities. These securities carry relatively higherpossibility of a default. However, the historical default rates forinvestment grade securities (BBB and above) have been low.Reinvestment Risk: Reinvestment risks will be limited to theextent of coupons received on debt instruments, which will bea very small portion of the portfolio value.The schemes may take positions in interest rate derivatives tohedge market/interest rate risks.Liquidity or Marketability Risk: The fund will endeavour tominimise liquidity risk by investing in securities having a liquidmarket. In case of TIIOF, the Fund is looking to mitigate thisrisk by restricting single investments to Rs.5 crores per day perapplication and through a higher exit load, which discouragesshort term flows.

Dividend Policy

Dividends are distributed based on the availability of adequatedistributable surplus in the scheme. The Trustee may, at its solediscretion declare dividends in the fund at any time. Althoughthere is every intention to declare dividend in DividendPlan/Option, there is no assurance or guarantee as to thefrequency or quantum of dividends nor that would thedividends be regularly paid.

No Load on Bonus/Dividend Reinvestment

No entry and exit load shall be charged on bonus units or unitsallotted on reinvestment of dividend.

Commission to distributor

The upfront commission on investment made by the investor, ifany, shall be paid to the ARN Holder (AMFI registereddistributor) directly by the investor, based on the investor’sassessment of various factors including service rendered by theARN Holder.

Utilisation of Exit load

With effect from August 01, 2009, exit load/ CDSC (if any) upto 1% of the redemption value charged to the unit holder by theMutual Fund on redemption of units shall be retained by eachof the schemes in a separate account and will be utilised forpayment of commissions to the ARN Holder and to meet othermarketing and selling expenses. Any amount in excess of 1% ofthe redemption value charged to the unit holder as exit load/CDSC shall be credited to the respective scheme immediately.

Alterations in Application Form:

Any changes/alterations in the Application Form must becountersigned by the investor(s). The Mutual Fund/AMC willnot be bound to take cognisance of any changes/ alterations ifthe same are not so countersigned.

Who Can Buy

Units of the schemes (except TIPP, TGSF-PF & TICAP) can bepurchased by :1. Adult individuals, either singly or jointly (not exceeding

three), resident in India.2. Parents/Guardian on behalf of minors.

3. Companies/ Domestic Corporate Bodies/ Public SectorUndertakings registered in India.

4. Charitable, Religious or other Trusts authorised to invest inunits of mutual funds.

5. Banks, Financial Institutions and Investment Institutions.6. Non-Resident Indians, Persons of Indian Origin residing

abroad (NRIs) on full repatriation basis and on non-repatriation basis but not United States Persons within themeaning of Regulation S under the United States SecuritiesAct of 1933, as amended from time to time.

7. Foreign institutional investors and their sub accounts onfull repatriation basis (subject to RBI approval).

8. Hindu Undivided Family (HUF).9. Wakf Boards or Endowments / Societies (including co-

operative societies) / Association of Persons or Body ofindividuals (whether incorporated or not), Trusts and clubsauthorised to invest in units of mutual funds.

10. Sole Proprietorship, Partnership Firms.11. Army/Air Force/Navy/Para-military funds and other eligible

institutions.12. Scientific and/or industrial research organizations.13. Other Associations, Institutions, Bodies etc. authorized to

invest in the units of mutual funds.14. Such other individuals/institutions/body corporate etc., as

may be decided by the AMC from time to time, so long aswherever applicable they are in conformity with SEBIRegulations.

15. The Mutual Fund Schemes can also invest in FranklinTempleton Schemes, subject to SEBI regulations applicablefrom time to time.

Units of the schemes of Franklin Templeton Mutual Fund is aneligible investment for charitable and religious trusts under theprovisions of Section 11(5)(xii) of the Income Tax Act, 1961,read with Rule 17C of the Income Tax Rules, 1962. Further, theGovernment of Maharashtra has authorized and declared thefollowing schemes as 'public security' under the Bombay PublicTrusts Act, 1950 in its order dated January 19, 2002: TempletonIndia Growth Fund, Franklin India Index Fund, TempletonIndia Income Fund, Templeton India Government SecuritiesFund and Templeton Monthly Income Plan.

TIPP:

1. Adult individuals, either singly or jointly (not exceedingthree), resident in India up to the age of 60 years.

2. Non-Resident Indians and Persons of Indian Originresiding abroad (NRIs) up to the age of 60 years on fullrepatriation basis and on non-repatriation basis but notUnited States Persons within the meaning of Regulation Sunder the United States Securities Act of 1933, as amendedfrom time to time.

3. Parents / Guardian on behalf of minors.

TICAP:

1. Parent, step parent or grand parent, adult relative or friend(whether Resident or Non-resident) but not United StatesPersons within the meaning of Regulation S under theUnited States Securities Act of 1933, as amended from timeto time.

2. A Company, Body Corporate, Registered Society andeligible Trust or a Guardian appointed by court.

3. Overseas Corporate Bodies, Firms and Societies which areheld directly or indirectly but ultimately to the extent of atleast 60% by Non-Resident individuals of IndianNationality/ Origin and Trust in which at least 60% of thebeneficial interest is similarly held irrevocably by suchpersons (OCBs) with a view to assist any child of 14 yearsand below. No age proof other than the declaration by theapplicant is required.

While the age of the beneficiary child has to be below 14 yearsat the time of opening the account subsequent purchases ofunits can be made till the beneficiary child turns 18 years.

TGSF-PF:The units of PF Plan under TGSF can be purchased by thefollowing entities (subject to the applicablelegislation/regulations governing such entities):1. Provident Funds2. Superannuation, Pension, Welfare and Gratuity Funds3. Charitable or Religious Trusts authorized to invest in units

of mutual funds4. Trustees of Private Trusts authorized to invest in Mutual

Fund Schemes under their trusts deeds5. Any other retirement benefit funds, introduced from time

to time.Note: In case of Institutional Plan and Super InstitutionalPlan under the schemes, only RTGS Transfer / Transfercheque to the Fund’s Account or switches/transfers fromother Franklin Templeton Schemes/Plans as per the cut offtime of the fund, will be accepted as a mode of subscription.

Investments under Power of Attorney (POA):In case investors have issued a Power of Attorney (POA) fortransacting with Franklin Templeton on their behalf, thesignatures of the investor and the POA holder must beclearly available in the POA document for the POA to beaccepted as a valid document. Franklin Templeton reservesthe right to reject any POA and / or subsequent transaction ifthe signatures as above are not available in the document.

Default Option

Scheme Default Option

TIGF, FTIBF, FIIF, FIBCF, FIPP, Dividend ReinvestmentFIOF, FIFCF FIPF, FIF, FFF, FPF,FIHGCF, TIEIF, FAEF, FBIF &FTDPEF

FIT Dividend PayoutTIPP Dividend Plan

TICAP Education Plan, DividendOption

FTLF The 20’s Plan,

Dividend Reinvestment Option

TIIBA Plan B, Annual Dividend

Reinvestment Option

TIIF &TIIOF Dividend Reinvestment

TISTIP Weekly Dividend

Reinvestment Option

TITMA Liquid Plan - Weekly Dividend

Reinvestment Option

TGSF Composite Plan - Dividend

Reinvestment Option

TFIF Long Term DividendReinvestment

FTIMIP Plan B - Monthly Dividend

Reinvestment Option

TMIP Monthly DividendReinvestment

TIMMA Bonus Plan, Regular AccountTIUBF For investment amount Rs.5

crores & above: SuperInstitutional Plan, forinvestment amount Rs.1 crore& above but less than Rs.5crores: Institutional Plan, forothers: Retail Plan

Default Option: Daily Dividend(Reinvestment) Option

The Trustee/AMC reserves the right to alter/vary the defaultplan/option, and the terms and conditions of these facilitiesand privileges, after giving notice. The trustee is entitled, init’s sole and absolute discretion, to reject any Application.Trustee Company:Franklin Templeton Trustee Services Pvt. Ltd., a company set upunder the Companies Act 1956, and approved by SEBI to act asthe Trustee to the schemes of Franklin Templeton Mutual Fund.Despatch of Repurchase (Redemption) RequestThe redemption proceeds will be despatched to theunitholders within the regulatory time limit of 10 businessdays of the receipt of the valid redemption request at theOfficial Points of Acceptance of Transactions (OPAT) of theMutual Fund. However, on a best effort basis the AMC willendeavour to despatch the redemption proceeds within 4working days after a valid redemption request at the OPAT.Applicable NAV1. For Schemes other than Liquid Schemesa. Purchases including switch-ins for TIGF, FTIBF, FIIF,

FIBCF, FIPP, FIOF, FIFCF FIPF, FIF, FFF, FPF, FBIF,FIHGCF, TIEIF, FAEF, FTDPEF, FIT, TICAP - GP & FTLF:In respect of valid applications received* up to 3:00 p.m. bythe Mutual Fund along with a local cheque or a demanddraft payable at par at the place where the application isreceived, the closing NAV of the day on which applicationis received shall be applicable.In respect of valid applications received* after 3:00 p.m. bythe Mutual Fund along with a local cheque or a demanddraft payable at par at the place where the application isreceived, the closing NAV of the next business day shall beapplicable.However, in respect of valid applications with outstationcheques/ demand drafts not payable at par at the placewhere the application is received*, closing NAV of the dayon which cheque/demand draft is credited to the account ofFranklin Templeton Mutual Fund shall be applicable.

b Purchases including switch-ins for TIIBA, TIIF, TISTIP,TGSF, TFIF, FTIMIP, TMIP, TIUBF, TIIOF, TIPP andTICAP-EP:In respect of valid applications of amount less than Rs.1crore received up to 3.00 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at theplace where the application is received, the closing NAV ofthe day on which application is received shall be applicable.In respect of valid applications of amount less than Rs.1crore received after 3.00 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at theplace where the application is received, the closing NAV ofthe next business day shall be applicable.In respect of valid applications of amount Rs.1 crore ormore received by the Mutual Fund - irrespective of the timeof receipt of application, the closing NAV of the day onwhich the funds are available for utilisation shall beapplicable.However, in respect of valid applications with outstationcheques / demand drafts not payable at par at the placewhere the application is received, closing NAV of the day onwhich cheque / demand draft is credited to the account ofFranklin Templeton Mutual Fund shall be applicable.

c. Redemptions including switch-outs (all above funds):In respect of valid applications received* up to 3:00 p.m. bythe Mutual Fund, the closing NAV of the day of receipt ofapplication shall be applicable.In respect of valid applications received* after 3:00 p.m. bythe Mutual Fund, the closing NAV of the next business dayshall be applicable.

2. Liquid Schemes: Templeton India Treasury ManagementAccount (TITMA), Templeton India Money MarketAccount (TIMMA) and Templeton Floating Rate IncomeFund - Short Term Plan (TFIF-ST):

a. Purchases including switch-ins:In respect of valid applications received* up to 12:00 noonon a day by the Mutual Fund and the funds are available forutilisation on the same day, the closing NAV of the dayimmediately preceding the day of receipt of applicationshall be applicable.

In respect of valid applications received* after 12:00 noonon a day by the Mutual Fund and the funds are available forutilisation on the same day, the closing NAV of the dayimmediately preceding the next business day shall beapplicable.

However, irrespective of the time of receipt* ofapplication, where the funds are not available forutilisation on the day of the application, the closingNAV of the day immediately preceding the day on whichthe funds are available for utilisation shall be applicable.

b. Redemptions including switch-outs:In respect of valid applications received* up to 3:00 p.m. bythe Mutual Fund, the closing NAV of the day immediatelypreceding the next business day shall be applicable.

In respect of valid applications received* after 3:00 p.m. bythe Mutual Fund, the closing NAV of the next business dayshall be applicable.

For liquid schemes/plans Mutual Fund shall calculate NAVsfor every calendar day. Further, the day(s) on which themoney markets are closed/not accessible, shall not betreated as business day(s). No outstation cheques will beaccepted

*Received at the ISC/Collection Centres of Franklin TempletonMutual Fund.

Compulsory reinvestment of DividendWhere the Unitholder has opted for Dividend Payout option

and in case the amount of dividend payable to the Unitholder isRs.20/- or less, the same will be compulsorily reinvested in thescheme.Tax treatment for the Investors (Unitholders)Investors are advised to refer to the details given in theStatement of Additional Information under the section"Taxation". However, the information provided therein is forgeneral information purpose only and is based on the prevailingtax laws. In view of the individual nature of the implications,each investor is advised to consult with his or her own taxadvisors with respect to the specific tax and other implicationsarising out of his or her participation in the schemes.Equity Linked Savings Scheme: Individuals, HUFs andMinors through their parents/guardians can invest upto Rs.1,00,000 in a financial year in Franklin India Taxshield, andqualify for deduction under Section 80C of the Act.Pension Fund: Investments by Individuals (including minorsthrough their parents/guardians) in Templeton India PensionPlan (formerly known as Kothari Pioneer Pension Plan) wereeligible for tax rebate u/s 88 the Act. In terms of Section 80C(7)of the Act, a pension fund referred to u/s 88 shall be eligible fordeduction u/s 80C w.e.f. April 1, 2005. The deduction u/s 80Cshall be on investments upto Rs. 1,00,000 in a financial year.

Daily Net Asset Value (NAV) Publication

The NAV will be normally calculated for every Business Dayand released to the press (atleast 2 Newspapers). The NAVcan also be viewed on www.franklintempletonindia.com andwww.amfiindia.com. You can also telephone us at 1-800-425-4255 or 60004255 (if calling from a mobile phone,please prefix the city STD code; local call rates apply for bothnumbers) from 8 a.m to 9 p.m, Monday to Saturday.

