franklin templeton midcaps

Do you have midcaps in your portfolio? July 2014

Diary of a curious investor

1


2


3

What are midcaps?

4

Source: Bloomberg, As on 30th June, 2014

A search beyond the bluechips

Large Caps

Top 100 Stocks

INR 67 lac crores Market Cap

Mid & Small Caps

Next 400 Stocks

INR 18 lac crores Market Cap

CNX 500 INR 85 lac crores Market Cap

India’s Equity Market Cap INR 88 lac crores

CLICK HERE TO INVEST NOW

5

Midcaps – Diverse nature of ideas

Big Fish in a Growing Pond Small Fish in a Big Pond

Different Fish in Different Pond


Small Fish in a Big Pond

6

Competing through market share gain

• Medium sized businesses in

large conventional sectors − Banks

− Utilities

− Energy

− Information Technology

− Materials

• Growing through market share gain

• Often differentiated from the larger

players

• Regulations generally tend to play a

crucial role in large conventional

sectors


Small Fish in a Big Pond

7

• One of the new age banks in India

• With increased presence it offers good exposure to the rising financial

services penetration theme

• An engineering company in energy sector

• Business in 75 countries worldwide

• Leaders* in process heat for over four decades

• The drug manufacturer derives bulk of its revenues from US & EU

markets

• Provides good exposure to the increased offshore manufacturing theme

Competing through market share gain

Disclaimer: Franklin Templeton Investments is not associated with these brands and may or may not have these stocks / securit ies in their fund portfolio. They are

used for illustration purposes only. This is neither a recommendation to buy or sell nor a view on quality or profitability of investing in these securities. The reader

should not assume that investment in the securities listed was or will be profitable.

Source: *http://www.thermaxindia.com/Fileuploader/Files/Thermax-Corporate-Brochure-Technology-In-Action.pdf

Big Fish in a growing pond

8

Competing through market growth

• Leaders in their space − Media and Entertainment sector

− Ancillary manufacturers

− Niche Engineering companies

− Logistics

• Growing with the sector

• A mix of regulated and not so regulated

(Some sectors/companies are more regulated as

compared to others)


Big Fish in a Growing Pond

9

• India's first, one of the largest, and most prominent credit rating agency*

• India's largest independent research house, providing comprehensive

research coverage to more than 1200 Indian and global customers*

• One of the leading players^ in India’s storage battery industry

• Largest & dominant market leader of standby batteries in Railways,

Telecom, Power Generating stations in India^

• A world leader# in the areas of crop protection, pest control, seeds and

plant biotechnology

• Comprehensive solutions for modern, sustainable agriculture and non-

agricultural applications

Competing through market growth




Source: *http://www.crisil.com/about-crisil/about-overview.html. ̂ http://www.amararaja.co.in/achievements.asp. #http://www.bayer.ca/?q=en/node/10



10

Businesses at different stages of evolution

• Innovating and creating distinct

businesses

− Internet led businesses

− Retail and consumption sectors

− Unique services

• Exploring new opportunities

• Entrepreneurship led models



11

• One of the largest chain of gyms, fitness clubs and health centers in

India*

• 145 ultramodern branches across 75 cities in India*

• Market leader# in adhesives and sealants, construction chemicals,

hobby colors and polymer emulsions in India.

• Its product Fevicol has become synonymous with adhesives to millions

in India

Businesses at different stages of evolution




Source: *http://talwalkars.net/History.aspx. #http://www.pidilite.com/about-chairman-message.html


Midcaps – Offering a variety

CNX Midcap Index

Exposure (total sectors)

Concentration

17

62%

CNX Nifty

77%

12

Weightage In top 5 sectors

11

CNX Midcap Index is more diversified vis-a-vis the CNX Nifty Index at both sector and stock levels

Midcaps are represented by CNX Midcap and Large Caps are represented by CNX Nifty

Source: As on 30th Jun ‘14(latest available data). http://nseindia.com/content/indices/ind_cnx_nifty.pdf. http://nseindia.com/content/indices/ind_cnx_midcap.pdf


http://www.nseindia.com/

http://nseindia.com/content/indices/ind_cnx_nifty.pdf



http://nseindia.com/content/indices/ind_cnx_midcap.pdf


Why Midcaps throw opportunities?

