Franklin Templeton Investments Monthly Fact Sheet

JUNE 2009

Franklin Templeton Investments Monthly Fact Sheet

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Contents Market Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 EQUITY Franklin India Bluechip Fund (FIBCF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Templeton India Growth Fund (TIGF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Franklin India Prima Plus (FIPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Franklin India Prima Fund (FIPF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Franklin India Flexi Cap Fund (FIFCF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Franklin India High Growth Companies Fund (FIHGCF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Franklin Asian Equity Fund (FAEF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Franklin India Opportunities Fund (FIOF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Templeton India Equity Income Fund (TIEIF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Franklin India Taxshield (FIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Franklin India Index Fund (FIIF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Franklin Infotech Fund (FIF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 HYBRID FT India Dynamic PE Ratio Fund of Funds (FTDPEF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 FT India Life Stage Fund of Funds (FTLF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 FT India Balanced Fund (FTIBF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Templeton India Pension Plan (TIPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 INCOME & LIQUID Templeton India Income Fund (TIIF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Templeton India Income Builder Account (TIIBA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Templeton Monthly Income Plan (TMIP) - Half-Yearly Dividend & Growth Plan . . . . . . . . . . . . . . . . . . . . . .22 FT India Monthly Income Plan (FTIMIP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Templeton India Government Securities Fund (TGSF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Templeton Floating Rate Income Fund (TFIF) - Long Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Templeton India Short-Term Income Plan (TISTIP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Templeton India Ultra-short Bond Fund (TIUBF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Templeton Floating Rate Income Fund (TFIF) - Short Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Templeton India Treasury Management Account (TITMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Templeton India Money Market Account (TIMMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Templeton Monthly Income Plan (TMIP) - Monthly & Quarterly Dividend Plan . . . . . . . . . . . . . . . . . . . . . .30 Dividend/Bonus History/Fund Managers Industry Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 www.franklintempletonindia.com

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Market Update India’s Balance of Payments (BoP) turned positive in the final quarter of

Equity Market Snap Shot

FY 09 - $0.3 billion compared to a deficit of $17.9 bln in the previous

Sukumar Rajah, CIO - Franklin Equity

quarter, helped by a reduced trade deficit and steady flow of invisibles (remittances and software exports). The latter helped the current account

GLOBAL

move into a surplus, but capital account balance remained negative due

Global markets closed the quarter on a strong note helped by an

to large FII outflows, even as NRI deposits and FDI flows remained

improvement in macro-economic environment and credit markets. The

positive. The next quarter’s BoP should get a fillip from strong FII flows

MSCI AC World index closed up 21.2% as the increased risk appetite

and lower oil prices. Looking forward, FII/FDI flows could get a fillip if

benefited Emerging Market and Asian equities. However, key indices pared

reforms and liberalization take place and ECB flows could move up due

gains in June as the rally entered a consolidation mode. Corporates took

to recent relaxation of ECB norms by the government. However, the

advantage of the improved market conditions and raised capital to

recent surge in global oil prices would have an impact on trade deficit.

strengthen balance sheets – M&A activity increased as well. Commodity

Outlook: Given the steep rally over a short time period, there could be

markets got a boost from the increased expectations of an economic

consolidation as investors digest fresh earnings and economic data.

recovery - the Reuters Jefferies CRB Index rose by 13.41% during the

Global liquidity levels are high due to near-zero rates in developed

quarter. Most economic statistics indicated that the severe downturn in the

economies and quantitative easing. In such an environment, global

global economy is abating. Increased protectionism and large-scale of

investors are focusing on countries that are likely to grow at a relatively

government borrowings remain the key risks to sustained global economic

faster pace. India deserves a valuation premium to its peers due to higher

growth.

RoE levels and high domestic demand component in earnings. As companies raise capital to meet ongoing capex and infrastructure Quarterly change (%)

Quarterly change (%)

expenditure, we could see an increase in investment growth. Though, the large equity issuance pipeline could cap market upside in the near future.

MSCI AC World Index

21.22

Xetra DAX

17.72

FTSE Eurotop 100

15.25

CAC 40

11.87

Over the years, the importance of Union Budget as a signaling of economic

MSCI AC Asia Pacific

27.53

FTSE 100

8.23

policy has diminished with policy announcements being made outside the

Dow Jones

11.01

Hang Seng

35.38

budget on a regular basis. However, this year’s Budget is likely to provide an

Nasdaq

20.05

Nikkei

22.80

insight into the areas of focus for the new government. There are heightened

S&P 500

15.22

KOSPI

15.24

expectations on the reforms front, given that the Government will not be constrained by coalition compulsions, like in the past. We are likely to

INDIA

witness continued emphasis on social programmes as well as rural India and the poor, in line with the government’s focus on inclusive growth. However,

The rally that started in March gained momentum during the quarter on positive election outcome and increased FII flows. Despite the

given the large fiscal deficit and falling tax revenues, the government needs to balance such initiatives with the need for fiscal prudence.

consolidation witnessed in last couple of weeks, frontline indices, Sensex Quarterly change (%)

and Nifty, closed the quarter up 49% and 42% respectively. Gains in mid and small cap stocks outpaced their large cap counterparts. All sectoral

BSE Sensex

49.29

indices ended in the positive territory - real estate, capital goods and

CNX Nifty

42.04

metal stocks outperformed while returns in FMCG and healthcare stocks

S&P CNX 500

51.20

CNX Midcap

59.28

BSE Smallcap

76.80

lagged the broad markets due to reduced investor interest. Foreign portfolio inflows aggregated $6.6 bln this quarter. Macro: Barring export growth numbers, major economic indicators improved or remained stable - industrial production and growth in core infrastructure sectors started to improve. The improved market

Big B:

conditions should help companies raise capital and thereby achieve

Chetan Sehgal, Director - Research

financial closure of ongoing projects/ planned expansions. This in turn

A lot has been said about the upcoming Budget amidst expectations that the

could provide a fillip to industrial production. Despite the high base

government would be more reform oriented. Already there are signs that

effect, corporate advance tax collections for the first quarter of FY10 were

this time around the government is very keen to deliver, with the focus

marginally above last year levels. The outlook for the south-west

remaining on the common man. The assignment of the ID Project to one of

monsoon season (Jun-Sept 09) was revised to below normal –93% of the

the best known leaders of the Indian Industry is a welcome move. Spending

long period average. This along with low reservoir levels obviously raises

on IT may well be the next wave for government productivity

concerns about the implications for farm output, given that growth in

improvements, which could reduce systemic leakages and usher in similar

industrial sector is low.

gains like the greater telecom penetration in rural areas had achieved. There

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is a growing realization that with IT and telecom, one can engineer much more change and reform. Those would be the planks for long term growth and inclusion.

MACRO Headline inflation, as measured by Wholesale Price Index, slipped into the negative territory towards the close of quarter due to high base effect

The market seems to be excited about the potential opening up of capital

and lower fuel prices. However consumer price inflation remained

inflows and PSU divestments. The latter is an easier solution – and not

elevated through the quarter. For the month of May, consumer price

much credit should be given even if there is much more PSU divestment.

inflation (CPI) was 8.63% down marginally from 8.70% recorded in the

In fact, one could argue that because the borrowing rates for government

previous month. In the event that the monsoons are below-normal, rise

enterprises tend to be lower than those for private sector and the P/E ratios

in food prices along with the recent fuel prices hikes could add to

of PSUs tend to be lower because of the perceived corporate governance

inflationary pressures.

conflicts. One would do well to just lever up the holdings and take out the cash - the trick really is to improve productivity. Improving the corporate governance equation between minority shareholders and the government in PSUs could well lead to a long term rerating, unless the intention is only to give a sop to get rid of government stakes at high prices. Of course, for

M3 growth – an indicator of liquidity in the system – was up over 20% yoy as of June 19, well above RBI’s target of 17%. Credit growth remained low at 15.7% while deposit growth stood at 22%. Latest data indicated that the cumulative fiscal deficit (as of May) was around 27.3% of FY10 projections and the revenue deficit stood at 33.9% of budgeted estimates.

unlocking the true value of the resource, strategic divestment is more welcome – but that would need to wait for a clearer mandate!

Fixed Income Market Snap Shot Santosh Kamath, CIO - Fixed Income During the quarter, global bond markets came under pressure due to

POLICY During the quarter, RBI cut rates further and indicated that lowering of borrowing costs and percolation of the monetary stimulus, is its main focus. It also defined a larger role for itself within the government borrowing programme to ensure limited impact on market participants.

increased concerns about the impact of high government borrowings to

Policy statements by the government point towards an attempt to restore

fund the fiscal stimulus measures. This along with investor reallocation to

fiscal health by reviving the disinvestment plan and sale of 3G spectrum.

equities amidst signs of stabilising global economy pushed up bond yields

While the government maintains focus towards inclusive growth, the

higher. Corporate bond spreads compressed and inter-bank money markets

expenditure may be curtailed, given the fiscal situation. The recent hike

maintained a positive tone. Rating agencies downgraded the outlook and

in fuel prices is positive from the fiscal health point of view, as it helps

sovereign ratings for some of the countries perceived to bear higher risk.

reduce the government’s subsidy burden.

Increased risk appetite and calls for a new global reserve currency weighed

OUTLOOK

on the US dollar. The widening fiscal deficit along with relatively lower tax revenues, due Indian bond yields were lower quarter-on-quarter, especially at the short

to lower economic growth, has pushed government borrowings higher.

end, on the back of improved systemic liquidity. The yield curve steepened

Inflation uncertainty and the upcoming massive issuances to fund fiscal

as comfortable liquidity conditions kept the short-end of the curve easy,

stimulus measures would weigh on bond prices. RBI is expected to

while higher government bond supplies weighed on the long-end of the

actively manage the borrowings programme to minimize disruption and

curve. Corporate bond spreads normalized to long-term average levels.

prevent crowding out of private borrowers. However, given the quantum

MARKET SCENARIO

of monetary easing already provided, there may be limited room for incremental support.

Yields:Yields on the benchmark 10-year paper were unchanged at 7.01% while 5-year gilts eased 27 bps. The yield on corporate paper of similar tenor fell 57 bps and consequently, spreads over gilts narrowed to 145 bps. Yields on the 30-year government paper dipped 3bps while 1-year gilt yields declined 91 bps. As a result, the yield curve steepened and spreads between 1/30 year gilts widened to 350 bps.

As per available statistics, banks have reduced their SLR holdings in FY10 so far and their surplus SLR holdings are currently near 5-year lows. This may help push up demand for government bonds at lower prices and thereby cap upside in yields. Meaningful progress on the divestment and spectrum sale fronts could alleviate some of the pressure due to government borrowings.

Forex: Positive election outcome and a sharp rise in FII inflows helped the rupee post a 5.5% gain against the dollar. As per RBI, including

March 2009

June 2009

valuation changes of US$37.7bn, the previous fiscal year saw a drawdown

Exchange rate (Rs./$)

50.71

47.90

to the tune of US$57.7bn from forex reserves. Latest forex reserves (as of

Average reverse repos (Rs. Cr)

45860

121221

WPI Inflation (%)*

0.27%

-1.14%

10-yr gilt yield (7.59% 2016)

7.01

7.01

5-yr gilt yield

6.76

6.49

1-yr gilt yield

5.16

4.25

4.75 / 5.00

3.25 / 3.30

Jun 26) stood at $264.6 bln, up $932 mln over the previous week’s close. Liquidity/borrowings: Easy liquidity conditions reflected in the sharp increase in reverse repos and decline in call rates to about 3% levels. RBI played an active role in managing the government’s debt programme by conducting open market operations and MSS buyback auctions to limit the impact from higher bond supplies. However, scheduled borrowings were higher than previously indicated on six occasions during the quarter. www.franklintempletonindia.com

Call rates

* Inflation numbers based on latest data released. Franklin Templeton Investments

5

Franklin India Bluechip Fund

FIBCF

PORTFOLIO

As of June 30, 2009

Company Name

No. of shares

INVESTMENT STYLE The fund manager seeks steady and consistent growth by focusing on wellestablished, large size companies

Auto

TYPE OF SCHEME / INVESTMENT OBJECTIVE

HDFC Bank *

An open end equity fund which aims to provide medium to long term capital appreciation DATE OF ALLOTMENT

% of Assets

Company Name

No. of shares

Market Value Rs. Lakhs

% of Assets

BHEL

145000

3196.31

1.45

Siemens

400000

1889.60

0.86

Areva T&D India

400000

1346.80

0.61

2200000

6095.10

2.77

225000

3145.16

1.43

950000

14171.63

6.44

Industrial Products

Kotak Mahindra Bank *

1700000

10745.70

4.89

Cummins India

Axis Bank *

1250000

10420.63

4.74

Oil

ICICI Bank

700000

5054.00

2.30

ONGC

400000

4268.40

1.94

Bank of India

900000

3170.25

1.44

Cairn

900000

2096.55

0.95

Grasim

213531

4933.10

2.24

FUND MANAGER

Reliance Industries *

800000

16186.80

7.36

Ultratech Cement

463640

3198.88

1.45

BPCL

500000

2150.50

0.98

Anand Radhakrishnan (since Apr. 2007)

Jaiprakash Associates

1400000

2870.70

1.31

LATEST NAV

Construction Project 560000

8782.48

3.99

Lupin Labs

399374

3263.28

1.48

Dr. Reddy’s

370000

2878.05

1.31

1100000

2786.30

1.27

163548

1784.23

0.81

Infosys *

550000

9772.95

4.44

TCS

800000

3117.60

1.42

44054

550.19

0.25

Banks

Cement

December 1, 1993

Growth Plan Dividend Plan

Hero Honda

Market Value Rs. Lakhs

Rs. 151.4629 Rs. 33.2209

L&T *

Petroleum Products

Consumer Non Durables Nestle *

470000

9407.52

4.28

FUND SIZE

Asian Paints

499348

5879.57

2.67

Rs. 2199.40 crores

United Spirits

510000

4452.56

2.02

TURNOVER

Diversified

Portfolio Turnover

115.42%

Hindustan Unilever *

6944.60

3.16

Tata Steel

Standard Deviation R-squared Beta Sharpe Ratio*

Finance HDFC * IDFC

Cipla Sun Pharmaceutical Software

I-Flex Solutions

Ferrous Metals

VOLATILITY MEASURES (3 YEARS) 9.22 0.92 0.89 0.36

2600000

Pharmaceuticals

Telecom - Services

200000

781.60

0.36

Bharti Airtel *

1640000

13154.44

5.98

350000

8208.90

3.73

Idea Cellular

7500000

5347.50

2.43

3000000

4072.50

1.85

Transportation 1699999

4265.30

1.94

500000

1439.75

0.65

218100

2131.71

0.97

201075.01

91.42

GE Shipping

Gas

Container Corporation of India

* Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill Rate during last 3 months )

GAIL Bharat Electronics

275000

3616.94

1.64

Other current assets

EXPENSE RATIO

ABB

450000

3496.95

1.59

Total assets

Total equity holdings

Industrial Capital Goods

18865.42

8.58

219940.43

100.00

1.89% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity exposure has marginally increased to 91.42% from 91.16% over the quarter. United Spirits and Ultratech Cement were

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

key stocks added, while Dabur were the key exit. The fund added to holdings in Hero Honda, Axis Bank, Nestle, ONGC, Lupin Labs, TCS

Rs.1000/1

NAV Performance

and GE Shipping, while trimming them in HDFC Bank, HDFC, L&T, Reliance Industries, Dr. Reddy’s, Infosys and Bharti Airtel.

LOAD STRUCTURE Entry Load Rs.5 Crs < Rs.25 Crs : Nil; =>Rs.25 Crs: Nil Exit Load Rs.5 Crs < Rs.25 Crs : 1% (1% if the Units are redeemed/ switched-out within 6 months of allotment); =>Rs.25 Crs: Nil

FIBCF (G) FIBCF (D) BSE Sensex

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Last 7 Yrs*

Last 10 Yrs*

Since Inception*

50.48% 50.48% 50.24%

20.92% 20.93% 7.67%

14.68% 14.68% 10.95%

26.33% 26.33% 24.74%

31.72% 31.72% 23.80%

27.12% 27.12% 13.34%

25.92% 25.92% 9.97%

Past performance may or may not be sustained in future. *Compounded and annualised Dividends/Bonus declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in FIBCF...

FIBCF BSE Sensex

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.150,000 since Jan 97* would have grown to

16,159 70.54% 15,639 61.14%

42,480 11.07% 39,489 6.11%

94,681 18.32% 87,787 15.23%

1,078,532 28.71% 436,505 15.93%

Past performance may or may not be sustained in future. *The scheme became open end in January 1997. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIBCF & BSE Sensex Rs. 363,393

Rs. 44,027

____ FIBCF

____ BSE Sensex

NAV is adjusted for dividend/bonus

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Templeton India Growth Fund

TIGF

PORTFOLIO

As of June 30, 2009

Company Name

No. of shares

INVESTMENT STYLE

Market Value Rs. Lakhs

% of Assets

Company Name

No. of shares

Market Value Rs. Lakhs

% of Assets

355416

412.10

1.22

113400

207.24

0.61

832552

719.74

2.13

210000

2240.91

6.63

653000

506.08

1.50

85000

1719.85

5.09

220000

1711.27

5.07

TCS *

400000

1558.80

4.61

Infosys

25000

444.23

1.32

MindTree

92743

434.73

1.29

Templeton Equity Portfolio Managers adopt a long term disciplined approach to investing and use the widely known philosophy of ‘value investing’

Auto

TYPE OF SCHEME / INVESTMENT OBJECTIVE

Banks

An open end equity fund which seeks to provide long term capital growth

ICICI Bank *

210000

1516.20

4.49

Non - Ferrous Metals

Federal Bank

512853

1283.93

3.80

Hindalco

DATE OF ALLOTMENT September 10, 1996 FUND MANAGER

298.22

0.88

Ashok Leyland

HCL Infosystems

900000

268.65

0.80

Minerals/Mining Sesa Goa

Union Bank of India

420000

1013.25

3.00

ING Vysya Bank

500851

847.94

2.51

LATEST NAV

Grasim

50000

1155.13

3.42

350000

924.88

2.74 Pharmaceuticals

Ferrous Metals

Dr. Reddy’s *

Tata Steel (CCPS#) *

Rs. 337.81 crores

SAIL

TURNOVER

2200000

1396.12

4.13

250000

377.75

1.12

Fertilisers

36.22%

Tata Chemicals *

VOLATILITY MEASURES (3 YEARS) 10.23 0.34 0.88** 0.96**

Tamilnadu Newsprint and Papers

Reliance Industries * EID Parry

FUND SIZE

Standard Deviation Sharpe Ratio* R-squared Beta

ONGC *

Petroleum Products

Consumer Non Durables Rs. 80.0914 Rs. 40.0034

Portfolio Turnover

Oil

Paper

Cement

Dr. J. Mark Mobius (since Sep. 1996)

Growth Plan Dividend Plan

Hardware 30000

Bajaj Auto

1500000

3267.75

9.67

Finance 0.88# 0.92#

**BSE Sensex #MSCI India Value * Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill Rate "during last 3 months")

Telecom - Services

Tata Investment Corporation *

593668

2257.42

6.68

Idea Cellular *

1850596

1319.47

3.91

Sundaram Finance

335036

954.85

2.83

Bharti Airtel *

161262

1293.48

3.83

Total equity holdings

29130.29

86.23

249253

741.15

2.19

Other current assets

4650.38

13.77

90000

259.16

0.77

Gas Gujarat Gas GAIL

2.32%

PORTFOLIO COMPOSITION AND PERFORMANCE

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Fund Strategy

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

Entry Load Rs.5 Crs: Nil Exit Load Rs.5 Crs : 1% (if redeemed/switched-out within 6 months of allotment)

33780.67

100.00 * Top 10 holdings

The fund’s equity exposure decreased to 86.23% from 92.67% over the quarter. The fund added to its holdings in ING Vysya Bank, Tata Chemicals and TCS, while pared exposures in Hindalco. The fund exited from GE Shipping and Ranbaxy.