For Investor Grievances please contact

Investor Services, Franklin Templeton Asset Management(India) Pvt. Ltd., Franklin Templeton Centre, No. 7, 3rd CrossStreet, Kasturba Nagar, Adyar, Chennai 600020. Tel: 1-800-425-4255 or 60004255 (if calling from a mobile phone, please prefixthe city STD code; local call rates apply for both numbers) from8 a.m to 9 p.m, Monday to Saturday. Email:[email protected] of Investor Relations Officer: Ms. Sheela Kartik.Name and Address of Registrar: Franklin Templeton AssetManagement (India) Pvt. Ltd., Franklin Templeton Centre, No.7, 3rd Cross Street, Kasturba Nagar, Adyar, Chennai 600020.Unitholders’ Information:Account Statement:Each Unitholder will receive an Account Statement each timea transaction - purchase, redemption, switch - is effectedexcept in case of dividend reinvestment (daily, weekly,monthly), issue of bonus units, Systematic Investment Plan(SIP) and Systematic Transfer Plan (STP) transactions.Account statements for Dividend Reinvestments (daily,weekly, monthly) and Bonus units will be despatched once atthe end of each calendar quarter. Account statements for allother types of Dividend Reinvestments will be despatchedwhenever a Dividend is declared and reinvested. For thoseunitholders who have provided an e-mail address, the AMCwill send the account statement by e-mail. Account Statementfor SIP and STP will be despatched once every quarter endingMarch, June, September and December within 10 workingdays of the end of the respective quarter. A soft copy of theAccount Statement shall be mailed to the investors underSIP/STP to their e-mail address on a monthly basis, if somandated. However, the first Account Statement underSIP/STP shall be issued within 10 working days of the initialinvestment/transfer. In case of specific request received frominvestors, Mutual Funds shall provide the account statement(SIP/STP) to the investors within 5 working days from thereceipt of such request without any charges.The Mutual Funds shall provide the Account Statement to theUnitholders who have not transacted during the last sixmonths prior to the date of generation of account statements.The account statements in such cases may be generated andissued along with the Annual Report of the scheme. TheAccount Statement shall reflect the latest closing balance andvalue of the Units prior to the date of generation of theaccount statement. Alternately, soft copy of the accountstatements shall be mailed to the investors’ e-mail address,instead of physical statement, if so mandated.The Unitholders can also obtain an Account Statement onrequest from any of the ISCs.The Account Statement is a record of the transaction in thescheme of Franklin Templeton Mutual Fund. Investors arerequested to review the account statement carefully andcontact their nearest Investor Service Centre in case of anydiscrepancy. The contents of the statement will be consideredto be correct if no error is reported within 30 days from thedate of receipt of the Account Statement.Account statements are available from the Mutual Fund onrequest. Investors may request an Account Statement at anytime in confirmation of transactions in their account, or thecurrent status of their holdings with the Mutual Fund.Annual Financial ReportsAs required by the SEBI Regulations, the Fund will mail/e-mail(if an e-mail address is provided with the consent of theunitholder), as soon as practical after 31st March each year butnot later than four months thereafter, as the Trustee may decide,an abridged scheme-wise annual report to all the unitholders.The full annual report of the Fund will be furnished to theUnitholders upon a written request and will be available at theHead Office of the Investment Manager for inspection. TheFund will make all disclosures required by the SEBIRegulations, including information about the entire portfolioheld by the Fund.Half Yearly DisclosuresThe Fund shall before the expiry of one month from the closeof each half year that is on 31st March and 30th September,publish its financial results, containing details specified inRegulation 59 read with Twelfth Schedule of SEBI Regulations,in one English newspaper circulating in the whole of India andin one regional newspaper circulating in the region where thehead office of the Fund is situated. In addition, the Schemeshall mail/e-mail (if an e-mail address is provided with theconsent of the unitholder) or publish the complete portfolio tothe investors before the expiry of one month from 31st Marchand 30th September each year. These shall also be displayed onthe web site of the Mutual Fund and that of AMFI.Prevention of Money LaunderingIn terms of the Prevention of Money Laundering Act, 2002, theRules / guidelines/circulars issued there under (AML Laws),Mutual Funds are required to formulate and implement a clientidentification programme, to collect, verify and maintain the

9

record of identity and address(es) of investors.It is mandatory for all investors (including joint holders, NRIs,POA holders and guardians in the case of minors) to furnishsuch documents and information as may be required to complywith the Know Your Customers (KYC) policies under the AMLLaws. Applications without such documents and informationmay be rejected.Submission of PAN:In terms of SEBI circulars dated April 27, 2007, April 03, 2008and June 30, 2008 read with SEBI letter dated June 25, 2007,Permanent Account Number (PAN) would be the soleidentification number for all participants transacting in thesecurities market, irrespective of the amount of transaction,except (a) investors residing in the state of Sikkim; (b) CentralGovernment, State Government, and the officials appointed bythe courts e.g. Official liquidator, Court receiver etc. (under thecategory of Government) and (c) investors participating only inmicro-pension. SEBI, in its subsequent letter dated June 19,2009 has conveyed that systematic investment plans (SIP) ofmutual funds up to Rs.50,000/- per year per investor shall beexempted from the requirement of PAN. Thus, submission ofPAN is mandatory for all existing as well as prospectiveinvestors (including all joint applicants/holders, guardians incase of minors, PoA holders and NRIs but except for thecategories mentioned above) for investing with mutual fundsfrom this date. Investors are required to register their PAN withthe Mutual Fund by providing the PAN card copy (along withthe original for verification which will be returned across thecounter). All investments without PAN (for all holders,including Guardians and PoA holders) are liable to be rejected.In case of SIPs where the aggregate of instalments in a rolling 12month period or in a financial year i.e. April to March does notexceed Rs.50,000/- (referred to as "Micro SIP") shall be exemptfrom the requirement of PAN. However, a duly verified/attestedcopy of such document(s) as may be prescribed by theAMC/Trustee from time to time, needs to be submitted as theproof of identification in lieu of PAN Card copy. This exemptionwill be applicable only to investments through Micro SIP byindividuals (including NRIs but not PIOs), joint holders,Minors and Sole proprietary firms. PIOs, HUFs and othercategories of investors will not be eligible for this exemption.All investments in Franklin Templeton Mutual Fund need tocomply with the PAN and KYC requirements as noted above.Systematic Investment Plan (SIP)

This facility is available in the following schemes/plans: Allplans of Franklin India Bluechip Fund (FIBCF), TempletonIndia Growth Fund (TIGF), Templeton India Equity IncomeFund (TIEIF), Franklin India Prima Plus (FIPP), FranklinIndia Prima Fund (FIPF), Franklin India Flexi Cap Fund(FIFCF), Franklin Asian Equity Fund (FAEF), FranklinIndia High Growth Companies Fund (FIHGCF), FranklinBuild India Fund (FBIF), 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 IndiaBalanced Fund (FTIBF), Templeton India Pension Plan(TIPP), Templeton India Children’s Asset Plan (TICAP), FTIndia Life Stage Fund of Funds (FTLF) and FT IndiaDynamic PE Ratio Fund of Funds (FTDPEF); Growthplans/options of Templeton India Income Fund (TIIF),Templeton India Income Builder Account (TIIBA),Templeton Monthly Income Plan (TMIP), FT India MonthlyIncome Plan (FTIMIP), Templeton India GovernmentSecurities Fund (TGSF), Long Term Plan of TempletonFloating Rate Income Fund (TFIF-LT), Templeton IndiaShort Term Income Plan-Retail Plan (TISTIP-Retail) andTempleton India Income Opportunities Fund (TIIOF).

• Franklin Templeton Mutual Fund will accept a minimum of12 cheques (‘cheques’ include ECS/Direct Debit instructionsor any other mode of payment accepted by the AMC fromtime to time) each of Rs. 500/- or more or a minimum of 6cheques each of Rs. 1,000/- or more from any SIP investor.However, in case of FTLF Franklin Templeton Mutual Fundwill accept a minimum of 12 cheques each of Rs. 2,000/- ormore or a minimum of 6 cheques each of Rs. 4,000/- ormore, in case of FTDPEF a minimum of 12 cheques each ofRs.1000 or more or a minimum of 6 cheques each ofRs.2000/- or more and in case of TGSF – PF Plan, aminimum 12 cheques each of Rs. 10,000/- or more or aminimum of 6 cheques each of Rs. 20,000/- or more fromany SIP investor.

• All the SIP cheques (except the first one) must be uniformlydated i.e. either the 1st, 7th, 10th, 20th or 25th of a month.Investors can invest at Monthly or Quarterly intervals byproviding post-dated cheques. All cheques should be for thesame amount.

• Only one instalment per month/quarter is allowed underone SIP registration. e.g., if for a monthly SIP, the firstinstalment is in the month July, say 2nd July, then thesecond instalment should be in August.

• In case the specified date is a non-business day for thescheme, the SIP will be processed on the following businessday for that scheme.

• If during the currency of a SIP, the unitholder changes theplan or option in which he/she had invested, the samewould be treated as termination of existing SIP and re-registration of a new SIP and all the terms and conditions ofthe SIP such as minimum term/amount etc. shall apply inboth plans/options.

• Load: For all SIP purchase transactions, the entry and exitload as applicable for normal purchases shall be applicable.

• The AMC reserves the right to discontinue the SIP in case ofcheque return, and debit the cheque return charges to theinvestors’ account.

• The Trustee/AMC reserves the right to modify ordiscontinue the SIP facility at any time in future on aprospective basis.It is clarified that the load applicable for SIP shall be theload prevailing on the date of registration.

Systematic Transfer Plan (STP)This facility is available in the following schemes/plans("Source Schemes"): Templeton India Income Fund(TIIF), Templeton India Income Builder Account(TIIBA), Templeton Monthly Income Plan@ (TMIP), FTIndia Monthly Income Plan@ (FTIMIP), Templeton IndiaGovernment Securities Fund (except PF Plan) (TGSF),Templeton Floating Rate Income Fund (TFIF),Templeton India Short-Term Income Plan (TISTIP),Templeton India Ultra Short Bond Fund (TIUBF),Templeton India Treasury Management Account(TITMA) and Templeton India Income OpportunitiesFund (TIIOF).

• In order to start the STP facility, the minimum accountbalance under Fixed Amount Option should be Rs.12,000, and the same under Capital Appreciation Optionshould be

• Rs. 5,00,000/- for Weekly Transfer of Funds facility(Weekly STP)

• Rs. 1,00,000/- for Monthly Transfer of Funds facility(Monthly STP)

• Rs. 1,00,000/- for Quarterly Transfer of Funds facility(Quarterly STP).

Except in TITMA – Institutional Plan where the sameshould be Rs. 1,00,00,000.

• Destination Scheme: The investors may choose any of thefollowing Franklin Templeton open ended equity, hybridor Fund of Funds schemes for transferring the amountfrom the Source Scheme:

Equity schemes - Franklin India Bluechip Fund (FIBCF),Templeton India Growth Fund (TIGF), Templeton IndiaEquity Income Fund (TIEIF), Franklin India Prima Fund(FIPF), Franklin India Prima Plus (FIPP), Franklin IndiaFlexi Cap Fund (FIFCF), Franklin India High GrowthCompanies Fund (FIHGCF), Franklin India Index Fund(FIIF), Franklin Infotech Fund (FIF), Franklin FMCGFund (FFF), Franklin Pharma Fund (FPF), FranklinIndia Opportunities Fund (FIOF), Franklin Asian EquityFund (FAEF), Franklin India Taxshield (FIT). andFranklin Build India Fund (FBIF)

Hybrid schemes - FT India Balanced Fund (FTIBF),Templeton India Pension Plan (TIPP), Templeton IndiaChildren’s Asset Plan (TICAP) and FT India MonthlyIncome Plan (FTIMIP).

Fund of Funds schemes (FOF) - FT India Life Stage Fundof Funds (FTLF) and FT India Dynamic PE Ratio Fund ofFunds (FTDPEF).

• Options: There are two options available, Fixed AmountOption and Capital Appreciation Option. The CapitalAppreciation option will be available only under thegrowth plans of the Source Schemes.

• Frequency: The frequency can be Weekly, Monthly orQuarterly.

• Transfer of Funds:

Transfer of Funds Fixed Amount Option Capital AppreciationOption

Weekly STP A fixed amount can be The capitaltransferred on the 7th, appreciation as on the14th, 21st and 28th immediatelyday of every month preceding businessto the specified day for the SourceDestination Scheme Scheme can be

transferred to thespecified DestinationScheme, on the 7th,14th, 21st and 28thday of every month.

Monthly STP/ A fixed amount can be The capitalQuarterly STP transferred on a pre- appreciation as on the

specified date (to be last business day ofchosen by the investor) every month/quarterof every month/every can be transferred toquarter to the specified the specifiedDestination Scheme Destination Scheme

• In case the specified date is a non-business day for either theSource Scheme or the Destination Scheme, the STP will beprocessed on the following business day for both theschemes. The STP will be applicable subject to the terms ofthe destination scheme.

• Minimum Amount and Term:(a)Under the Fixed Amount Option

Transfer Frequency Destination Scheme

Equity / Hybrid Scheme FOF Scheme

Weekly STP Rs. 500 per week Rs. 1,000 per weekfor 6 months for 6 months

Monthly STP Rs. 1,000 per month Rs. 4,000 per monthfor 6 months or for 6 months or .Rs. 500 per month Rs 2,000 per monthfor 12 months for 12 months

Quarterly STP Rs. 1,000 per quarter Rs. 4,000 per quarterfor 6 quarters or for 6 quarters or Rs.Rs. 500 per quarter 2,000 per quarter forfor 12 quarters 12 quarters

(b)Under Capital Appreciation Option, the minimum term shallbe 6 months.

• Load: For all STP purchase transactions, the entry and exitload as applicable in the Destination Scheme for normalpurchases shall be applicable. Further, for all STP (out)transactions, an exit load as applicable in the Source Schemeshall be levied.

• At least 7 days’ prior intimation should be given to theMutual Fund for commencement of a fresh STP orcancellation/termination of an existing STP.

• If during the currency of a STP, the unitholder changes theplan or option in which he/she had invested, the same wouldbe treated as termination of existing STP and re-registrationof a new STP and all the terms and conditions of the STPsuch as minimum term/amount etc. shall apply in bothplans/options.

• If in case of a monthly/quarterly STP with Fixed AmountOption, if the unitholder specifies 30th or 31st of the month(28th/29th in case of February) as the "Specified Date" forthe STP transaction, then the STP shall be processed on theday, which is the last business day in that month for both theschemes.

• Where the Start Date of the STP is not mentioned, then foran STP under Monthly/Quarterly option, the Start Date shallbe deemed as follows:

If STP is submitted …….. Then Start Date shall be deemedto be ……

On or before 8th day of 15th day of that monththe monthAfter 8th day but on or before23rd day of the month last business day of that month for

both the schemesAfter 23rd day of the month 15th day of the next month

• This facility is not available for investments under lock-inperiod or on which any lien or encumbrances is marked orin respect of which the status of realisation of cheque is not

available to the AMC.• It shall be the responsibility of the investor to ensure that

sufficient balance (free from any Lock-in or encumbrances)is available in the account on the date of transfer, failingwhich the transfer will not be effected. The AMC reserves theright to discontinue the STP in case the transfer is noteffected due to insufficient balance in the investor’s account.

• The AMC/Trustees reserve the right to discontinue or modifythe STP facility at any time in future on a prospective basis.It is clarified that the load applicable for STP shall be the loadprevailing on the date of registration.

Dividend Transfer Plan (DTP)This facility is available to the investors of various dividendplans (except Daily Dividend and Weekly Dividend Plans) ofall open – end schemes of Franklin Templeton Mutual Fund(except Templeton India Cash Management Account). Aninvestor can select this facility whereby the dividenddeclared in one Franklin Templeton open–end scheme(Source Scheme) will be automatically invested into anyother Franklin Templeton open-end scheme, selected by theinvestor (Destination Scheme).

• In order to avail the DTP facility, the minimum accountbalance should be Rs. 25,000/-, except in TISTIP where thesame should be Rs. 100,000/-

• The frequency of transfer will depend on the dividendsdeclared by the plan of the Source Scheme in which theinvestment has been made.

• The amount, to the extent of the distribution in the SourceScheme, will be automatically invested in the DestinationScheme at its NAV on the next Business Day for both theschemes and equivalent units will be allotted, subject to theterms and conditions of the Destination Scheme.For example: An investor in TMIP opts to invest thedividend in TIGF. If the dividend record day is a Wednesdayand Thursday is the book closure for TMIP, the investor willbe allotted units at NAV of Friday. In case Friday is a non –business day for either TMIP or TIGF, the units will beallotted at the NAV of immediate next business day for boththe schemes.

• Load: For all DTP purchase transactions, the entry and exitload as applicable for normal purchases# shall be applicable.

• A DTP may be terminated by the unitholder by givingappropriate written notice.

• The Trustee/AMC reserves the right to modify or discontinuethe DTP facility at any time in future on a prospective basis.It is clarified that the load applicable for a DTP shall be theload prevailing on the date of the respective transfer.

Systematic Withdrawal Plan (SWP)This facility is available in the following schemes/plans: Allplans of - Franklin India Bluechip Fund (FIBCF), TempletonIndia Growth Fund (TIGF), Templeton India Equity IncomeFund (TIEIF), Franklin India Prima Plus (FIPP), FranklinIndia Prima Fund (FIPF), Franklin India Flexi Cap Fund(FIFCF), Franklin India High Growth Companies Fund(FIHGCF), Franklin India Index Fund (FIIF), FranklinInfotech Fund (FIF), Franklin FMCG Fund (FFF), FranklinPharma Fund (FPF), Franklin India Opportunities Fund(FIOF), FT India Balanced Fund (FTIBF), Franklin AsianEquity Fund (FAEF), Franklin Build India Fund (FBIF), FTIndia Life Stage Fund of Funds (FTLF); Growthplans/Options of Templeton India Income Fund (TIIF),Templeton India Income Builder Account (TIIBA),Templeton Monthly Income Plan (TMIP), FT India MonthlyIncome Plan (FTIMIP), Templeton India GovernmentSecurities Fund (except PF Plan) (TGSF), Long Term Plan ofTempleton Floating Rate Income Fund (TFIF-LT) andTempleton India Income Opportunities Fund (TIIOF).

• In order to start the SWP facility, the minimum accountbalance should be Rs.25,000/- except in case of FTLF wherethe same should be Rs.12,000/-.

• The frequency can be Monthly or Quarterly.• There are two options available:(a) Fixed amount: A fixed amount can be withdrawn either on

the 15th or the last business day of every month/quarter.(b) Capital Appreciation: The capital appreciation as on the last

business day of the month can be withdrawn.• Load: For all SWP transactions, an exit load as applicable in

the respective scheme shall be levied.• Minimum withdrawal: Under the Fixed amount option, the

minimum withdrawal will be Rs.1,000/-.• Where the Start Date of the SWP is not mentioned, then the

same shall be deemed to be the first available SWP datedepending upon the option chosen by the unitholder, after aperiod of 7 days after the date of submission of the SWPrequest.

• This facility is not available for investments under lock-inperiod.It is clarified that the load applicable for SWP shall be theload applicable for the respective purchase transaction.

Facility for subscription and redemption of unitsthrough stock exchange infrastructure

Franklin Templeton Mutual Fund ("FTMF") offers a facilityto subscribe and redeem the units of schemes of FranklinTempleton Mutual Fund through the infrastructure of theNational Stock Exchange of India Ltd. ("NSE") and TheBombay Stock Exchange Ltd. ("BSE"). This facility is offeredin terms of SEBI circular no. SEBI/IMD/CIRNo.11/183204/2009 dated November 13, 2009 and theguidelines issued by NSE and BSE in this regard.This facility is currently available only in the following open-end schemes of FTMF:

Name of the Scheme Name of the Scheme

Templeton India Growth Fund Franklin India Bluechip Fund(TIGF) (FIBCF)Franklin India Prima Plus Franklin India Flexi Cap Fund(FIPP) (FIFCF)FT India Dynamic PE Ratio Templeton India Short TermFund of Funds (FTDPEF) Income Plan (TISTIP)*

* Subscription and redemption of amount less than Rs.1 crorewill only be permitted. Further, this facility is currently notavailable for Bonus Option under Retail Plan of TISTIP.The salient features of this facility are as follows:1. Eligible investors – This facility is currently available only

to Individuals, HUF and Minors acting through guardian,who are Resident in India.

2. This facility for subscription (fresh purchase andadditional purchase) and redemption of units of theeligible schemes is available for new investors as well asexisting investors. Currently, Switch transactions and

systematic transactions such as Systematic InvestmentPlan (SIP), Systematic Transfer Plan (STP), SystematicWithdrawal Plan (SWP) and Dividend Transfer Plan (DTP)will not be permitted.

3. In order to facilitate the transactions under this facility,NSE has launched Mutual Fund Service System ("MFSS")and BSE has introduced Bombay Stock Exchange Platformfor Allotment and Redemption of Mutual Fund Units("BSE StAR MF"). All trading members of NSE and BSEwho are registered with the Association of Mutual Funds inIndia ("AMFI") as Mutual Fund Advisors and areempanelled as distributor with Franklin Templeton AssetManagement (India) Pvt. Ltd., the AMC, ("Eligible StockBrokers") will be eligible to offer this facility to theinvestors.

4. Eligible investors who are willing to transact under thisfacility are required to register themselves with the EligibleStock Broker.

5. All the Eligible Stock Brokers will be considered as theOfficial Point of Acceptance of Transaction ("OPAT") forthe transaction done under this facility. The cut-offtiming and applicability of NAV for the transaction willbe determined in accordance with the provisions of SEBIcircular no. SEBI/IMD/CIR No.11/78450/06 datedOctober 11, 2006. The day and time of receipt of thetransaction application by FTMF will be based on thetime stamping as evidenced by the confirmation slipgenerated by the stock exchange infrastructure.

6. The investors have an option to hold the units inphysical form (account statement) or dematerialisedform. International Security Identification Numbers(ISIN) in respect of the plans/option of the eligibleschemes have been created and admitted in the NationalSecurities Depository Ltd. ("NSDL") and CentralDepository Services (India) Ltd. ("CDSL"). Units shallbe allotted in physical form or dematerialised form asper the request of the investor.

7. For units issued in physical form (represented by AccountStatement)7.1 Investors desirous of transacting (subscription or

redemption) through the stock exchangeinfrastructure should approach an Eligible StockBroker along with the duly filled in Application Formand other documents (including PAN and KYC) asrequired. For subscriptions, the payment ofsubscription money should be made to the EligibleStock Broker.

7.2 Dispatch of Account Statements and payment ofredemption proceeds will be made by the MutualFund directly to the investor as per the normal servicestandard. The redemption payout will be made to theinvestor’s bank account as registered with the AMCbased on the information furnished by the investor.

7.3 The Eligible Stock Brokers are required to submit theoriginal Application Form and other documentsreceived from the investors to the AMC/ Registrar. Incase of a subscription transaction, the allotment ofunits will be on ‘Provisional’ basis till the time theAMC/Registrar has received all the requireddocuments from the Eligible Stock Broker. Anyapplication for redemption of units so allotted onprovisional basis will be rejected.

7.4 In case the investor wishes to dematerialise the unitsheld in physical form, the AMC will facilitate thesame with the Registrar, Depositories and DepositoryParticipants.

8. For units issued in dematerialised form8.1 Investors desirous of investing in dematerialised form

need to have a Beneficiary Account with a DepositoryParticipant (DP).

8.2 Investors desirous of transacting (subscription orredemption) through the stock exchangeinfrastructure should place the order with an EligibleStock Broker as currently followed for secondarymarket activities. For subscriptions, the payment ofsubscription money should be made to the EligibleStock Broker.

8.3 Completion of the PAN and KYC requirements of theDepository/ Depository Participant will be consideredto be adequate compliance with the guidelines issuedby SEBI in this regard for investment in mutual funds.

8.4 Payment of redemption proceeds will be made by theMutual Fund directly to the investor as per thenormal service standard and will be made to theinvestor’s bank account based on the informationfurnished by the depositories.

8.5 The Account Statement of the Beneficiary Accountwith the DP will be sent by the respective DPs as pertheir service standards. The Account Statement issuedby the DPs will be considered as adequate complianceof the requirements specified by SEBI for mutualfunds with respect to dispatch of account statement toinvestors.

8.6 In case the investor wishes to re-materialise the unitsheld in demat form, the AMC will facilitate the samewith the Registrar, Depositories and DepositoryParticipants.

9. For any complaints or grievances against the Eligible StockBroker with respect to the transactions done through thestock exchange infrastructure, the investor should contacteither the concerned Eligible Stock Broker or the investorgrievance cell of the respective stock exchange. For noncommercial transactions/service requests such as change inaddress, change in bank mandate, issue of duplicateaccount statements etc., the investors should approach anyof the Franklin Templeton Investor Service Centres in casethe units are held in physical form and to their respectiveDP in case the units are held in demat form.

10. Applications which are incomplete or invalid in anyrespect or are conditional or ambiguous are liable to berejected.

11. The investors will have to comply with the PAN and KYCrequirements as prescribed by SEBI/BSE/NSE/NSDL/CDSL/Franklin Templeton Mutual Fund from time to time.

12. The facility shall be subject to the terms and conditionsspecified and guidelines issued by SEBI/BSE/NSE fromtime to time.

13. The Trustee/AMC reserves the right to change/modify ordiscontinue the facility at any time in future.

Please refer to the Statement of Additional Information andScheme Information Document for any further details

10

Investment Objective

The Fund seeks to provide long-term capital appreciation byinvesting in mid and small cap companies.

Asset Allocation Pattern of the Scheme (NormalAllocation as % of Net Assets)

Instruments Min%-Max%*

Equities and Equity Linkedinstruments out of which: 75% - 100%

Smaller Companies 75% - 100%

Other Companies 0% - 25%

Debt**/Money Market Instruments/Cash 0% - 25%

* including investments in ADR/GDR/foreign securities up to50% of the equity/debt portion, exposure in derivatives up to amaximum of 50%.

**including securitised debt up to 25%.

Conversion of Closed End Scheme to Open EndScheme

Launched as a closed end scheme, the scheme completed itstenure of 5 years on January 13, 2011 and got automaticallyconverted into an open end scheme effective January 14, 2011for ongoing subscriptions and redemptions on all Business Dayseffective January 14, 2011.

Investment Strategy

FISCF is an open end diversified equity fund designed for thoseinvestors who seek exposure to an equity product that can takeadvantage of the opportunities available in the mid and small capspace. The fund shall invest at least 75% of its corpus in equityand equity related securities of those Smaller Companies, whichhas a market capitalisation below that of the 100th stock in S&PCNX 500 Index, with the index constituents ranked in terms ofmarket capitalisation and may or may not be a company formingpart of the S&P CNX 500. The universe would also includethose companies coming out with fresh issuance IPO and whosepost issue market cap (based on issue price) would fall underabove-mentioned criteria. The remaining portion of the portfoliowill be invested in equity and equity related securities of anycompany, which has market capitalisation of the 100th stock andabove in S&P CNX 500 and may or may not be a companyforming part of the S&P CNX 500 index and in the opinion ofthe fund manager have attractive growth prospects and potentialto outperform the broad market indices. The overall investmentstrategy of FISCF will be in line with the FT Equity (India) styleof equity investing.

Risk Profile of the Scheme

Mutual Fund Units involve investment risks including thepossible loss of principal. Please read the SID carefully fordetails on risk factors before investment. Scheme specific RiskFactors are summarized below:

Different types of securities in which the scheme would investcarry different levels and types of risks. Accordingly thescheme's risk may increase or decrease depending upon itsinvestment pattern.

Trading volumes, settlement periods and transfer proceduresmay restrict liquidity of investments in equity and equity-related securities.

While mid cap and small cap stocks give one an opportunity togo beyond the usual large blue chip stocks and present possiblehigher capital appreciation, it is important to note thatmid/small cap stocks can be riskier and more volatile on arelative basis. Therefore, the risk levels of investing in small capand mid cap stocks is more than investing in stocks of largewell-established companies. Please note that over a time thesetwo categories have demonstrated different levels of volatilityand investment returns. And it is important to note thatgenerally, no one class consistently outperforms the others.While smaller and medium size companies may offersubstantial opportunities for capital appreciation, they alsoinvolve substantial risks. Historically, these companies havebeen more volatile in price than larger company securities,especially over the short term. Among the reasons for thegreater price volatility are the less certain growth prospects ofsmaller companies, the lower degree of liquidity in the marketsfor such securities, and the greater sensitivity of smallercompanies to changing economic conditions. Smallercompanies carries large amount of liquidity risk compared tothe Large Cap companies, as the ability to sell is limited byoverall trading volume in the securities, which it invests.

In addition, smaller companies may lack depth of management,be unable to generate funds necessary for growth ordevelopment, or be developing or marketing new products orservices for which markets are not yet established and maynever become established. They could also suffer fromdisadvantages such as - outdated technologies, lack ofbargaining power with suppliers, low entry barriers andinadequate management depth. Overall, the risks of investing inmedium / small companies are (a) transparency/liquidity levelsmay not be on par with established, large companies; (b)corporate governance may be an issue with some companies;and (c) they may not be resilient enough to withstand shocks ofbusiness/economic cycles.

In case of investments in foreign securities, there may be risksassociated with currency movements, restrictions onrepatriation and transaction procedures in overseas market aswell as country related risks.

Derivatives are high risk, high return instruments. A small pricemovement in the underlying security could have a large impacton their value and may also result in a loss.

Investments in debt instruments are subject to various riskssuch as credit/default risk, interest rate risk, reinvestment risk,liquidity risk etc. E.g. corporate bonds carry a higher amount ofrisk than Government securities. Further even among corporatebonds, bonds which are AAA rated are comparatively less riskythan bonds which are AA rated. Money market securities, whilefairly liquid, lack a well-developed secondary market, whichmay restrict the selling ability of the scheme.

There is no assurance or guarantee that the objectives of thescheme will be achieved. The past performance of the mutualfunds managed by the Franklin Templeton Group and itsaffiliates is not necessarily indicative of future performance ofthe scheme.

Risk Mitigation Factors

• Liquidity Risk: The fund will try to maintain a properasset-liability match to ensure redemption payments aremade on time and not affected by illiquidity of theunderlying stocks. The scheme will endeavour to invest ina mix of Smaller Companies and Other Companies stocks(as defined in the asset allocation) and also try to maintaina portion of investments in cash & liquid assets

• Concentration Risk: The scheme will endeavour to have awell-diversified equity portfolio comprising stocks acrossvarious sectors of the economy. This would aid inmanaging concentration risk and sector-specific risks.

• Generally, diversification across market cap segments alsoaids in managing volatility and ensuring adequate liquidityat all times.

• Derivatives Risk: The fund will endeavour to maintainadequate controls to monitor the derivatives transactionsentered into.

Plans and Options

Growth Plan and Dividend Plan (with Payout and ReinvestmentOption).

Please note that where the Unitholder has opted for DividendPayout option and in case the amount of dividend payable to theUnitholder is Rs.20/- or less, the same will be compulsorilyreinvested in the Scheme.

Applicable NAV

Purchases including switch ins: In respect of valid applicationsof amount less than Rs.1 crore received$ up to 3.00 p.m. by theMutual Fund along with a local cheque or a demand draftpayable at par at the place where the application is received, theclosing NAV of the day on which application is received shall beapplicable.

In respect of valid applications received$ up to 3.00 p.m. by theMutual Fund along with a local cheque or a demand draftpayable at par at the place where the application is received, theclosing NAV of the day on which application is received shall beapplicable.

In respect of valid applications received$ after 3.00 p.m. by theMutual Fund along with a local cheque or a demand draftpayable at par at the place where the application is received, theclosing NAV of the next business day shall be applicable.

However, in respect of valid applications with outstationcheques / demand drafts not payable at par at the place wherethe application is received$, closing NAV of the day on whichcheque/demand draft is credited to the account of FranklinTempleton Mutual Fund shall be applicable.

Redemptions including switch outs: In respect of validapplications received$ up to 3.00 p.m. by the Mutual Fund,same day’s closing NAV shall be applicable. In respect of validapplications received$ after 3.00 p.m. by the Mutual Fund, theclosing NAV of the next business day shall be applicable.$Received at the official points of acceptance of transactions ofFranklin Templeton Mutual Fund.

Minimum Application Amount/ Number of Units

Purchase: Rs.5,000/- or any amount in multiple of Re.1/-thereafter

Additional Purchase: Rs.1,000/- or any amount in multiple ofRe.1/- thereafter

Repurchase : Rs.1,000/- or any amount in multiple of Re.1/-thereafter

Despatch of Repurchase (Redemption) Request

The redemption cheque will be despatched to the unitholderswithin the statutory time limit of 10 business days of the receiptof the redemption request at the Registrar’s office.

Benchmark Index

CNX Midcap

Dividend Policy

Dividends are distributed based on the availability of adequatedistributable surplus in the scheme. The Trustee may, at its solediscretion declare dividends in the fund at any time. Althoughthere is every intention to declare dividend in DividendPlan/Option, there is no assurance or guarantee as to thefrequency or quantum of dividends nor that would thedividends be regularly paid.

Name of the Fund Manager(s)

K. N. Siva Subramanian, R Janakiraman and Ms. Roshi Jain(dedicated for foreign securities)

Name of the Trustee Company

Franklin Templeton Trustee Services Pvt. Ltd., a company set upunder the Companies Act 1956, and approved by SEBI to act asthe Trustee to the funds of Franklin Templeton Mutual Fund.