13

The Information Gap


Source: Bloomberg, IIFL Analysis as on 30th June ‘14

CNX Midcap Index

Average Number of

Analysts tracking a stock 24

CNX Nifty

52

Over 20% of CNX Midcap Stocks are tracked by < 10 Analysts


Then why do investors shy away from midcaps?

14

• Midcaps are not “quality” companies

• Midcaps are small businesses

• Midcaps are generally cyclical businesses

• Midcaps don’t give good returns

• Midcaps may not have good growth potential

The Five Fallacies of Midcaps


Fallacy 1

15

Midcaps are

not “quality” companies


Fallacy 1

16

Certain midcap companies

• are “compounders” − Consistent RoCEs

− Large opportunity size

− Competitive advantage

• are run by competent managements

• have efficient capital allocation

• have simpler structures, easier to understand

Midcaps are not quality companies


Fallacy 2

17

Midcaps are

small businesses


Fallacy 2

18

• Some midcaps

– are strong market leaders

– have enviable competitive advantage

– have demonstrated ability to manage scale

• Midcap universe is a good mix of cyclical

and compounding ideas

Midcaps are small businesses


Fallacy 3

19

Midcaps are generally

cyclical businesses!


Fallacy 3

20

Midcaps are generally cyclical businesses!

CNX Midcap has good allocation to consumer facing businesses

Defensive sectors / Consumer Facing businesses

comprise:

• Consumer Goods

• Pharma & Healthcare Services

are generally perceived to be less volatile

compared to other sectors


Source: As on 30th Jun 2014 (latest available data). www.nseindia.com. http://nseindia.com/content/indices/ind_cnx_nifty.pdf.


Allocation to Defensive sectors (in %)

15.7

21.69

0

5

10

15

20

25

CNX Nifty CNX Midcap







Fallacy 4

21

Midcaps

don’t give good returns


Fallacy 4

22

Midcaps don’t give good returns

Midcaps have given reasonably good returns over various time

periods

Past performance may or may not be sustained in future. Midcaps are represented by CNX Midcap and Large Caps are represented by CNX Nifty

Source: Bloomberg. The data is taken for the respective period ending Jun‘14. Returns less than 1 year are absolute and over 1 year are

compounded annualized returns.

Indices returns

38.5%

50.8%

11.7%

15.4%

9.2%

19.1% 21.0%

30.1%

10.5% 12.1%

8.4%

17.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

6 months 1 year 3 year 5 year 7 year 10 year

CNX Midcap CNX Nifty


Fallacy 5

23

Midcaps may lack

good growth potential


High Growth Potential

24

Estimated Sales Growth* (in %)

41%

higher than CNX Nifty

Source: * Nomura(based on Bloomberg Estimates) as on 30th May ‘14. ** Data is taken from Factset. EPS is estimated for FY14-FY17. These are

only projections and not an assurance of sales growth/growth in earnings.

Estimated 3 yrs EPS Growth**

19.5% For CNX

Midcap

VS

17.3% For CNX Nifty

7.9

8.9

11.2

10.7

4 6 8 10 12

2015E

2016E

CNX Midcap CNX Nifty

20%

higher than CNX Nifty


Why Midcaps can be a part of every portfolio?

25

High Growth Potential

Potential for transition to large caps of tomorrow

Midcaps aid portfolio diversification

Exposure to emerging businesses


Why invest in Midcaps now

26

Midcap Outperformance over Nifty in Earnings growth

27

(30)

(10)

10

30

50

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E E

Past Performance may or may not be sustained in future

Source: India Midcaps by CLSA dated 23rd May ’14. Midcaps are represented by CNX Midcap and Large Caps are represented by CNX Nifty

Market expects midcap earnings

growth to outperform large caps

Relative earnings growth of Midcaps over Nifty


Midcaps tend to do better during recovery in economy

28

0

2

4

6

8

10

12

0

100

200

300

400

500

600

700

800

900

Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 May-14

CNX Midcap CNX Nifty GDP Data(RHS)

Economic recovery and midcap performance

Past Performance may or may not be sustained in future

Source: Bloomberg as on 30th May ’14. The index values for CNX Nifty and CNX Midcap were rebased to 100. Midcaps are represented by CNX Midcap and Large

Caps are represented by CNX Nifty

GD

P in

(%)


What hurts Midcaps.