NAV Performance Last 6 Mths

Rs.1000/1 LOAD STRUCTURE

Total assets # Cumulative Convertible Preference Shares

EXPENSE RATIO

Rs.5000/1

Software

TIGF 53.27% BSE Sensex 50.24% MSCI India Value 49.42%

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Last 7 Yrs*

Last 10 Yrs*

Since Inception*

3.96% 7.67% 11.24%

15.47% 10.95% 15.43%

24.93% 24.74% 27.73%

29.47% 23.80% 26.22%

25.41% 13.34% 16.70%

18.63% 11.89% N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in TIGF... Rs.12,000 for 1 year would have grown to TIGF

15,842 64.79% BSE Sensex 15,639 61.14% MSCI India Value 15,923 66.25%

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.153,000 since inception would have grown to

42,343 10.85% 39,489 6.11% 42,096 10.45%

91,713 17.01% 87,787 15.23% 97,223 19.41%

773,160 23.23% 450,715 15.76% N.A N.A

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in TIGF & BSE Sensex Rs. 89,273

Rs. 42,197

____ TIGF

____ BSE Sensex

NAV is adjusted for dividend

www.franklintempletonindia.com

Franklin Templeton Investments

7

Franklin India Prima Plus PORTFOLIO

As of June 30, 2009

Company Name

No. of shares

INVESTMENT STYLE The fund manager seeks capital appreciation over the long-term by focusing on wealth creating companies (companies that generate return on capital in excess of their cost of capital) across all sectors. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which aims to provide growth of capital plus regular dividend DATE OF ALLOTMENT September 29, 1994 FUND MANAGER Sukumar Rajah (since Sep. 1994) Anand Radhakrishnan (since Apr. 2007) LATEST NAV Growth Plan Dividend Plan

Rs. 154.5570 Rs. 25.7437

FUND SIZE Rs. 1515.18 crores TURNOVER Portfolio Turnover 156.26% VOLATILITY MEASURES (3 YEARS) Standard Deviation R-squared Beta Sharpe Ratio*

FIPP

9.50 0.92 0.81 0.37

* Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill

Auto Ashok Leyland Banks HDFC Bank * Kotak Mahindra Bank * Bank of India * Yes Bank Federal Bank ING Vysya Bank Cement Jaiprakash Associates ACC Construction DLF Consumer Non Durables Nestle * Titan Marico Asian Paints GSK Consumer Healthcare Diversified Hindustan Unilever * Finance India Infoline * Motilal Oswal Financial Services Crisil Network Eighteen Fincap Edelweiss Capital Industrial Capital Goods ABB Crompton Greaves Thermax Bharat Electronics Industrial Products Cummins India * Media & Entertainment IBN18 Broadcast * Jagran Prakashan Television Eighteen HT Media Deccan Chronicle holdings NDTV UTV Software Communications TV Today Network

Market Value Rs. Lakhs

% of Assets

7728301

2306.90

1.52

553631 1146603 1145678 1887349 967800 172501

8258.79 7247.68 4035.65 2800.83 2422.89 292.04

5.45 4.78 2.66 1.85 1.60 0.19

1870952 79242

3836.39 609.29

2.53 0.40

412900

1283.29

0.85

421630 302028 3720700 208900 108626

8439.35 3545.51 2714.25 2459.69 1073.28

5.57 2.34 1.79 1.62 0.71

1928800

5151.82

3.40

3918310 1059046 50619 155797 29292

4772.50 1492.73 1428.52 182.52 114.06

3.15 0.99 0.94 0.12 0.08

318219 752300 405496 85925

2472.88 2197.84 1635.57 1130.13

1.63 1.45 1.08 0.75

1733791

4803.47

3.17

4253904 4208870 2251539 2043071 1861100 552843 179200 642624

4202.86 3156.65 2699.60 1902.10 1385.59 753.53 649.06 573.54

2.77 2.08 1.78 1.26 0.91 0.50 0.43 0.38

1.95% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load Rs.5 Crs: Nil Exit Load Rs.5 Crs : 1% (if redeemed /switched-out within 6 months of allotment)

No. of shares

Network 18 Media & Investments (CCPS#) Minerals/Mining Sesa Goa Gujarat Mineral Development Corporation Oil ONGC Cairn Petroleum Products Reliance Industries * BPCL HPCL Indian Oil Corporation Pharmaceuticals Lupin Labs Pfizer Cadila Healthcare GSK Pharmaceuticals Carnation Nutra-analogue Food Power PTC India Retailing Trent Software Infosys Satyam Computer Financial Technologies Mphasis BFL Telecom - Services Bharti Airtel * Idea Cellular Trading Adani Enterprises Transportation GE Shipping Unlisted Quantum Information Services Numero Uno Total equity holdings Other current assets Total assets

Market Value Rs. Lakhs

% of Assets

2606

2.27

0.00

870619

1591.06

1.05

977400

813.20

0.54

204766 645800

2185.06 1504.39

1.44 0.99

455698 663646 641479 252553

9220.37 2854.34 1918.34 1343.71

6.09 1.88 1.27 0.89

257541 240294 210400 19861 27973

2104.37 1969.21 797.00 237.18 26.94

1.39 1.30 0.53 0.16 0.02

1961800

1815.65

1.20

71726

350.60

0.23

171959 3318100 138100 262815

3055.54 2352.53 1805.38 1013.28

2.02 1.55 1.19 0.67

848543 2498958

6806.16 1781.76

4.49 1.18

40868

334.71

0.22

1174056

2945.71

1.94

3.42 0.01 140862.95 10655.10 151518.04

0.00 0.00 92.97 7.03 100.00

# Cumulative Convertible Preference Shares

Rate "during last 3 months")

EXPENSE RATIO

Company Name

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity exposure marginally decreased to 92.97% from 92.98% over the quarter. Bank of India, India Infoline, Compton Greaves, PTC India and Satyam Computer were among the key additions to the portfolio, while Hero Honda, Shree Cements, HDFC, L&T, and Hindalco were the key stock which exited. The fund added to its holdings in Ashok Leyland, Nestle, Cummins India, IBN18 Broadcast, ONGC, BPCL, Pfizer and GE Shipping, while paring exposures in HDFC Bank, Hindustan Unilever, ABB, Reliance Industries, Infosys and Bharti Airtel.

NAV Performance FIPP (G) FIPP (D) S&P CNX 500

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Last 7 Yrs*

Last 10 Yrs*

Since Inception*

38.73% 38.73% 51.14%

12.72% 12.71% 8.31%

15.49% 15.45% 10.62%

27.32% 27.29% 22.68%

31.39% 31.38% 23.89%

26.86% 26.85% 15.70%

20.38% 20.37% 8.17%

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in FIPP...

FIPP S&P CNX 500

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.176,000 since inception would have grown to

15,200 53.31% 15,879 65.45%

40,525 7.86% 39,383 5.93%

93,820 17.94% 82,961 12.93%

1,533,450 26.23% 595,403 15.22%

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIPP & S&P CNX 500 Rs. 154,557

Rs. 31,884

____ FIPP

www.franklintempletonindia.com

____ S&P CNX 500

Franklin Templeton Investments

8

Franklin India Prima Fund PORTFOLIO

As of June 30, 2009

Company Name

No. of shares

INVESTMENT STYLE The fund manager seeks aggressive growth by focusing primarily on mid and small cap companies. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which aims to provide long term capital appreciation as primary objective and income as secondary objective DATE OF ALLOTMENT December 1, 1993 FUND MANAGERS K. N. Sivasubramanian (since Dec. 1993) Janakiraman (since Feb. 2008) LATEST NAV Growth Plan Dividend Plan

Rs. 175.4872 Rs. 32.7367

FUND SIZE Rs. 736.62 crores TURNOVER Portfolio Turnover

153.10%

VOLATILITY MEASURES (3 YEARS) Standard Deviation R-squared Beta Sharpe Ratio*

FIPF

11.43 0.88 0.95 -0.02

* Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill Rate "during last 3 months")

Auto Hero Honda Auto Ancillaries Exide Banks Yes Bank * Federal Bank * HDFC Bank * Corporation Bank Kotak Mahindra Bank Union Bank of India Cement India Cements Jaiprakash Associates Ultratech Cement Chemicals Pidilite Construction Mahindra Lifespace Developers JMC Projects IVRCL Infrastructures and Projects Patel Engineering Construction Project Voltas * Consumer Non Durables Asian Paints United Spirits Marico Britannia Industries Diversified Aditya Birla Nuvo * Fertilisers Tata Chemicals * Finance IDFC * India Infoline LIC Housing Finance Gas Gujarat State Petronet Industrial Capital Goods Crompton Greaves * Thermax BEML Bharat Electronics TIL Alstom Projects

47238

Market Value Rs. Lakhs

% of Assets

660.32

0.90

2160359

1497.13

2.03

2488276 1132527 127472 344433 144671 134380

3692.60 2835.28 1901.56 1136.46 914.47 324.19

5.01 3.85 2.58 1.54 1.24 0.44

956886 371496 107256

1252.09 761.75 740.01

1.70 1.03 1.00

1248392

1433.78

1.95

368345 463345 112388 54305

993.24 797.65 385.32 225.96

1.35 1.08 0.52 0.31

2215609

2767.30

3.76

133179 117258 1272629 35071

1568.12 1023.72 928.38 556.37

2.13 1.39 1.26 0.76

253171

2181.57

2.96

804936

1753.55

2.38

1374423 1253854 125365

1865.78 1527.19 775.63

2.53 2.07 1.05

3005433

1450.12

1.97

949375 357434 93281 75392 490143 100000

2773.60 1441.71 999.18 991.59 969.50 487.00

3.77 1.96 1.36 1.35 1.32 0.66

Company Name

No. of shares

Industrial Products Finolex Cables Ess Dee Aluminium Greaves Cotton FAG Bearings Cummins India Sintex Industries Media & Entertainment Jagran Prakashan * Deccan Chronicle holdings IBN18 Broadcast HT Media Minerals/Mining Nava Bharat Ventures Gujarat NRE Coke Pesticides United Phosphorus * Petroleum Products Castrol Pharmaceuticals IPCA Labs Torrent Pharmaceuticals Nicholas Piramal Cadila Healthcare Lupin Labs Carnation Nutra-analogue Food Power PTC India Kalpataru Power Transmission Neyveli Lignite Software Satyam Computer NIIT Financial Technologies Textile Products Raymond Trading Adani Enterprises Transportation GE Shipping IRB Infrastructure Developers Unlisted HIM Technoforge Total equity holdings Other current assets Total assets

Market Value Rs. Lakhs

4012992 389971 714696 148873 183734 215598

1296.20 1213.20 841.91 648.19 509.04 471.30

1.76 1.65 1.14 0.88 0.69 0.64

2880323 2008192 1066318 364688

2160.24 1495.10 1053.52 339.52

2.93 2.03 1.43 0.46

72412 2280377

206.88 1031.87

0.28 1.40

1238254

1766.37

2.40

163865

611.54

0.83

285363 778220 335541 231966 105081 66365

1486.60 1394.18 1046.05 878.69 858.62 63.91

2.02 1.89 1.42 1.19 1.17 0.09

1312142 101957 294799

1214.39 788.74 357.30

1.65 1.07 0.49

1397644 833764 15730

990.93 512.35 205.64

1.35 0.70 0.28

251966

436.03

0.59

148637

1217.34

1.65

414757 274988

1040.63 424.86

1.41 0.58

0.02 70173.27 3489.46 73662.73

0.00 95.26 4.74 100.00 * Top 10 holdings

EXPENSE RATIO 2.16% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity exposure has increased from 89.78% to 95.26% over the quarter. Corporation Bank, Voltas, India Infoline, Gujarat NRE Coke and Satyam Computer were among the key new additions to the portfolio, while Bajaj Auto, Grasim, GSK Consumer Healthcare, L&T, Hindustan Zinc and Bharti Airtel exited the portfolio during this period. The fund added to its holdings in Yes Bank, India Cements, United Spirits, Tata Chemicals, Crompton Greaves, United Phosphorous, AB Nuvo and GE Shipping, while reducing exposure to Exide, Pidilite, Marico, IDFC, Thermax and Nicholas Piramal.

NAV Performance

Rs.1000/1 LOAD STRUCTURE: Entry Load: Rs.5 Crs: Nil Exit Load: Rs.5 Crs : 1% (if redeemed/switched-out within 6 months of allotment)

% of Assets

FIPF (G) FIPF (D) S&P CNX 500 CNX Midcap

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Last 7 Yrs*

Last 10 Yrs*

Since Inception*

47.68% 47.68% 51.14% 45.28%

4.08% 4.08% 8.31% 3.60%

2.69% 2.68% 10.62% 11.21%

20.07% 20.07% 22.68% 22.88%

29.21% 29.21% 23.89% N.A

27.68% 27.67% 15.70% N.A

20.18% 20.17% 9.49% N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in FIPF...

FIPF S&P CNX 500

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.187,000 since inception would have grown to

15,852 64.96% 15,879 65.45%

35,667 -0.60% 39,383 5.93%

70,298 6.28% 82,961 12.93%

1,416,729 23.02% 633,191 14.28%

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIPF & S&P CNX 500 Rs. 175,487

Rs. 41,108

____ FIPF

www.franklintempletonindia.com

____ S&P CNX 500

Franklin Templeton Investments

9

Franklin India Flexi Cap Fund PORTFOLIO

As of June 30, 2009

Company Name

INVESTMENT STYLE The fund manager will invest in companies based on a research driven, bottom-up stock selection process, irrespective of their market capitalization and sectors. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which seeks to provide medium to long-term capital appreciation by investing in stocks across the entire market capitalization range. DATE OF ALLOTMENT March 2, 2005 FUND MANAGERS K.N. Sivasubramanian / Sukumar Rajah (since Mar. 2005) LATEST NAV Growth Plan Dividend Plan

Rs. 22.2975 Rs. 14.1861

FUND SIZE Rs. 2158.26 crores TURNOVER Portfolio Turnover 243.26% VOLATILITY MEASURES (3 YEARS) Standard Deviation R-squared Beta Sharpe Ratio*

FIFCF

9.88 0.92 0.84 0.24

* Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill Rate "during last 3 months")

EXPENSE RATIO 1.89% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load Rs.5 Crs: Nil Exit Load Rs.5 Crs : 1% (if redeemed /switched-out within 6 months of allotment)

Auto Mahindra & Mahindra Hero Honda Ashok Leyland Auto Ancillaries Amara Raja Batteries Pricol Banks HDFC Bank * SBI * Yes Bank * Axis Bank * Federal Bank ING Vysya Bank Cement Jaiprakash Associates * India Cements Chemicals Pidilite Construction IVRCL Infrastructures and Projects Mahindra Lifespace Developers Construction Project L&T * Voltas Consumer Non Durables Asian Paints Marico United Spirits Balrampur Chini Mills Diversified Hindustan Unilever * Ferrous Metals Tata Steel Fertilisers Tata Chemicals Deepak Fertilizers & Petrochemicals Corporation Finance IDFC * India Infoline Crisil

No. of shares

Market Value Rs. Lakhs

% of Assets

579640 160847 5081600

4014.01 2248.40 1516.86

1.86 1.04 0.70

2415000 2774201

2248.37 285.47

1.04 0.13

541360 454741 5035513 826998 2378327 867892

8075.74 7921.82 7472.70 6894.27 5954.14 1469.34

3.74 3.67 3.46 3.19 2.76 0.68

4453446 2946908

9131.79 3856.03

4.23 1.79

16116

18.51

0.01

562572 358056

1928.78 965.50

0.89 0.45

456176 3207107

7154.21 4005.68

3.31 1.86

277738 3958824 246300 595164

3270.23 2887.96 2150.32 626.71

1.52 1.34 1.00 0.29

3104044

8290.90

3.84

756905

2957.98

1.37

1262761

2750.92

1.27

2381506

2150.50

1.00

4873697 3310406 184229

6616.04 4032.07 1415.34

3.07 1.87 0.66

Large Cap : 58.82%, Mid Cap : 30.50%, Small Cap : 2.86% (Based on stocks in S&PCNX 500 index. Large cap : Top 20%, Mid cap : next 40% and Small cap: last 40%. (as of June 30, 2009)

Company Name

No. of shares

Gas Gujarat State Petronet Industrial Capital Goods Bharat Electronics Crompton Greaves ABB Industrial Products Cummins India Media & Entertainment IBN18 Broadcast News Deccan Chronicle holdings Television Eighteen Oil Cairn Pesticides United Phosphorus Petroleum Products Reliance Industries * Reliance Petroleum Pharmaceuticals Lupin Labs Nicholas Piramal Cadila Healthcare IPCA Labs Carnation Nutra-analogue Food Power PTC India NTPC Software Satyam Computer Mphasis BFL Financial Technologies Telecom - Services Bharti Airtel * Idea Cellular Trading Adani Enterprises Transportation Mercator Lines GE Shipping Total equity holdings Other current assets # Total assets

% of Assets

8066451

3892.06

1.80

291206 1237978 415160

3830.09 3616.75 3226.21

1.77 1.68 1.49

2376543

6584.21

3.05

4678554 4121220 1055516

4622.41 3068.25 1265.56

2.14 1.42 0.59

905016

2108.23

0.98

1382182

1971.68

0.91

679195 499032

13742.49 626.78

6.37 0.29

680701 1443650 478504 146632 70136

5562.01 4500.58 1812.57 763.88 67.54

2.58 2.09 0.84 0.35 0.03

1360000 500000

1258.68 975.25

0.58 0.45

4391634 430045 19475

3113.67 1658.04 254.60

1.44 0.77 0.12

1316448 2918022

10559.23 2080.55

4.89 0.96

321015

2629.11

1.22

2739397 491417

1620.35 1232.97 198954.34 16871.32 215825.67

0.75 0.57 92.18 7.82 100.00

# Includes market value of July 2009 Nifty Futures: 243200; Margin money paid on the above Rs.22.00cr

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity exposure decreased from 94.06% to 92.18% over the quarter, with the fund adding SBI, Jaiprakash Associates, India Infoline, Crompton Greaves, Satyam Computer and Adani Enterprises to the portfolio. The fund added to holdings in Mahindra & Mahindra, HDFC Bank, India Cements, Voltas, Hindustan Unilever, Gujarat State Petronet and IBN18 Broadcast, while trimmed exposures in Axis Bank, Marico, Tata Chemicals, IDFC, L&T, Bharat Electronics, Cummins India, Reliance Industries, Lupin Labs and Bharti Airtel. The fund exited from ICICI Bank, Grasim, ITC, SAIL, Hindalco and ONGC during the quarter.

NAV Performance FIFCF (G) FIFCF (D) S&P CNX 500

Last 3 Mths

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Since Inception*

51.47% 51.47% 51.20%

46.85% 46.85% 51.14%

15.41% 15.41% 8.31%

11.39% 11.38% 10.62%

20.34% 20.34% 15.99%

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in FIFCF... Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.52,000 since inception would have grown to

16,101 69.48% 15,879 65.45%

40,392 7.64% 39,383 5.93%

68,235 12.56% 64,608 10.00%

FIFCF S&P CNX 500

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIFCF & S&P CNX 500

____ FIFCF Rs. 22,298

www.franklintempletonindia.com

Market Value Rs. Lakhs

____ S&P CNX 500 Rs. 19,009

Franklin Templeton Investments

10

Franklin India High Growth Companies Fund As of June 30, 2009

PORTFOLIO Company Name

INVESTMENT STYLE The fund manager seeks high growth by focussing on companies/sectors with high growth rates or potential. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which seeks to achieve capital appreciation through investments in Indian companies/ sectors with high growth rates or potential. DATE OF ALLOTMENT July 26, 2007 FUND MANAGER K. N. Sivasubramanian/ Anand Radhakrishnan (since Jul. 2007) LATEST NAV Growth Plan Dividend Plan

Rs. 8.7659 Rs. 8.7659

FUND SIZE Rs. 1129.41 crores TURNOVER Portfolio Turnover 247.56% EXPENSE RATIO 2.02% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load Rs.5 Crs < Rs.25 Crs : Nil; =>Rs.25 Crs: Nil Exit Load Rs.5 Crs < Rs.25 Crs : 1% (1% if the Units are redeemed/switched-out within 6 months of allotment); =>Rs.25 Crs: Nil

FIHGCF

Auto Mahindra & Mahindra Auto Ancillaries Amara Raja Batteries Everest Kanto Cylinder Banks HDFC Bank * SBI * Yes Bank * Axis Bank * Federal Bank ING Vysya Bank Cement Jaiprakash Associates * Chemicals Pidilite Construction IVRCL Infrastructures and Projects Mahindra Lifespace Developers Construction Project L&T * Voltas Consumer Non Durables Asian Paints Balrampur Chini Mills United Spirits Britannia Industries Diversified Hindustan Unilever Ferrous Metals Tata Steel Finance IDFC India Infoline Crisil Gas Gujarat State Petronet Industrial Capital Goods Thermax

No. of shares

Market Value Rs. Lakhs

% of Assets

210625

1458.58

1.29

1517953 134119

1413.21 259.05

1.25 0.23

314096 230968 2674649 417807 1019064 829719

4685.53 4023.58 3969.18 3483.05 2551.23 1404.71

4.15 3.56 3.51 3.08 2.26 1.24

2299806

4715.75

4.18

1898683

2180.64

1.93

426685 82144

1462.89 221.50

1.30 0.20

263301 1468307

4129.35 1833.92

3.66 1.62

249666 1743058 125500 13044

2939.69 1835.44 1095.68 206.93

2.60 1.63 0.97 0.18

1055256

2818.59

2.50

372810

1456.94

1.29

2456040 2121151 96523

3334.07 2583.56 741.54

2.95 2.29 0.66

4146100

2000.49

1.77

477559

1926.23

1.71

Company Name

No. of shares

Market Value Rs. Lakhs

Crompton Greaves ABB Voltamp Transformers Bharat Electronics Industrial Products Cummins India FAG Bearings Media & Entertainment Deccan Chronicle holdings * IBN18 Broadcast Television Eighteen Jagran Prakashan Pesticides United Phosphorus Petroleum Products Reliance Industries * Pharmaceuticals Lupin Labs * Nicholas Piramal IPCA Labs Power PTC India Kalpataru Power Transmission Jyoti Structures Software Satyam Computer NIIT Financial Technologies Telecom - Services Bharti Airtel * Idea Cellular Trading Adani Enterprises Transportation Mercator Lines GE Shipping Total equity holdings Other current assets # Total assets

630361 119032 106286 22783

1841.60 925.00 863.10 299.65

1.63 0.82 0.76 0.27

1197066 476800

3316.47 2075.99

2.94 1.84

5106242 1432664 1052912 100000

3801.60 1415.47 1262.44 75.00

3.37 1.25 1.12 0.07

580337

827.85

0.73

365225

7389.78

6.54

503280 872109 413578

4112.30 2718.80 2154.53

3.64 2.41 1.91

1020000 116519 81279

944.01 901.39 110.66

0.84 0.80 0.10

2226546 874609 10098

1578.62 537.45 132.01

1.40 0.48 0.12

669612 1614972

5370.96 1151.48

4.76 1.02

221318

1812.59

1.60

1406382 251986

831.87 632.23 105814.19 7127.22 112941.41

0.74 0.56 93.69 6.31 100.00

# Includes market value of July 2009 Nifty Futures:-127350; Margin money paid on the above Rs.11.50cr

% of Assets

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity exposure has decreased to 93.69% from 94.21% over the quarter. Mahindra & Mahindra, SBI, Jaiprakash Associates, Balrampur Chini Mills, India Infoline, Crompton Greaves, Satyam Computer and Adani Enterprises were key stocks added, while ICICI Bank, Marico, GVK Power & Infrastructure and Dr. Reddy’s were the key exits. The fund added to holdings in Yes Bank, Voltas, Hindustan Unilever, Tata Steel and Deccan Chronicle Holdings, while trimming them in HDFC Bank, IDFC, L&T, Fag Bearings, Reliance Industries, Lupin Labs and Bharti Airtel.