Performance of the scheme

Compounded Scheme BenchmarkAnnualised Returns (%) Returns (%)Returns

Last 1 year 18.59% 19.16%Last 3 years -3.67% -1.26%Last 5 years N. A. N. A.Since inception 8.77% 16.14%

Returns based on Growth Plan NAV of December 31, 2010.Inception date: January 13, 2006.

Absolute Returns for last 5 financial years:

* Since Inception till that year end.

Expenses of the Scheme

(i) Load Structure

Entry load: In accordance with the SEBI guidelines, no entryload will be charged by the Mutual Fund.

Exit load: In respect of each purchase of Units - 1% if theUnits are redeemed/switched-out within oneyear of allotment

(ii) Recurring expenses

Actual expenses for the Financial Year ending March 2010:2.20%

Tax treatment for the Investors(Unitholders)

Investor will be advised to refer to the details in the Statementof Additional Information and also independently refer to histax advisor.

Daily Net Asset Value (NAV) Publication

NAV will be calculated up to four decimal places using standardrounding criteria. The NAV will be normally declared on allBusiness Days and will be published in two newspapers. NAVcan also be viewed on www.franklintempletonindia.com andwww.amfiindia.com. You can also telephone us at 1800 4254255 or 6000 4255 (please prefix the city STD code if callingfrom a mobile phone, Local call rates apply to both thenumbers).

For Investor Grievances please contact

Investor Services, Franklin Templeton Asset Management(India) Pvt. Ltd., Unit 301, III Floor, Campus 4B, RMZ MilleniaBusiness Park, 143 Dr. MGR Road, Kandanchavadi, Chennai600096

Tel: 1800 425 4255 or 6000 4255 (please prefix the city STDcode if calling from a mobile phone, Local call rates apply toboth the numbers) from 8:00 a.m. to 9:00 p.m., Monday toSaturday.

Email: [email protected].

Name of Investor Relations Officer: Ms. Sheela Kartik.

Name and Address of Registrar: Franklin Templeton AssetManagement (India) Pvt. Ltd., Unit 301, III Floor, Campus 4B,RMZ Millenia Business Park, 143 Dr. MGR Road,Kandanchavadi, Chennai 600096

Name of the Mutual Fund: Franklin Templeton Mutual Fund

Head Office: Level 4, Wockhardt Towers, Bandra KurlaComplex, Bandra (East), Mumbai 400051

Unitholders’ Information

Commission to distributor

The upfront commission on investment made by the investor, ifany, shall be paid to the ARN Holder (AMFI registereddistributor) directly by the investor, based on the investor’sassessment of various factors including service rendered by theARN Holder.

No Load on Bonus/ Dividend Reinvestment

No entry and exit load shall be charged on bonus units or unitsallotted on reinvestment of dividend.

Utilisation of Exit Load

Exit load (if any) up to 1% of the redemption value shall beretained by the scheme in a separate account and will beutilised for payment of commissions to the ARN Holder andto meet other marketing and selling expenses. Any amountin excess of 1% of the redemption value charged to the unitholder as exit load shall be credited to the schemeimmediately.

Alterations in Application Form

Any changes/alterations in the Application Form must becountersigned by the investor(s). The Mutual Fund/AMC willnot be bound to take cognisance of any changes/alterations ifthe same are not so countersigned.

Investments under Power of Attorney (POA)

In case investors have issued a Power of Attorney (POA) fortransacting with Franklin Templeton on their behalf, thesignatures of the investor and the POA holder must be clearlyavailable in the POA document for the POA to be accepted as avalid document. Franklin Templeton reserves the right to reject

any POA and / or subsequent transaction if the signatures asabove are not available in the document.

Account Statement:

Each Unitholder will receive an Account Statement each time atransaction - purchase, redemption, switch - is effected exceptin case of dividend reinvestment (daily, weekly, monthly), issueof bonus units, Systematic Investment Plan (SIP) andSystematic Transfer Plan (STP) transactions. Accountstatements for Dividend Reinvestments (daily, weekly, monthly)and Bonus units will be despatched once at the end of eachcalendar quarter. Account statements for all other types ofDividend Reinvestments will be despatched whenever aDividend is declared and reinvested. Account Statement for SIPand STP will be despatched once every quarter ending March,June, September and December within 10 working days of theend of the respective quarter. A soft copy of the AccountStatement shall be mailed to the investors under SIP/STP totheir e-mail address on a monthly basis, if so mandated.However, the first Account Statement under SIP/STP shall beissued within 10 working days of the initial investment/transfer.In case of specific request received from investors, MutualFunds shall provide the account statement (SIP/STP) to theinvestors within 5 working days from the receipt of such requestwithout any charges. The Mutual Funds shall provide theAccount Statement to the Unitholders who have not transactedduring the last six months prior to the date of generation ofaccount statements. The account statements in such cases maybe generated and issued along with the Annual Report of thescheme. The Account Statement shall reflect the latest closingbalance and value of the Units prior to the date of generation ofthe account statement. Alternately, soft copy of the accountstatements shall be mailed to the investors’ e-mail address,instead of physical statement, if so mandated. For Dividendspaid out, investors will receive an account statement / advice incase of dividends paid via Direct Credit, and a dividendinstrument with counterfoil for dividends paid by way of aninstrument. Account statements will be sent either by courier orthrough the services of the Indian postal department, at theoption of the AMC taking into consideration the investor'slocation so as to provide investors with the best available serviceor through e-mail if an e-mail address is provided (please alsoread section on "Receiving Account Statement/Correspondenceby e-mail"). The Unitholders can also obtain an AccountStatement on request from any of the ISCs. The entry/exit loadmay be disclosed in the account statement issued after theintroduction of such load.

The Account Statement is a record of the transaction in thescheme of Franklin Templeton Mutual Fund. Investors arerequested to review the account statement carefully and contacttheir nearest Investor Service Centre in case of any discrepancy.The contents of the statement will be considered to be correct ifno error is reported within 30 days from the date of receipt ofthe Account Statement.

Account statements are available from the Mutual Fund onrequest. Investors may request an Account Statement at anytime in confirmation of transactions in their account, or thecurrent status of their holdings with the Mutual Fund.

Annual Financial Reports:

As required by the SEBI Regulations, the Fund will mail/e-mail(if an e-mail address is provided with the consent of theunitholder), as soon as practical after 31st March each year butnot later than four months thereafter, as the Trustee may decide,an abridged scheme-wise annual report to all the unitholders.

The full annual report of the Fund will be furnished to theUnitholders upon a written request and will be available at theHead Office of the Investment Manager for inspection. TheFund will make all disclosures required by the SEBIRegulations, including information about the entire portfolioheld by the Fund.

Half Yearly Disclosures:

The Fund shall before the expiry of one month from the closeof each half year that is on 31st March and 30th September,publish its financial results, containing details specified inRegulation 59 read with Twelfth Schedule of SEBI Regulations,in one English newspaper circulating in the whole of India andin one regional newspaper circulating in the region where thehead office of the Fund is situated. In addition, the Scheme shallmail/e-mail (if an e-mail address is provided with the consent ofthe unitholder) or publish the complete portfolio to theinvestors before the expiry of one month from 31st March and30th September each year. These shall also be displayed on theweb site of the Mutual Fund and that of AMFI.

Prevention of Money Laundering

In terms of the Prevention of Money Laundering Act, 2002, theRules / guidelines/circulars issued there under (AML Laws),Mutual Funds are required to formulate and implement a clientidentification programme, to collect, verify and maintain therecord of identity and address(es) of investors.

It is mandatory for all investors (including joint holders, NRIs,POA holders and guardians in the case of minors) to furnishsuch documents and information as may be required to complywith the Know Your Customers (KYC) policies under the AMLLaws. Applications without such documents and informationmay be rejected.

Submission of PAN:

In terms of SEBI circulars dated April 27, 2007, April 03, 2008and June 30, 2008 read with SEBI letter dated June 25, 2007,Permanent Account Number (PAN) would be the soleidentification number for all participants transacting in thesecurities market, irrespective of the amount of transaction,except (a) investors residing in the state of Sikkim; (b) Central

FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT LTD

FRANKLIN TEMPLETON MUTUAL FUND

KEY INFORMATION MEMORANDUM AND APPLICATION FORM

Franklin India Smaller Companies Fund(An Open – End Diversified Equity Scheme)

Offer of Units on an ongoing basis at NAV based prices

This Key Information Memorandum (KIM) is dated January 14, 2011. This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further detailsof the scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc. investors should, before investment, refer to the SchemeInformation Document and Statement of Additional Information available free of cost at any of the Investor Service Centres or distributors or from the website www.franklintempletonindia.com. This KIM shall remaineffective until a 'material change' (other than a change in fundamental attributes and within the purview of the KIM) occurs and thereafter changes will be filed with SEBI.

The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India(SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.

11

Government, State Government, and the officials appointed bythe courts e.g. Official liquidator, Court receiver etc. (under thecategory of Government) and (c) investors participating only inmicro-pension. SEBI, in its subsequent letter dated June 19,2009 has conveyed that systematic investment plans (SIP) ofmutual funds up to Rs.50,000/- per year per investor shall beexempted from the requirement of PAN. Thus, submission ofPAN is mandatory for all existing as well as prospectiveinvestors (including all joint applicants/holders, guardians incase of minors and NRIs) for investing with mutual funds fromthis date. Investors are required to register their PAN with theMutual Fund by providing the PAN card copy (along with theoriginal for verification which will be returned across thecounter). All investments without PAN (for all holders,including Guardians) are liable to be rejected.

In case of SIPs where the aggregate of instalments in arolling 12 month period or in a financial year i.e. April toMarch does not exceed Rs.50,000/- (referred to as “MicroSIP”) shall be exempt from the requirement of PAN.However, a duly verified/attested copy of such document(s)as may be prescribed by the AMC/Trustee from time to time,needs to be submitted as the proof of identification in lieu ofPAN Card copy. This exemption will be applicable only toinvestments through Micro SIP by individuals (includingNRIs but not PIOs), joint holders, Minors and Soleproprietary firms. PIOs, HUFs and other categories ofinvestors will not be eligible for this exemption.

All investments in Franklin Templeton Mutual Fund need tocomply with the PAN and KYC requirements as noted above.

Special Products Available

Systematic Investment Plan (SIP)

• Franklin Templeton Mutual Fund will accept a minimumof 12 cheques (‘cheques’ include ECS/Direct Debitinstructions or any other mode of payment accepted by theAMC from time to time) each of Rs. 500/- or more or aminimum of 6 cheques each of Rs. 1,000/- or more fromany SIP investor. However, in case of FTLF FranklinTempleton Mutual Fund will accept a minimum of 12cheques each of Rs. 2,000/- or more or a minimum of 6cheques each of Rs. 4,000/- or more, in case of FTDPEF aminimum of 12 cheques each of Rs.1000 or more or aminimum of 6 cheques each of Rs.2000/- or more and incase of TGSF – PF Plan, a minimum 12 cheques each of Rs.10,000/- or more or a minimum of 6 cheques each of Rs.20,000/- or more from any SIP investor.

• All the SIP cheques (except the first one) must beuniformly dated i.e. either the 1st, 7th, 10th, 20th or 25thof a month. Investors can invest at Monthly or Quarterlyintervals by providing post-dated cheques. All chequesshould be for the same amount.

• Only one instalment per month/quarter is allowed underone SIP registration. e.g., if for a monthly SIP, the firstinstalment is in the month July, say 2nd July, then thesecond instalment should be in August.

• In case the specified date is a non-business day for thescheme, the SIP will be processed on the followingbusiness day for that scheme.

• If during the currency of a SIP, the unitholder changes theplan or option in which he/she had invested, the samewould be treated as termination of existing SIP and re-registration of a new SIP and all the terms and conditionsof the SIP such as minimum term/amount etc. shall applyin both plans/options.

• Load: For all SIP purchase transactions, the entry and exitload as applicable for normal purchases shall be applicable.

• The AMC reserves the right to discontinue the SIP in caseof cheque return, and debit the cheque return charges tothe investors’ account.

• The Trustee/AMC reserves the right to modify ordiscontinue the SIP facility at any time in future on aprospective basis.

It is clarified that the load applicable for SIP shall be theload prevailing on the date of registration.

Systematic Transfer Plan (STP)This facility is available in the following schemes/plans("Source Schemes"): Templeton India Income Fund(TIIF), Templeton India Income Builder Account (TIIBA),Templeton Monthly Income Plan@ (TMIP), FT IndiaMonthly Income Plan@ (FTIMIP), Templeton IndiaGovernment Securities Fund (except PF Plan) (TGSF),Templeton Floating Rate Income Fund (TFIF), TempletonIndia Short-Term Income Plan (TISTIP), Templeton IndiaUltra Short Bond Fund (TIUBF), Templeton India TreasuryManagement Account (TITMA) and Templeton IndiaIncome Opportunities Fund (TIIOF).

• In order to start the STP facility, the minimum accountbalance under Fixed Amount Option should be Rs. 12,000,and the same under Capital Appreciation Option should be

• Rs. 5,00,000/- for Weekly Transfer of Funds facility(Weekly STP)

• Rs. 1,00,000/- for Monthly Transfer of Funds facility(Monthly STP)

• Rs. 1,00,000/- for Quarterly Transfer of Funds facility(Quarterly STP).

Except in TITMA – Institutional Plan where the sameshould be Rs. 1,00,00,000.

• Options: There are two options available, Fixed AmountOption and Capital Appreciation Option. The CapitalAppreciation option will be available only under thegrowth plans of the Source Schemes.

• Frequency: The frequency can be Weekly, Monthly orQuarterly.

• Transfer of Funds:

Transfer of Funds Fixed Amount Option Capital AppreciationOption

Weekly STP A fixed amount can be The capitaltransferred on the 7th, appreciation as on the14th, 21st and 28th immediatelyday of every month preceding businessto the specified day for the SourceDestination Scheme Scheme can be

transferred to thespecified Destination

Scheme, on the 7th,14th, 21st and 28thday of every month.

Monthly STP/ A fixed amount can be The capitalQuarterly STP transferred on a pre- appreciation as on the

specified date (to be last business day ofchosen by the investor) every month/quarterof every month/every can be transferred toquarter to the specified the specifiedDestination Scheme Destination Scheme

• In case the specified date is a non-business day for eitherthe Source Scheme or the Destination Scheme, the STP willbe processed on the following business day for both theschemes. The STP will be applicable subject to the terms ofthe destination scheme.

• Minimum Amount and Term:

(a) Under the Fixed Amount Option

Transfer Frequency Destination Scheme

Equity / Hybrid Scheme FOF Scheme

Weekly STP Rs. 500 per week Rs. 1,000 per weekfor 6 months for 6 months

Monthly STP Rs. 1,000 per month Rs. 4,000 per monthfor 6 months or for 6 months or .Rs. 500 per month Rs 2,000 per monthfor 12 months for 12 months

Quarterly STP Rs. 1,000 per quarter Rs. 4,000 per quarterfor 6 quarters or for 6 quarters or Rs.Rs. 500 per quarter 2,000 per quarter forfor 12 quarters 12 quarters

(b) Under Capital Appreciation Option, the minimum termshall be 6 months.

• Load: For all STP purchase transactions, the entry and exitload as applicable in the Destination Scheme for normalpurchases shall be applicable. Further, for all STP (out)transactions, an exit load as applicable in the SourceScheme shall be levied.

• At least 7 days’ prior intimation should be given to theMutual Fund for commencement of a fresh STP orcancellation/termination of an existing STP.

• If during the currency of a STP, the unitholder changes theplan or option in which he/she had invested, the samewould be treated as termination of existing STP and re-registration of a new STP and all the terms and conditionsof the STP such as minimum term/amount etc. shall applyin both plans/options.

• If in case of a monthly/quarterly STP with Fixed AmountOption, if the unitholder specifies 30th or 31st of themonth (28th/29th in case of February) as the "SpecifiedDate" for the STP transaction, then the STP shall beprocessed on the day, which is the last business day in thatmonth for both the schemes.

• Where the Start Date of the STP is not mentioned, then foran STP under Monthly/Quarterly option, the Start Dateshall be deemed as follows:

If STP is submitted …….. Then Start Date shall be deemedto be ……

On or before 8th day of 15th day of that monththe month

After 8th day but on or before23rd day of the month last business day of that month for

both the schemes

After 23rd day of the month 15th day of the next month

• This facility is not available for investments under lock-inperiod or on which any lien or encumbrances is marked orin respect of which the status of realisation of cheque is notavailable to the AMC.

• It shall be the responsibility of the investor to ensure thatsufficient balance (free from any Lock-in orencumbrances) is available in the account on the date oftransfer, failing which the transfer will not be effected. TheAMC reserves the right to discontinue the STP in case thetransfer is not effected due to insufficient balance in theinvestor’s account.

• The AMC/Trustees reserve the right to discontinue ormodify the STP facility at any time in future on aprospective basis.

It is clarified that the load applicable for STP shall be theload prevailing on the date of registration.

Dividend Transfer Plan (DTP)This facility is available to the investors of variousdividend plans (except Daily Dividend and WeeklyDividend Plans) of all open – end schemes of FranklinTempleton Mutual Fund (except Templeton India CashManagement Account). An investor can select thisfacility whereby the dividend declared in one FranklinTempleton open–end scheme (Source Scheme) will beautomatically invested into any other FranklinTempleton open-end scheme, selected by the investor(Destination Scheme).

• In order to avail the DTP facility, the minimum accountbalance should be Rs. 25,000/-, except in TISTIP where thesame should be Rs. 100,000/-

• The frequency of transfer will depend on the dividendsdeclared by the plan of the Source Scheme in which theinvestment has been made.

• The amount, to the extent of the distribution in the SourceScheme, will be automatically invested in the DestinationScheme at its NAV on the next Business Day for both theschemes and equivalent units will be allotted, subject tothe terms and conditions of the Destination Scheme.

For example: An investor in TMIP opts to invest thedividend in TIGF. If the dividend record day is aWednesday and Thursday is the book closure for TMIP, theinvestor will be allotted units at NAV of Friday. In caseFriday is a non – business day for either TMIP or TIGF, theunits will be allotted at the NAV of immediate nextbusiness day for both the schemes.

• Load: For all DTP purchase transactions, the entry and exitload as applicable for normal purchases# shall beapplicable.

• A DTP may be terminated by the unitholder by givingappropriate written notice.

• The Trustee/AMC reserves the right to modify ordiscontinue the DTP facility at any time in future on aprospective basis.

It is clarified that the load applicable for a DTP shall be theload prevailing on the date of the respective transfer.

Systematic Withdrawal Plan (SWP)• In order to start the SWP facility, the minimum account

balance should be Rs.25,000/- except in case of FTLFwhere the same should be Rs.12,000/-.

• The frequency can be Monthly or Quarterly.

• There are two options available:

(a) Fixed amount: A fixed amount can be withdrawn either onthe 15th or the last business day of every month/quarter.

(b) Capital Appreciation: The capital appreciation as on the lastbusiness day of the month can be withdrawn.

• Load: For all SWP transactions, an exit load as applicablein the respective scheme shall be levied.

• Minimum withdrawal: Under the Fixed amount option,the minimum withdrawal will be Rs.1,000/-.

• Where the Start Date of the SWP is not mentioned, then thesame shall be deemed to be the first available SWP datedepending upon the option chosen by the unitholder, after aperiod of 7 days after the date of submission of the SWP request.

• This facility is not available for investments under lock-inperiod.

It is clarified that the load applicable for SWP shall be theload applicable for the respective purchase transaction.

Please refer to the Statement of Additional Information andScheme Information Document for any further details.

Scheme Comparision

Product positioning: Invests primarily in small cap and mid capcompanies.

No. of Folios (as on January 13, 2011) - 1,00,645

Assets Under Management (as on January 13, 2011) - Rs.632.21 crores

Scheme Comparision

Scheme Name, No. of Investment Strategy Product Positioning

Folios & Assets Under

Management (AUM)

Diversified Equity Fund

Franklin India Focuses on four Takes concentrated

Opportunities themes – stock or sector

Fund (FIOF) (a) Companies that exposures based on

operate in the space four themes.

No. of Folios: where India has a

1,06,596 strong advantage

(b) Globally

Assets Under competitive Indian

Management (AUM): companies that have

Rs. 554.86 crores the potential to

participate in global

opportunities as well

(c) Companies that

are under valued

(d) Companies that

are best positioned to

take advantage of the

opportunities thrown

up by the growing

economy.

The fund follows a

blend of value and

growth style of

investing, and a

bottom-up approach

to stock-picking.

Franklin India High The fund will also Invests in companies/

Growth Companies combine bottom-up sectors with high

Fund (FIHGCF) stock selection with growth rates or above

top down industry average potential

No. of Folios: themes to identify across the market cap

2,80,597 stocks/sectors range

exhibiting above

Assets Under average growth or

Management (AUM): high potential.

Rs. 1096.93 crores The shifts between

companies and sectors

to be identified based

on relative valuations,

liquidity and growth

potential

Franklin India Prima Will invest in a Invests in mid and

Fund (FIPF) diversified portfolio of small cap stocks.

primarily mid and

No. of Folios: small cap stocks.

1,21,577 The fund follows a

blend of value and

Assets Under growth style of

Management (AUM): investing, and a

Rs. 949.18 crores bottom-up approach

to stock-picking.

Franklin Build India Focuses on companies Invests in companies

Fund (FBIF) engaged either directly benefiting from the

or indirectly in building blocks of the

No. of Folios: infrastructure-related economy – multiple

18,657 activities and the themes (infrastructure,

development of the resources, financial

Assets Under Indian economy. services, agriculture

Management (AUM): The fund will follow a and social

Rs. 166.06 crores bottom-up approach development).

to stock-picking and

choose the best

companies across

sectors.

Franklin India Flexi Will invest in Invests in companies

Cap Fund (FIFCF) diversified portfolio of across the market cap

stocks across sectors range.

No. of Folios: and market

3,35,880 capitalisation. Its

exposure to Large,

Assets Under Mid and Small cap

Management (AUM): stocks varies

Rs. 2260.62 crores depending on relative

value and risk/return

profile of the segments.

The fund follows a

blend of value and

growth style of

investing, and a

bottom-up approach

to stock-picking.

Franklin India Will invest in Invests in companies

Taxshield (FIT) diversified portfolio of across sectors and

stocks across sectors market cap range,

No. of Folios: and market capitalisation. offering tax benefits

2,40,125 The fund follows a under Section 80C of

blend of value and the Income Tax Act.

Assets Under growth style of

Management (AUM): investing, and a

Rs. 783.98 crores bottom-up approach

to stock-picking.

Franklin India Focuses on wealth Primarily a large cap

Prima Plus (FIPP) creating companies fund with some

across sectors and allocation to small/mid

No. of Folios: will invest in cap stocks that have

2,40,770 diversified portfolio high long-tem

of primarily large cap potential.

Assets Under stocks, with a

Management (AUM): marginal small/

Rs. 1772.01 crores mid cap exposure.

The fund follows a

blend of value and

growth style of

investing, and a

bottom-up approach

to stock-picking.

Franklin India Index Looks to replicate the Passively managed

Fund (FIIF) - BSE composition of BSE index fund

Sensex Plan (BSE) & Sensex and S&P CNX

NSE Nifty Plan (NSE) Nifty indices.

No. of Folios:

BSE: 4,240; NSE: 6,910

Assets Under

Management (AUM):

BSE: Rs. 64.61 crores,

NSE : Rs. 129.57 crores

Franklin India Will invest in Invests in large cap

Bluechip Fund (FIBCF) diversified portfolio stocks

of stocks which

No. of Folios: have a large market

2,18,253 capitalization and

are liquid.

Assets Under The fund follows a

Management (AUM): blend of value and

Rs.2940.41 crores growth style of

investing, and a

bottom-up approach

to stock-picking.

Templeton India The stock selection Invests predominantly

Growth Fund (TIGF) would generally be in large cap stocks – a

based on value fund

No. of Folios: constructing a

33,861 diversified portfolio

generally of large

Assets Under capitalised and/or

Management (AUM): liquid stocks.

Rs. 548.76 crores In general, the

methodology

adopted by TIGF is

based on the bottom

up value investing

approach.

Templeton India Since TIEIF seeks to Focuses on Indian and

Equity Income look at current or emerging market

Fund (TIEIF) potentially attractive stocks - a value fund

dividend yield, as taking into account

No. of Folios: one of the major dividend yield of

2,39,534 parameters to meet stocks

its investment

Assets Under objectives, TIEIF

Management (AUM): would look at that

Rs. 1191.20 crores parameter while

making investment

decisions.

In general, the

methodology adopted

by TIEIF is based on

the bottom up value

investing approach.

Franklin Asian Focuses on companies Invests in Asian

Equity Fund (FAEF) benefiting from the Companies / sectors

growth opportunities (excluding Japan) with

No. of Folios: in Asia Pacific long term potential

1,20,084 (ex-Japan) region across the market cap

including India. range.

Assets Under The fund managers

Management (AUM): will adopt a

Rs. 372.98 crores combination of

top-down (macro

analysis to identify

countries and sectors)

and bottom-up

(micro analysis

to pick stocks)

approach, and use

the growth

investment style.

Sector Funds

Franklin Infotech The scheme follows Invests in companies

Fund (FIF) a blend of value and in the Information

growth style of Technology sector

No. of Folios: investing and uses a

26,986 bottom-up approach

12

to stock-picking.

Assets Under The scheme will

Management (AUM): invest primarily in

Rs. 140.08 crores stock of companies

operating in

information

technology sector.

Franklin FMCG The scheme follows a Invests in Fast Moving

Fund (FFF) blend of value and Consumer Goods

growth style of (FMCG) companies



to stock-picking.



Rs.34.61 crores stock of companies

operating in FMCG

sector as also in media

companies.

Franklin Pharma The scheme follows a Invests in

Fund (FPF) blend of value and pharmaceutical/life

growth style of sciences companies



to stock-picking.



Rs. 103.41 crores stock of companies

operating in

pharmaceuticals /

life sciences industry.

Hybrid Funds

FT India Balanced Equity: The scheme Invests both in stocks

Fund (FTIBF) follows a blend of and fixed income

value and growth instruments offering a

No. of Folios: style of investing. balanced exposure to

20,218 The fund will follow the asset classes

a bottom-up

Assets Under approach to

Management (AUM): stock-picking and

Rs. 298.08 crores choose companies

across sectors. Will

invest in diversified

portfolio of stocks

with predominant

exposure to large caps.

The debt portion of

the scheme will be

invested in high

quality fixed income

instruments.

Templeton India The equity portion Ideal avenue for

Children's Asset follows a blend of investing for children’s

Plan (TICAP) value and growth future

style of investing, Gift Plan : Invests in

No. of Folios: and will invest in equities (upto 75%)

EP: 574, GP: 1,947 diversified portfolio and in debt securities

of stocks with Education Plan :

Assets Under predominant Invests in equities

Management (AUM): exposure to (upto 20%) and in debt

EP: Rs. 1.42; Large caps. The securities

GP: Rs.6.77 crores fund will follow a

bottom-up approach


choose companies

across sectors.

The debt portion of

the scheme will be

invested in high


instruments.

Templeton India The equity portion Invests in equities

Pension Plan (TIPP) follows a blend of (upto 40%) and the

value and growth balance in high quality

No. of Folios: style of investing, fixed income

28,527 and will invest in instruments – a

diversified portfolio retirement product

Assets Under of stocks with offering tax benefits

Management (AUM): predominant with a lock-in.

Rs. 199.64 crores exposure to Large

caps. The fund

will follow a

bottom-up approach


choose companies

across sectors.

The debt portion of

the scheme will be

invested in high


instruments.

Fund of Funds

FT India Dynamic The equity allocation A Fund of Fund

PE Ratio Fund of [i.e. the allocation offering tactical

Funds (FTDPEF) to Franklin India allocation between an

Bluechip Fund equity and debt fund,

No. of Folios: (FIBCF)] will be based on market

11,715 determined based valuations (PE Ratio)

on the month-end

Assets Under weighted average

Management (AUM): PE ratio of the

Rs. 547.66 crores S&P CNX Nifty

index (NSE Nifty).

The CIO – Equity

will decide the

equity component

based on the month-

end weighted

average PE ratio

of the NSE Nifty.

The remaining will

be deployed in

Templeton India

Income Fund (TIIF).

FT India Life Stage The primary objective A Fund of Fund

Fund of Funds is to generate superior offering life stage

(FTLF) risk adjusted returns solutions - with

to investors in line different plans of

No. of Folios: with their chosen varying asset allocation

20’s plan: 1,089 asset allocation with (The 20s Plan, The 30s

30’s plan: 592 tactical allocation. Plan, The 40s Plan,

40’s plan: 940 The Scheme invests The 50s Plus Plan, The

50’s plus plan:567 in underlying schemes 50s Plus Floating Rate

50’s plus floating with a balanced Plan)

rate plan: 2,662 approach based on

predetermined asset

Assets Under allocation with half-

Management (AUM): yearly rebalancing

20s Plan: Rs. 14.78

crores; 30s Plan:

Rs. 8.28 crores;

40s Plan: Rs. 14.13

crores; 50s Plus Plan:

Rs. 12.88 crores;

50s Plus Floating

Rate Plan

Rs. 179.49 crores

Income Funds

Templeton India Seeks to provide Invests primarily in

Government Securities capital appreciation Indian government

Fund (TGSF) by primarily investing securities with

in Indian government different plans suitable

No. of Folios: securities and actively for varying investment

CP: 1,924 managing the portfolio horizons

PF: 82 duration based on

LT: 1,338 market conditions

TP: 227

Assets Under

Management (AUM):

TGSF - CP Rs. 84.39 crores

TGSF - PF Rs. 32.68 crores

TGSF - TP Rs. 279.47 crores

TGSF - LT Rs. 71.62 crores

Templeton India Strives to deliver A long bond fund

Income Builder superior risk-adjusted investing in quality

Account (TIIBA) returns by actively fixed income

managing a portfolio instruments across

No. of Folios: of high quality fixed segments – focuses on

6,603 income securities. Corporate/PSU Bonds.

Has a moderate to high

Assets Under interest rate sensitivity

Management (AUM):

Rs. 72.05 crores

Templeton India Looks to earn steady A long bond fund

Income Fund (TIIF) returns in the fixed investing in quality

income market by fixed income

No. of Folios: actively managing the instruments across

8,411 fund’s portfolio on segments.

interest rate

Assets Under movements and

Management (AUM): credit risks.

Rs. 406.48 crores

Templeton Monthly Maintains a pure debt An MIP with pure debt

Income Plan (TMIP) portfolio and strives to exposure. Has a

earn steady returns in moderate to high

No. of Folios: the fixed income interest rate sensitivity

1,184 market by actively

managing the funds

Assets Under portfolio on interest

Management (AUM): rate movements and

Rs. 25.93 crores credit risks.

FT India Monthly The debt portion will An MIP investing

Income Plan (FTIMIP) be primarily invested predominantly in debt

in high quality fixed instruments with a

No. of Folios: income securities. For marginal exposure to

23,698 the equity portion, the equities (Equity

scheme follows a blend exposure: Upto 20%)

Assets Under of value and growth

Management (AUM): style of investing and a

Rs. 440.65 crores bottom-up approach to

stock-picking.