And how to manage it

Macroeconomic Scenario and Midcaps

Risk Aversion Lack of Investor

Interest

Policy Paralysis High Interest rates Economic

Environment

Affects

Investor

Behavior

30 CLICK HERE TO INVEST NOW



Environment

0

1

2

3

4

5

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Large Cap Ex Fin Ex Oil Mid Cap Ex Fin Ex Oil

Impacts midcaps as they are highly leveraged

Debt / EBITDA

Source: India Midcaps by CLSA dated 23rd May ’14.

Higher Debt/EBITDA indicates higher leverage.

Companies with higher leverage are generally impacted by higher interest rates as their borrowing cost may increase.




Interest Investor

Behavior

• Limited exposure to

equities

• Exposure restricted to

large caps

Leading to


What has happened now


Interest


Environment

Investor

Behaviour

May start trending down

provided inflation stays

under control

May be behind us with

new government

at centre

Improvement in


34

Managing Midcaps Risks

Risks Mitigators

1 Liquidity at security level Portfolio Construction

2 Management Quality and

disclosure

Regular portfolio reviews

3 Interest Rate Risks Regular review of

Macroeconomic fundamentals

4 Sectoral Risks Bottom up stock picking


Manage your midcap allocation by choosing the appropriate

35

Asset Manager Products/Schemes

Staying Put for a long term


Decision Variables for Building a Portfolio

Franklin India Equity: Investment Strategy

36

Mispriced Growth Stocks:

• Potential to generate positive cash flows or

earnings that are increasing at a rate that is

faster than that of the industry / economy

• Profitable reinvestment opportunities

• Ability to sustain high return on capital in the

long term

Out-of-favor stocks where the market is

only focusing on near-term challenges

and ignoring:

• Strong long-term business fundamentals

and opportunities

• Cash flow generation

• Return on equity

• Strong execution track record

• Embedded value, whose potential is

underestimated/ignored by the market

Turnaround in company due to internal or

external factors

Innovative businesses and management

— capable of identifying opportunities and

taking risks to capitalize on them to create

sustainable shareholder value

Growth +

Core

The endeavor is to evaluate businesses, managements

and identifying trends in order to make better long-term investment decisions


Franklin India Equity: Research Process

37

Initial universe, screened for size, liquidity; further industry quantitative and qualitative screens

Investment Criteria

• Market opportunity

• Competitive position

• Management

• Financial strength

• Profitability

• Valuation

Proprietary Research

• Regular management interaction

• Primary Research

• Ground level interaction

• Local intelligence

• Industry demand and supply models

• In-depth company financial models

• Valuation analysis

• Specific security recommendations and investment thesis

• Reasoned target prices

• Comprehensive industry perspective and outlook

• Detailed financial projections

Conferences and

regular interaction with

Management

Public records,

financial releases

Third-party data,

analytics, research

Company and

industry news


• Longevity and experience

• Experienced in managing a diverse range of portfolios across market cycles and

across small, mid, and large cap stocks

• Well established relationships with industry analysts and observers

• Focused on the local market while tuned in to global trends

• Adhere consistently to investment objectives and philosophy

• Regular management interaction along with ground level interaction to form

independent views

Franklin India Equity Team: Key Strengths


Midcap Investing is all about…

• Bottom Up

• Buy and Hold

Identifying quality midcaps


Franklin India Prima Fund (FIPF) – “Two Decades” In mid and small caps

• Growth + Value

• High growth potential


Constructing a diversified portfolio

Product Label

This product is suitable for investors who are seeking*

• Long term capital appreciation

• A fund that invests in mid and small cap companies (BROWN)

HIGH RISK**

Investors should consult their financial advisors if in doubt about whether the product is suitable for them. ** Note: Risk may be represented as:

BROWN: Investors understand that their principal will be at high risk

YELLOW: Investors understand that their principal will be at medium risk

BLUE: Investors understand that their principal will be at low risk

40



Consistency in the Product objective

• Mid and Small Cap fund

Identify at an early stage and own high-potential businesses, with

large growth opportunities run by good management teams

Franklin India Prima Fund (FIPF) – “Two Decades” In mid and small caps


Investing for the long term

Past performance may or may not be sustained in future. Load is not taken into consideration. As on June 30, 2014. CNX Midcap Index (B) was introduced on 01st January, 2003. Hence due to limited period of its existence, the movement of CNX Midcap is not given. # The securities were bought for the first time in the portfolio of the scheme on the date as indicated in the graph and are held till date. However, there might have been change in the quantity and percentage of holding of the said securities since the date of first purchase. It should not be assumed that investment in the said securities was or will be profitable. All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation to subscribe or transact in these securities': Benchmark, AB: Additional Benchmark

Movement of Rs. 10,000 invested in FIPF, CNX 500 & CNX Nifty

Since Jun’03#

Since Dec’07#

Since Jun’10#

Since Jan’11#

FIPF: Rs. 497,000

B: CNX 500: Rs. 73,149

AB: CNX Nifty Rs. 75,512

0

100000

200000

300000

400000

500000

600000

De

c-9

3

Feb

-95

Ma

y-9

6

Ju

l-9

7

Sep

-98

De

c-9

9

Feb

-01

Ma

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Oct-

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r-07

Ma

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Oct-

10

Ja

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Ma

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Ju

n-1

4

FIPF B: CNX 500 AB: CNX Nifty


Long-term Cumulative Fund Performance

43

Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Refer

annexure performance of other funds managed by the fund manager/s. Returns greater than 1 year period are compounded annualized. B: Benchmark, AB:

Additional Benchmark. Please refer to website [http://www.franklintempletonindia.com/content-india/documents/PDF/Direct%20Plan%20Returns%20Jun2014.pdf]

for details on performance of Direct Plans. #CNX Midcap has been included as additional benchmark for Franklin India Prima Fund (FIPF) effective May 20, 2013.

FIPF - Growth Option NAV as at Jun 30, 2014 (Rs.) 496.9996

Fund Manager R Janakiraman,

Roshi Jain

NAV Per Unit (Rs.) FIPF B: CNX 500 B: CNX Midcap# AB: CNX Nifty

Discrete 12 months performance

Jun 28, 2013 to Jun 30, 2014 (Last 1 year) 312.5608 59.01% 36.87% 51.13% 30.28%

Jun 29, 2012 to Jun 28, 2013 264.6954 18.08% 8.16% -0.13% 10.67%

Jun 30, 2011 to Jun 29, 2012 273.6303 -3.27% -7.79% -7.77% -6.53%

Compounded Annualised Growth Rate

Performance

Last 2 years (Jun 29, 2012 to Jun 30, 2014) 36.97% 21.64% 22.82% 20.05%

Last 3 years (Jun 30, 2011 to Jun 30, 2014) 21.99% 10.92% 11.65% 10.45%

Last 5 years (Jun 30, 2009 to Jun 30, 2014) 175.4872 23.13% 12.21% 15.37% 12.14%

Last 10 years (Jun 30, 2004 to Jun 30, 2014) 70.29 21.59% 17.33% 19.07% 17.58%

Last 15 years (Jun 30, 1999 to Jun 30, 2014) 15.21 26.15% 14.53% N.A 13.17%

Since inception till Jun 30, 2014 10 20.89% 10.15% N.A 10.32%

Current Value of Standard Investment of Rs

10000

Last 2 years 18776 14804 15094 14418

Last 3 years 18163 13651 13921 13478

Last 5 years 28321 17795 20447 17738

Last 10 years 70707 49473 57317 50554

Last 15 years 326758 76592 N.A 64085

Since inception (1.12.1993) 497000 73149 N.A 75512


Franklin India Smaller Companies Fund (FISCF)

• Growth + Value

• High growth potential

Identifying quality midcaps and small caps


Portfolio focus on smaller companies

Smaller companies - Companies with Market Cap below that of 100th

Stock of CNX 500

This product is suitable for investors who are seeking*


• A fund that invests primarily in small and mid cap companies (BROWN)

HIGH RISK**

Investors should consult their financial advisors if in doubt about whether the product is suitable for them. ** Note: Risk may be represented as:

BROWN: Investors understand that their principal will be at high risk

YELLOW: Investors understand that their principal will be at medium risk

BLUE: Investors understand that their principal will be at low risk


Franklin India Smaller Companies Fund (FISCF)

• Opportunity to gain from transition: As smaller companies transition into

tomorrow’s market leaders, they exhibit very high growth rates which at times

may not get captured in their valuations

• “Quality” remains the key: As their stocks are under – researched and under –

owned , identifying quality stocks is very important

• Fund Suitability: Suitable for investors with a higher risk appetite and

investment horizon of at least 3 to 5 years


Serving Investors For Over 8 years

46

Past performance may or may not be sustained in future. Load is not taken into consideration. As on Jun 30, 2014.B: Benchmark, AB: Additional

Benchmark

FISCF: Rs. 28,168

B: CNX Midcap:

Rs. 26345

AB: CNX Nifty

Rs. 26,701

0

5000

10000

15000

20000

25000

30000

Ja

n-0

6

Ju

n-0

6

De

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6

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7

Oct-

07

Ap

r-0

8

Sep

-08

Feb

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n-1

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v-1

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y-1

1

Oct-

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Ma

r-12

Sep

-12

Feb

-13

Ju

l-1

3

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n-1

4

Ju

n-1

4

FISCF B: CNX Midcap AB: CNX Nifty

Movement of Rs. 10,000 invested in FISCF, CNX Midcap & CNX Nifty


47

Long-term Cumulative Fund Performance

Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted.

Refer annexure performance of other funds managed by the fund manager/s. Returns greater than 1 year period are compounded annualized. B: Benchmark, AB:

Additional Benchmark

Please refer to website [http://www.franklintempletonindia.com/content-india/documents/PDF/Direct%20Plan%20Returns%20Jun2014.pdf] for details on

performance of Direct Plans.

FISCF - Growth Option NAV as at Jun 30, 2014 (Rs.) 28.1676

Fund Manager R. Janakiraman, Roshi

Jain

NAV Per Unit (Rs.) FISCF B: CNX Midcap AB: CNX Nifty


Jun 28, 2013 to Jun 30, 2014 (Last 1 year) 16.2196 73.66% 51.13% 30.28%

Jun 29, 2012 to Jun 28, 2013 13.5247 19.93% -0.13% 10.67%

Jun 30, 2011 to Jun 29, 2012 14.2698 -5.22% -7.77% -6.53%

Compounded Annualised Growth Rate Performance

Last 2 years (Jun 29, 2012 to Jun 30, 2014) 44.24% 22.82% 20.05%


Last 5 years (Jun 30, 2009 to Jun 30, 2014) 9.4570 24.38% 15.37% 12.14%

Since inception till Jun 30, 2014 10 13.01% 12.12% 12.30%

Current Value of Standard Investment of Rs 10000

Last 2 years 20827 15094 14418

Last 3 years 19739 13921 13478

Last 5 years 29785 20447 17738

Since inception (13.1.2006) 28168 26345 26701


The Right Stock Selection! Vintage Matters

Stock selection clearly the key contributor to performance

Stock picking ability has ensured performance holds up well over the medium to long

term, irrespective of how allocation decisions fared

5 Years (ending June 30,

2014)

Attribution Analysis

Asset

Allocation

(A)

Stock

Selection

(B)

Interaction

(C )

Total Alpha

(A+B+C)

Franklin India

Smaller Companies Fund 0.61 19.61 -0.72 19.50

Franklin India

Prima Fund -0.94 18.06 0.90 18.02

Source: Factset


49

Last but not the least,

it is important

to stay invested

for the long term

because…


Investment in CNX Midcap from 2004 to 2014*

(Returns in CAGR)

‘Timing the market’ may take away your potential gains

50

Past performance mat or may not be sustained in future.

Source: Bloomberg. The data is taken for CNX Midcap from 31st May 2004 to 30th May 2014. Returns shown are CAGR returns .

By missing

each best day,

the return on

investment

decreases

18.09%

13.71%

10.54%

8.04%

5.90%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Staying invested alldays

But if you miss 5best days




Retu

rns in

CA

GR


51

The information contained in this literature is not a complete representation of every material fact regarding any

industry, security or the fund and is neither an offer for units nor an invitation to invest. The views expressed by

the portfolio managers are based on current market conditions and information available to them and do not

constitute investment advice. Investors are requested to review the prospectus carefully and obtain expert

professional advice with regard to specific legal, tax and financial implications of the investment/participation in

the scheme. This material is intended for residents of India.

Neither the Scheme Information Document nor the units of the Schemes have been registered in any jurisdiction.

The distribution of the Scheme Information Document/ literature in certain jurisdictions may be restricted or

subject to registration requirements and, accordingly, persons who come into possession of this literature in

certain jurisdictions are required to inform themselves about, and to observe, any such restrictions. No person

receiving a copy of this literature or Scheme Information Document or any accompanying application form in such

jurisdiction may treat this literature or Scheme Information Document or such application form as constituting an

invitation to them to subscribe for Units, nor should they in any event use any such application form, unless in the

relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be

used without compliance with any registration or other legal requirements.