NAV Performance FIHGCF S&P CNX 500

Last 1 Mth

Last 3 Mths

Last 6 Mths

Last 1 Yr

Since Inception*

0.67% -3.08%

55.09% 51.20%

47.24% 51.14%

7.48% 8.31%

-6.59% -5.23%

Past performance may or may not be sustained in future. *Compounded and annualised

If you had invested Rs.1000 every month in FIHGCF

FIHGCF S&P CNX 500

Rs.12,000 for 1 year would have grown to

Rs.24,000 since inception would have grown to

16,002 67.68% 15,879 65.45%

25,578 6.29% 25,791 7.13%

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIHGCF & S&P CNX 500

____ FIHGCF Rs. 8,766

www.franklintempletonindia.com

____ S&P CNX 500 Rs. 9,015

Franklin Templeton Investments

11

Franklin Asian Equity Fund As of June 30, 2009

PORTFOLIO Company Name

INVESTMENT STYLE The fund manager seeks long term appreciation by focussing on Asian Companies/Sectors (excluding Japan) with long term growth potential. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which seeks to provide medium to long term appreciation through investments primarily in Asian Companies / sectors (excluding Japan) with long term potential across market capitalization. DATE OF ALLOTMENT January 16, 2008 FUND MANAGER Sukumar Rajah/Roshi Jain (since Jan. 2008) LATEST NAV Growth Plan Dividend Plan

Rs. 8.8466 Rs. 8.8466

FUND SIZE Rs. 416.58 crores EXPENSE RATIO 2.30% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load Rs.5 Crs < Rs.25 Crs : Nil =>Rs.25 Crs: Nil Exit Load Rs.5 Crs < Rs.25 Crs : 1% (1% if the Units are redeemed/switched-out within 6 months of allotment) =>Rs.25 Crs: Nil

FAEF

Auto Hyundai Motor (South Korea) * Auto Ancillaries Hankook Tire Banks Industrial and Commercial Bank of China (HongKong) * Kotak Mahindra Bank * HDFC Bank China Construction Bank Corporation (HongKong) Bangkok Bank Public Co. (Thailand) Kasikornbank Public Corporation (Thailand) Fubon Financial Holding Yuanta Financial Holding Shinhan Financial ( South Korea ) Industrial and Commercial Bank of China (Asia) (HongKong) Chemicals Taiwan Fertilizer (Taiwan) Construction China Overseas Land & Investment (HongKong) Hang Lung Properties (HongKong) Consumer Non Durables Want Want China Holdings (HongKong) Dairy Farm International Holdings (USA) China Green (Holdings) Nestle KT & G Corporation (South Korea) 361 Degrees International Diversified Hindustan Unilever PT Astra International Ferrous Metals BHP Billiton (Australia) Finance Singapore Exchange (Singapore) * China Life Insurance (HongKong) Hong Kong Exchanges & Clearing (HongKong) Samsung Securities Crisil Ping An Insurance (Group) Co. of China (HongKong) Cathay Financial Holding (Taiwan)

No. of shares

Market Value Rs. Lakhs

% of Assets

50016

1395.84

3.35

71690

449.55

1.08

5125000 197986 66597

1713.32 1251.47 993.46

4.11 3.00 2.38

Industrial Capital Goods Huabao International Holdings (HongKong) 1755000 PT United Tractors 1355000 Singapore Technologies Engineering (Singapore) 444000

2431000 337600

904.50 532.88

2.17 1.28

Industrial Products Lg Hausys

505800 927000 1221000 18552

516.80 415.79 394.24 225.33

1.24 1.00 0.95 0.54

93000

80.95

0.19

210000

298.84

0.72

861600 446000

960.13 708.23

2.30 1.70

3621980 312145 1635000 23235 10892 1142000

982.13 967.50 815.84 465.07 295.36 275.73

2.36 2.32 1.96 1.12 0.71 0.66

224496 446500

599.63 499.50

1.44 1.20

43833

593.72

1.43

453000 517000

1067.06 912.19

2.56 2.19

114800 15925 11817

857.83 406.65 401.97

2.06 0.98 0.96

110500 447000

358.80 317.07

0.86 0.76

Company Name

No. of shares

Hardware Taiwan Semiconductor Manufacturing (Taiwan) * 2900503 Samsung Electronics (South Korea) * 6334 High Tech Computer Corporation (Taiwan) 56600

Media & Entertainment Television Eighteen Kangwon Land (South Korea) Oil CNOOC (HongKong) Petroleum Products PetroChina (HongKong) * Reliance Industries China Petroleum and Chemical Corporation (HongKong)

Market Value Rs. Lakhs

% of Assets

2318.02 1412.24 383.70

5.56 3.39 0.92

814.87 633.73

1.96 1.52

360.90

0.87

4119

179.95

0.43

288209 33906

345.56 208.15

0.83 0.50

1486000

884.08

2.12

2716000 52702

1446.03 1066.35

3.47 2.56

1002000

366.61

0.88

451.59

1.08

1294.38 843.90 536.04 477.79

3.11 2.03 1.29 1.15

Power China Shenhua Energy (HongKong) 255500 Retailing Parkson Retail Group (HongKong) * 1887000 Shinsegae (South Korea) 4437 Esprit Holdings (HongKong) 200200 CP All PCL ( Thailand ) 1982600 Software Travelsky Technology (HongKong)

1113000

296.29

0.71

Telecom - Equipment & Accessories MediaTek ( Taiwan )

153000

876.26

2.10

1981.69

4.76

1103.79 933.69 219.77

2.65 2.24 0.53

7967

254.45

0.61

24599

529.11 40876.32 782.00 41658.31

1.27 98.12 1.88 100.00

Telecom - Services China Mobile (HongKong) * 412500 Singapore Telecommunications (Singapore) * 1109000 PT Telekomunikasi Indonesia (Indonesia) 2648500 Bharti Airtel 346000 Transportation Glovis (South Korea) Travel Ctrip.com International (USA) Total equity holdings Other current assets Total assets

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity exposure increased from 96.29% to 98.12% over the quarter, with the fund adding Hankook Tire (South Korea), Fubon Financial Holding (Taiwan), China Green Holdings (HongKong), PT Astra International and Television Eighteen to the portfolio. The fund added to holdings in Industrial and Commercial Bank of China (HongKong), China Overseas Land & Investment (HongKong), Singapore Exchange (Singapore), PT United Tractors and Bharti Airtel. Holdings were trimmed in Kotak Mahindra Bank, Dairy Farm International Holdings (USA), PetroChina (HongKong), Media Tek (Taiwan) and Singapore Telecommunications (Singapore). The fund exited from Hyundai Mobis (South Korea), China Yurun Food Group (HongKong) and Infosys.

Sector Allocation - Total Assets

NAV Performance Last 1 Mth

Last 3 Mths

Last 6 Mths

Last 1 Yr

Since Inception*

FAEF 1.98% MSCI Asia (ex Japan) Standard Index 1.02%

25.31%

29.74%

-0.13%

-8.08%

25.58% 31.53% -11.32%

-12.17%

Past performance may or may not be sustained in future. *Compounded and annualised

www.franklintempletonindia.com

Franklin Templeton Investments

12

Franklin India Opportunities Fund

FIOF

PORTFOLIO

As of June 30, 2009

Company Name

INVESTMENT STYLE The fund manager seeks long term capital appreciation by focusing on companies that operate in the space where India has a strong competitive advantage, companies that are globally competitive and those that are grossly undervalued or have high growth potential TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which seeks to provide long term capital appreciation by capitalising on the long-term growth opportunities in the Indian economy

Auto Bajaj Auto * Mahindra & Mahindra Hero Honda Ashok Leyland

No. of shares

Market Value Rs. Lakhs

% of Assets

134404 109367 32526 575729

1336.04 757.37 454.66 171.86

2.23 1.26 0.76 0.29

150000 255986

289.73 177.40

0.48 0.30

421244 141797 101075 149027 319527 155476 583941 73200 40500

3041.38 2115.26 1760.78 1242.36 1125.53 982.76 866.57 183.26 180.35

5.07 3.53 2.94 2.07 1.88 1.64 1.45 0.31 0.30

Auto Ancillaries Everest Kanto Cylinder Exide

Banks ICICI Bank * HDFC Bank * SBI * Axis Bank Bank of India Kotak Mahindra Bank Yes Bank Federal Bank Bank of Baroda

Cement Grasim Ultratech Cement Jaiprakash Associates

41010 56460 187554

947.43 389.55 384.58

1.58 0.65 0.64

Chakri Lokapriya (since July. 2008) LATEST NAV Growth Plan Dividend Plan

Rs. 24.4161 Rs. 12.1879

349.44%

Standard Deviation R-squared Beta Sharpe Ratio*

10.67 0.91 0.92 0.17

* Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill

Television Eighteen IBN18 Broadcast Zee Entertainment Enterprises

95025 306083 66436 113956

1017.86 894.22 873.80 538.33

1.70 1.49 1.46 0.90

83432 62400

176.92 172.88

0.30 0.29

520349 386603 137831

623.90 381.96 243.41

1.04 0.64 0.41

Minerals/Mining Sesa Goa

162284

296.57

0.49

36372

221.09

0.37

Non - Ferrous Metals Sterlite

Oil ONGC

86526

923.32

1.54

110359

157.43

0.26

250999 496200

5078.59 623.23

8.47 1.04

169588 45048 16889 19635

429.57 350.41 201.69 160.44

0.72 0.58 0.34 0.27

112215 58178 160427 310000 393096

1343.77 668.87 312.91 286.91 159.60

2.24 1.12 0.52 0.48 0.27

163834 188300 212771 826785 124580 57100 54406

2911.17 725.99 550.97 508.06 485.49 418.20 205.46

4.85 1.21 0.92 0.85 0.81 0.70 0.34

152639 412235

1224.32 293.92

2.04 0.49

132216 203095 28332 6554

331.73 313.78 171.20 64.06

0.55 0.52 0.29 0.11

3.97 0.05 0.01 56835.07 3130.38 59965.45

0.01 0.00 0.00 94.78 5.22 100.00

Pesticides Petroleum Products Reliance Industries * Reliance Petroleum Cipla Dr. Reddy’s GSK Pharmaceuticals Lupin Labs

236890 707183 106941

3715.15 732.64 224.20

6.20 1.22 0.37

Power

Balrampur Chini Mills Colgative Palmolive Asian Paints United Spirits Shree Renuka Sugars

606922 71856 19961 21445 131725

639.09 435.38 235.03 187.23 185.47

1.07 0.73 0.39 0.31 0.31

216935 39822

579.43 343.15

0.97 0.57

18313 186400 32311

456.23 281.65 199.04

0.76 0.47 0.33

194273

423.22

0.71

95564 497056 225959 34783

2241.36 674.75 440.06 215.20

3.74 1.13 0.73 0.36

148118

426.51

0.71

296876

196.24

0.33

90157

1987.38

3.31

Diversified

Fertilisers

VOLATILITY MEASURES (3 YEARS)

% of Assets

Media & Entertainment

1.28 0.45 0.37

Consumer Non Durables

Jindal Steel & Power SAIL JSW Steel

TURNOVER

Max India Cummins India

768.39 271.02 224.39

Ferrous Metals

Rs. 599.65 crores

Portfolio Turnover

L&T * Hindustan Construction Punj Lloyd

Hindustan Unilever Aditya Birla Nuvo

FUND SIZE

Market Value Rs. Lakhs

Industrial Products

224117 340473 83214

Construction Project

FUND MANAGER

No. of shares

Pharmaceuticals

IVRCL Infrastructures and Projects Unitech Mahindra Lifespace Developers

February 21, 2000

BEML Crompton Greaves Bharat Electronics Siemens

United Phosphorus

Construction

DATE OF ALLOTMENT

Company Name

Tata Chemicals

Finance HDFC * IDFC Power Finance Corporation LIC Housing Finance

Gas GAIL

Hotels Indian Hotels

Industrial Capital Goods BHEL *

Reliance Energy * Tata Power NTPC PTC India GVK Power & Infrastructure

Software Infosys * Mphasis BFL Patni Computer Systems NIIT TCS Tech Mahindra Wipro

Telecom - Services Bharti Airtel Idea Cellular

Transportation GE Shipping IRB Infrastructure Developers Mundra Port Special Economic Zone Container Corporation of India

Unlisted Quantum Information Services GCI Solutions Numero Uno Total equity holdings Other current assets Total assets

* Top 10 holdings

Rate "during last 3 months")

PORTFOLIO COMPOSITION AND PERFORMANCE

EXPENSE RATIO

Fund Strategy

2.21%

The fund’s equity exposure increased to 94.78% from 92.37% over the quarter. Yes Bank, IVRCL Infrastructure and Projects, Balrampur Chini Mills, Compton Greaves, Mphasis BFL, Aditya Birla Nuvo and GE Shipping were among the key new additions to the portfolio, while Gujarat Ambuja Cements, ITC, ABB, BPCL and Neyveli Lignite exited the portfolio during this period. The fund added to holdings in Bajaj Auto, Hindustan Construction, IDFC and Reliance Energy while reducing holdings in Hindustan Unilever, ONGC, Reliance Industries, Cipla and Bharti Airtel.

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load: Rs.5 Crs: Nil Exit Load: Rs.5 Crs : 1% (if redeemed/switched-out within 6 months of allotment)

NAV Performance Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

43.27% 43.27% 52.78%

0.65% 0.65% 7.48%

9.76% 9.70% 11.60%

24.77% 24.73% 23.09%

10.00% 9.99% -6.69%

FIOF (G) FIOF (D) BSE 200 #

Past performance may or may not be sustained in future.*Compounded and annualised. The scheme was launched as an open end sector equity scheme and has been repositioned in its new form with effect from March 10, 2004

SIP - If you had invested Rs.1000 every month in FIOF...

FIOF BSE 200#

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.112,000 since inception would have grown to

15,168 52.75% 16,024 68.07%

36,822 1.47% 39,910 6.83%

83,028 12.97% 85,223 14.02%

307,427 20.68% 215,048 13.48%

Past performance may or may not be sustained in future. Load is not taken into consideration. #Index adjusted for the period February 21, 2000 to March 10, 2004 with the performance of ET Mindex

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIOF & BSE 200 Rs. 24,416

Rs. 5,229

____ FIOF

www.franklintempletonindia.com

____ BSE 200#

Franklin Templeton Investments

13

Templeton India Equity Income Fund PORTFOLIO

As of June 30, 2009

Company Name

INVESTMENT STYLE Templeton Equity Portfolio Managers adopt a long term disciplined approach of investing and use the value style of investing along with focus on stocks with attractive dividend yields, both in India and overseas. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity fund which seeks to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have a current or potentially attractive dividend yield. DATE OF ALLOTMENT May 18, 2006 FUND MANAGER Dr. J. Mark Mobius assisted by Chetan Sehgal (since May 2006) Vikas Chiranwal (since Aug. 2006) LATEST NAV Growth Plan Dividend Plan

Rs. 13.4542 Rs. 11.5894

FUND SIZE Rs. 1062.55 crores TURNOVER Portfolio Turnover

TIEIF

29.64%

EXPENSE RATIO 2.03% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Auto Ashok Leyland Bajaj Auto Banks Union Bank of India * ICICI Bank * Hana Financial Group Inc. (Korea) Cement Grasim * JK Cements Siam City Cement (Thailand) Consumer Durables Samsung Heavy Industries (Korea) Consumer Non Durables EID Parry Embotelladora Andina SA (Chile) Uni-president China Holdings (Hong Kong) Ferrous Metals SAIL * Tata Steel (CCPS#) Ternium SA ADR (Argentina) Fertilisers Tata Chemicals * Finance Sundaram Finance * Tata Investment Corporation * IS Yatirim Menkul Degerler AS (Turkey) Korea Information Service Inc. (Korea) Gas GAIL Gujarat Gas Hardware HCL Infosystems Industrial Capital Goods Chongqing Machinery and Electric Company (HongKong) Industrial Products Shanghai Prime Machinery Company (Hong Kong)

No. of shares

Market Value Rs. Lakhs

% of Assets

2000000 30000

597.00 298.22

0.56 0.28

2500000 500000 250000

6031.25 3610.00 2579.87

5.68 3.40 2.43

135333 2081802 214700

3126.53 2062.02 508.33

2.94 1.94 0.48

150000

1638.31

1.54

750000 629579

1981.88 728.67

1.87 0.69

929000

245.01

0.23

2000000 4172066 90600

3022.00 2647.59 760.72

2.84 2.49 0.72

4594693

10009.54

9.42

1588726 979703 2000000 100000

4527.87 3725.32 982.76 640.26

4.26 3.51 0.92 0.60

525000 266942

1511.74 793.75

1.42 0.75

1234112

1430.95

1.35

20000000

1547.71

1.46

25000000

2182.27

2.05

Company Name

No. of shares

Market Value Rs. Lakhs

Minerals/Mining Sesa Goa * 2000000 Anglo American PLC (South Africa) 100000 Non - Ferrous Metals Hindalco 2000000 Oil ONGC * 708389 Lukoil - ADR (Russia) 130000 Paper Tamilnadu Newsprint and Papers 1416229 Ballarpur Industries 1493648 Petroleum Products Reliance Industries * 155000 Polski Koncern Naftowy Orlen SA (Poland) 157290 Power China Coal Energy ( Hong Kong ) 1000000 Retailing Lotte Shopping (Korea) 30000 Massmart Holdings (South Africa) 500000 Freeworld Coatings (South Africa) 4000000 Semiconductors United Microelectronics Corporation (Taiwan) 13000000 Novatek Microelectronics Corporation (Taiwan) 1211068 Software Travelsky Technology (HongKong) 5556000 TCS 242000 Infosys 7256 Telecom - Services Bharti Airtel 335050 Idea Cellular 2000000 America Movil SA L ADR (Mexico) 50000 Transportation Sinotrans (HongKong) 4208000 Total equity holdings Other current assets Total assets

% of Assets

3655.00 1429.49

3.44 1.35

1729.00

1.63

7559.22 2781.88

7.11 2.62

1097.58 299.48

1.03 0.28

3136.19

2.95

639.58

0.60

568.32

0.53

2960.26 2470.17 1617.96

2.79 2.32 1.52

2089.26

1.97

1387.21

1.31

1479.04 943.07 128.93

1.39 0.89 0.12

2687.44 1426.00 937.29

2.53 1.34 0.88

458.50 98670.46 7584.70 106255.15

0.43 92.86 7.14 100.00

# Cumulative Convertible Preference Shares

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE

Rs.5000/1

Fund Strategy

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

The fund’s equity exposure decreased from 97.35% to 92.86% over the quarter. The fund added to its holdings in Tata

Rs.1000/1

investment universe for both domestic & overseas opportunities.

LOAD STRUCTURE Entry: Exit:

Rs.5 Crs: Nil; Rs.5 Crs : 1% (if redeemed/ switched-out within 6 months of allotment)

Chemicals, Anglo American PLC (South Africa) and TCS and exited from GE Shipping. We will continue to closely scan the

NAV Performance TIEIF (G) TIEIF (D) BSE 200

Last 3 Mths

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Since Inception*

48.02% 48.02% 54.95%

52.59% 52.59% 52.78%

-4.23% -4.23% 7.48%

12.21% 12.24% 11.60%

9.97% 10.00% 7.56%

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in TIEIF...

TIEIF BSE 200

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.38,000 since inception would have grown to

15,612 60.65% 16,024 68.07%

40,383 7.62% 39,910 6.83%

43,166 8.03% 42,582 7.15%

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in TIEIF & BSE 200

____ TIEIF Rs. 13,454

www.franklintempletonindia.com

____ BSE 200 Rs. 12,555

Franklin Templeton Investments

14

Franklin India Taxshield

FIT

PORTFOLIO

As of June 30, 2009

Company Name

No. of shares

INVESTMENT STYLE The fund manager seeks steady growth by maintaining a diversified portfolio of equities across sectors and market cap ranges. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity linked savings scheme which aims to provide medium to long term growth of capital along with income tax rebate. DATE OF ALLOTMENT April 10, 1999 FUND MANAGER Anand Radhakrishnan (since Apr. 2007) LATEST NAV Growth Plan Dividend Plan

Rs. 143.1573 Rs. 25.8614

FUND SIZE Rs. 609.85 crores TURNOVER Portfolio Turnover

72.53%

VOLATILITY MEASURES (3 YEARS) Standard Deviation R-squared Beta Sharpe Ratio*

9.32 0.91 0.79 0.25

* Annualised. Risk-free rate assumed to be 3.29% (based on average of 3 month T-Bill Rate "during last 3 months")

Auto Hero Honda Banks HDFC Bank * Kotak Mahindra Bank * Axis Bank * ICICI Bank Bank of India Federal Bank Cement Jaiprakash Associates India Cements Grasim Chemicals Pidilite Construction Mahindra Lifespace Developers Consolidated Construction Consortium Construction Project L&T * Voltas Consumer Non Durables Nestle * Asian Paints United Spirits Balrampur Chini Mills Marico Britannia Industries ITC Bajaj Hindustan GSK Consumer Healthcare Diversified Hindustan Unilever * Finance HDFC * IDFC India Infoline Reliance Capital Industrial Capital Goods ABB BHEL

Market Value Rs. Lakhs

% of Assets

64415

900.43

1.48

221500 477800 296997 220000 215000 200000

3304.23 3020.17 2475.92 1588.40 757.34 500.70

5.42 4.95 4.06 2.60 1.24 0.82

700000 200000 7095

1435.35 261.70 163.91

2.35 0.43 0.27

626680

719.74

1.18

100000 100000

269.65 262.15

0.44 0.43

157000 400000

2462.23 499.60

4.04 0.82

105000 99585 110000 825000 1000000 40000 300000 170000 30000

2101.68 1172.56 960.36 868.73 729.50 634.56 571.35 347.31 296.42

3.45 1.92 1.57 1.42 1.20 1.04 0.94 0.57 0.49

650000

1736.15

2.85

100000 700000 500000 30000

2345.40 950.25 609.00 270.11

3.85 1.56 1.00 0.44

177000 45000

1375.47 991.96

2.26 1.63

Company Name

No. of shares

Areva T&D India 273930 Crompton Greaves 200000 Bharat Bijlee 16788 Industrial Products Cummins India 560000 Media & Entertainment IBN18 Broadcast 665200 Television Eighteen 315818 Jagran Prakashan 420068 Minerals/Mining Gujarat NRE Coke 850000 Gujarat Mineral Development Corporation 400000 Oil ONGC 55000 Cairn 200000 Petroleum Products Reliance Industries * 191500 Pharmaceuticals Lupin Labs 138667 Dr. Reddy’s 135000 Cipla 200000 Nicholas Piramal 150000 Torrent Pharmaceuticals 206678 Software Infosys * 160000 I-Flex Solutions 47650 Telecom - Services Bharti Airtel * 400000 Idea Cellular 1500000 Textile Products Raymond 64803 Transportation GE Shipping 425000 Mercator Lines 450000 Unlisted Quantum Information Services Total equity holdings Other current assets Total assets

Market Value Rs. Lakhs

% of Assets

922.32 584.30 144.82

1.51 0.96 0.24

1551.48

2.54

657.22 378.67 315.05

1.08 0.62 0.52

384.63

0.63

332.80

0.55

586.91 465.90

0.96 0.76

3874.72

6.35

1133.05 1050.10 506.60 467.63 370.26

1.86 1.72 0.83 0.77 0.61

2843.04 595.10

4.66 0.98

3208.40 1069.50

5.26 1.75

112.14

0.18

1066.33 266.18

1.75 0.44

0.31 57469.74 3515.15 60984.88

0.00 94.24 5.76 100.00

EXPENSE RATIO

* Top 10 holdings

2.20%

PORTFOLIO COMPOSITION AND PERFORMANCE

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Fund Strategy

Rs.500/500 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.500/500 LOAD STRUCTURE Entry Load 2.25% Exit Load NIL TAX BENEFITS Investments will qualify for tax benefit under the Section 80C as per the income tax act.

The fund’s equity exposure has increased from 91.50% to 94.24% over the quarter. Bank of India, Jaiprakash Associates, Voltas, United Spirits, India Infoline, Crompton Greaves, ONGC and I-Flex Solutions were among the new additions to the portfolio, while Dabur and TCS among the ones, which exited. The fund added to its holdings in Axis Bank, Hindustan Unilever, L&T, IBN18 Broadcast and GE Shipping and pared exposures in Hero Honda, ICICI Bank, Pidilite, Marico, IDFC and BHEL.

NAV Performance Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

43.72% 43.72% 51.14%

14.24% 14.24% 8.31%

11.34% 11.34% 10.62%

24.71% 24.71% 22.68%

29.71% 29.71% 17.03%

FIT (G) FIT (D) S&P CNX 500

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in FIT...

FIT S&P CNX 500

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.123,000 since inception would have grown to

15,571 59.92% 15,879 65.45%

40,670 8.10% 39,383 5.93%

87,264 14.99% 82,961 12.93%

489,539 25.35% 332,493 18.40%

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Total Assets

Rs.10000 invested at Inception in FIT & S&P CNX 500 Rs. 143,157

Rs. 49,976

____ FIT

www.franklintempletonindia.com

____ S&P CNX 500

Franklin Templeton Investments

15

Franklin India Index Fund As of June 30, 2009

PORTFOLIO

INVESTMENT STYLE The fund manager follows a passive style of equity investing

Company Name

TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity index fund which aims to provide returns that, before expenses, closely correspond to the total return of common stocks as represented by the S&P CNX Nifty Index under the ‘Nifty’ Plan and BSE Sensex under the ‘BSE Sensex’ Plan. DATE OF ALLOTMENT NSE Nifty Plan BSE Sensex Plan

August 4, 2000 August 27, 2001

FUND MANAGERS Sukumar Rajah / Anil Prabhudas (Since Mar. 2004) LATEST NAV BSE Sensex Plan Growth Plan Dividend Plan

Rs. 40.7039 Rs. 40.7039

NSE Nifty Plan Growth Plan Dividend Plan

Rs. 33.7031 Rs. 33.7031

FUND SIZE BSE Sensex Plan NSE Nifty Plan

Rs. 41.26 crores Rs. 96.92 crores

EXPENSE RATIO BSE Sensex Plan NSE Nifty Plan

1.00% 1.00%

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load Exit Load

NIL 1% (if redeemed within 30 days from date of allotment)

No. of shares

FIIF Market Value Rs. Lakhs

% of Assets

No. of shares

Company Name

NSE NIFTY PLAN Reliance Industries 58829 1190.35 12.28 L&T 48455 759.68 7.84 Infosys 39518 702.04 7.24 ICICI Bank 92094 665.10 6.86 HDFC 20780 487.24 5.03 HDFC Bank 28378 423.73 4.37 Bharti Airtel 51601 413.92 4.27 ITC 212484 405.31 4.18 SBI 21345 372.53 3.84 ONGC 27910 297.88 3.07 BHEL 13027 287.12 2.96 Hindustan Lever 86334 230.94 2.38 Reliance Communication 55897 161.79 1.67 Tata Steel 40028 156.37 1.61 TCS 38607 150.51 1.55 Axis Bank 17089 142.22 1.47 Tata Power 12290 141.38 1.46 NTPC 71484 139.43 1.44 Reliance Energy 11618 139.03 1.43 Sterlite 22813 138.47 1.43 Jindal Steel & Power 5284 131.61 1.36 Grasim 5666 130.96 1.35 Maruti Suzuki 10939 116.93 1.21 Mahindra & Mahindra 16291 112.61 1.16 GAIL 37222 107.33 1.11 Hero Honda 7393 103.32 1.07 Cipla 39037 98.90 1.02 Wipro 25231 95.36 0.98 DLF 30045 93.38 0.96

Market Value Rs. Lakhs

% of Assets

Idea Cellular 130471 Reliance Capital 9486 Cairn India 35578 Hindalco 89821 Punjab National Bank 10948 SAIL 48012 Sun Pharmaceutical 6213 ABB 8484 Unitech 82516 ACC 8345 Gujarat Ambuja Cements 67803 Siemens 12548 Tata Motors 19595 Power Grid Corporation of India 47193 Reliance Power 30410 Suzlon Energy 46543 BPCL 10758 HCL Tech. 17875 Ranbaxy 12689 VSNL 5718 NALCO 6831 Total equity holdings Other current assets Total assets

93.03 0.96 85.34 0.88 82.81 0.85 77.65 0.80 74.20 0.77 72.57 0.75 67.76 0.70 66.04 0.68 65.72 0.68 63.90 0.66 59.33 0.61 59.20 0.61 56.97 0.59 51.63 0.53 50.94 0.53 48.29 0.50 46.27 0.48 33.24 0.34 31.07 0.32 27.16 0.28 20.91 0.22 9629.48 99.36 62.11 0.64 9691.60 100.00

BSE SENSEX PLAN Reliance Industries Infosys L&T ICICI Bank

603.79 14.63 328.21 7.95 313.96 7.61 304.55 7.38

29841 18471 20019 42181

No. of shares

Company Name

HDFC HDFC Bank Bharti Airtel ITC SBI ONGC BHEL Hindustan Unilever NTPC Reliance Communication Tata Steel TCS Tata Power Reliance Energy Sterlite Grasim Maruti Suzuki Mahindra & Mahindra Jaiprakash Associates Hero Honda DLF Wipro Hindalco Sun Pharmaceutical ACC Tata Motors Total equity holdings Other current assets Total assets

Market Value Rs. Lakhs

9719 13740 25211 100146 10852 16200 6496 41216 47060 27392 19416 18573 5899 5531 10762 2596 5482 7910 26668 3790 16031 11026 41885 3149 3965 9343

227.95 5.52 204.97 4.97 202.22 4.90 190.73 4.62 189.05 4.58 172.87 4.19 143.19 3.47 110.09 2.67 91.79 2.22 79.41 1.92 75.88 1.84 72.38 1.75 67.82 1.64 66.23 1.61 65.42 1.59 59.97 1.45 58.41 1.42 54.78 1.33 54.68 1.33 52.98 1.28 49.82 1.21 41.64 1.01 36.21 0.88 34.35 0.83 30.49 0.74 27.20 0.66 4011.03 97.21 115.30 2.79 4126.33 100.00

PERFORMANCE NAV Performance

Rs.10000 invested at inception in FIIF - NSE Nifty Plan Last 6 Mths

Last 1 Year

Last 3 Years*

Last 5 Years*

Since Inception*

Tracking Error** 1.06%

FIIF - Nifty Plan

44.65%

5.65%

10.72%

23.82%

14.61%

S&P CNX Nifty

45.01%

6.20%

11.10%

23.29%

14.16%

-

FIIF - BSE Plan

49.24%

7.57%

10.73%

24.25%

19.59%

1.00%

BSE Sensex

50.24%

7.67%

10.95%

24.74%

20.67%

-

Rs. 33,703

Past performance may or may not be sustained in future. *Compounded and annualised ** For 1 year period.

Franklin Infotech Fund As of June 30, 2009 INVESTMENT STYLE The fund manager seeks growth of capital by focusing on companies in the information technology sector TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end equity sector fund which seeks to provide long term capital appreciation by investing primarily in Information Technology industry. DATE OF ALLOTMENT: August 22, 1998 FUND MANAGER: Anand Radhakrishnan (since March 07) Murali Yerram (Since July 08) LATEST NAV Growth Plan Rs. 34.6965 Dividend Plan Rs. 12.0305 FUND SIZE Rs. 95.57 crores TURNOVER Portfolio Turnover 6.17% VOLATILITY MEASURES (3 YEARS) Standard Deviation 9.23 * Annualised. Risk-free R-squared 0.93 rate assumed to be Beta 0.93 3.29% (based on average Sharpe Ratio* -0.23 of 3 month T-Bill Rate EXPENSE RATIO 2.50% "during last 3 months") MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load Rs.5 Crs: Nil Exit Load Rs.5 Crs : 1% (if redeemed /switched-out within 6 months of allotment)

www.franklintempletonindia.com

% of Assets

FIF

PORTFOLIO Company Name

No. of shares

Market Value Rs. Lakhs

% of Assets

Infosys

320000

5686.08

59.50

TCS

420000

1636.74

17.13

Wipro

190000

717.54

7.51

I-Flex Solutions

23376

291.94

3.05

Infotech Enterprises

100000

178.00

1.86

Eclerx Services

50000

137.50

1.44

Patni Computer Systems

50000

129.48

1.35

Firstsource Solutions

400000

98.40

1.03

Financial Technologies

7100

92.82

0.97

Mastek

40000

90.02

0.94

Allsec Technologies

76822

24.66

0.26

Unlisted GCI Solutions Total equity holdings

0.10

0.00

9083.27

95.05

Other current assets

473.33

4.95

Total assets

9556.60

100.00

NAV Performance Last

Last

Last

Last

Since

6 Mths

1 Year

3 Years*

5 Years*

Inception*

FIF (G)

50.50%

-12.46%

-3.97%

12.29%

19.52%

FIF (D)

50.50%

-12.46%

-3.97%

12.30%

19.52%

BSE IT Index

47.54%

-18.23%

-4.23%

12.21%

N.A

Past performance may or may not be sustained in future. *Compounded and annualised Dividends/Bonus declared assumed to be reinvested

Fund Strategy The fund’s equity exposure has decreased to 95.05% from 98.09% over the quarter. I-Flex Solutions is the new addition to the portfolio, while the fund added to its holdings in TCS. The fund pared exposures in Wipro, Infotech Enterprises and Patni Computer Services and exited from KPIT Cummins Infosystems and Satyam Computer.

Rs.10000 invested at Inception in FIF

SIP - If you had invested Rs.1000 every month in FIF... Rs.12,000 for 1 year would have grown to FIF BSE IT Index

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.131,000 since inception would have grown to

14,468

32,483

61,038

251,364

40.55%

-6.58%

0.68%

11.42%

14,105

31,679

59,941

N.A

34.32%

-8.15%

-0.04%

N.A

Past performance may or may not be sustained in future. Load is not taken into consideration.

Rs. 69,402

NAV is adjusted for Bonus

Franklin Templeton Investments

16

FT India Dynamic PE Ratio Fund of Funds

FTDPEF

PORTFOLIO COMPOSITION AND PERFORMANCE As of June 30, 2009 INVESTMENT STYLE The fund managers follow a dynamic asset allocation strategy, determining the allocation to the underlying schemes based on the month-end weighted average PE ratio of the S&P CNX Nifty Index. Any change in asset allocation due to change in the market PE ratio is done in the following month. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end fund of funds which seeks to provide long-term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and income funds. DATE OF ALLOTMENT October 31, 2003 FUND MANAGERS Sukumar Rajah, Sachin Padwal-Desai &Pallob Roy LATEST NAV Growth Plan Rs. 32.6684 Dividend Plan Rs. 32.6684 Fund Size: Rs. 55.97 crores Expense Ratio: NIL MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load 2.25% Exit Load NIL

NAV Performance

How does the scheme work?

Last 6 Mths

Last 1 Year

Last 3 Years*

38.42% 50.24%

22.61% 7.67%

16.10% 24.41% 10.95% 24.49%

23.23% 21.05%

30.02% 11.08% 10.87% 16.54%

14.84%

The scheme changes its asset allocation based on the weighted average PE ratio of the NSE NIFTY Index. At higher PE levels, it reduces allocation to equities in order to minimise downside risk. Similarly at lower PE levels, it increases allocation to equities to capitalise on their upside potential. Historically, such a strategy of varying the allocation of equity and debt/money market instruments based on the PE ratio has delivered superior risk-adjusted returns over

FTDPEF BSE Sensex Crisil Balanced Fund Index

Last Since 5 Years* Inception*

the long term, although there is no guarantee that will be repeated in

Past performance may or may not be sustained in future.

the future. The equity component of the scheme is invested in Franklin

*Compounded and annualised

India Bluechip Fund (FIBCF), an open end diversified equity scheme investing predominantly in large cap stocks and the debt/money

SIP - If you had invested Rs.1000 every month in FTDPEF...

market component is invested in Templeton India Income Fund (TIIF),

Rs.12,000 for 1 year would have grown to

an open end income scheme investing in government securities, PSU bonds and corporate debt.

FTDPEF’s Investment Strategy If weighted average PE ratio of NSE Nifty falls in this band...

FTDPEF

...the equity component will be...(%)

Upto 12 12 - 16 16 - 20 20 - 24 24 - 28 Above 28

...and the debt component will be ... (%)

90 - 100 70 - 90 50 - 70 30 - 50 10 - 30 0 - 10

0 - 10 10 - 30 30 - 50 50 - 70 70 - 90 90 - 100

BSE Sensex

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.68,000 since inception would have grown to 120,164

15,388

45,227

97,036

56.71%

15.43%

19.33%

20.07%

15,519

39,326

87,606

108,983 16.58%

59.04%

5.84%

15.15%

Crisil Balanced

14,369

40,575

81,317

97,505

Fund Index

38.88%

7.94%

12.13%

12.63%

Past performance may or may not be sustained in future. Load is not taken into consideration.

Asset Allocation for July 2009 The weighted average PE ratio of NSE Nifty as on 30.06.2009 was 19.97. Hence, the asset allocation for the scheme in July 2009 will be... Franklin India Bluechip Fund Templeton India Income Fund

-

50% 50%

FT India Life Stage Fund of Funds As of June 30, 2009 INVESTMENT STYLE The fund managers maintain the allocation to the underlying schemes by rebalancing the portfolio once in 6 months to the steady state levels. Moreover, based on market conditions, the portfolio managers can make a tactical allocation of 10% on either side of the steady state asset allocation. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end fund of funds which seeks to generate superior risk adjusted returns to investors in line with their chosen asset allocation.

PORTFOLIO COMPOSITION AND PERFORMANCE How does the scheme work?

FUND MANAGERS Sukumar Rajah (since December 2003) Sachin Padwal-Desai (since August 2006) Pallab Roy (since June 2008) EXPENSE RATIO

The 20s Plan

40.18% 15.58% 11.57% 21.45%

19.23%

Benchmark*

40.23% 10.37% 11.17% 21.04%

17.77%

The 30s Plan

28.03% 15.82% 10.17% 16.39%

14.78%

FTLF’s Investment Strategy

Benchmark*

27.79% 12.23% 10.71% 16.63%

14.31%

Steady State Asset Allocation

Equity Debt The 20s Plan The 30s Plan The 40s Plan The 50s Plus Plan

80% 55% 35% 20%

20% 45% 65% 80%

The 50s Floating Rate Plan 20% 80%

The 20s Plan: 0.75% The 30s Plan: 0.75% The 40s Plan: 0.50% The 50s Plus Plan: 0.25% The 50s Plus Floating Rate Plan 0.25% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Fund Size

Rs.5000/1

Load Structure

Underlying schemes

FIBCF 50% 35% 15% 10% 10%

MINIMUM INVESTMENT FOR SYSTEMATIC INVESTMENT PLAN Minimum of 12 cheques of Rs. 2000 or more each Minimum of 6 cheques of Rs. 4000 or more each

www.franklintempletonindia.com

FIPF 15% 10% 10% 0% 0%

TIGF 15% 10% 10% 10%

The 20s Plan: The 30s Plan: The 40s Plan: The 50s Plus Plan: The 50s Plus Floating Rate Plan:

TIIF 10% 25% 35% 40%

10%

The 20s Plan: The 30s Plan: The 40s Plan: The 50s Plus Plan: The 50s Plus Floating Rate Plan

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1

NAV Performance

The scheme invests in a combination of Franklin Templeton India’s equity and income schemes, with a steady state allocation as shown below. The debt and equity allocation is automatically rebalanced every 6 months to revert to the steady state levels.

DATE OF ALLOTMENT December 1, 2003 July 9, 2004 (The 50s Plus Floating Rate Plan)

FTLF

0%

TIIBA TFIF(LT) 10% 20% 30% 40% 0%

80%

Rs.13.81 crores Rs. 10.16 crores Rs.13.66 crores Rs.10.53 crores Rs.88.36 crores

Entry Load

Exit Load

2.00% 1.50% 1.00% 0.50% 0.50%

Nil Nil Nil Nil Nil

Last 6 Mths

Last 1 Year

Last Last Since 3 Years** 5 Years** Inception**

The 40s Plan

23.51% 14.52%

9.04%

12.60%

11.47%

Benchmark*

18.18% 12.78%

9.79%

12.72%

11.13%

The 50s Plus Plan 16.95% 14.21%

8.78%

9.42%

8.52%

Benchmark*

8.67%

9.70%

8.59%

The 50s Plus Floating Rate Plan 13.03% 11.91% 10.31%

N.A

10.97%

Benchmark*

N.A

10.56%

10.98% 12.29%

12.38% 10.03%

9.19%

Past performance may or may not be sustained in future. *Benchmark: 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 Composite Bond 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% Crisil Composite Bond Fund Index; The 50s Plus Floating Rate Plan 20% BSE Sensex + 80% Crisil Liquid Fund Index.

Latest NAV The 20s Plan

Growth

Dividend

Rs. 26.6979

Rs. 26.6979

The 30s Plan

Rs. 21.5864

Rs. 21.5864

The 40s Plan

Rs. 18.3399

Rs. 15.0709

The 50s Plus Plan

Rs. 15.7869

Rs. 11.6517

The 50s Plus Floating Rate Plan

Rs. 16.7910

Rs. 12.4163

Franklin Templeton Investments

17

FT India Balanced Fund

FTIBF

PORTFOLIO

As of June 30, 2009

Company Name

No. of shares

INVESTMENT STYLE The fund manager seeks to strike an optimum balance between growth and stability, by maintaining a diversified portfolio of equities and managing interest rate movements and credit risk on the fixed income component

Market Value Rs. Lakhs

% of Assets

Auto 80461

1124.72

4.07

196301

1240.82

4.49

72125

1075.92

3.89

TYPE OF SCHEME / INVESTMENT OBJECTIVE

ICICI Bank Cement

120417

869.41

3.15

An open end balanced fund which seeks to provide long term growth of capital and current income

Grasim * Construction

51162

1181.97

4.28

1549

1.03

0.00

December 10, 1999

L&T Consumer Non Durables

61453

963.77

3.49

FUND MANAGERS

Nestle

36248

725.54

2.62

Anand Radhakrishnan (since Dec. 2006) Sachin Padwal-Desai (since Aug. 2006) Vivek Ahuja (since June 2008)

Marico

830197

605.63

2.19

28992

341.37

1.23

2272

36.04

0.13

57123

1339.76

4.85

397000

538.93

1.95

947

2.50

0.01 4.77

DATE OF ALLOTMENT

LATEST NAV Growth Plan Dividend Plan

Rs. 38.9332 Rs. 19.3472

Hero Honda * Banks Kotak Mahindra Bank * HDFC Bank *

Maytas Infra Construction Project

Asian Paints Britannia Industries Finance HDFC * IDFC

FUND SIZE

Future Capital Holdings Industrial Capital Goods

Rs. 276.41 crores

BHEL *

BOND PORTFOLIO

ABB

Average maturity Yield to maturity

1.60 years 5.67%

EXPENSE RATIO 2.34% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

59771

1317.56

100857

783.76

2.84

Bharat Electronics

25696

337.97

1.22

Siemens Industrial Products

50596

239.02

0.86

Cummins India Media & Entertainment

165795

459.34

1.66

IBN18 Broadcast

178480

176.34

0.64

91627

109.86

0.40

Television Eighteen

Company Name

No. of shares

Petroleum Products Reliance Industries * Reliance Petroleum BPCL Pharmaceuticals Sun Pharmaceutical Lupin Labs Cipla Merck Software Infosys * Telecom - Services Bharti Airtel * Idea Cellular Transportation GE Shipping Unlisted Globsyn Tech. Debt Holdings

Market Value Rs. Lakhs

% of Assets

80868 255851 63036

1636.24 321.35 271.12

5.92 1.16 0.98

20000 25000 73490 39529

218.19 204.28 186.15 153.59

0.79 0.74 0.67 0.56

83890

1490.64

5.39

178700 427344

1433.35 304.70

5.19 1.10

116855

293.19

1.06

0.03 Market Value (Rs. in Lakhs) 1510.69 1052.94 1043.82 802.57 774.09 258.32 254.56 131.67 19984.07 5828.66 1828.37 27641.11

0.00 % of Assets 5.47 3.81 3.78 2.90 2.80 0.93 0.92 0.48 72.30 21.09 6.61 100.00

Rating

LIC Housing Finance * Rural Electrification Corporation Nabard Power Finance Corporation Indian Railway Finance Corporation EXIM Bank Tata Sons Power Grid Corporation Total equity holdings Total debt holdings Other current assets Total assets

AAA AAA AAA AAA AAA AAA AAA AAA

* Top 10 holdings

Rs.5000/1

PORTFOLIO COMPOSITION AND PERFORMANCE

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

Fund Strategy

Rs.1000/1

The fund’s equity allocation increased to 72.30% by the end of the quarter, while debt allocations decreased to 21.09%. In

LOAD STRUCTURE

its equity portfolio, the fund added to its holdings in IBN18 Broadcast, while exited from Sterlite and ONGC.