Templeton India Focuses on investment Invests in short term

Short-Term Income opportunities at the corporate bonds

Plan (TISTIP) short-end of the curve. including PTCs –

positioned between a

No. of Folios: long bond fund and

17,672 liquid fund.

Assets Under

Management (AUM):

Rs. 5442.50 crores

Templeton Floating Looks to minimise the Invests primarily in

Rate Income Fund - risk arising from floating and short term

Long Term Plan interest rate fixed rate debt

(TFIF-LT) fluctuations. instruments, has a

moderate interest rate

No. of Folios: sensitivity

6,986

Assets Under

Management (AUM):

Rs. 2027.02 crores

Templeton India Focuses on emerging Invests across the yield

Income Opportunities opportunities in the curve and takes

Fund (TIIOF) fixed income market concentrated exposure

and has the flexibility to a particular security

No. of Folios: to take concentrated class based on

4, 142 exposure to a macro/micro analysis.

particular security E.g., in its initial years,

Assets Under class based on macro/ it is focusing on

Management (AUM): micro analysis. securitised debt and

Rs. 1719.96 crores high accrual securities

to take advantage of

the yield premiums.

Templeton India Strives to strike an Invests in short term

Ultra-short Bond optimum balance debt and money

Fund (TIUBF) between regular market instruments –

income and high positioned between a

No. of Folios: liquidity through a short term income

2,947 judicious mix of fund and liquid fund.

short term debt and Has low interest rate

Assets Under money market sensitivity

Management (AUM): instruments.

Rs. 2064.97 crores

Liquid Funds

Templeton Floating Strives to minimize Invests primarily in

Rate Income Fund - the risk arising floating/fixed rate debt

Short Term Plan from interest rate instruments and has

(TFIF-ST) fluctuations by low interest rate

investing in a mix sensitivity

No. of Folios: of short duration

8,291 bonds and floating

rate debt instruments.

Assets Under

Management (AUM):

Rs. 422.63 crores

Templeton India Strives to provide Invests in short term

Treasury Management steady income and debt and money

Account (TITMA) high liquidity through market instruments

a judicious mix of

No. of Folios: short term debt and

4,515 money market

instruments.

Assets Under

Management (AUM):

Rs. 1332.55 crores

Templeton India Seeks to achieve Invests primarily in

Money Market capital preservation money market

Account (TIMMA) along with current instruments. 15 days

income through a compulsory lock-in.

No. of Folios: portfolio of money

1,629 market instruments

Assets Under

Management (AUM):

Rs. 32.88 crores

Note:The data on No. of Folios and Assets Under Management is onMarch 31, 2010.

Addendum to the Scheme Information Documents ofopen-end schemes of Franklin Templeton Mutual Fund

Introduction of Daily Systematic Transfer Plan (STP)

With a view to enhance and standardise the services to theinvestors, the following changes are being made in the existingterms of Systematic Transfer Plan (STP) facility w.e.f. May 17,2010, as detailed below:

• Franklin Templeton Mutual Fund now introduces anadditional frequency of Daily transfer under the FixedAmount Option.

• Under this option, a fixed amount can be transferred fromthe Source Scheme to the Destination Scheme on everyBusiness Day for both the schemes.

• In order to start the Daily STP, the minimum accountbalance in the Source Scheme should be Rs.15,000.

• The minimum amount for Daily STP will be Rs.500 perday if the Destination Scheme is an equity or a hybridscheme and Rs.1,000 per day if the Destination Scheme isa Fund of Funds (FOF) scheme. The minimumterm/duration of Daily STP will be 30 days.

• Currently, the Daily STP will be accepted/ registered for amaximum duration of 3 years.

• Where the start date of the Daily STP is not mentioned,then the start date shall be deemed to be the 8th day fromthe date of submission of the request at any of FranklinTempleton ISC / Collection Centres.

The Trustee/AMC reserves the right to modify or discontinue thisfacility at any time in future on a prospective basis.

All the other terms and conditions of the STP facility and theScheme Information Document of the respective schemes, readwith the addenda issued from time to time, will remain unchanged.

The aforesaid changes shall be applicable only in thoseschemes/plans in which the STP facility is currently available.This addendum forms an integral part of the respective SchemeInformation Documents, read with the addenda.

This addendum is dated May 13, 2010.

Addendum to the Statement of Additional Information andScheme Information Documents of schemes of Franklin

Templeton Mutual FundChange in key personnel:

Mr. Vivek Ahuja will cease to be the key personnel and fund managerof Franklin Templeton Asset Management (India) Pvt. Ltd., the AMC,effective June 22, 2010 on account of internal restructuring.

The scheme portfolios co-managed by Mr. Vivek Ahuja wouldbe managed solely by the other co-fund manager of therespective scheme portfolios effective that day.

This addendum forms an integral part of the Statement ofAdditional Information / Scheme Information Documentsissued for respective scheme, read with the addenda.

This addendum is dated June 21, 2010.

Addendum to the Scheme Information Documents ofTempleton India Ultra-short Bond Fund and Templeton

Floating Rate Income FundChange in Exit load w.e.f. June 30, 2010:

Name of the Scheme Existing Exit Load Revised Exit Load

Templeton India Ultra- 0.25% if redeemed Nilshort Bond Fund within 7 days from

the date of allotment

Templeton Floating Rate 0.25% if redeemed In respect of eachIncome Fund – within 14 days of purchase of Units –Long Term Plan allotment 0.25% if redeemed

within 30 days ofallotment

All prior investments continue to be subject to the loadstructure applicable at the time of the respective investment.The Trustee reserves the right to modify/introduce aload/fee/charge at any time in future on a prospective basis,subject to the limits prescribed under the Regulations.

Addendum to the Scheme Information Document ofTempleton India Short Term Income Plan (TISTIP)

With a view to enhance and standardise the services to the

investors, the Systematic Withdrawal Plan (SWP) facility isbeing introduced in the Retail Plan of the Scheme w.e.f. June 30,2010 as per terms and conditions mentioned below:

➢ This facility is available only in Growth Option of TISTIP– Retail Plan.

➢ In order to start the SWP facility, the minimum accountbalance should be Rs.25,000/-.

➢ The frequency can be Monthly or Quarterly

➢ There are two options available:

(a) Fixed amount: A fixed amount can be withdrawneither on the 15th or the last business day of everymonth/quarter

(b) Capital Appreciation: The capital appreciation as onthe last business day of the month can be withdrawn.

➢ Load: For all SWP transactions, the exit load as applicablefor normal purchases shall be applicable.

➢ Minimum withdrawal: Under the Fixed amount option,the minimum withdrawal will be Rs.1,000/-

➢ Where the Start Date of the SWP is not mentioned, thenthe same shall be deemed to be the first available SWP datedepending upon the option chosen by the unitholder, aftera period of 7 days after the date of submission of the SWPrequest.

➢ This facility is not available for investments under lock-inperiod.

It is clarified that the load applicable for SWP shall be the loadapplicable for the respective purchase transaction.

All the other terms and conditions of the Scheme InformationDocument of the respective Scheme, read with the addendaissued from time to time, will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document of the respective Scheme, read with theaddenda.

This addendum is dated June 25, 2010.


Templeton Mutual FundChange in Key Personnel:

Mr. Umesh Sharma, Vice President, has been appointed as theFund Manager in Fixed Income Team effective July 05, 2010.His details are as follows:

Age: 33 Years; Qualifications: B.Com., C.A., C.S., C.F.A.;Functions & Experience (Total Experience - 10 years): He isbased at Mumbai and is responsible for investments and fundmanagement.

Prior assignments: Portfolio Manager - Fixed Income, ReligareMutual Fund (2008-2010), responsible for managing fixedincome bond portfolios. Portfolio Manager- Fixed Income,Lotus India Mutual Fund (2006-2008), responsible formanaging fixed income bond portfolios. Chief Manager, ICICIBank (2005-2006), undertook analysing of investmentopportunities in international USD bonds. Manager – FixedIncome, JM Financial Mutual Fund (2003-2005), undertookmacro research in order to gauge interest rate trends & creditresearch. Primary Dealer, UTI Mutual Fund (2000-2003),involved in analyzing and recommending investments in debtand equity.

Effective the date of Mr. Sharma’s appointment as fund manager,the following schemes will be managed by the fund managers asmentioned against the respective scheme:

Schemes Fund Managers

• Templeton India Government Securities Fund Sachin Padwal-Desai

Debt Portfolios of Umesh Sharma

• Templeton Monthly Income Plan@

• FT India Monthly Income Plan@

• FT India Balanced Fund

• Templeton India Pension Plan

• Templeton India Children’s Asset Plan

• Templeton India Income Builder Account Umesh Sharma

• Templeton India Income Fund Sachin Padwal-Desai

• Templeton India Short Term Income Plan

• Templeton India Income Opportunities Fund

Debt Portfolios of

• Franklin Templeton Fixed Tenure Fund – Umesh SharmaSeries II – 60 Months Plan

• Franklin Templeton Fixed Tenure Fund – Pallab RoySeries IV – 60 Months Plan

• Franklin Templeton Fixed Tenure Fund –Series VI – 60 Months Plan

• Franklin Templeton Fixed Tenure Fund –Series VIII – 60 Months Plan

• Franklin Templeton Fixed Tenure Fund –Series IX

• Franklin Templeton Fixed Tenure Fund –Series X

• Franklin Templeton Fixed Tenure Fund –Series XII

• Franklin Templeton Fixed Tenure Fund –Series XIII

• Franklin Templeton Fixed Tenure Fund –Series XIV

• Franklin Templeton Capital Safety Fund

• Franklin Templeton Capital ProtectionOriented Fund

• Templeton India Money Market Account Pallab Roy

• Templeton India Cash Management Account Umesh Sharma

• Templeton Fixed Horizon Fund – Series IV

All the other terms and conditions of the respective SchemeInformation Documents, read with the addenda issued fromtime to time will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document issued for respective schemes, read withthe addenda.

@ Income is not assured, and is subject to availability ofdistributable surplus.

This addendum is dated July 02, 2010.

Addendum to the Scheme Information Document ofTempleton Monthly Income Plan

• Change in name of the scheme:

The name of the Scheme stands changed from ‘Templeton

13

Monthly Income Plan’ to ‘Templeton India Low DurationFund’ (TILDF) with effect from July 26, 2010.

• Introduction of Growth Plan:

The Scheme would introduce a new Plan w.e.f. July 26,2010, which will be termed as the ‘Growth Plan’:

Issue opening and closing date: July 26, 2010 (Monday)

Ongoing sales and redemption: July 27, 2010 (Tuesday)

Asset Allocation:

Under normal circumstances, the asset allocation of the newPlan in the scheme would be as follows:

Instruments Profile Risk Profile % of corpus

(Min%-Max%)

Debt including Corporate Debt, Low to Medium Up to 100%PSU Bonds, Gilts and Securitised Debt

Money Market Instruments Low Up to 20%

Equity & Equity Linked Medium to High Up to 15%

Notwithstanding what is stated in the foregoing table, theInvestment Manager shall have the right to alter the above assetallocation for a short-term period on defensive consideration.

Please note that the new Plan has the same investmentobjectives and investment pattern as that of the existingscheme. The scheme maintains a pure debt portfolio.

Load:

Entry : Nil

Exit : In respect of each purchase of Units – 0.50% if theUnits are redeemed/ switched-out within 3 months ofallotment

Minimum subscription/redemption:

The minimum investment/redemption amounts under this Planwill be as under:

Minimum Investment Rs.10,000

Additional Investment Rs.1,000

Minimum Redemption Rs.1,000

The Plan will have the same portfolio as that of the existingscheme and hence the same investment objectives,investment pattern and expense ratio as that of the existingscheme. Since this Plan is within an existing portfolio, theFund does not have any target for minimum subscriptionamount for this new Plan.

The Units of the Plan will be available at Rs.10 per Unit on July26, 2010 and at NAV based prices thereafter.

The change in name of the scheme and the introduction ofGrowth Plan under the scheme has been approved by theBoards of the AMC and the Trustee Company.

All the other terms and conditions of the Scheme InformationDocument, read with the addenda issued from time to time willremain unchanged.

This addendum forms an integral part of the SchemeInformation Document issued for the scheme, read with theAddenda.

This addendum is dated July 22, 2010.

Addendum to the Scheme Information Document ofTempleton India Income Opportunities Fund

Introduction of facility for subscription and redemption of unitsthrough stock exchange infrastructure:

With a view to increase the network and enhance the servicelevels for investors, Franklin Templeton Mutual Fund(“FTMF”) extends the facility to subscribe and redeem the unitsof the scheme Templeton India Income Opportunities Fund(“TIIOF”) through the infrastructure of the National StockExchange of India Ltd. (“NSE”) and Bombay Stock ExchangeLtd. (“BSE”) effective August 16, 2010. This facility is offered interms of SEBI circular no. SEBI/IMD/CIR No.11/183204/2009dated November 13, 2009 and the guidelines issued by NSE andBSE in this regard. Only subscriptions of amount less than Rs.1crore will be permitted through this facility.

All the salient features of the above mentioned facility wouldremain the same as specified in the Scheme InformationDocument of the open end Income and Liquid schemes datedMay 31, 2010, read with the addenda.

Addendum to the Scheme Information Document ofTempleton India Short Term Income Plan

Redemption of amount of Rs.1 crore and above will also bepermitted through the infrastructure of NSE and BSE effectiveAugust 16, 2010.

All the other terms and conditions of the Scheme InformationDocument of the respective Scheme, read with the addendaissued from time to time, will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document of the respective Scheme, read with theaddenda.

This addendum is dated August 11, 2010.


Templeton Mutual Fund

Shifting of Office at Adyar, Chennai:

The Franklin Templeton Investor Service Cell and the in-houseRegistrar & Transfer Agent activities situated at Adyar, Chennaiwill shift to the following premises w.e.f. August 23, 2010:

Unit 301, III Floor

Campus 4B

RMZ Millenia Business Park

143 Dr. MGR Road

Kandanchavadi

Chennai 600096

Tel: 1-800-425 4255 or 6000 4255 (Please prefix the city STDcode if calling from a mobile phone. Local call rates apply toboth the numbers) from 8:00 a.m. to 9:00 p.m., Monday toSaturday.

This addendum forms an integral part of the Statement ofAdditional Information and the Scheme Information Documentof the respective schemes, read with the addenda issued fromtime to time.

This addendum is dated August 20, 2010.

Addendum to the Scheme Information Document ofTempleton India Money Market Account

Merger of Templeton India Money Market Account (TIMMA)into Templeton India Treasury Management Account (TITMA):

TIMMA would be merged into TITMA - Liquid Plan as on

October 22, 2010. Consequently, from the date of mergeri.e., effective October 22, 2010,

• the investors of Dividend Plan under TIMMA wouldbecome investors of the Daily Dividend ReinvestmentOption in TITMA – Liquid Plan; and

• the investors of Bonus Plan under TIMMA would becomeinvestors of the Growth Option in TITMA - Liquid Plan.

The requirement of minimum application amount for freshand additional purchase of units as mentioned in theScheme Information Document will not be applicable inrespect of the units of TITMA allotted to the investors ofTIMMA on account of the merger.

Further, the portfolio of TIMMA as on the date of merger,which is valued as per SEBI Guidelines, will be mergedwith the portfolio of TITMA.

In terms of prevailing regulatory requirements, investors inTIMMA are given an option to exit at the prevailing NetAsset Value without any exit load, in case they do not wishto approve the merger (subject to completion of the lock-in period which is 15 days from the date of allotment). Theperiod of this no load exit offer is valid from September 23,2010 to October 22, 2010. The normal redemption formmay be used for this purpose and submitted at any of theFranklin Templeton ISCs/Collection Centres. Unitholderswho do not exercise the exit option on or before October22, 2010 would be deemed to have consented to theproposed change.

The sale of the units of TIMMA (including switch-in) willstand suspended w.e.f. September 23, 2010.

All the other terms and conditions of the SchemeInformation Document, read with the addenda issued fromtime to time, will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document of the Scheme, read with theaddenda issued from time to time.

This addendum is dated September 15, 2010.

Addendum to the Scheme Information Document ofTempleton India Treasury Management Account

Merger of Templeton India Money Market Account (TIMMA)into Templeton India Treasury Management Account (TITMA):

TIMMA would be merged into TITMA - Liquid Plan as onOctober 22, 2010. Consequently, from the date of mergeri.e., effective October 22, 2010,

• the investors of Dividend Plan under TIMMA wouldbecome investors of the Daily Dividend ReinvestmentOption in TITMA – Liquid Plan; and

• the investors of Bonus Plan under TIMMA would becomeinvestors of the Growth Option in TITMA - Liquid Plan.

Further, the portfolio of TIMMA as on the date of merger,which is valued as per SEBI Guidelines, will be mergedwith the portfolio of TITMA.

In respect of the units in TIMMA which are under any lienor encumbrance, such lien or encumbrance will continueon the units allotted in TITMA on account of merger.

In terms of prevailing regulatory requirements, investors inTITMA are given an option to exit at the prevailing NetAsset Value without any exit load, in case they do not wishto continue in this scheme in view of this merger. Theperiod of this no load exit offer is valid from September 23,2010 to October 22, 2010. The normal redemption formmay be used for this purpose and submitted at any of theFranklin Templeton ISCs/Collection Centres. Unitholderswho do not exercise the exit option on or before October22, 2010 would be deemed to have consented to theproposed change. Please note that the exit option withoutload will not be available to investments in TITMA madeon or after September 23, 2010.

All the other terms and conditions of the SchemeInformation Document, read with the addenda issued fromtime to time will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document of the Scheme, read with theaddenda issued from time to time.


Addendum to the Scheme Information Document ofFT India Dynamic PE Ratio Fund of Funds

Introduction of Systematic Withdrawal Plan:

With a view to enhance and standardise the services to theinvestors, the Systematic Withdrawal Plan (SWP) facility isbeing introduced in the Scheme w.e.f. October 01, 2010 as perterms and conditions mentioned below:

A Unitholder may establish a Systematic Withdrawal Plan in theScheme and receive monthly/quarterly payments from theaccount. The Unitholder can opt to withdraw a fixed amount orcapital appreciation, subject to a prescribed minimum amountper month or per quarter. Unitholders may change the amount(but not below the specified minimum) by giving written noticeto the AMC / Registrar.

Highlights:

• In order to start the SWP facility, the minimum accountbalance should be Rs.25,000/-.

• The frequency can be Monthly or Quarterly.

• There are two options available:

(a) Fixed amount: A fixed amount can be withdrawneither on the 15th or the last business day of everymonth/quarter.

(b) Capital Appreciation: The capital appreciation as onthe last business day of the month can be withdrawn.

• Load: For all SWP transactions, the exit load as applicablefor normal purchases shall be applicable.

• Minimum withdrawal: Under the Fixed amount option,the minimum withdrawal will be Rs.1,000/-.

• Where the Start Date of the SWP is not mentioned, thenthe same shall be deemed to be the first available SWP datedepending upon the option chosen by the Unitholder, aftera period of 7 days after the date of submission of the SWPrequest.

• This facility is not available for investments under lock-inperiod or on which any lien or encumbrance is marked orin respect of which the status of realisation of cheque is notavailable to the AMC.

• The Trustee/AMC reserves the right to modify or

discontinue the SWP facility at any time in future on aprospective basis.

An SWP may be terminated on appropriate written notice by theUnitholder of the Fund, and it may terminate automatically ifall the units are liquidated or withdrawn from the account, orupon the Fund's receipt of notification of death or incapacity ofthe Unitholder.

It is clarified that the load applicable for a SWP shall be the loadapplicable for the respective purchase transaction.

All the other terms and conditions of the Scheme InformationDocument of the Scheme, read with the addenda issued fromtime to time, will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document, read with the addenda.


Addendum to the Scheme Information Document ofTempleton Floating Rate Income Fund

Consolidation of Templeton Floating Rate Income Fund(TFIF):

The scheme, TFIF would be consolidated by merging the ShortTerm Plan (ST) of TFIF into Long Term Plan (LT) of TFIF as onNovember 26, 2010. Consequently, from the date of merger i.e.,effective November 26, 2010,

• The Retail Option under TFIF-ST is proposed to be mergedinto Retail Option under TFIF-LT;

• The Institutional Option in TFIF-ST is proposed to bemerged into Institutional Option under TFIF-LT;

• The Growth and Dividend Reinvestment Options undereach merging Option of TFIF-ST are proposed to bemerged into the Growth and Dividend ReinvestmentOptions under each merged Option of TFIF-LT,respectively.

Further, the portfolio of TFIF-ST as on the date of merger,which is valued as per SEBI Guidelines, will be merged with theportfolio of TFIF-LT.

Subsequent to the merger, the nomenclature ‘Long Term Plan’will be deleted from the name of the continuing scheme/planand the scheme with the consolidated portfolio will be referredas Templeton Floating Rate Income Fund. The scheme willcontinue to be categorised as debt (non liquid) scheme.

The requirement of minimum application amount for fresh andadditional purchase of units as mentioned in the SchemeInformation Document will not be applicable in respect of theunits of TFIF-LT allotted to the investors of TFIF-ST on accountof the merger.

In respect of the units in TFIF-ST which are under any lien orencumbrance, such lien or encumbrance will continue on theunits allotted in TFIF-LT on account of merger.

In terms of prevailing regulatory requirements, investors inTFIF – ST and LT are given an option to exit at the prevailingNet Asset Value without any exit load, in case they do not wishto continue in this scheme in view of this merger. The period ofthis no load exit offer is valid from October 28, 2010 toNovember 26, 2010. The normal redemption form may be usedfor this purpose and submitted at any of the Franklin TempletonISCs/Collection Centres. Unitholders who do not exercise theexit option on or before November 26, 2010 would be deemedto have consented to the proposed change. Please note that theexit option without load will not be available to investments inTFIF-LT (i.e. the merged plan) made on or after October 28,2010.

The sale of the units of TFIF-ST i.e., the merging plan(including switch-in) will stand suspended w.e.f. October 28,2010.

All the other terms and conditions of the Scheme InformationDocument, read with the addenda issued from time to time, willremain unchanged.

This addendum forms an integral part of the SchemeInformation Document of the Scheme, read with the addendaissued from time to time.

This addendum is dated October 18, 2010.

Addendum to the Scheme Information Document ofTempleton India Low Duration Fund

The Fund proposes to change the asset allocation pattern,investment strategy and benchmark index of the schemeTempleton India Low Duration Fund (TILDF) w.e.f. November29, 2010 in light of the recent changes in the regulatoryenvironment and market conditions. The changes in theScheme are as mentioned below:

Revised Asset Allocation Pattern:

Under normal market circumstances, the investment rangewould be as follows:

Instruments As % of Net Asset

(Min. – Max.)

Debt including Corporate Debt, PSU Bonds,Gilts and Securitised Debt 10% - 80%Money Market Instruments 20% - 90%

Revised Investment Strategy: Strives to earn steady returns inthe fixed income market by actively managing the portfoliowhile maintaining a low duration.

New Benchmark: CRISIL Short-Term Bond Fund Index.

CRISIL Short-Term Bond Fund Index is deemed to be moreappropriate benchmark given that the fund invests in lowduration securities.

Product positioning: An income fund focusing on low durationsecurities.

Fund Managers: Sachin Padwal-Desai and Umesh Sharma

The change in asset allocation pattern being a change inFundamental Attributes of the Scheme, in terms of prevailingregulatory requirements, investors in TILDF are given an optionto exit at the prevailing Net Asset Value without any exit load,in case they do not wish to continue in this scheme in view ofthe change in asset allocation pattern. The period of this no loadexit offer is valid from October 28, 2010 to November 26, 2010.The normal redemption form may be used for this purpose andsubmitted at any of the Franklin Templeton ISCs/CollectionCentres. The no load exit option will be available only to thoseinvestments in TILDF made prior to October 28, 2010.Unitholders who do not exercise the exit option on or beforeNovember 26, 2010 would be deemed to have consented to theproposed change.

The change in asset allocation pattern, investment strategy and

benchmark index of the scheme has been approved by theBoards of the AMC and the Trustee Company.

All the other terms and conditions of the Scheme InformationDocument, read with the addenda issued from time to time willremain unchanged.

This addendum forms an integral part of the SchemeInformation Document issued for the scheme, read with theAddenda.

This addendum is dated October 18, 2010.

Addendum to the Scheme Information Documents andStatement of Additional Information of schemes of Franklin

Templeton Mutual Fund• Non acceptance of Third Party payment w.e.f. November

15, 2010

Effective November 15, 2010, the AMC shall not acceptsubscriptions with Third Party payment instruments in theschemes of Franklin Templeton Mutual Fund, except infollowing cases:

(a) Payment by Parents/Grand-Parents/related personson behalf of a minor in consideration of natural loveand affection or as gift for a value not exceedingRs.50,000/- (each regular purchase or per SIPinstalment);

(b) Payment by Employer on behalf of employee underSIP through Payroll deductions;

(c) Payment by Employer towards subscription in thename of employees as bonus/incentive paid in form ofmutual fund units;

(d) Custodian on behalf of an FII or a client; and

(e) Investment in Templeton India Children’s Asset Plan– Gift Plan by eligible investors to assist thebeneficiary child, provided the payment is made fromthe investor’s account.

For this purpose (i) Third Party payment shall mean paymentmade through instruments issued from an account other thanthat of the beneficiary investor. It is clarified that in case ofpayments from a joint bank account, the first holder of themutual fund folio has to be one of the joint holders of the bankaccount from which payment is made; and (ii) ‘related persons’shall mean such persons as may be specified by the AMC fromtime to time.

The investors making an application under the exceptioncases mentioned above need to submit such declarationsand other documents / information as may be prescribed bythe AMC from time to time.

The AMC may specify such procedures for registration ofone or more bank accounts of the investor for their mutualfund folio/accounts and its verification, as may be deemedappropriate from time to time.

This addendum forms an integral part of the Statement ofAdditional Information and Scheme Information Documentsissued for respective schemes, read with the addenda.

This addendum is dated November 10, 2010.

Addendum to the Scheme Information Document ofTempleton Floating Rate Income Fund

Change in Exit load

The exit load in the Scheme stands revised as follows effectiveDecember 01, 2010:

Existing Exit Load Revised Exit Load

In respect of each purchase of In respect of each purchase of UnitsUnits – 0.25% if redeemed – 0.25% if redeemed within 7 days ofwithin 30 days of allotment allotment



This addendum forms an integral part of the SchemeInformation Document of the Scheme, read with the addenda.

This addendum is dated November 29, 2010.

Addendum to the Scheme Information Documents ofTempleton India Treasury Management Account, TempletonIndia Ultra-short Bond Fund and Templeton Floating Rate

Income Fund

Change in minimum investment amount:

The minimum investment amount for fresh purchase andadditional purchase (including switch-in) in Templeton IndiaTreasury Management Account (TITMA), Templeton IndiaUltra-short Bond Fund (TIUBF) and Templeton Floating RateIncome Fund (TFIF) stand revised as follows effectiveDecember 07, 2010:

Name of the Scheme/Plan Existing Amounts Revised Amounts

Fresh Additional Fresh Additional

Investment Investment Investment Investment

TITMA – Regular Plan

(except Weekly Dividend

Payout option) Rs.1 lac Rs.1 lac Rs.10,000 Rs.1,000

TITMA – Liquid Plan

(except Weekly Dividend

Payout option) Rs.25,000 Rs.5,000 Rs.10,000 Rs.1,000

TITMA – Regular Plan &

Liquid Plan - Weekly

Dividend Payout option Rs.10 crores Rs.5 crores Rs.25 lacs Rs.1 lac

TITMA - Institutional Plan Rs.1 crore Rs.1 crore No change Rs.1 lac

TITMA - Super

Institutional Plan Rs.5 crores Rs.1 crore No change Rs.5 lac

TIUBF – Retail Plan Rs.25,000 Rs.25,000 Rs.10,000 Rs.1,000

TIUBF - Institutional Plan Rs.1 crore Rs.1 crore No change Rs.1 lac

TIUBF - Super Institutional

Plan Rs.5 crores Rs.1 crore No change Rs.5 lacs

TFIF - Institutional Plan Rs.1 crore Rs.1 crore No change Rs.1 lac

TFIF - Super Institutional

Plan Rs.5 crores Rs.1 crore No change Rs.5 lacs

All the other terms and conditions of the Scheme InformationDocument of the respective schemes, read with the addendaissued from time to time, will remain unchanged.

14


This addendum is dated December 02, 2010.

Addendum to the Scheme Information Documents of allopen-end Debt / Income and Liquid schemes of Franklin


Pursuant to SEBI Circular ref. no. Cir/IMD/DF/19/2010 datedNovember 26, 2010, the cut off timings and the applicability ofNet Asset Value (NAV) for subscriptions in Debt/Income andLiquid schemes of Franklin Templeton Mutual Fund will be asunder. These changes will be applicable for applicationsreceived* on or after December 06, 2010.

1. All Debt / Income schemes of Franklin Templeton MutualFund for purchases (including switch-in) of amount Rs.1crore or more:

In respect of valid applications received* up to 3:00 p.m.by the Mutual Fund and the funds are available forutilisation on the same day before the cut-off time - theclosing NAV of the day on which the funds are available forutilisation shall be applicable.

In respect of valid applications received* after 3:00 p.m. bythe Mutual Fund and the funds are available for utilisationon the same day - the closing NAV of the Business Dayfollowing the day on which the funds are available forutilisation shall be applicable.

However, irrespective of the time of receipt* of application,where the funds are not available for utilisation on the dayof the application, the closing NAV of the Business Day onwhich the funds are available for utilisation before the cut-off time (3:00 p.m.) shall be applicable, provided theapplication is received prior to availability of the funds.

For determining the availability of funds for utilisation, thefunds for the entire amount of subscription/purchase(including switch-in) as per the application should becredited to the bank account of the scheme before the cut-off time and the funds are available for utilisation beforethe cut-off time without availing any credit facility whetherintra-day or otherwise, by the respective scheme.

2. All Liquid schemes of Franklin Templeton Mutual Fundfor purchases (including switch-in):

In respect of valid applications received* up to 2:00 p.m.on a day by the Mutual Fund and funds are available forutilisation on the same day before the cut-off time withoutavailing any credit facility, whether, intra-day or otherwise– the closing NAV of the day immediately preceding theday of receipt of application shall be applicable.

In respect of valid applications received* after 2:00 p.m. ona day by the Mutual Fund and funds are available forutilisation on the same day without availing any creditfacility, whether, intra-day or otherwise – the closing NAVof the day immediately preceding the next Business Dayshall be applicable.

However, irrespective of the time of receipt* of application,where the funds are not available for utilisation on the dayof the application before the cut-off time (2:00 p.m.)without availing any credit facility, whether, intra-day orotherwise – the closing NAV of the day immediatelypreceding the day on which the funds are available forutilisation before the cut-off time (2:00 p.m.) shall beapplicable, provided the application is received prior toavailability of the funds.

For determining the availability of funds for utilisation,the funds for the entire amount ofsubscription/purchase (including switch-in) as per theapplication should be credited to the bank account ofthe scheme before the cut-off time and the funds areavailable for utilisation before the cut-off time withoutavailing any credit facility whether intra-day orotherwise, by the respective scheme.

The Trustee/AMCmay alter the limits and other conditionsin line with the Regulations. All the other terms andconditions of the Scheme Information Document of therespective schemes, read with the addenda issued fromtime to time, will remain unchanged.

This addendum forms an integral part of the SchemeInformation Document issued for respective schemes, readwith the addenda.

*Received at the Official Points of Acceptance of Transaction ofFranklin Templeton Mutual Fund on a Business Day for therespective scheme.


Addendum to the Scheme Information Document ofTempleton India Short-Term Income Plan

Change in Exit load

The exit load in the Scheme stands revised as follows effectiveDecember 20, 2010:

Existing Exit Load Revised Exit Load

In respect of each purchase of Units – In respect of each purchase of Units0.50% if the Units are redeemed/ – 0.50% if the Units areswitched-out within 6 months redeemed/switched-out within 9of allotment months of allotment



This addendum forms an integral part of the SchemeInformation Document of the Scheme, read with the addenda.


Addendum to the Scheme Information Documents ofTempleton India Growth Fund, Franklin India Bluechip

Fund, Franklin India Prima Plus, Franklin India Flexi CapFund, FT India Dynamic PE Ratio Fund of Funds, TempletonIndia Short Term Income Plan and Templeton India Income

Opportunities Fund

Changes in facility for subscription and redemption of unitsthrough stock exchange infrastructure:

The features of the Facility stand modified as follows effectiveDecember 24, 2010:

1. In addition to Eligible Stock Brokers, all clearing membersof NSE and BSE who are registered with the Association ofMutual Funds in India (“AMFI”) as Mutual Fund Advisorsand are empanelled as distributor with Franklin TempletonAsset Management (India) Pvt. Ltd., the AMC, (“EligibleClearing Members”) will be eligible to offer this facility tothe investors.

2. Eligible investors who are willing to transact under thisfacility are required to register themselves with the EligibleClearing Member.

3. All the Eligible Clearing Members will be considered as theOfficial Point of Acceptance of Transaction (“OPAT”) forthe transaction done under this facility. The cut-off timingand applicability of NAV for the transaction will bedetermined in accordance with the provisions of SEBIcircular no. SEBI/IMD/CIR No.11/78450/06 dated October11, 2006. The day and time of receipt of the transactionapplication by Franklin Templeton Mutual Fund(“FTMF”) will be based on the time stamping as evidencedby the confirmation slip generated by the stock exchangeinfrastructure.

4. In respect of units issued in dematerialised form

4.1. For subscriptions, the payment of subscriptionmoney should be made to the Eligible Stock Brokeror the Eligible Clearing Member. Investors shallreceive units through broker/clearing member’spool account. FTMF would credit the units intobroker/clearing member’s pool account andbroker/clearing member in turn to the respectiveinvestor’s demat account.

4.2. For redemptions, investors shall receive redemptionamount through broker/clearing member’s poolaccount. Payment of redemption proceeds will bemade by FTMF to the broker/clearing member andbroker/clearing member in turn to the respectiveinvestor.

4.3. Payment of redemption proceeds to thebroker/clearing members by FTMF shall dischargeFTMF/the AMC of its obligation of payment toindividual investor. Similarly, in case of subscription,crediting units into broker/clearing member poolaccount shall discharge FTMF/the AMC of itsobligation to allot units to individual investor.

5. For any complaints or grievances against the EligibleStock Broker/Eligible Clearing Member with respect tothe transactions done through the stock exchangeinfrastructure, the investor should contact either theconcerned Eligible Stock Broker/Eligible ClearingMember or the investor grievance cell of the respectivestock exchange. For non commercialtransactions/service requests such as change in address,change in bank mandate, issue of duplicate accountstatements etc., the investors should approach any of theFranklin Templeton Investor Service Centres in case theunits are held in physical form and to their respectiveDepository Participant (DP) in case the units are held indemat form.

All the other terms and conditions of the Facility and theScheme Information Document of the respective Schemes, readwith the addenda issued from time to time, will remainunchanged.





Changes in Franklin Equity Fund Management Team:

Mr. K. N. Sivasubramanian has been promoted as the ChiefInvestment Officer – Franklin Equity (India). He will beresponsible for overseeing Franklin Equity Team’s local Indiafunds. Mr. Anand Vasudevan, Senior Vice President, has beenappointed as the Fund Manager in Franklin Equity Team.Further, Mr. Murali Krishna Yerram, Assistant Vice Presidentand Mr. Rajat Malhotra, Assistant Vice President have beenappointed as the dedicated Fund Managers for investment inForeign Securities for Franklin Equity Team in place of Ms.Roshi Jain (currently for Franklin Asian Equity Fund, FranklinIndia Bluechip Fund, Franklin India Prima Fund, FranklinIndia Prima Plus, Franklin India Flexi Cap Fund, Franklin IndiaOpportunities Fund, Franklin India High Growth CompaniesFund, Franklin Build India Fund, Franklin Pharma Fund,Franklin FMCG Fund, Franklin Infotech Fund, Franklin IndiaIndex Fund, Franklin India Smaller Companies Fund andequity portions of FT India Monthly Income Plan* & FranklinTempleton Fixed Tenure Fund – SeriesIV/VI/VIII/IX/X/XII/XIII/XIV/XV).

The details of Mr. Anand Vasudevan and Mr. Rajat Malhotra areas follows:

Mr. Anand Vasudevan - Age: 45 Years; Qualifications:B.Tech. (IIT-Madras), P.G.D.M. (IIM-Calcutta), Masters inFinance (London Business School); Functions &Experience (past 10 years) (Total Experience - 18 years):He is based at Chennai and is responsible for investmentsand fund management. He joined Franklin Templeton inJanuary 2007 and is also the Head of Research sinceFebruary 2008.

Prior assignments: Equity Research Analyst - Keefe,Bruyette & Woods Ltd, London (2004-2006), coveringEuropean Insurance Sector. Equity Research Analyst -Dresdner Kleinwort Wasserstein (2001-2004), coveringEuropean Insurance & Asset Management Sectors.

Mr. Rajat Malhotra - Age: 30 Years; Qualifications: Mastersin Computational Finance (USA), Bachelors of Computing(Computer Science) (NUS-Singapore). Functions &Experience (Total Experience - 6 years): He is based atChennai and is responsible for investments and fundmanagement. He also undertakes equity research sinceJune 2008.

Prior assignments: Fund Manager - PMS, FranklinTempleton Asset Management (India) Pvt. Ltd. (2009-

2010). Investment Intern - Temasek Holdings, Singapore(2007), undertook investment research and due diligence.Part-time/Intern - Singapore Stock Exchange, Singapore(2005-2006), involved in Corporate Strategy. Analyst -Comsoft Pvt. Ltd., Singapore (2004-2005), undertookProgramming & Project Management. Analyst - NationalComputer Systems, Singapore (2003-2004), undertookProgramming & Project Management.

The following schemes will now be managed by the fundmanagers as mentioned against the respective scheme:

Schemes Fund Managers

• Franklin India Bluechip Fund Anand Radhakrishnan

Anand Vasudevan

• Franklin India Taxshield Anand Radhakrishnan

Equity Portfolios of Anil Prabhudas

• FT India Monthly Income Plan*

• FT India Balanced Fund

• Templeton India Pension Plan

• Templeton India Children’s Asset Plan

• Franklin India Prima Plus Anand Radhakrishnan

R. Janakiraman

• Franklin Build India Fund Anand Radhakrishnan

Roshi Jain

• Franklin Infotech Fund

• FT India Dynamic PE RatioFund of Funds Anand Radhakrishnan

• FT India Life Stage Fund of Funds –Equity portfolio

• Franklin India Opportunities Fund Chakri Lokapriya

Anil Prabhudas

• Franklin India Prima Fund R. Janakiraman

• Franklin India Smaller Companies Fund K. N. Sivasubramanian

• Franklin India Flexi Cap Fund K. N. Sivasubramanian

Anand Vasudevan

• Franklin Asian Equity Fund R. Sukumar

Roshi Jain

This addendum forms an integral part of the Statement ofAdditional Information of Franklin Templeton Mutual Fundand Scheme Information Document issued for the respectiveschemes, read with the addenda issued from time to time.

* Income is not assured, and is subject to availability ofdistributable surplus.

This addendum is dated February 01, 2011.

Addendum to the Scheme Information Documents of openend schemes of Franklin Templeton Mutual Fund (except

Templeton India Cash Management Account)

Introduction of ‘Franklin Templeton Family Solutions’facility:

With a view to enhance the service levels for investors, FranklinTempleton Mutual Fund (“FTMF”) introduces a new facilityviz., Franklin Templeton Family Solutions w.e.f. March 14,2011. Franklin Templeton Family Solutions (“FS”) is a facilityoffered by FTMF to encourage investors to plan for theirinvestments based on life goals.

The salient features of the Franklin Templeton FamilySolutions facility are as follows:

(a) Family Solutions is a unique investment solution thathelps investors plan for their life goals like retirement,child’s future and wealth creation.

(b) To invest under the FS facility, investor will need toundertake a questionnaire called the “Family SolutionsPlanner” that asks for basic details along with specificquestion on the goals (such as target amount, investmenthorizon, anticipated rate of inflation and returns etc.) forwhich the investor wants to plan. Family Solutions Planneris a software tool, which is available on FTMF’s websitewww.franklintempletonindia.com. Based on the inputsprovided by the investor and after considering his/herportfolio style in light on these inputs, a set of schemes ofFTMF and the amount of investment towards the goalwould be recommended for investment. However, theinvestor may opt to invest in schemes of his/her choice andsuch amount as determined by him/her at his discretion.

(c) The investor needs to make the application by filling thespecified application and transaction forms of the FSfacility along with a single cheque/draft for theconsolidated amount of investment under the application.Applications accompanied with multiple cheques/draftswill be liable for rejection.

(d) Currently, applications will be accepted only in physicalform. Applications through modes such as web basedapplications, electronic feeds from distributors or stockexchange infrastructure will not be accepted.

(e) Official Points of Acceptance of Transaction for FSapplications: FTMF hereby declares all its branch offices[Investor Service Centres (ISC)] as the Official Points ofAcceptance of Transactions (“OPAT”) for FS applications.Currently, the applications will not be accepted at theKarvy and CAMS Collection Centres.

(f) Irrespective of the amount of investment recommendedthrough the Family Solutions Planner, the minimuminvestment amount for fresh and additional purchase ineach scheme shall be as specified in the respective SchemeInformation Document. Eg: If the recommended amountof investment in a scheme is Rs.4,000/- and the minimuminvestment amount specified in the Scheme informationDocument of that scheme is Rs.5,000/-, the investor needto invest at least Rs.5,000/- in the scheme.

(g) In case of applications for registration of SystematicInvestment Plan (SIP), the mode of payment of SIPinstalments should be ECS or Direct Debit. Post datedcheques will not be accepted.

(h) FTMF / the AMC may not accept any request for anychanges or modifications in the goal(s) and goal details atany time for whatsoever reason.

(i) The Trustee/AMC reserves the right to change/modify ordiscontinue the facility at any time in future.

The Terms and Conditions of the FS facility are as follows:

1. Family Solutions is a facility offered by FranklinTempleton Mutual Fund to encourage investors to plan fortheir investments based on life stage goals. However, thereis no assurance or guarantee that the goals of the investors

will be achieved and the same is subject to the investmentperformance of the schemes.

2. Setting up the goals, planning of investment and takinginformed investment decision might require professionalexpert advice. As always, investors are best advised toconsult their investment/financial advisor prior to takingthe investment decisions.

3. The Trustee, the AMC, the Sponsor, their directors,employees, affiliates or representatives shall not be liablefor any consequences that may arise in the event any of theschemes is wound up or its features are substantiallyaltered. Investors are requested to review the SchemeInformation Document and the features and terms andconditions of the Family Solutions facility carefully andobtain expert professional advice with regard to specificlegal, tax and financial implications of the investment.

4. The recommendation given to the investor through theFamily Solutions Planner is based on the inputs providedby the investor like anticipated rate of returns andinflation, details about the life goals, and considering theportfolio style of the investor. The portfolio style of theinvestor is determined in light of the informationfurnished by the investor in the questionnaire, based oncertain pre-determined criteria.

5. The recommended schemes and the investment amounthave been derived using established theories on risk andreturn, after considering various aspects including, but notlimited to, the nature of the schemes (such as itsinvestment objectives, investment style and productpositioning) and the inputs provided by the investor abouthis life goals and return/inflation anticipations. It mayplease be noted that the recommendation may not takeinto consideration all the material aspects relevant to theinvestor’s investment decision. It is clarified that therecommendation is not binding on the investor andinvestor may opt to invest in schemes of his/her choice andsuch amount as determined by him/her at his discretion.

6. The recommendation is based solely on the inputsprovided in the questionnaire. Franklin Templeton is notresponsible for the accuracy and validity of theinformation provided by the investor. Also it must beclearly understood that while providing therecommendation, FTMF has neither done a detailed riskprofiling of the investor nor has taken into considerationthe investor’s full portfolio of investments and variousother factors which may be necessary for rendering aninvestment advice. The recommendation should not beconstrued as a complete investment advice.

7. Past performance of the schemes is neither an indicatornor a guarantee of future performance, and may not beconsidered as the basis for future investment decisions.

8. For ongoing tracking of the investment and related advice,the investor needs to contact his/her distributor orinvestment/financial advisor. Franklin Templeton is notresponsible for tracking of the investment vis-à-vis the goalor achievement of the goal or for providing any advice ofwhatsoever nature in relation to the investment.

9. Mention of goals in the account statement is merely afacility offered for ease and convenience of the investor intracking the investment, and is based on the informationprovided by the investor in the Application Form. In caseof units subsequently converted in demat form, theaccount statement of the Beneficiary Account with theDepository Participant (DP) will be sent by the respectiveDP’s as per their service standards and these statementswill not carry the details of the goals.

10. This facility is offered to the investors as per the terms andconditions as may be prescribed by the AMC from time totime and is further subject to the terms of conditions of theStatement of Additional information of FranklinTempleton Mutual Fund and the Scheme InformationDocument of the respective schemes. The AMC reservesthe right to amend the terms and conditions, or todiscontinue or modify the facility at any time in future.

11. The views constitute only the opinions and do notconstitute any guidelines or recommendation on anycourse of action to be followed by the investors. Theinformation or recommendation is not meant to serve as aprofessional guide for the investors. Whilst due care hasbeen taken to ensure that the facts are accurate andopinions given fair and reasonable, the Sponsor, the AMC,the Trustee or any of their directors, employees, affiliatesor representatives do not assume any responsibility for, orwarrant the accuracy, completeness, adequacy andreliability of such information or recommendation.Recipients of this information or recommendation shouldtake informed investment decision after taking intoconsideration all the material aspects relevant to theirinvestments.

12. Investors should to read and understand all scheme relateddocuments like Statement of Additional Information (SAI),Scheme Information Document (SID), Key InformationMemorandum (KIM) and the addenda issued form time totime carefully before investing.

All the other terms and conditions of the Scheme InformationDocument of the respective Schemes, read with the addendaissued from time to time, will remain unchanged.


This addendum is dated March 07, 2011.

Equity Oriented Schemes:As per current tax laws, the following schemes arecategorised as “Equity Oriented Schemes”: Franklin IndiaBluechip Fund (FIBCF), Templeton India Equity IncomeFund (TIEIF). Templeton India Growth Fund (TIGF),Franklin India Prima Fund (FIPF), Franklin India PrimaPlus (FIPP), Franklin India Flexi Cap Fund (FIFCF),Franklin India Index Fund (FIIF), Franklin IndiaOpportunities Fund (FIOF), Franklin Infotech Fund (FIF),Franklin FMCG Fund (FFF), Franklin Pharma Fund (FPF),Franklin Build India Fund (FBIF), Franklin India Taxshield(FIT), FT India Balanced Fund (FTIBF), Franklin India HighGrowth Companies Fund (FIHGCF) and Templeton IndiaChildrens Asset Plan - Gift Plan (TICAP-GP).