Theres life beyond bank FDs

Bank FDs
+ves Capital safety
Upto Rs.1 lakh per account under Deposit Insurance and Credit Guarantee Corporation of India

Returns Guaranteed Different maturity buckets for different investment horizons

Bank FDs
-ves

Poor Liquidity
Normally, premature withdrawal attracts penal interest

Tax-inefficient
Returns hardly keep pace with inflation Investor Tax Slab 30% 20% 6.5% 6.5% 4.55% 5.2% 5.0% 5.0%

Pre-tax returns Returns after taxes Current inflation rate

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

Renewal required
Dont renew, and you lose interest

Solution

Franklin Templetons Income and Liquid Schemes

Capital Safety
High AAA exposure
Templeton India Income Builder Account (TIIBA) 93.0%
Data as of June 30, 2003

Templeton India Income Fund (TIIF) 91.2%

Templeton Floating Rate Income Fund Long Term (TFIF- LT) 90.4%

Track record of stability

Historically, over any 1 year investment horizon, the NAV has always appreciated The longest period for which the NAV performance of TIIF was negative is 98 days. Thus, no investor in this scheme has seen capital erosion for an investment made for 99 days or above
TIIBA 107 days TIIF 99 days TFIF - LT 1 day

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

Franklin Templeton Income and Liquid schemes

Return Potential
Historical rolling returns are an indicator of the return potential of non guaranteed schemes
Max. Ret. TIIF* TIIBA* TFIF(LT)* 18.7% 20.4% 7.5% 1 year Min. Ret. 9.4% 9.6% 7.0% Avg. Ret. 13.6% 14.0% 7.3% Max. Ret. 14.8% 15.8% N.A 3 years Min. Ret. 12.0% 11.8% N.A Avg. Ret. 13.5% 13.6% N.A

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

Franklin Templeton Income and Liquid schemes

Consistent Performance
Both in absolute terms, and vis--vis benchmark
One Year
Templeton India Income Fund (TIIF) Templeton India Income Builder Account (TIIBA) Crisil Composite Bond Fund Index 14.0% 15.7% 12.8%

Three years
13.7% 14.9% N.A

Five Years
13.6% 13.8% N.A

Inception
13.7% 14.2% N.A

Templeton Government Securities Fund (TGSF) I-Sec Composite Index

Templeton Floating Rate Income Fund Long Term (TFIF-LT) Templeton Floating Rate Income Fund Short Term (TFIF-ST) Templeton India Short Term Income Plan (TISTIP) Templeton India Liquid Fund (TILF) Crisil Liquid Fund Index

23.4% 17.0%
7.1% 6.6% 8.2% 6.3% 5.5%

21.8% N.A
7.8% N.A

N.A
8.7% N.A

20.2% N.A
7.1% 7.0% 8.3% 8.6% N.A

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

Franklin Templeton Income and Liquid schemes

Choice
Range of schemes to suit different investment horizons
Whatever your time frame, youll find a suitable scheme
Investment Horizon* 3 days to 3 months Upto 3 months 3 to 6 months 3 months to 1 year 6 months to 1 year 1 year and above Scheme Templeton India Treasury Management Account (TITMA), Templeton India Liquid Fund (TILF) Templeton India Government Securities Fund Treasury Plan (TGSF - TP) Templeton Floating Rate Income Fund Short Term (TFIF - ST) Templeton India Short-Term Income Plan (TISTIP) Templeton Floating Rate Income Fund Long Term (TFIF - LT) Templeton India Income Fund (TIIF), Templeton India Income Builder Account (TIIBA), Templeton India Government Securities Fund (TGSF)

* Recommended investment horizon

Franklin Templeton Income and Liquid schemes

Tax-efficient returns
Bank FDs 30% 20% 6.5% 4.55% 5.0% 6.5% 5.2% 5.0% Mutual Fund Growth Dividend Plan Plan 6.5% 6.5% 5.85% 5.76% 5.0% 5.0%