Entry Load Rs.5 Crs: Nil Exit Load Rs.5 Crs : 1%(if redeemed/switched-out within 6 months of allotment)

NAV Performance FTIBF (G) FTIBF (D) Crisil Balanced Fund Index

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

35.57% 35.57% 30.02%

15.98% 15.98% 11.08%

14.63% 14.63% 10.87%

20.47% 20.47% 16.54%

15.28% 15.27% N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

SIP - If you had invested Rs.1000 every month in FTIBF...

FTIBF Crisil Balanced Fund Index

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.114,000 since inception would have grown to

14,909 48.22% 14,404 39.46%

41,578 9.60% 40,610 8.00%

87,042 14.89% 81,352 12.14%

306,205 19.85% N.A N.A

Past performance may or may not be sustained in future. Load is not taken into consideration.

Sector Allocation - Equity Holdings

Composition by Assets

■ Equity ■ Debt ■ Other current assets

www.franklintempletonindia.com

72.30% 21.09% 6.61%

Franklin Templeton Investments

18

Templeton India Pension Plan As of June 30, 2009

PORTFOLIO Company Name

No. of shares

INVESTMENT STYLE The fund manager seeks steady capital appreciation by maintaining a diversified portfolio of equities and seeks to earn regular income on the fixed income component by managing interest rate movements and credit risk. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end pension fund which seeks to provide regular income under the Dividend Plan and capital appreciation under the Growth Plan DATE OF ALLOTMENT March 31, 1997 FUND MANAGERS Anand Radhakrishnan (since Dec. 2006) Sachin Padwal-Desai (since Aug. 2006) Vivek Ahuja (since June 2008) LATEST NAV TIPP (G) TIPP (D)

Rs. 50.1204 Rs. 14.9479

FUND SIZE Rs. 179.33 crores BOND PORTFOLIO Average maturity Yield to maturity

5.42 years 6.08%

EXPENSE RATIO 2.14% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Rs.500/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

TIPP

Auto Hero Honda Banks Kotak Mahindra Bank HDFC Bank ICICI Bank Cement Grasim Construction Maytas Infra Construction Project L&T Consumer Non Durables Nestle Marico Asian Paints Britannia Industries Finance HDFC * IDFC Future Capital Holdings Industrial Capital Goods ABB BHEL Bharat Electronics Siemens Industrial Products Cummins India Media & Entertainment IBN18 Broadcast Television Eighteen

Market Value Rs. Lakhs

% of Assets

28887

403.80

2.25

68324 26831 39144

431.88 400.25 282.62

2.41 2.23 1.58

15719

363.15

2.03

491

0.33

0.00

22973

360.29

2.01

11732 250167 11728 750

234.83 182.50 138.09 11.90

1.31 1.02 0.77 0.07

23045 124000 287

540.50 168.33 0.76

3.01 0.94 0.00

48493 15101 10502 15322

376.84 332.88 138.13 72.38

2.10 1.86 0.77 0.40

42235

117.01

0.65

68528 31217

67.71 37.43

0.38 0.21

Company Name

No. of shares

Petroleum Products Reliance Industries * Reliance Petroleum BPCL Pharmaceuticals Lupin Labs Cipla Sun Pharmaceutical Software Infosys Telecom - Services Bharti Airtel * Idea Cellular Transportation GE Shipping Debt Holdings

Market Value Rs. Lakhs

% of Assets

29731 102957 20427

601.56 129.31 87.86

3.35 0.72 0.49

10000 29762 4593

81.71 75.39 50.11

0.46 0.42 0.28

26644

473.44

2.64

73000 142534

585.53 101.63

3.27 0.57

99.63 Market Value (Rs. in Lakhs) Power Finance Corporation * AAA 2015.37 GOI 06.07% 2014 * SOV 1473.75 Power Grid Corporation * AAA 1269.17 Indian Railway Finance Corporation * AAA 1221.14 Rural Electrification Corporation * AAA 985.83 EXIM Bank * AAA 527.98 GOI 07.59% 2016 * SOV 518.65 JM Financial Products P1+ 196.77 Cholamandalam DBS Finance LAA101.97 BHPC Auto Sec Trust PTC A2 AA (SO) 50.05 Total equity holdings 6947.74 Total debt holdings 8360.67 Other current assets 2624.31 Total assets 17932.72

0.56 % of Assets 11.24 8.22 7.08 6.81 5.50 2.94 2.89 1.10 0.57 0.28 38.74 46.62 14.64 100.00

39708 Rating

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy

Rs.500/1

The fund’s allocation to equities increased from 33.55% to 38.74% over the quarter, while debt allocations decreased to 46.62% from 63.97%. In the equity portfolio, the fund added to its holdings in Asian Paints, while exited from Dabur. In the debt portfolio, GOI 06.07% 2014 and GOI 07.59% 2016 government security papers were added.

LOAD STRUCTURE

NAV Performance

Entry Load 2.25% Exit Load* 3%, if redeemed before the age of 58 years (subject to a 3 financial year lock-in period) NIL, if redeemed after the age of 58 years TAX BENEFITS Investments will qualify for tax benefit under the Section 80C as per the income tax act. *Conditions Apply

TIPP (G) TIPP (D) Benchmark**

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

19.92% 19.92% 21.02%

11.62% 11.62% 13.45%

10.13% 10.13% 10.27%

12.86% 12.86% 13.36%

14.05% 14.06% N.A

Past performance may or may not be sustained in future. Dividends declared assumed to be reinvested. *Compounded and annualised ** 40% S&P CNX 500 + 60% Crisil Composite Bond Fund Index

SIP - If you had invested Rs.1000 every month in TIPP...

TIPP Bechmark*

Rs.12,000 for 1 year would have grown to

Rs.36,000 for 3 years would have grown to

Rs.60,000 for 5 years would have grown to

Rs.147,000 since inception would have grown to

13,732 28.04% 14,017 32.85%

40,051 7.07% 41,144 8.89%

76,289 9.56% 78,165 10.53%

358,240 13.67% N.A N.A

Past performance may or may not be sustained in future.Load is not taken into consideration. *40% S&P CNX 50 + 60% Crisil Composite Bond Fund Index

Sector Allocation - Equity Holdings

Composition by Assets

■ Equity ■ Debt ■ Other current assets

www.franklintempletonindia.com

38.74% 46.62% 14.64%

Franklin Templeton Investments

19

Templeton India Income Fund

TIIF

PORTFOLIO

As of June 30, 2009

INVESTMENT STYLE The Fund Manager strives to earn steady returns in the fixed income market by actively managing the funds portfolio on interest rate movements and credit risks TYPE OF SCHEME / INVESTMENT OBJECTIVE

Company Name

Rating

Tata Sons

LAAA

Market Value (Rs. Lakhs)

Total Corporate Debt Receivable Securitisation Trust Sr III A6 PTC*

LAAA (SO)

% of Assets

101.31

0.56

101.31

0.56

450.10

2.48

450.10

2.48

An open end income fund which seeks to generate a steady stream of income through investment in fixed income securities

Total Securitised Debt Rural Electrification Corporation *

AAA

2023.12

11.14

DATE OF ALLOTMENT

Power Grid Corporation *

AAA

1594.98

8.78

Power Finance Corporation *

AAA

1573.57

8.67

Sachin Padwal-Desai (since Aug . 2006) Vivek Ahuja (since June 2008)

Nabard *

AAA

1376.28

7.58

LATEST NAV

Indian Railway Finance Corporation *

AAA

1005.13

5.54

EXIM Bank *

AAA

523.52

2.88

8096.60

44.59

March 5, 1997 FUND MANAGER

Growth Plan Dividend Plan

Rs. 31.0675 Rs. 10.6829

FUND SIZE

Total PSU/PFI Bonds

Rs. 181.58 crores MATURITY & YIELD Fund

Avg Maturity 2.72 years

YTM 7.47%*

GOI 06.07% 2014 *

SOV

1965.00

10.82

GOI 07.55% 2010

SOV

0.31

0.00

1965.31

10.82

* Pre fund expenses

Total Gilts MODIFIED DURATION 2.10 years

Oriental Bank of Commerce *

P1+

2365.89

13.03

Canara Bank *

P1+

757.71

4.17

3123.60

17.20

4421.25

24.35

18158.17

100.00

EXPENSE RATIO 1.36% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Total Money Market Instruments

Rs.10000/1

Call, Cash & Other Current Assets

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1

Net Assets # Includes CBLO : 8.17%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 16.18%

* Top 10 holdings

LOAD STRUCTURE Entry Load NIL Exit Load 0.50%, if redeemed within 6 months of allotment

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The maturity period of the fund decreased to 2.72 years during this quarter from 4.15 years at the end of the preceding quarter. The fund’s exposure in securitised debt decreased to 2.48% from 11.42%, while exposure to PSU/PFI bonds marginally decreased to 44.59%. The exposure to money market instruments increased during the quarter.

NAV Performance TIIF(G) TIIF (D) Crisil Composite Bond Fund Index

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

3.14% 3.14% 1.85%

11.43% 11.43% 11.20%

7.75% 7.75% 6.90%

5.80% 5.80% 5.34%

9.63% 9.75% N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Composition by Assets

■ Corporate Debt ■ Money Market Instruments ■ Securitised Debt

www.franklintempletonindia.com

Dividends declared assumed to be reinvested

Composition by Rating

0.56% 17.20% 2.48%

■ Call, Cash & Other Assets ■ PSU/PFI Bonds ■ Gilts

24.35% 44.59% 10.82%

■ AAA/P1+/SOV/LAAA (SO)/LAAA 100.00%

Franklin Templeton Investments

20

Templeton India Income Builder Account

TIIBA

PORTFOLIO

As of June 30, 2009

INVESTMENT STYLE The fund manager strives to deliver superior risk-adjusted returns by actively managing a portfolio of high quality fixed income securities.

Company Name

Rating

Market Value (Rs. Lakhs)

% of Assets

Citifinancial Consumer Finance *

AA+

1495.78

13.34

HongKong Bank *

NR

903.55

8.06

2399.34

21.41

TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end income fund which seeks to provide regular returns to investors primarily through investments in quality fixed income instruments

Total Corporate Debt

Power Finance Corporation *

AAA

1531.66

13.66

Nabard *

AAA

1170.50

10.44

Power Grid Corporation *

AAA

1124.33

10.03

Rural Electrification Corporation *

AAA

1034.03

9.23

Indian Railway Finance Corporation *

AAA

1026.90

9.16

EXIM Bank *

AAA

523.52

4.67

NTPC *

AAA

305.91

2.73

LIC Housing Finance *

AAA

301.93

2.69

7018.79

62.62

287.84

2.57

287.84

2.57

13.41

DATE OF ALLOTMENT June 23, 1997 FUND MANAGER Sachin Padwal-Desai (since Aug. 2006) Vivek Ahuja (since June 2008) LATEST NAV Growth Plan Dividend Plan Monthly Plan Quarterly Plan Half-yearly Plan Bonus

Rs. 29.4238 Rs. 10.4285 Rs. 12.0483 Rs. 12.7816 Rs. 12.8987 Rs. 17.4404

FUND SIZE Rs. 112.09 crores MATURITY & YIELD Avg Maturity 2.18 years

Fund

YTM 8.25%*

Total PSU/PFI Bonds

* Pre fund expenses

MODIFIED DURATION

EXIM Bank

AAA

1.76 years EXPENSE RATIO

Total Money Market Instruments

2.22% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Call, Cash & Other Current Assets

1502.76

Plan A

Net Assets

11208.73

Plan B

>Rs.50,00,000 (MD, QD, HD, AD, BP & GP) Rs.25,000/1 (MD & QD) Rs.10,000/1 (HD, AD, BP & GP)

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs. 1000/1 (for all plans)

100.00

# Includes CBLO : 6.12%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 7.29%

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The maturity period of the fund decreased to 2.18 years at the end of this quarter from 2.72 years during the previous quarter. The fund decreased its exposure to PSU/PFI bonds to 62.62% from 67.36% over the quarter. The fund added money market instruments to the portfolio.

LOAD STRUCTURE Entry Load Plan A & Plan B: NIL Exit Load: Plan A: 0.50%, if redeemed within 6 months of allotment Plan B: 0.50%, if redeemed within 6 months of allotment MD- Monthly Dividend Plan, QD- Quarterly Dividend Plan, HD- Half-yearly Dividend Plan, AD- Annual Dividend Plan, BP- Bonus Plan, GP- Growth Plan.

NAV Performance TIIBA (G) TIIBA (D) Crisil Composite Bond Fund Index

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

3.02% 3.01% 1.85%

10.68% 10.66% 11.20%

6.98% 6.98% 6.90%

4.96% 4.96% 5.34%

9.39% 9.37% N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Composition by Assets

■ Corporate Debt ■ Call, Cash & Other Assets

www.franklintempletonindia.com

Last 6 Mths

21.41% 13.41%

Dividends declared assumed to be reinvested

Composition by Rating

■ Total PSU/PFI Bonds 62.62% ■ Money Market Instruments 2.57%

■ AAA ■ AA+

86.66% 13.34%

Franklin Templeton Investments

21

Templeton Monthly Income Plan

TMIP

@An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus PORTFOLIO - HALF-YEARLY DIVIDEND & GROWTH PLAN

As of June 30, 2009

Company Name

No. of shares

Market Value Rs. Lakhs

% of Assets

Company Name

Infosys *

6582

116.96

2.16

Sun Pharmaceutical

Bharti Airtel *

14000

112.29

2.07

Hero Honda *

6762

94.52

Reliance Industries

4319

Grasim

INVESTMENT STYLE The fund managers strive to earn steady returns in the fixed income market by actively managing the funds portfolio on interest rate movements and credit risks, and seeks to enhance overall portfolio returns with a marginal equity allocation TYPE OF SCHEME / INVESTMENT OBJECTIVE

MARGINAL EQUITY ALLOCATION No. of shares

Market Value Rs. Lakhs

% of Assets

983

10.72

0.20

IBN18 Broadcast

9245

9.13

0.17

1.74

Television Eighteen

6688

8.02

0.15

87.39

1.61

Idea Cellular

9102

6.49

0.12

3637

84.02

1.55

Britannia Industries

250

3.97

0.07

11615

83.86

1.55

Total Equity Holdings

1228.27

22.66

Debt Holdings

Market Value

% of

(Rs. in Lakhs)

Assets

AAA (SO)

60.35

1.11

AAA (SO)

57.77

1.07

118.12

2.18

An open end income fund which seeks to earn regular income through investment in fixed income securities

ICICI Bank HDFC

3381

79.30

1.46

DATE OF ALLOTMENT

BHEL

3281

72.32

1.33

February 7, 2000

Kotak Mahindra Bank

10529

66.55

1.23

Indian Retail ABS

FUND MANAGERS

ABB

6015

46.74

0.86

Trust 85 Series A1 B

HDFC Bank

3016

44.99

0.83

Loan Securitisation Trust -

58993

43.04

0.79

Reliance Industries PTC

2552

40.02

0.74

Securitised debt

10648

29.50

0.54

Power Finance Corporation *

AAA

844.24

15.58

Anand Radhakrishnan (since Dec. 2006) Pallab Roy (since Aug. 2006) Vivek Ahuja (since June 2008) LATEST NAV

Marico L&T

Growth Plan Half-Yearly Plan

Rs. 23.8402 Rs. 12.4818

Cummins India

Rating

FUND SIZE

Nestle

1227

24.56

0.45

Rural Electrification Corporation *

AAA

697.08

12.86

Rs. 54.20 crores

IDFC

16000

21.72

0.40

EXIM Bank *

AAA

654.87

12.08

Reliance Petroleum

17025

21.38

0.39

Nabard *

AAA

530.54

9.79

GE Shipping

8501

21.33

0.39

Indian Railway Finance Corporation *

AAA

154.55

2.85

Bharat Electronics

1517

19.95

0.37

PSU/PFI Bonds

2881.28

53.16

Asian Paints

1685

19.84

0.37

State Bank of Patiala *

A1+

569.85

10.51

BPCL

4467

19.21

0.35

Punjab National Bank *

PR1+

432.06

7.97

Siemens

3766

17.79

0.33

Total Money Market Instruments

1001.90

18.48

MATURITY & YIELD** Fund

Avg Maturity 1.91 years

YTM 6.44%*

* Pre-fund expenses

MODIFIED DURATION** 1.64 years ** based on debt portfolios only

EXPENSE RATIO 1.96%

Lupin Labs

1406

11.49

0.21

Call, Cash & Other Current Assets#

190.87

3.52

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Cipla

4400

11.15

0.21

Net Assets

5420.43

100.00

Rs.10000/1

# Includes CBLO : 2.47%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : -1.05%

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 LOAD STRUCTURE Entry Load NIL CDSC <=Rs.5 Crs : 0.50% (if redeemed within 3 months from the date of allotment) >Rs.5 Crs : 0.25% (if redeemed within 1 month from the date of allotment)

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity allocation has increased to 22.66% from 16.37% over the quarter. Exposure to PSU/PFI bonds increased to 53.16%, while exposure to securitised debt decreased over the quarter.

NAV Performance Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

TMIP - Growth

11.60%

11.79%

8.95%

8.84%

9.68%

TMIP - Halfyearly

11.60%

11.79%

8.95%

8.84%

9.62%

Crisil MIP Blended Index

8.09%

12.04%

8.38%

8.41%

N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Composition by Assets

■ Debt ■ Equity ■ Call cash and Other Current Assets

www.franklintempletonindia.com

* Top 10 holdings

Dividends declared assumed to be reinvested

Composition by Rating

73.82% 22.66% 3.52%

■ AAA/A1+/PR1+/AAA (SO)/PR1+

Franklin Templeton Investments

100.00%

22

FT India Monthly Income Plan

FTIMIP

@An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus As of June 30, 2009

PORTFOLIO Company Name

INVESTMENT STYLE The fund manager strives to earn regular income (with no assured returns) in the fixed income market by actively managing the funds portfolio on interest rate movements and credit risks, while seeking to enhance the returns with a marginal equity allocation. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end income fund which seeks to provide regular income through a portfolio of predominantly high quality fixed income securities with a maximum exposure of 20% to equities.

No. of shares

Market Value Rs. Lakhs

% of Assets

38620

686.24

2.17

Tata Sons *

AAA

1500.75

4.75

673.76

2.13

IDFC

AAA

513.40

1.62

Grasim

25696

593.64

1.88

HDFC

AAA

189.33

0.60

HDFC

24287

569.63

1.80

HongKong Bank

NR

100.39

0.32

Reliance Industries

27786

562.21

1.78

Total Corporate Debt

2303.87

7.29

Hero Honda

39723

555.27

1.76

Tata Motors *

2005.29

6.35

Kotak Mahindra Bank

83419

527.29

1.67

70.07

0.22

ICICI Bank

67963

490.69

1.55

BHEL

20390

449.47

1.42

HDFC Bank

23825

355.41

1.12

322.91

1.02

317.55

1.00

September 28, 2000

ABB

39071

303.62

0.96

FUND MANAGERS

Cummins India

71398

197.81

0.63

131338

164.96

0.52

Growth Plan Monthly Plan Quarterly Plan Bonus

Rs. 24.7343 Rs. 11.3207 Rs. 11.3463 Rs. 12.2671

Marico

Reliance Petroleum Nestle

7924

158.61

0.50

Sun Pharmaceutical

14000

152.73

0.48

Bharat Electronics

11155

146.72

0.46

Asian Paints

12334

145.23

0.46

IDFC GE Shipping BPCL

FUND SIZE Rs. 316.03 crores MODIFIED DURATION# 1.92 years # based on debt portfolios only

EXPENSE RATIO 2.08%

105000

142.54

0.45

54893

137.73

0.44

28756

Siemens

24462

123.68

0.39

115.56

AAA (SO)

BHPC Auto Sec Trust PTC A2

AA (SO)

Total Securitised Debt

2075.36

6.57

LIC Housing Finance *

AAA

4007.74

12.68

Power Finance Corporation *

AAA

2246.18

7.11

Corporation *

AAA

1991.81

6.30

Power Grid Corporation

AAA

533.10

1.69

Rural Electrification

Indian Railway Finance Corporation

AAA

515.35

1.63

EXIM Bank

AAA

258.32

0.82

IDFC

LAAA

53.41

0.17

Nabard

AAA

20.17

0.06

9626.07

30.46

SOV

982.50

3.11

Total PSU/PFI Bonds GOI 06.07% 2014 *

0.37

Total Gilts A1+

3324.10

F1+ (IND)

1966.62

6.22

P1+

662.99

2.10

5953.71

18.84

Cipla

33982

86.08

0.27

State Bank of Patiala *

Lupin Labs

10348

84.55

0.27

Punjab National Bank *

982.50

3.11 10.52

IBN18 Broadcast

67419

66.61

0.21

Canara Bank

Television Eighteen

43102

51.68

0.16

Total Money Market Instruments

Idea Cellular

59171

42.19

0.13

Call, Cash & Other

1150

18.24

0.06

Current Assets

2418.82

7.65

8242.60

26.08

Net Assets

31602.94

100.00

Britannia Industries

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

Total Equity Holdings

# Includes CBLO : 5.14%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 2.51%

Plan A Plan B

Rs.40,000/1 (MD&QD) Rs.20,000/1 (BP & GP) Rs.25,000/1 (MD & QD) Rs.10,000/1 (BP & GP)

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

% of Assets

84000

20248

LATEST NAV

Market Value Rs. Lakhs

Bharti Airtel *

442648

Anand Radhakrishnan (since Dec. 2006) Pallab Roy (since Aug. 2006) Vivek Ahuja (since June 2008)

Rating

Infosys *

L&T

DATE OF ALLOTMENT

Debt Holdings

* Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s equity allocation has increased to 26.08% from 19.79% during this quarter. In the debt portion of the portfolio, exposure to corporate debt decreased from 21.81% to 7.29%, while exposure to PSU/PFI bonds increased to 30.46% over the quarter. The exposure to money market instruments increased during the quarter.

Rs. 1000/1 (for all plans) LOAD STRUCTURE Entry Load Plan A Plan B NIL Above Rs.10 lakhs - 0.5%, Upto Rs.10 lakhs - NIL Exit Load Plan A Plan B NIL Rs.10 lakhs & below 1.00%, if redeemed within 1 year of allotment Above Rs.10 lakhs - NIL

NAV Performance Last 6 Mths FTIMIP

Last 1 Yr

Last 3 Yrs*

12.51% 11.89% 9.24%

Last Since 5 Yrs* Inception* 9.50%

10.89%

Fund #

Crisil MIP Blended Index 8.09% 12.04% 8.38% 8.41%

Average maturity#

Yield to maturity#

2.28 years

6.49%*

based on debt portfolios only

* Pre fund expenses

N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Composition by Rating - Debt Portfolio

Composition by Assets

MD- Monthly Dividend Plan, QD- Quarterly Dividend Plan, BP- Bonus Plan, GP- Growth Plan.

■ AAA/P1+/SOV/A1+/AAA (SO)/LAAA/F1+ (IND) ■ AA (SO) ■ N.R.

www.franklintempletonindia.com

99.27% 0.30% 0.43%

■ ■ ■ ■

Equity Holdings Corporate Debt Securitised Debt PSU/PFI Bonds

26.08% 7.29% 6.57% 30.46%

■ Money Market Instruments

18.84%

■ Call, Cash & Other Assets

Franklin Templeton Investments

7.65%

23

Templeton India Government Securities Fund

TGSF

PORTFOLIO

As of June 30, 2009

Company Name

Rating

INVESTMENT STYLE The Fund Managers strive to enhance portfolio returns by actively managing the portfolio duration and market volatility

Market Value Rs. Lakhs

% of Assets

Composite Plan/PF Plan

Company Name

Rating

Market Value Rs. Lakhs

% of Assets

Long Term

TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end gilt fund which seeks to generate credit risk-free return through investments in sovereign secutiries DATE OF ALLOTMENT TGSF - CP TGSF - TP TGSF - PF Plan TGSF - LT

June 21, 1999 February 11, 2002 May 7, 2004 December 7, 2001

FUND MANAGERS Composite / PF / LT Plans Sachin Padwal - Desai (since August 2006) & Vivek Ahuja (since June 2008) Treasury Plan Sachin Padwal - Desai (since August 2006) & Vivek Ahuja (since June 2008)

7.59% GOI 2016

SOV

5186.50

27.29

7.59% GOI 2016

SOV

3630.55

23.55

6.07% GOI 2014

SOV

4421.25

23.26

6.07% GOI 2014

SOV

6877.50

44.61

9607.75

50.55

Total Gilts

10508.05

68.16

Call, Cash & Other Current Assets #

9400.21

49.45

Call, Cash & Other Current Assets #

4909.23

31.84

Net Assets

19007.96

100.00

15417.28

100.00

Total Gilts

# Includes CBLO : 3.00%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 46.45%

Net Assets

# Includes CBLO : 2.41%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 29.43%

LATEST NAV TGSF - CP Growth Plan Dividend Plan TGSF - LT Growth Plan Dividend Plan Bonus Plan TGSF - PF Plan Growth Plan Dividend Plan TGSF - TP Growth Plan Dividend Plan

Company Name

Rs. 32.6726 Rs. 10.8593

Rs. 14.3507 Rs. 14.3507 Rs. 15.9862 Rs. 10.3046 Rs. 157.42 crores Rs. 32.66 crores Rs. 109.35 crores Rs. 154.17 crores

TGSF - CP / TGSF-PF Plan TGSF-LT TGSF-TP

1.42% 1.40% 0.90%

MINIMUM INVESTMENT FOR NEW / EXISTING INVESTORS Rs.10,000/1 (G) Rs.25,000/1 (D) Rs.5000 /1 Rs.25,000/1

TGSF (TP) TGSF-PF Plan

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS TGSF - CP/LT TGSF - TP TGSF - PF Plan

Rs. 1000/1 Rs. 5000 /1 Rs. 5000/1

LOAD STRUCTURE TGSF Entry Load Exit Load

TGSF-TP/LT Entry Load Exit Load TGSF-PF Entry Load Exit Load

% of Assets

91 Day Treasury Bill

SOV

4986.65

45.60

182 Day Treasury Bill

SOV

4976.90

45.51

Total Gilts

9963.55

91.11

Call, Cash & Other Current Assets #

972.01

8.89

Net Assets

10935.56

100.00

# Includes CBLO : 8.38%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 0.51%

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy

EXPENSE RATIO

TGSF - CP/LT

Market Value (Rs. Lakhs)

Treasury Plan

Rs. 22.7614 Rs. 10.8876 Rs. 11.9735

FUND SIZE TGSF - CP TGSF - PF Plan TGSF - TP TGSF - LT

Rating

NIL Rs.10 lakhs & below 0.5%, if redemption is made within 6 months of allotment. Above Rs.10 lakhs - Nil NIL NIL

The maturity period of the composite plan has increased from 2.83 years to 3.03 years during the quarter, while that of the long term plan has decreased to 3.82 years. The maturity period of the treasury plan has increased to 0.11 years from 0.02 years over the quarter.

NAV Performance Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

1.37% 1.37% -3.85% 1.37% -3.85% 1.70% 1.70% 2.35% 1.47% -8.67%

22.80% 22.80% 18.23% 22.80% 18.23% 6.53% 6.53% 14.53% 24.64% 23.34%

11.91% 11.91% 10.13% 11.93% 10.13% 6.10% 6.10% 9.27% 13.14% 11.39%

8.05% 8.05% 7.09% 8.06% 7.09% 5.46% 5.47% 7.32% 9.05% 7.47%

12.53% 12.23% N.A 7.26% 6.31% 6.56% 6.58% N.A 11.48% N.A

TGSF - CP (G) TGSF - CP (D) I-Sec Composite Index TGSF - PF Plan I-Sec Composite Index TGSF - TP (G) TGSF - TP (D) I-Sec Si-BEX TGSF - LT Plan I Sec Libex

Past performance may or may not be sustained in future. *Compounded and annualised. Dividends declared assumed to be reinvested

Average maturity

Yield to maturity

Modified duration

3.03 years

4.96%*

2.38 years

3.82 years

5.57%*

3.05 years

Composition by Rating

TGSF - CP/PF Plan Fund

NIL 0.35%, if redemption is made within 6 months of allotment.

Last 6 Mths

TGSF - LT Fund TGSF - TP Fund

www.franklintempletonindia.com

0.11 years 3.02%* 0.10 years

■ SOV

100.00%

Franklin Templeton Investments

24

Templeton Floating Rate Income Fund - Long Term PORTFOLIO

As of June 30, 2009

Company Name

Rating

Market Value Rs. Lakhs

% of Assets

Company Name

Rating

Market Value Rs. Lakhs

A1+

10000.00

11.41

Credit Asset Trust Sr. XLVII A1

AAA (ind) (SO)

927.56

1.06

Shriram Transport Finance *

AA (Ind)

9150.34

10.44

ILRT 2 April 2009.PTC

AAA (ind) (SO)

742.11

0.85

Citifinancial Consumer Finance *

AA+

6965.36

7.95

CLSS 56 TRUST 2008 SR.A2

AA IND (SO)

489.38

0.56

Tata Sons

AAA

2019.88

2.31

Lsts 58 1a PTC zero cpn 5/0

F1+(IND)SO

409.73

0.47

Kotak Mahindra Prime

P1+

2000.00

2.28

Loan Securitisation

Kotak Mahindra Prime

LAA

1915.74

2.19

Trust - Series 49 B

AA IND (SO)

330.78

0.38

Cholamandalam DBS Finance

LAA-

1313.68

1.50

Indian Retail ABS Trust 92 Sr.A9 X

LAAA (SO)

314.43

0.36

HDFC

AAA

1298.88

1.48

Corporate Debt Trust 08-09 Sr 10 A2

P-3 (SO)

229.26

0.26

GE Money Financial Services

AAA

497.89

0.57

30847.94

35.21

35161.77

40.13

1236.04

1.41

1236.04

1.41

INVESTMENT STYLE The fund managers strive to minimise the risk arising from interest rate fluctuations TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end income fund which aims to provide income consistent with the prudent risk from a portfolio comprising primarily of floating rate debt instruments

Birla Global Finance *

DATE OF ALLOTMENT Retail Option Feb. 11, 2002 Institutional Option Sep. 6, 2005 Sup. Institutional Option May. 9, 2007 FUND MANAGER Sachin Padwal-Desai (since Aug. 2006) Pallab Roy (since June 2008)

Total Corporate Debt

Zero Corporation * Rs. 16.2166 Rs. 10.7661

AAA (ind) (SO) 11565.78

AAA (SO)

4502.42

5.14

Receivable Securitisation Trust Sr. III A6 *

Rs. 12.0758 Rs. 10.0064

13.20

Investment Vehicle For Structured Transactions SR.A3 *

Rs. 13.4147 Rs. 10.3446

Total Securitised Debt LIC Housing Finance

AAA

Total PSU/PFI Bonds

Small Operator Trust 2008

LATEST NAV Retail Plan Growth Option Dividend Option Institutional Plan Growth Option Dividend Option Super Institutional Plan Growth Option Daily Dividend Option

TFIF

LAAA (SO)

3825.88

4.37

JM Financial Products *

P1+

3279.13

3.74

182 day Treasury Bill

SOV

2482.16

2.83

SBI Cards & Payment Services

P1+

2437.80

2.78

Edelweiss Capital

P1+

1490.53

1.70

ICICI Bank

A1+

4.88

0.01

9694.49

11.06

Total Money Market Instruments

Corporate Debt

% of Assets

FUND SIZE

Trust 2008-09 Sr 10 A1 *

P-3 (SO)

2955.58

3.37

ICICI Bank *

NR

3006.00

3.43

Rs. 876.17 crores

BHPC Auto Sec Trust PTC Zero AAA (SO)

2205.32

2.52

Citibank *

NR

2500.00

2.85

5506.00

6.28

5170.86

5.90

87617.11

100.00

AVERAGE MATURITY Fund

Total Bank Deposit

Investment Vehicle for 0.56 years Structured Transactions SR.A3X

AAA (SO)

1287.36

1.47

7.10% (Pre-fund expenses)

Lsts 58 1b PTC zero cpn 5/0

F1+(IND)SO

1062.35

1.21

MODIFIED DURATION

# IncludesCBLO : 4.86%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 1.04%

0.52 years

PORTFOLIO COMPOSITION AND PERFORMANCE

EXPENSE RATIO

Fund Strategy

YIELD TO MATURITY

1.00% (R), 0.55% (I), 0.30% (SIP) MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Retail Option: Institutional Option: Super Insti. Option:

Rs.10,000/1 1 Crore/1 5 Crores/1

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Retail Plan: Institutional Option: Super Insti. Option:

Rs.1000/1 1 Crore/1 1 Crore/1

Call, Cash & Other Current Assets Net Assets

* Top 10 holdings

The maturity period of the long term plan has increased to 0.56 years during this quarter from 0.44 years the previous quarter. The fund’s exposure to corporate debt increased from 19.76% to 40.13% over the quarter, while exposure to securitised debt increased from 19.68% to 35.21%. Exposure to money market instruments decreased to 11.06%.

NAV Performance Last 3 Mths Long-Term Plan Crisil Liquid Fund Index Long-Term Institutional Plan Crisil Liquid Fund Index Long-Term Super Institutional Crisil Liquid Fund Index

1.79% 1.39% 1.91% 1.39% 1.97% 1.39%

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

4.04% 3.48% 4.27% 3.48% 4.40% 3.48%

9.02% 8.40% 9.51% 8.40% 9.78% 8.40%

8.26% 7.49% 8.73% 7.49% N.A N.A

6.98% 6.41% N.A N.A N.A N.A

6.76% N.A 8.00% 7.05% 9.19% 7.64%

Past performance may or may not be sustained in future. *Compounded and annualised

**Absolute

LOAD STRUCTURE Entry Load NIL Exit Load 0.25% (if redeemed within 14 days of allotment)

Composition by Assets

Composition by Rating

■ AAA/P1+/SOV/A1+/AAA (SO)/LAAA (SO)/ ■ ■ ■

www.franklintempletonindia.com

AAA (ind) (SO)/F1+(IND)SO AA+/LAA/AA IND (SO)/AA (Ind)/LAANR P-3 (SO)

67.07% 23.02% 6.28% 3.63%

■ Corporate Debt ■ PSU/PFI Bonds ■ Money Market

40.13%

Instruments

11.06%

1.41%

■ Call, Cash & Other Assets

5.90%

6.28% ■ Bank Deposit ■ Securitised Debt 35.21%

Franklin Templeton Investments

25

Templeton India Short-Term Income Plan

TISTIP

PORTFOLIO

As of June 30, 2009

Company Name

Rating

Market Value Rs. Lakhs

Cholamandalam DBS Finance *

LAA-

11246.28

7.58

Lsts 58 2a PTC zero cpn 4/2

Kotak Mahindra Prime *

LAA

10017.85

6.75

Receivable Securitisation

INVESTMENT STYLE The fund manager strives to provide a steady stream of income while avoiding interest rate volatility.

% of Assets

Company Name

Rating

TYPE OF SCHEME / INVESTMENT OBJECTIVE

Shriram Transport Finance *

AA (Ind)

8078.02

5.45

Trust Sr. III A6

An open end income fund which seeks to provide stable returns by investing in shorter term fixed income securities.

Citifinancial Consumer Finance *

AA+

4768.66

3.21

JUS Trust PTC -

Deutsche Postbank Home Finance

LAA+

3476.75

2.34

Jet Airways Series 9 Investment Vehicle for Structured

DATE OF ALLOTMENT TISTIP TISTIP - I Plan

January 31, 2002 September 6, 2005

FUND MANAGER

Tata Motor Finance

A

3238.44

2.18

GE Capital Services

AAA

2921.88

1.97

Sundaram BNP Paribas Home Finance

LAA

2675.61

1.80

Sundaram Finance

AA+

1724.15

1.16

GE Money Financial Services

AAA

1201.52

0.81

Kotak Mahindra Investments

A1+

1198.82

0.81

LATEST NAV

ICICI Home Finance

LAAA

1033.24

0.70

TISTIP - Retail Plan Growth Plan Rs. 1729.2472 Weekly Plan Rs. 1074.8118 Monthly Plan Rs. 1095.7159 Quarterly Plan Rs. 1064.7536 Bonus Rs. 1081.3389 TISTIP - Institutional Plan Growth Plan Rs. 1385.3021 Weekly Plan Rs. 1011.6603 Monthly Plan Rs. 1127.1703

Tata Steel

Sachin Padwal-Desai (since Aug. 2006) Vivek Ahuja (since June 2008)

DSP Merrill Lynch Capital

Lsts 58 2b PTC zero cpn 4/2 *

Trust - Series 49 A1 *

52421.01

35.34

AA IND (SO) 7249.85

4.89

AA (SO)

5078.19

1237.78

0.83

AAA (SO)

1136.93

0.77

Transactions SR.A3X

AAA (SO)

1029.89

0.69

IRS Trust Series I A3

LAAA (SO)

800.36

0.54

F1+ (IND) (SO) 491.20

0.33

Series 75 A7 PTC

LAAA (SO)

485.60

0.33

ICLS Trust 2008 Series 39 A7

F1+ (SO)

298.32

0.20

Loan Securitisation Trust Reliance Industries PTC

AAA (SO)

202.19

0.14

LST Series 51 Series 1 B

AA+ (SO)

196.32

0.13

Indian Retail ABS Trust Sr.87 A3 PTC

LAAA (SO)

195.99

0.13

Indian Retail ABS Trust Sr.88 A3 PTC

LAAA (SO)

195.78

0.13

40408.11

27.24

Total Securitised Debt

3.42

State Bank of Patiala *

A1+

10352.21

6.98

State Bank of Patiala *

P1+

4748.59

3.20

Canara Bank *

P1+

4739.74

3.20

State Bank of Hyderabad

A1+

3789.51

2.55

Punjab National Bank

P1+

2400.02

1.62

State Bank of Travancore

P1+

2372.10

1.60

Corporate Debt

SBI Cards & Payment Services

P1+

2153.07

1.45

Trust 2008-09 Sr 10 A1

1.66

Punjab National Bank

F1+ (IND)

383.73

0.26

1.08

Total Money Market Instruments

30938.96

20.86

24570.46

16.56

148338.55

100.00

Bajaj Auto PTC *

ILRT 2 April 2009.PTC

MATURITY & YIELD

Loan Securitisation Trust -

* Pre fund expenses

0.06

PTC Series - IX B

AAA (SO) AAA (SO)

4216.66

2.84

3936.20

2.65

AAA (ind) (SO) 3467.20

AAA (SO)

P-3 (SO)

2.34

3398.11

2.29

2462.98

AAA (ind) (SO) 1599.02

MODIFIED DURATION

Credit Asset Trust Sr. XLVII A1

0.87 years

Long Bond Receivables

EXPENSE RATIO

Trust 2007 - Series V

1.13% (R), 1.13% (I)

# Includes CBLO : 5.13%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 11.41%

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS

PORTFOLIO COMPOSITION AND PERFORMANCE

Retail: Institutional:

Rs.5000/1 Rs 5 Crores/1

0.85

LAAA (SO)

ICLS Trust 2008 Series 36 A1

Loan Securitisation Trust -

Rs. 1483.38 crores

Fund

0.51

82.74

AA IND (SO) 1260.71

% of Assets

Indian Retail ABS Trust

Loan Securitisation

ILSS 2 TRUST 2008 SR.A. PTC

YTM 8.25%*

757.08

AAA

Total Corporate Debt

FUND SIZE

Avg Maturity 0.93 years

AA (Ind)

Market Value Rs. Lakhs

Call, Cash & Other Current Assets AAA (SO)

1468.84

0.99

Net Assets

* Top 10 holdings

Fund Strategy

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS

The maturity period of the fund has increased to 0.93 years from 0.89 years at the previous quarter-end. The fund’s exposure to corporate debt has decreased to 35.34% from 62.39% at the preceding quarter-end. Exposure to money market instruments has increased to 20.86%.

Retail: Institutional:

NAV Performance

Rs.5000/1 Rs 1 Crore/1

LOAD STRUCTURE Entry Load NIL Exit Load =>Rs.25 Crs : 0.75% (if redeemed within 4 months from the date of allotment);
TISTIP Crisil Short-Term Bond Fund Index TISTIP Institutional Plan Crisil Short-Term Bond Fund Index

Last 3 Mths

Last 6 Mths

Last 1 Yr

Last 3 Yrs*

Last 5 Yrs*

Since Inception*

3.71% 2.33% 3.72% 2.33%

6.55% 4.28% 6.59% 4.28%

13.13% 11.26% 13.22% 11.26%

9.87% 8.30% 9.98% 8.30%

8.00% 6.66% N.A N.A

7.66% N.A 8.92% 7.36%

Past performance may or may not be sustained in future. *Compounded and annualised

Composition by Assets

Composition by Rating

■ AAA/P1+/A1+/AAA (SO)/LAAA (SO)/LAAA/AAA (ind) (SO)/F1+ (IND) (SO)/F1+ (IND)/F1+ (SO)

58.05%

■ AA+/AA+ (SO)/LAA/AA IND (SO)/LAA+/ AA (SO)/AA (Ind)/LAA-

■ A ■ P-3 (SO)

www.franklintempletonindia.com

38.11% 2.18% 1.66%

■ ■ ■ ■

Corporate Debt

35.34%

Money Market Instruments

20.86%

Call, Cash & Other Assets

27.24%

Securitised Debt

16.56%

Franklin Templeton Investments

26

mfA1+ Rating by ICRA*

Templeton India Ultra-short Bond Fund As of June 30, 2009 INVESTMENT STYLE The fund manager strives to strike an optimum balance between regular income and high liquidity through a judicious mix of short term debt and money market instruments. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end income fund which seeks to provide a combination of regular income and high liquidity by investing primarily in a mix of short term debt and money market instruments. DATE OF ALLOTMENT: December 18, 2007 FUND MANAGER:

TIUBF

PORTFOLIO Company Name

Rating

Market Value Rs. Lakhs

LAA-

5876.10

2.50

ICLS Trust 2008 Series 39 A8

F1+ (SO)

112.56

AA (Ind)

5799.76

2.47

ICLS Trust 2008 Series 39 A6

F1+ (SO)

106.33

0.05

AA

5046.15

2.15

LST Series 51 Series 1 A

AA (SO)

98.25

0.04

Turquoise Investments and Finance

P1+

5000.00

2.13

Corporate Debt Trust 2008-09 Sr 9 A2 PTC

P1+ (SO)

92.88

0.04

Citifinancial Consumer Finance

AA+

4244.57

1.81

Loan Receivable Securitisation

Tata Motor Finance

A+

3002.73

1.28

Trust B Sr. B1

AAA (SO)

81.54

0.03

1.07

CDT Series 12 A2

A1+ (SO)

81.41

0.03

Cholamandalam DBS Finance Shriram Transport Finance Kotak Mahindra Prime

Birla TMT Holdings

P1+

2500.00

% of Assets

Company Name

Rating

Market Value Rs. Lakhs

% of Assets

0.05

DSP Merrill Lynch Capital

AAA

1894.12

0.81

Loan Securitisation Trust -

GE Capital Services

AAA

1500.70

0.64

Reliance Industries PTC

AAA (SO)

77.03

0.03

0.64

CDT Series 11 A2

A1+ (SO)

75.46

0.03

0.43

Indian Retail ABS Trust 85 Series A1 B

AAA (SO)

40.23

0.02

F1+ (IND) (SO)

35.88

0.02

LAA+ (SO)

IL&FS Sundaram Finance

A1+

1500.00

AA+

1011.88

Citicorp Finance

AA+

506.27

0.22

Credit Asset Trust Series LV A2

Sachin Padwal Desai (Dec. 07) Pallab Roy (June 08)

HDFC

AAA

199.83

0.09

ICLS Trust 2008 Series 27 A3

LATEST NAV

Total Corporate Debt

38082.10

16.23

Total Securitised Debt

TIUBF - Retail Plan Growth Plan Rs. 11.3577 Weekly Dividend Plan Rs. 10.0067 Daily Dividend Plan Rs. 10.0106 TIUBF - Insitutional Plan Growth Plan Rs. 11.3927 Weekly Dividend Plan Rs. 10.1966 Daily Dividend Plan Rs. 10.0111 TIUBF - Super Insitutional Plan Growth Plan Rs. 11.4276 Weekly Dividend Plan Rs. 10.0986 Daily Dividend Rs. 10.0116

CLSS 56 TRUST 2008 SR.A2 *

8197.14

3.49

LIC Housing Finance *

2.96

Total PSU/PFI Bonds

FUND SIZE:

Transactions SR.A3X

AAA (SO)

1287.36

Rs. 2347.03 crores

Indian Retail ABS Trust Series 76 A7 PTC

LAAA (SO)

1126.75

EXPENSE RATIO:

Receivable Securitisation Trust Sr III A5

LAAA (SO)

RP : 0.76%; IP :0.56%; SIP:0.36%

CLSS 23 Trust A PTC

P1+ (SO)

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS:

Indian Retail ABS Trust Series 77 A4 PTC

LAAA (SO)

Indian Retail ABS Trust Series 75 A7 PTC

RP: Rs.25,000/1; IP : Rs.1 crore/1; SIP : Rs.5 crores/1

BHPC Auto Sec Trust PTC A2

ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS:

ICLS Trust 2008 Series 36 A1 LST Series 51 Series 1 B

AA+ (SO)

RP: Rs.25,000/1; IP : Rs.1 crore/1; SIP : Rs.1 crore/1

IRS Trust Series I A1

LAAA (SO)

CLSS 56 TRUST 2008 SR.A1

AA (SO)

LOAD STRUCTURE

CLSS 24 Trust A PTC

P1+ (SO)

Entry Load Nil, Exit Load: 0.25% (if redeemed within 7 days from the date of allotment)

Indian Retail ABS Trust 92 Sr.A9 X

LAAA (SO)

Indian Retail ABS Trust Sr.78 A4 PTC

LAAA (SO)

ILSS 2 TRUST 2008 SR.A. PTC

Lsts 58 1b PTC zero cpn 5/0

AA (SO) F1+(IND)SO

6953.56

AAA

29.32

0.01

46537.68

19.83

7654.16

3.26

7654.16

3.26

PR1+

20026.47

8.53

Auto Securitisation Trust Mix Pool B

AAA (SO)

5923.71

2.52

Punjab National Bank *

Receivable Securitisation Trust Sr. III A6

LAAA (SO)

5626.29

2.40

ING Vysya Bank *

P1+

19725.46

8.40

1.68

GE Money Housing *

P1+

17519.23

7.46

P1+

9610.60

4.09

Auto Securitisation Trust Mix Pool A

AAA (SO)

3948.31

Loan Receivable Securitisation Trust Sr. C2

AAA (SO)

2176.22

0.93

Punjab National Bank *

Receivable Sec Trust Sr IV A1

AAA (SO)

1963.32

0.84

State Bank of Hyderabad *

P1+

9552.82

4.07

State Bank of Travancore *

P1+

7133.55

3.04

Tata Motors

A1

4957.33

2.11

SBI Cards & Payment Services

P1+

4875.61

2.08

0.55

L&T Finance

PR1+

2435.68

1.04

0.48

Canara Bank

P1+

2423.29

1.03

812.31

0.35

Corporation Bank

P1+

2394.53

1.02

779.69

0.33

State Bank of Patiala

P1+

2392.30

1.02

776.74

0.33

Reliance Capital

P1+

1003.55

0.43

LAAA (SO)

647.47

0.28

Reliance Communications

A1+

992.01

0.42

AA (SO)

590.60

0.25

Edelweiss Capital

P1+

495.73

0.21

F1+ (IND) (SO)

491.20

0.21

EXIM Bank

AAA

287.84

0.12

490.80

0.21

Sundaram BNP Paribas Home Finance

P1+

99.08

0.04

447.79

0.19

Axis Bank

P1+

98.04

0.04

348.51

0.15

ICICI Bank

A1+

333.83

0.14

Total Money Market Instruments

314.43

0.13

ICICI Bank *

298.24

0.13

Yes Bank *

AAA (SO)

218.68

0.09

Citibank NA

RB Loan Trust Sr.27 A3

P1+ (SO)

165.80

0.07

State Bank of Patiala

0.45 yrs

Loan Receivable Securitisation Trust C Sr. C1

AAA (SO)

152.83

0.07

Total Bank Deposit

YIELD TO MATURITY :

ICLS Trust 2008 Series 36 A2

F1+ (IND) (SO)

133.28

0.06

Call, Cash & Other Current Assets

7.04%

ICLS Trust 2008 Series 33 A7

PR1+(SO)

116.58

0.05

MODIFIED DURATION :

# Includes CBLO : 1.17%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 0.69%

AVERAGE MATURITY :

Investment Vehicle For Structured Transactions SR.A3

AAA (SO)

1385.36

0.59

Investment Vehicle for Structured

9.76

0.00

106032.87

45.18

NR

14529.00

6.19

NR

11500.00

4.90

NR

4000.00

1.70

NR

2000.00

0.85

32029.00

13.65

Net Assets

4367.25

1.86

234703.07

100.00

* Top 10 holdings

0.42 yrs

PORTFOLIO COMPOSITION AND PERFORMANCE RP-Retail Plan, IP-Institutional Plan, SIP-Super Institutional Plan

Fund Strategy The maturity period of the fund has increased to 0.45 years from 0.20 years at the previous quarter-end. The fund’s exposure to corporate debt has increased to 16.23% from 3.15% at the preceding quarter-end. Exposure to securitised debt has decreased to 19.83% from 45.06% during the quarter. Exposure to money market instruments has increased to 45.18%.

NAV Performance TIUBF - Regular TIUBF - Institutional TIUBF - Super Institutional Crisil Liquid Fund Index

Last 1 Mth

Last 3 Mths

Last 6 Mths

Last 1 Yr

Since Inception*

0.46% 0.47% 0.49% 0.25%

1.40% 1.45% 1.50% 1.39%

3.32% 3.42% 3.52% 3.48%

8.29% 8.51% 8.73% 8.40%

8.65% 8.87% 9.09% 8.01%

Past performance may or may not be sustained in future. *Compounded and annualised

www.franklintempletonindia.com

Franklin Templeton Investments

27

mfA1+ Rating by ICRA*

Templeton Floating Rate Income Fund - Short Term

TFIF

PORTFOLIO

As of June 30, 2009

Company Name

Rating

Market Value Rs. Lakhs

% of Assets

Company Name

TGS Investments & Trade *

A1+

7500.00

10.43

Citifinancial Consumer Finance *

AA+

4099.08

AA (Ind)

INVESTMENT STYLE The fund managers strive to minimise the risk arising from interest rate fluctuations

Rating

Market Value Rs. Lakhs

% of Assets

Tata Motors *

A1

9427.36

13.11

5.70

91 day Treasury Bill *

SOV

7963.11

11.07

1025.71

1.43

Edelweiss Capital *

P1+

5148.26

7.16

12624.79

17.56

SBI Cards & Payment Services *

P1+

2772.72

3.86

Reliance Capital *

A1+

2690.11

3.74

182 day Treasury Bill *

SOV

2494.74

3.47

Punjab National Bank

PR1+

2492.92

3.47

TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end liquid plan which aims to provide income consistent with the prudent risk from a portfolio comprising primarily of floating rate debt instruments DATE OF ALLOTMENT

Tata Steel Total Corporate Debt Loan Receivable Securitisation Trust Sr. C2

Short Term Short Term - I Plan

Feb. 11, 2002 Sep. 2, 2005

Trust Sr.88 A3 PTC

Sachin Padwal-Desai (since Aug. 2006) Pallab Roy (since June 2008) LATEST NAV

FUND SIZE

296.76

0.41

Indian Retail ABS

FUND MANAGER

Short-Term Plan Growth Option Rs. 16.2058 Dividend Option Rs. 10.0520 Short-Term Institutional Plan Growth Option Rs. 13.3618 Dividend Option Rs. 10.1535

AAA (ind) (SO)

LAAA (SO)

261.03

0.36

Reliance Petroleum

P1+

2490.79

3.46

BHPC Auto Sec Trust PTC A2

AA (SO)

100.10

0.14

Kotak Mahindra Prime

P1+

1807.41

2.51

ICLS Trust 2008 Series 39 A7

F1+ (SO)

99.44

0.14

JM Financial Products

P1+

728.25

1.01

Reliance Telecom

A1+

495.82

0.69

Axis Bank

P1+

98.04

0.14

Reliance Capital

P1+

19.98

0.03

48604.90

67.59

Indian Retail ABS Trust Sr.87 A3 PTC

LAAA (SO)

Total Securitised Debt

98.00

0.14

855.33

1.19

LIC Housing Finance *

AAA

3959.66

5.51

Total Money Market Instruments

IDFC

AAA

2009.47

2.79

Citibank NA

NR

1500.00

2.09

Indian Railway Finance Corporation

AAA

502.33

0.70

ICICI Bank

NR

1002.00

1.39

6471.46

9.00

Total Bank Deposit

2502.00

3.48

Call, Cash & Other Current Assets

856.74

1.19

71915.22

100.00

Rs. 719.15 crores AVERAGE MATURITY Fund

0.20 years

YIELD TO MATURITY 6.10% (Pre-fund expenses) MODIFIED DURATION 0.18 years

Total PSU/PFI Bonds Standard Chartered Investment & Loans *

P1+

9975.39

13.87

Net Assets

EXPENSE RATIO 0.75% (R), 0.45% (I) MINIMUM INVESTMENT/ MULIPLES FOR NEW INVESTORS Rs.5000 /1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.5000 /1

# Includes CBLO : 0.16%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 1.03%

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The maturity period for the short-term plan has decreased to 0.20 years from 0.41 years during the quarter. The fund has increased its exposure to corporate debt from 4.55% to 17.56%. Exposure to securitised debt decreased to 1.19% from 22.17% during the quarter. Exposure to money market instruments has increased to 67.59% over the quarter.

NAV Performance

LOAD STRUCTURE Entry Load NIL Exit Load NIL

* Top 10 holdings

Short-Term Plan Crisil Liquid Fund Index Short-Term Institutional Plan Crisil Liquid Fund Index

Last 7 Days

Last 15 Days**

Last 1 Mth**

Last 3 Mths**

Last 6 Mths**

Last 1 Year**

Last 3 Years*

Last 5 Years*

Since Inception*

0.10% 0.05% 0.10% 0.05%

5.04% 2.75% 5.33% 2.75%

5.10% 2.84% 5.40% 2.84%

5.97% 5.57% 6.28% 5.57%

7.26% 7.01% 7.57% 7.01%

8.45% 8.40% 8.77% 8.40%

8.22% 7.49% 8.48% 7.49%

7.04% 6.42% N.A N.A

6.75% N.A 7.87% 7.04%

Past performance may or may not be sustained in future. *Compounded and annualised. **Annualised. Returns as on May 29, 2009.

Composition by Assets

Composition by Rating

■ AAA/P1+/SOV/A1+/PR1+/LAAA (SO)/ PR1+/AAA (ind) (SO)/F1+ (SO)

■ AA+/AA (SO)/AA (Ind)/A1

www.franklintempletonindia.com

80.31% 19.69%

■ Corporate Debt ■ PSU/PFI Bonds ■ Money Market

17.56% 9.00%

Instruments

67.59%

■ Call, Cash & Other Assets

■ Bank Deposit ■ Securitised Debt

Franklin Templeton Investments

1.19% 3.48% 1.19%

28

mfA1+ Rating by ICRA*

Templeton India Treasury Management Account As of June 30, 2009

PORTFOLIO Company Name

Rating

Market Value Rs. Lakhs

INVESTMENT STYLE The fund manager strives to strike an optimum balance between steady income and high liquidity through a judicious mix of short term debt and money market instruments. TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end liquid fund which seeks to provide current income along with high liquidity. DATE OF ALLOTMENT TITMA - R Plan April 29, 1998 TITMA - I Plan June 22, 2004 TITMA - L Plan September 17, 2004 TITMA - SI Plan September 2, 2005 FUND MANAGER Sachin Padwal-Desai (since Aug. 2006) Pallab Roy (since June 2008) LATEST NAV TITMA - R Plan Growth Option Rs. 2204.5901 Weekly Option Rs. 1244.7540 Daily Dividend Option Rs. 1512.3400 TITMA - I Plan Growth Option Rs. 1394.9990 Weekly Option Rs. 1055.0977 Daily Dividend Option Rs. 1000.6730 TITMA - L Plan Growth Option Rs. 1348.3198 Dividend Option Rs. 1000.9072 Daily Dividend Option Rs. 1000.6730 TITMA Super Insitutional Plan Growth Option Rs. 1324.7632 Weekly Dividend Option Rs. 1021.5025 Daily Dividend Option Rs. 1000.6730 FUND SIZE Rs. 2511.04 crores MATURITY & YIELD Avg Maturity YTM Fund 0.11 years 6.52%* * Pre fund expenses MODIFIED DURATION 0.11 years EXPENSE RATIO TITMA-R Plan 0.85% TITMA-I Plan 0.60% TITMA L Plan 1.10% TITMA SIP Plan 0.40% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS TITMA - R Plan Rs. 1 lakh /1 TITMA - I Plan Rs. 1 crore/1 TITMA - L Plan Rs. 25000/1 TITMA - SIP Plan Rs. 5 crores/1 ADDITIONAL INVESTMENT/MULTIPLES FOR EXISTING INVESTORS TITMA - R Plan Rs. 1 lakh /1 TITMA - I plan Rs. 1 crore/1 TITMA - L Plan Rs. 5000/1 TITMA - SIP Plan Rs. 1 crore/1 LOAD STRUCTURE TITMA - R Plan / I Plan / L Plan Entry Load Nil Exit Load Nil

TITMA

% of Assets

Company Name

Rating

Market Value Rs. Lakhs

% of Assets

Tata Motors *

A1

20000.00

7.96

Tata Motor Finance *

A1

9842.25

3.92

JM Financial Services *

P1+

10000.00

3.98

91 day Treasury Bill

SOV

7476.50

2.98

Cholamandalam DBS Finance

LAA-

3894.58

1.55

Union Bank of India

P1+

7470.12

2.97

Kotak Mahindra Prime

LAA

2708.31

1.08

GE Capital Services

P1+

6908.73

2.75

GE Capital Services

AAA

1595.06

0.64

JM Financial Services

P1+

6580.63

2.62

HDFC

AAA

999.14

0.40

Reliance Capital

P1+

5675.10

2.26

DSP Merrill Lynch Capital

AAA

698.05

0.28

Reliance Telecom

A1+

5255.65

2.09

Citicorp Finance

AA+

500.26

0.20

GE Money Financial Services

AAA

298.73

0.12

40694.12

16.21

2488.67

0.99

Total Corporate Debt Corporate Debt Trust 2008-09 Sr 9 A1 PTC

GE Money Housing

P1+

4913.75

1.96

Kotak Mahindra Prime

P1+

3498.80

1.39

Sundaram BNP Paribas Home Finance

P1+

3022.03

1.20

A1+

2478.73

0.99

F1+ (IND) 2471.16

0.98

IDBI Home Finance P1+ (SO)

Morgan Stanley India Capital CLSS 23 Trust A PTC

P1+ (SO)

1782.16

0.71 L&T Finance

PR1+

1492.93

0.59

ICICI Home Finance

A1+

499.86

0.20

ICICI Home Finance

P1+

494.49

0.20

ICICI Bank

A1+

Indian Retail ABS Trust 85 Series A1 B

AAA (SO)

588.40

0.23

CLSS 56 TRUST 2008 SR.A2

AA (SO)

489.38

0.19

5348.61

2.13

Total Securitised Debt LIC Housing Finance

AAA

Total PSU/PFI Bonds

5136.34

2.05

5136.34

2.05

Total Money Market Instruments

195.12

0.08

170893.47

68.06

Yes Bank *

NR

15000.00

5.97

State Bank of Patiala *

NR

10000.00

3.98

NR

2505.00

1.00

Tata Motors *

A1

37031.17

14.75

Reliance Petroleum *

P1+

22417.09

8.93

ICICI Bank

Edelweiss Capital *

P1+

17433.93

6.94

Total Bank Deposit

27505.00

10.95

Reliance Capital *

A1+

15763.10

6.28

Call, Cash & Other Current Assets

1526.82

0.61

IDBI *

P1+

9972.33

3.97

Net Assets

251104.37

# Includes CBLO : 0.30%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 0.31%

100.00 * Top 10 holdings

PORTFOLIO COMPOSITION AND PERFORMANCE Fund Strategy The fund’s maturity period has decreased to 0.11 years during the quarter from 0.20 years the preceding quarter. Exposure to corporate debt increased to 16.21% from 0.65%. Exposure to money market instruments has increased from 37.07% to 68.06% this quarter.

NAV Performance

TITMA - Regular Plan Crisil Liquid Fund Index TITMA - I Plan Crisil Liquid Fund Index TITMA - Liquid Plan Crisil Liquid Fund Index TITMA - Super Institutional Crisil Liquid Fund Index

Last 7 Days

Last 15 Days**

Last 1 Mth**

Last 3 Mths**

Last 6 Mths**

Last 1 Year**

Last 3 Years*

Last 5 Years*

Since Inception*

0.10% 0.05% 0.11% 0.05% 0.10% 0.05% 0.11% 0.05%

4.89% 2.75% 5.14% 2.75% 4.64% 2.75% 5.34% 2.75%

4.96% 2.84% 5.21% 2.84% 4.71% 2.84% 5.41% 2.84%

5.06% 5.57% 5.32% 5.57% 4.81% 5.57% 5.52% 5.57%

5.99% 7.01% 6.25% 7.01% 5.73% 7.01% 6.45% 7.01%

7.71% 8.40% 7.97% 8.40% 7.44% 8.40% 8.19% 8.40%

7.59% 7.49% 7.86% 7.49% 7.33% 7.49% 8.08% 7.49%

6.62% 6.42% 6.86% 6.42% N.A N.A N.A N.A

7.33% N.A 6.85% 6.41% 6.44% 6.54% 7.62% 7.04%

Past performance may or may not be sustained in future. *Compounded and annualised. **Annualised. Returns as on May 29, 2009.

Composition by Assets

Composition by Rating

R Plan: Regular Plan; L Plan: Liquid Plan; I Plan: Institutional Plan

■ AAA/P1+/SOV/A1+/PR1+/AAA (SO)/

www.franklintempletonindia.com

PR1+/P1+ (SO)/F1+ (IND)

70.52%

■ AA+/LAA/AA (SO)/LAA-/A1

29.48%

■ Money Market Instruments

68.06%

■ Bank Deposit

■ Call, Cash & Other Assets 0.61%

■ Corporate Debt

16.21%

■ Securitised Debt

■ PSU/PFI Bonds

2.05%

Franklin Templeton Investments

10.95% 2.13%

29

Templeton India Money Market Account As of June 30, 2009 INVESTMENT STYLE The fund manager seeks to achieve capital preservation alongwith current income through a portfolio of money market instruments TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end liquid fund which seeks to provide investors with high safety, a high degree of liquidity and current income through investment in high quality money market instruments. DATE OF ALLOTMENT: March 17, 1997 FUND MANAGER: Pallab Roy (Aug. 06) Vivek Ahuja (June 08) NAV: Re. 1 (Constant) FUND SIZE: Rs. 58.44 crores EXPENSE RATIO: 0.75%

TIMMA

PORTFOLIO Company Name

Rating

Market Value Rs. Lakhs

% of Assets

Company Name

L&T Finance Ltd., 8/06/09

PR1+

995.29

17.03

Kotak Mahindra Prime

Reliance Telecom

A1+

991.63

16.97

Total Money Market Instruments

Edelweiss Capital

P1+

991.46

16.96

Call, Cash & Other Current Assets #

ICICI Bank

A1+

536.59

9.18

LOAD STRUCTURE Entry Load Exit Load Lock-in Period

NIL NIL 15 days from the date of allotment

Market Value Rs. Lakhs

P1+

521.49

Net Assets

% of Assets

8.92

4036.45

69.06

1808.00

30.94

5844.45

100.00

# Includes CBLO : 30.87%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 0.07%

PORTFOLIO COMPOSITION AND PERFORMANCE Composition by Assets

Fund Strategy The fund had a 69.06% exposure to money market instruments by end of the quarter.

MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS Regular Account Rs.5000/1 ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS Rs.1000/1 (for all plans)

Rating

■ Money Market Instruments

69.06%

■ Call, Cash & Other Assets

30.94%

NAV Performance Last 7 Days

Last 15 days**

Last 1 Mth**

Last 3 Mths**

Last 6 Mths**

Last 1 year**

Last 3 years*

Last 5 years*

Since Inception*

TIMMA

0.13%

6.59%

6.72%

7.58%

8.32%

8.70%

7.97%

6.30%

5.65%

Crisil Liquid Fund Index

0.05%

2.75%

2.84%

5.57%

7.01%

8.40%

7.49%

6.42%

N.A

Past performance may or may not be sustained in future.

**Annualised.

*Compounded and annualised. Returns as on May 29, 2009.

Templeton Monthly Income Plan

TMIP

@An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus As of June 30, 2009

PORTFOLIO - MONTHLY & QUARTERLY DIVIDEND PLAN

INVESTMENT STYLE

Company Name

The fund manager maintains a pure debt portfolio and strives to earn steady returns in the fixed income market by actively managing the funds portfolio on interest rate movements and credit risks TYPE OF SCHEME / INVESTMENT OBJECTIVE An open end income fund which seeks to earn regular income through investment in fixed income securities DATE OF ALLOTMENT

Anand Radhakrishnan (since Dec. 2006) Pallab Roy (since Aug.2006) Vivek Ahuja (since June 2008) LATEST NAV Rs. 10.4051 Rs. 10.5251 Rs. 15.63 crores

MATURITY & YIELD Average Maturity YTM 1.47 years 7.22%* * Pre-fund expenses

Fund

Market Value Rs. Lakhs

Rural Electrification Corporation

AAA

210.03

13.44

EXIM Bank

AAA

199.30

Power Finance Corporation

AAA

Total PSU/PFI Bonds

February 7, 2000 FUND MANAGERS

Monthly Plan Quarterly Plan FUND SIZE

Rating

MODIFIED DURATION

1.22 years

EXPENSE RATIO

1.00%

MINIMUM INVESTMENT/MULTIPLES FOR NEW INVESTORS

Canara Bank

Entry Load CDSC

NIL <=Rs.5 Crs : 0.50% (if redeemed within 3 months from the date of allotment) >Rs.5 Crs : 0.25% (if redeemed within 1 month from the date of allotment)

www.franklintempletonindia.com

PURE DEBT PORTFOLIO Company Name

Rating

Market Value Rs. Lakhs

Punjab National Bank

PR1+

240.03

15.36

12.75

EXIM Bank

AAA

191.90

12.28

154.88

9.91

Total Money Market Instruments

810.78

51.87

564.21

36.09

Call, Cash & Other Current Assets#

188.23

12.04

378.85

24.24

1563.21

100.00

Net Assets

% of Assets

# Includes CBLO : 11.26%, Others (Cash/ Subscription/ Redmn/ Payable on purchase/ Recvble on sale/ Interest/ Expenses) : 0.98%

PORTFOLIO COMPOSITION AND PERFORMANCE Composition by Assets

Fund Strategy The maturity period of the fund increased to 1.47 years at the end of this quarter from 1.16 years during the previous quarter. The fund’s exposure to PSU/PFI bonds increased to 36.09%, while exposure to Money Market Instruments increased to 51.87% during the quarter.

NAV Performance

Rs.25000/1 ADDITIONAL INVESTMENT/MULTIPLES FOR EXISTING INVESTORS Rs.5000/1 LOAD STRUCTURE

P1+

% of Assets

TMIP - Monthly TMIP - Quarterly Crisil MIP Blended Index

Last 6 Mths 3.09% 3.09%

Last Last 1 Year 3 Years* 8.79% 7.09% 8.79% 7.09%

8.09% 12.04% 8.38%

Last Since 5 Years* Inception* 5.64% 7.13% 5.65% 7.15% 8.41%

■ Call, Cash & Other Assets ■ Money Market Instruments ■ PSU/PFI Bonds

12.04% 51.87% 36.09%

N.A

Past performance may or may not be sustained in future. *Compounded and annualised

Dividends declared assumed to be reinvested

Franklin Templeton Investments

30

DIVIDEND∞/BONUS HISTORY (FOR SELECT SCHEMES) Record Date

FIBCF** Jan 01, 1997 Jul 30, 1999 Mar 14, 2000 Nov 10, 2000 Mar 09, 2001 Mar 18, 2002 Jul 30, 2003 Feb 3, 2004 Jan 19, 2005 Jan 24, 2006 Feb 07, 2007 Jan 09, 2008 Jan 21, 2009 TIGF** Apr 28, 2000 Sep 16, 2003 Feb 24, 2004 Dec 8, 2004 Dec 21, 2005 Dec 20, 2006 Dec 26, 2007 Dec 10, 2008 FIPP** Sep 10, 1999 Oct 13, 2000 Jan 19, 2001 Mar 18, 2002 Aug 19, 2003 Mar 23, 2004 Oct 27, 2004 Nov 9, 2005 Nov 15, 2006 Mar 7, 2007 Feb 13, 2008 Feb 25, 2009 FIPF** Nov 03, 1999 Sep 22, 2000 Jan 17, 2001 Mar 18, 2002 Jun 27, 2003 Jan 20, 2004 Oct 5, 2004 Jul 13, 2005 Jul 19, 2006 Jul 18, 2007 Jun 18, 2008 Jun 24, 2009 FIFCF** Mar 14, 2006 May 9, 2007 Mar 12, 2008 TIEIF** Apr 18, 2007 Nov 28, 2007 May 21, 2008 FIT** Mar 31, 2000 May 24, 2000 Mar 30, 2001 Feb 24, 2004 Mar 18, 2005 Feb 15, 2006 Jan 10, 2007 Nov 14, 2007 Dec 17, 2008 FIOF** Sep 14, 2005 Sep 13, 2006 Nov 29, 2006 Sep 12, 2007 FIF** Oct 08, 1999 Jan 12, 2000 Mar 24, 2000 Mar 16, 2004 Nov 23, 2005 Nov 29, 2006 Oct 24, 2007 Aug 20, 2008 FFF** Mar 09, 2004 Nov 23, 2005 Nov 29, 2006 Oct 24, 2007 FPF** Mar 09, 2004 Nov 23, 2005 Nov 29, 2006 Oct 24, 2007 FTIBF** Nov 25, 2003

Dividend Rate /Bonus Ratio

Rate per unit (Rs.)

NAV* (Rs.)

20% 35% 65% /1:1 bonus 25% 22.50% 10% 20% 20% 25% 30% 60% 70% 30%

2.00 3.50 6.50 2.50 2.25 1.00 2.00 2.00 2.50 3.00 6.00 7.00 3.00

12.03 30.17 50.38 16.85 14.08 12.93 15.45 22.43 24.07 33.94 46.31 56.2212 23.4686

15% 20% 30% 25% 35% 40% 45% 25%

1.50 2.00 3.00 2.50 3.50 4.00 4.50 2.50

14.45 20.48 27.16 27.29 35.94 41.07 60.5998 28.2833

20% 30% 25% 20% 20% 25% 40% 55% 60% 30% 60% 25%

2.00 3.00 2.50 2.00 2.00 2.50 4.00 5.50 6.00 3.00 6.00 2.50

18.83 17.41 16.79 15.36 18.10 23.63 23.02 28.85 38.81 31.32 38.9872 19.4543

30% 30% 25% 30% 25% 40% 35% 55% 60% 60% 60% 60%

3.00 3.00 2.50 3.00 2.50 4.00 3.50 5.50 6.00 6.00 6.00 6.00

26.34 18.93 15.27 16.78 20.73 35.64 34.97 47.49 48.13 65.3063 48.8451 38.6376

20% 25% 30%

2.00 2.50 3.00

17.48 18.5404 18.1619

7% 7% 7%

0.70 0.70 0.70

12.3379 15.7362 15.0994

80% 60% 12.50% 40% 30% 35% 80% 80% 30%

8.00 6.00 1.25 4.00 3.00 3.50 8.00 8.00 3.00

31.02 19.82 11.57 24.01 27.25 38.01 39.43 46.8922 20.6681

25% 30% 30% 30%

2.50 3.00 3.00 3.00

15.96 18.88 18.82 17.8556

40% 60%/1:1 bonus 60% 20% 30% 15% 25% 25%

4.00 6.00 6.25 2.00 3.00 1.50 2.50 2.50

39.59 64.00 37.57 12.67 20.26 25.61 21.4765 16.0852

25.00% 30% 30% 6%

2.50 3.00 3.00 0.60

15.26 22.84 25.80 25.0725

25.00% 30% 30% 25%

2.50 3.00 3.00 2.50

16.60 20.06 20.39 16.8882

15%

1.50

13.99

Record Date

June 15, 2005 May 4, 2006 May 23, 2007 May 21, 2008 May 27, 2009 TIPP** Dec 31, 1997 Dec 14, 1998 Mar 16, 2000 Jul 13, 2001 Mar 22, 2002 Dec 23, 2003 Dec 15, 2004 Dec 21, 2005 Dec 20, 2006 Nov 14, 2007 Dec 17, 2008

Dividend Rate /Bonus Ratio

20% 25% 30% 30% 20% 12% 12% 12% 12% 10% 12% 12% 15% 20% 25% 12%

FTLF-The 50s Plus Plan$ Jun 26, 2009 2.715%a b 2.527% a Mar 26, 2009 0.263% b 0.245% Dec 26, 2008 0.876%a b 0.815% FTLF-The 50s Plus Floating Rate Plan$ Jun 26, 2009 1.139%a b 1.060% a Mar 26, 2009 0.438% b 0.408% Dec 26, 2008 1.314%a b 1.223% FTLF — The 40s Plan Oct 24, 2007 10.314% ba 10.223% $ TIIF Jun 26, 2009 1.927%a b 1.794% a Mar 26, 2009 0.613%b 0.571% Dec 26, 2008 3.679%a b 3.424% TIIBA (Annual Dividend)¥ a Mar 26, 2009 6.132%b 5.707% a Mar 28, 2008 8.234%b 7.663% a Mar 28, 2007 2.631%b 2.450% ¥ (Half Yearly Dividend) a Mar 26, 2009 6.745%b 6.278% Sep 26, 2008 3.504%a b 3.261% a Mar 28, 2008 6.044%b 5.625% a Sep 28, 2007 6.132%b 5.707% # (Monthly Dividend) a Jun 26, 2009 1.051%b 0.978% a May 29, 2009 1.051%b 0.978% a Apr 24, 2009 2.540%b 2.364% (Quarterly Plan)$ Jun 26, 2009 3.504%a b 3.261% Mar 26, 2009 3.504%a b 3.261% Dec 26, 2008 4.117%a b 3.832% TMIP# (Monthly Dividend) a Jun 26, 2009 1.051%b 0.978% a May 29, 2009 1.051%b 0.978% a Apr 24, 2009 1.051%b 0.978% $ (Quarterly Dividend) a Jun 26, 2009 2.453% b 2.283% a Mar 26, 2009 0.876% b 0.815% a Dec 26, 2008 2.365% b 2.201% (Half-yearly Dividend) a Mar 27, 2009 1.314% b 1.223% a Sep 26, 2008 2.193% b 2.042% Mar 28, 2008 3.504%a b 3.261%

Rate per unit (Rs.)

Record Date

Dividend Rate /Bonus Ratio

Rate per unit (Rs.)

NAV* (Rs.)

17.77 24.26 24.6370 24.9250 20.7556

Sep 28, 2007

7.621%a b 7.093%

a 0.7621 b 0.7093

13.1210 13.1210

1.20 1.20 1.20 1.20 1.00 1.20 1.20 1.50 2.00 2.50 1.20

11.31 11.46 12.41 12.09 11.72 15.81 16.27 17.74 18.8017 20.4519 13.7490

Apr 24, 2009

a 0.525%b 0.489% a 0.701%b 0.652% a 0.088%b 0.082%

a 0.0526b 0.0489 a 0.0701b 0.0652 a 0.0088b 0.0082

11.2902 11.2902 10.7640 10.7640 10.3434 10.3434

1.139%a b 1.060% 0.175%a 0.163%b 0.438%a b 0.408%

0.1139a b 0.1060 0.0175a 0.0163b 0.0438a b 0.0408

11.5145 11.5145 10.3619 10.3619 10.1710 10.1710

0.2715a b 0.2527 a 0.0263 b 0.0245 0.0876a b 0.0815

11.9853 11.9853 10.3331 10.3331 10.1951 10.8156

0.1664a 0.1549b 0.1664a 0.1549b 1.0073a 0.9376b

11.0270 11.0270 11.1477 11.1477 12.0838 12.0838

0.1139a b 0.1060 a 0.0438 b 0.0408 0.1314a b 0.1223

12.5629 12.5629 11.3766 11.3766 11.2170 11.2170

0.0876a b 0.0815 a 0.1314 b 0.1223 0.0210a b 0.1957

10.4019 10.4019 10.4794 10.4794 10.6126 10.6126

1.314 ba 1.223

15.8275 15.8275

0.1927a b 0.1794 a 0.0613b 0.0571 0.3679a b 0.3424

10.8730 10.8730 10.6753 10.6753 10.9711 10.9711

a 0.1314 b 0.1223 0.1752a b 0.1631 0.9548a b 0.8886

11.0247 11.0247 11.0922 11.0922 11.9949 11.9949

a 0.6132b 0.5707 a 0.8234b 0.7663 a 0.2631b 0.2450

10.8204 10.8204 11.0593 11.0593 10.6028 10.6028

a 0.6745b 0.6278 0.3504a b 0.3261 a 0.6044b 0.5625 a 0.6132b 0.5707

13.2877 13.2877 12.8888 12.8888 13.5135 13.5135 13.7322 13.7322

a 0.1051b 0.0978 a 0.1051b 0.0978 a 0.2540b 0.2364

12.1577 12.1577 12.2081 12.2081 12.5559 12.5559

2.00 2.50 3.00 3.00 2.00

0.3504a b 0.3261

NAV* (Rs.)

0.3504a b 0.3261 0.4117a b 0.3832

13.1699 13.1699 13.1924 13.1924 13.5601 13.5601

a 0.1051b 0.0978 a 0.1051b 0.0978 a 0.1051b 0.0978

10.4999 10.4999 10.5596 10.5596 10.6746 10.6746

a 0.2453 b 0.2283 a 0.0876 b 0.0815 a 0.2365 b 0.2201

10.7794 10.7794 10.6366 10.6366 10.8278 10.8278

a 0.1314 b 0.1223 a 0.2193 b 0.2042 a 0.3504 b 0.3261

11.5721 11.5721 11.8817 11.8817 12.4811 12.4811

(Monthly Dividend) May 29, 2009

Mar 27, 2009 (Quarterly Dividend)$ Jun 26, 2009 Mar 27, 2009 Dec 26, 2008

TGSF (Composite Plan) $ Jun 26, 2009 1.664%a 1.549%b Mar 26, 2009 1.664%a 1.549%b Dec 26, 2008 10.073%a 9.376%b TGSF (TP)$ Jun 26, 2009 0.876%a b 0.815% a Mar 26, 2009 1.314% b 1.223% Dec 26, 2008 2.102%a b 1.957% TGSF (LT-Quarterly)$ a Jun 26, 2009 1.314% b 1.223% Mar 26, 2009 1.752%a b 1.631% Dec 26, 2008 9.548%a b 8.886% TFIF (LT-Quarterly)$ Jun 26, 2009 1.489%a b 1.386% Mar 26, 2009 1.752%a b 1.631% Dec 26, 2008 TISTIP# (Monthly Dividend) Jun 26, 2009 May 29, 2009 Apr 24, 2009 (Quarterly Dividend)$ Jun 26, 2009 Mar 26, 2009 Dec 26, 2008 (Institutional Monthly) Jun 26, 2009 May 29, 2009 Apr 24, 2009

0.1489a b 0.1386 0.1752a b 0.1631

10.9254 10.9254 10.9264 10.9264 10.9124 10.9124

1.927%a b 1.794%

0.1927a b 0.1794

0.744%a b 0.692% 0.875%a b 0.815% 0.965%a b 0.898%

7.445a b 6.929 8.759a b 8.153 9.653a b 8.984

1102.6285 1102.6285 1097.2209 1097.2209 1098.9028 1098.9028

2.846%a b 2.649% 2.189%a b 2.038% 2.049%a b 1.907%

28.468a b 26.496 21.898a b 20.381 20.497a b 19.077

1095.6935 1095.6935 1079.9887 1079.9887 1074.4577 1074.4577

0.766%a b 0.713% 0.875%a b 0.815% 0.998%a b 0.929%

7.664a b 7.133 8.759a b 8.153 9.977a b 9.286

1134.2873 1134.2873 1128.4374 1128.4374 1130.1591 1130.1591

Face Value : Rs.1000

Fund Managers Industry Experience Name

Past performance may or may not be sustained in future. ¥ Past 12 months dividend history * Cum-dividend NAV # Past 3 months dividend history $ Past 3 quarters dividend history ** Since inception ∞ Please note that after the payment of dividend, the NAV falls to the extent of dividend, distribution tax and cess wherever applicable. a Individual/HUF b Others. Dividend distribution tax is taken into consideration wherever applicable while calculating the NAV performance

www.franklintempletonindia.com

FTIMIP #

Industry experience

FRANKLIN EQUITY Sukumar Rajah K. N. Sivasubramanian Anand Radhakrishnan Anil Prabhudas Janakiraman Roshi Jain Chakri Lokapriya Murali Yerram

17 19 13 15 12 5 11 2

TEMPLETON EQUITY Mark Mobius Chetan Sehgal Vikas Chiranewal

39 years 15 years 4 years

FIXED INCOME Santosh Kamath Sachin Desai Pallab Roy Vivek Ahuja

15 9 7 10

Franklin Templeton Investments

years years years years years years years years

years years years years

31

* ICRA has assigned a credit rating of mfA1+ to Templeton India Treasury Management Account (TITMA) and Templeton India Ultra Short Bond Fund (TIUBF). ICRA’s mutual fund rating methodology is based on evaluating the inherent credit quality of the funds portfolio. As a measure of the credit quality of a debt fund’s assets. ICRA uses the concept of ‘credit scores . These scores are based on ICRA’s estimates of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores, ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA’s assessment of a debt fund’s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA gives a month’s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. There can be no assurance that schemes’ investment objectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. Templeton India Growth Fund, Franklin India Index Fund, Templeton India Income Fund, Templeton Monthly Income Plan@, Templeton India Government Securities Fund, Templeton Floating Rate Income Fund, Franklin India Bluechip Fund, Franklin India Prima Plus, Franklin India Prima Fund, Franklin India Flexi Cap Fund, Franklin India High Growth Companies Fund, Franklin Asian Equity Fund, Templeton India Equity Income Fund, Franklin India Taxshield, Franklin Infotech Fund, FT India Dynamic PE Ratio Fund of Funds, Franklin India Opportunities Fund, FT India Balanced Fund, FT India Life Stage Fund of Funds, Templeton India Pension Plan, Franklin India Ultra Short Bond Fund, Templeton India Income Builder Account, FT India Monthly Income Plan@, Templeton India Short-Term Income Plan, Templeton India Treasury Management Account, Templeton India Money Market Account, are only the names of the schemes and do not in any manner indicate the quality of the schemes, their future prospects or returns. In Franklin Infotech Fund, Franklin Pharma Fund, the diversification is restricted to the respective sectors as a result of which, the movement in the NAV may be more volatile compared to schemes with a more diversified portfolio. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes. The Mutual Fund is also not assuring that it will make any dividend/bonus distributions under the dividend/bonus plans of the schemes though it has every intention of doing so. All dividend/bonus distributions are subject to the investment performance of the schemes and the payment of dividend is subject to availability and adequacy of distributable surplus. The investments made by the schemes are subject to external risks. The schemes may invest in various derivative instruments including Index futures, which are untested instruments in Indian Markets and may carry high risk return ratio and may also invest in overseas instruments which is subject to forex fluctuation risks. The floating rate investments are subject to risks pertaining to Interest rate movement, Spread Movement, Settlement and Liquidity. FTLF/FTDPEF: FTLF/ FTDPEF being a fund of funds, investors are bearing the recurring expenses of the scheme in addition to the expenses of the underlying schemes. In the cases of Franklin India Index Fund, the existence, accuracy and performance of the S&P CNX Nifty Index will directly affect the schemes performance and tracking errors are inherent in any Index Fund. All subscriptions in Templeton India Pension Plan are subject to a lock-in-period of 3 financial years and in Taxshield for 3 years, the unitholder cannot redeem, transfer, assign or pledge the units from the date of allotment. The Trustee, AMC, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up before the completion of the lock-in period. In the case of hybrid funds, in the event that the investible funds of more than 65% of the total proceeds of the scheme are not invested in equity shares, then tax exemption on income distribution may not be available to the fund (w.e.f. June 1, 2006). Investors are requested to consult tax professionals for specific tax, legal and financial implications of the investment/participation/disinvestment in the schemes. All returns are computed without considering sales charge. Please call the Templeton Investor Service Centre numbers to obtain a copy of the offer document and go through the same before investing. Statutory Details: Franklin 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 Franklin Templeton Trustee Services Pvt. Ltd. as the Trustee (Trustee under the Indian Trusts Act 1882) and with Franklin Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. The Fund offers NAVs, purchases and redemptions on all business days except during the period when there is a book closure.

Head Office: Franklin Templeton Asset Management (India) Pvt. Ltd. Level 4,Wockhardt Towers,

www. franklintempletonindia.com

Ist Bandra Kurla Complex, Bandra (East), Mumbai 400 051

For any queries, our investor line is available to assist you at 1-800-425-4255 (BSNL / MTNL lines) or 60004255 (non MTNL / BSNL lines or mobile phones by prefixing the local city code; local call rates apply for both numbers) from 8 a.m to 9 p.m, Monday to Saturday. Alternatively, you can also e-mail us at [email protected]

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