Scheme Classification and Objective: Franklin India Prima Fund (FIPF): An open-end growth scheme,

seeking to provide investors medium to long term capital appreciation as a primary objective and income as a

secondary objective. Franklin India Smaller Companies Fund (FISCF): An open-end diversified equity fund that

seeks to provide long term capital appreciation by investing in mid and small cap companies. Risk Factors:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Load Structure: The investors are requested to check the prevailing load structure of the scheme before

investing. Please refer website/latest SID/addenda for the latest load structure of the respective schemes.

The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities

market. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is

subject to the availability and adequacy of distributable surplus. The past performance of the mutual funds

managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of

the schemes.

Disclaimers & Risk Factors

51

Annexures

For Broker/Professional Use Only. Not for public distribution

53

Equity Product Labels

Fund This product is suitable for investors who are seeking* (level of risk)

Franklin India Prima Plus (FIPP) • Long term capital appreciation

• Primarily a large cap fund with some allocation to small/mid cap stocks

Franklin India Flexi Cap Fund

(FIFCF)


• A fund that invests in stocks of companies across the market cap range

Franklin India High Growth

Companies Fund (FIHGCF)


• A fund that invests in stocks of companies/sectors with high growth rates or above

average potential

Franklin India Prima Fund (FIPF) • Long term capital appreciation

• A fund that invests in mid and small cap stocks

Franklin India Smaller Companies

Fund (FISCF)


• A fund that invests primarily in small and mid cap companies

Franklin India Opportunities Fund

(FIOF)


• A fund that takes concentrated stock or sector exposures based on four themes

Franklin Asian Equities Fund

(FAEF)


• A fund that invests primarily in stocks of Asian companies/sectors(excluding Japan)

Franklin Build India Fund (FBIF) • Long term capital appreciation

• A fund that invests in Infrastructure and allied sectors

Franklin India Feeder – Franklin US

Opportunities Fund (FIF – FUSOF)


• A fund of funds investing in an overseas equity fund

*Investors should consult their financial advisors if in doubt whether a product is suitable for them.

**Note Risk may be represented as

53

54

Performance of other schemes managed by Fund Managers of FIPF and FISCF

Franklin India Flexi Cap Fund (FIFCF)


Returns greater than 1 year period are compounded annualized. B: Benchmark, AB: Additional Benchmark.



FIFCF - Growth Option NAV as at Jun 30, 2014 (Rs.) 49.3706

Fund Manager R. Janakiraman / Roshi

Jain, Anand Vasudevan

NAV Per Unit (Rs.) FIFCF B: CNX 500 AB: CNX Nifty



Jun 29, 2012 to Jun 28, 2013 30.1038 9.41% 8.16% 10.67%

Jun 30, 2011 to Jun 29, 2012 32.7142 -7.98% -7.79% -6.53%







Last 2 years 16400 14804 14418

Last 3 years 15091 13651 13478

Last 5 years 22142 17795 17738

Since inception (2.3.2005) 49371 33826 36361


55

Franklin India Opportunities Fund (FIOF)


Returns greater than 1 year period are compounded annualized. B: Benchmark, AB: Additional Benchmark

Please refer to website [http://www.franklintempletonindia.com/content-india/documents/PDF/Direct%20Plan%20Returns%20Jun2014.pdf] for details on performance

of Direct Plans.

Performance of other schemes managed by the Fund Managers of FIPF and FISCF

FIOF - Growth Option NAV as at Jun 30, 2014 (Rs.) 43.4741

Fund Manager R. Janakiraman,

Anil Prabhudas

NAV Per Unit (Rs.) FIOF B: S&P BSE 200 # AB: CNX Nifty



Jun 29, 2012 to Jun 28, 2013 28.8213 7.78% 8.69% 10.67%

Jun 30, 2011 to Jun 29, 2012 31.2132 -7.66% -7.63% -6.53%






Since inception till Jun 30, 2014 10 10.77% -0.54% 10.76%


Last 2 years 15084 14613 14418

Last 3 years 13928 13498 13478

Last 5 years 17806 17681 17738

Last 10 years 53871 49991 50554

Since inception (21.2.2000) 43474 9246 43407

# Index adjusted for the period February 21, 2000 to

March 10, 2004 with the performance of ET Mindex.


56

Franklin Asian Equities Fund(FAEF)


Returns greater than 1 year period are compounded annualized. B: Benchmark, AB: Additional Benchmark.




FAEF - Growth Option NAV as at Jun 30, 2014 (Rs.) 15.3041

Fund Manager Roshi Jain

NAV Per Unit

(Rs.) FAEF

B: MSCI Asia (ex Japan)

Standard Index AB: CNX Nifty



Jun 29, 2012 to Jun 28, 2013 11.8279 13.63% 13.46% 10.67%

Jun 30, 2011 to Jun 29, 2012 11.1221 6.35% 5.14% -6.53%







Last 2 years 12939 13084 14418

Last 3 years 13760 13757 13478

Last 5 years 17299 18861 17738

Since inception (16.1.2008) 15304 15615 12823


57

Franklin India High Growth Companies Fund (FIHGCF)

Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is

adjusted. Returns greater than 1 year period are compounded annualized. B: Benchmark, AB: Additional Benchmark




FIHGCF - Growth Option NAV as at Jun 30, 2014 (Rs.) 21.6903

Fund Manager Roshi Jain, R.

Janakiraman

NAV Per Unit (Rs.) FIHGCF B: CNX 500 AB: CNX Nifty



Jun 29, 2012 to Jun 28, 2013 11.9437 15.94% 8.16% 10.67%

Jun 30, 2011 to Jun 29, 2012 12.8575 -7.11% -7.79% -6.53%







Last 2 years 18160 14804 14418

Last 3 years 16870 13651 13478

Last 5 years 24744 17795 17738

Since inception (26.7.2007) 21690 16041 16475


58

Franklin Build India Fund (FBIF)






FBIF - Growth Option NAV as at Jun 30, 2014 (Rs.) 20.7525

Fund Manager Anand Radhakrishnan,

Roshi Jain

NAV Per Unit (Rs.) FBIF B: CNX 500 AB: CNX Nifty



Jun 29, 2012 to Jun 28, 2013 11.2923 11.92% 8.16% 10.67%

Jun 30, 2011 to Jun 29, 2012 11.5538 -2.26% -7.79% -6.53%






Last 2 years 18378 14804 14418

Last 3 years 17962 13651 13478

Since inception (4.9.2009) 20753 16088 16262


59

Franklin India Feeder US Opportunities Fund (FIF -

FUSOF)*





*The name of the scheme FT India Feeder US Opportunities Fund (FTIF - FUSOF) stands changed to Franklin India Feeder - Franklin U.S.

Opportunities Fund (FIF-FUSOF) with effect from June 30,2014.


FIF-FUSOF - Growth Option NAV as at Jun 30, 2014 (Rs.) 17.5338

Fund Manager Roshi Jain

NAV Per Unit (Rs.) FIF-FUSOF B: Russell 3000 Growth AB


Jun 28, 2013 to Jun 30, 2014 (Last 1 year) 13.7500 27.52% 28.45% Not Applicable

Jun 29, 2012 to Jun 28, 2013 11.1260 23.58% 25.49% Not Applicable


Last 2 years (Jun 29, 2012 to Jun 30, 2014) 25.50% 26.92% Not Applicable

Since inception till Jun 30, 2014 10 26.63% 28.85% Not Applicable


Last 2 years 15759 16120 Not Applicable

Since inception (13.2.2012) 17534 18271 Not Applicable


60


Franklin India Prima Plus (FIPP)





FIPP - Growth Option NAV as at Jun 30, 2014 (Rs.) 339.6662

Fund Manager Anand Radhakrishnan,

R. Janakiraman

NAV Per Unit (Rs.) FIPP B: CNX 500 AB: CNX Nifty



Jun 29, 2012 to Jun 28, 2013 217.1948 10.92% 8.16% 10.67%

Jun 30, 2011 to Jun 29, 2012 223.3016 -2.73% -7.79% -6.53%









Last 2 years 15639 14804 14418

Last 3 years 15211 13651 13478

Last 5 years 21977 17795 17738

Last 10 years 73569 49473 50554

Last 15 years 237695 76592 64085

Since inception (29.9.1994) 339666 56737 58038


61


franklin templeton midcaps

Economy & Finance

different pond

big pond different fish

stocks securities

lac crores market cap

cnx nifty source

india businesses

market growth disclaimer

market growth leaders