Investors tax bracket Pre-tax return Post-tax return Inflation

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

Franklin Templeton Income and Liquid schemes

Convenience
You need to open an account only once
Keep adding more to the same account or withdraw whenever you want

No renewal worries
Your money continues to earn return for you as long as you stay invested

Franklin Templeton Income and Liquid schemes

Matching investment avenues with investment horizons

Long term investments

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

Short Term

Medium Term
Long Term If Returns = Goals
Otherwise

X Consider other alternatives

that can appreciate capital

Equity oriented investments

Equities are better suited for your long term investments

For illustration purposes only

While equities are volatile in the short-term

Equity oriented investments

For illustration purposes only

over the long term, the volatility evens out

Franklin India Bluechip Fund

Rs.10,000 invested at inception in FIBCF & BSE Sensex
80000 70000 60000 50000 40000 30000 20000 10000 0
Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01

Rs.68,222

Rs.10,957
Dec-02

BLUECHIP FUND

BSE SENSEX

Past performance may or may not be sustained in future

As on June 30, 2003

Franklin India Bluechip Fund

Invests in large cap, well-established companies

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

Performance
FIBCF BSE Sensex

Track Record
1 year
29.6% 11.2%

3 years
4.9% -8.8%

5 years
27.4% 2.1%

Inception
22.2% 1.0%

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

Performing in down markets as well

The following table shows the current value of Rs.10,000 invested in Bluechip and its benchmark BSE Sensex at inception and when markets were close to their peak in April 2000
Bluechip Fund (as on 30.6.2003) Rs.10000 invested in inception (Dec 1,1993) Rs.10000 invested when market was at peak (Apr 1, 2000) Rs.68,222 Rs.10,600 BSE Sensex (as on 30.6.2003) Rs.10,957 Rs.7,139

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

Franklin India Bluechip Fund

Rolling Returns
Max. Returns 1 year 3 years 5 years 199.4% 81.0% 35.4% Min. Returns -36.4% -9.6% 14.0% Avg. Returns 24.8% 22.3% 24.8% Possibility of making money 64.3% 78.2% 100.0% Possibility of losing money 35.7% 21.8% 0.0%

7 years
9 years

30.2%
22.0%

9.5%
16.0%

17.9%
18.7%

100.0%
100.0%

0.0%
0.0%

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

Thank You

Investment objective : Bluechip Fund To provide medium to long term capital appreciation. Templeton India Income Fund : To generate a steady stream of income through investment in fixed income securities. Templeton India Income Builder Account : To provide regular returns to investors primarily through investments in quality fixed income instruments. Templeton India Government Securities Fund : To generate credit risk-free returns through investments in sovereign securities. Templeton Floating Rate Income Fund : To minimise the risk arising from interest rate fluctuations. Templeton India Short-Term Income Plan : To provide stable returns by investing in shorter term fixed income securities. Templeton India Treasury Management Account : To provide current income along with high liquidity. Templeton India Liquid Fund : To provide income and liquidity through investments in high quality money market and debt instruments. Risk Factors : Mutual Funds and Securities Investments are subject to market risks and the Net Asset Value of the scheme may fluctuate depending on factors affecting the capital/debt markets. Past performance is not an indicator of future performance, and there can be no assurance that the objective of the schemes can be achieved. Franklin India Bluechip Fund, Templeton India Income Fund, Templeton India Income Builder Account, Templeton India Government Securities Fund, Templeton Floating Rate Income Fund, Templeton India Short-Term Income Plan, Templeton India Treasury Management Account, Templeton India Liquid Fund, are only the name of the schemes and do not indicate the quality of the schemes, their future prospects or the returns. Statutory Details:Templeton Mutual Fund in India has been set up as a trust by Templeton International Inc. (liability restricted to the seed corpus of Rs.1 lac) with Templeton Trust Services Pvt. Ltd. as the Trustee (Trustee under the Indian Trust Act 1882) and with Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager.