Theres life beyond bank FDs

Bank FDs
+ves

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

Returns Guaranteed
Different maturity buckets for different
investment horizons

Bank FDs
-ves

Poor Liquidity
Normally, premature withdrawal attracts penal interest

Tax-inefficient
Returns hardly keep pace with inflation

Pre-tax returns
Returns after taxes
Current inflation rate

Investor Tax Slab

30%
20%
6.5%
6.5%
4.55%
5.2%
5.0%
5.0%

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

Renewal required
Dont renew, and you lose interest

Solution

Franklin Templetons
Income and Liquid Schemes

Capital Safety

High AAA exposure

Templeton India
Templeton India
Templeton Floating
Income Builder
Income Fund (TIIF)
Rate Income Fund
Account (TIIBA)
Long Term (TFIF- LT)
Track record of stability
91.2%
Historically, 93.0%
over any 1 year investment horizon,
the NAV has always appreciated90.4%
Data
of Juneperiod
30, 2003
Theas
longest
for which the NAV performance of TIIF was negative is 98 days. Thus, no
investor in this scheme has seen capital erosion for an investment made for 99 days or above

TIIBA

TIIF

TFIF - LT

107 days

99 days

1 day

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

Franklin Templeton Income and Liquid schemes

Return Potential

Historical rolling returns are an indicator of the

return potential of non guaranteed schemes
Max.
Ret.
TIIF*
TIIBA*
TFIF(LT)*

18.7%
20.4%
7.5%

1 year
Min.
Ret.
9.4%
9.6%
7.0%

Avg.
Ret.
13.6%
14.0%
7.3%

Max.
Ret.
14.8%
15.8%
N.A

3 years
Min.
Ret.
12.0%
11.8%
N.A

Avg.
Ret.
13.5%
13.6%
N.A

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

Franklin Templeton Income and Liquid schemes

Consistent Performance

Both in absolute terms, and vis--vis benchmark

One
Year

Three
years

Five
Years

Inception

Templeton India Income Fund (TIIF)

Templeton India Income Builder Account
(TIIBA)
Crisil Composite Bond Fund Index

14.0%
15.7%

13.7%
14.9%

13.6%
13.8%

13.7%
14.2%

12.8%

N.A

N.A

N.A

Templeton Government Securities Fund

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

23.4%

21.8%

20.2%

17.0%
7.1%

N.A
-

N.A
-

N.A
7.1%

6.6%

7.0%

8.2%

8.3%

6.3%
5.5%

7.8%
N.A

8.7%
N.A

8.6%
N.A

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

Franklin Templeton Income and Liquid schemes

Choice

Range of schemes to suit different investment

horizons
Whatever your time frame, youll find a suitable scheme
Investment Horizon*
3 days to 3 months
Upto 3 months
3 to 6 months
3 months to 1 year
6 months to 1 year
1 year and above

Scheme
Templeton India Treasury Management Account
(TITMA), Templeton India Liquid Fund (TILF)
Templeton India Government Securities Fund
Treasury Plan (TGSF - TP)
Templeton Floating Rate Income Fund Short
Term (TFIF - ST)
Templeton India Short-Term Income Plan (TISTIP)
Templeton Floating Rate Income Fund Long
Term (TFIF - LT)
Templeton India Income Fund (TIIF), Templeton
India Income Builder Account (TIIBA), Templeton
India Government Securities Fund (TGSF)

* Recommended investment horizon

Franklin Templeton Income and Liquid schemes

Tax-efficient returns

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

Bank FDs
30%
20%
6.5%
4.55%
5.0%

6.5%
5.2%
5.0%

Mutual Fund
Growth Dividend
Plan
Plan
6.5%
6.5%
5.85%
5.76%
5.0%
5.0%

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

Franklin Templeton Income and Liquid schemes

Convenience

You need to open an account only once

Keep adding more to the same account or withdraw
whenever you want

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

Franklin Templeton Income and Liquid schemes

Matching investment avenues with

investment horizons

Long term investments

Income/Liquid schemes may not be the

best solution for all your investment needs.

Short Term

Medium Term
Long Term

If Returns = Goals
Otherwise

X Consider other alternatives

that can appreciate capital

Equity oriented investments

Equities are better suited for your long term

investments

For illustration purposes only

While equities are volatile in the short-term

Equity oriented investments

For illustration purposes only

over the long term, the volatility evens out

Franklin India Bluechip Fund

Rs.10,000 invested at inception in FIBCF & BSE
Sensex
80000
70000
60000
50000
40000
30000
20000
10000
0

Rs.68,222

BLUECHIP FUND

Dec-02

Dec-01

Dec-00

Dec-99

Dec-98

Dec-97

Dec-96

Dec-95

Dec-94

Dec-93

Rs.10,957

BSE SENSEX

Past performance may or may not be sustained in future

As on June 30, 2003

Franklin India Bluechip Fund

Invests in large cap, well-established companies

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

Performance

Track Record
1 year

3 years

5 years

Inception

FIBCF

29.6%

4.9%

27.4%

22.2%

BSE Sensex

11.2%

-8.8%

2.1%

1.0%

Past performance may or may not be sustained in future.

Annualised compounded returns based on 30.6.2003 Growth Plan NAV of Rs. 28.44;
Inception date: December 1, 1993

Performing in down markets as well

The following table shows the current value of

Rs.10,000 invested in Bluechip and its
benchmark BSE Sensex at inception and when
markets were close to their peak in April 2000
Bluechip Fund
(as on 30.6.2003)

BSE Sensex
(as on 30.6.2003)

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

Rs.68,222

Rs.10,957

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

Rs.10,600

Rs.7,139

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

Franklin India Bluechip Fund

Rolling Returns
Max.
Min.
Returns Returns

Avg.
Returns

Possibility
of making
money

Possibility
of losing
money

1 year

199.4%

-36.4%

24.8%

64.3%

35.7%

3 years

81.0%

-9.6%

22.3%

78.2%

21.8%

5 years

35.4%

14.0%

24.8%

100.0%

0.0%

7 years

30.2%

9.5%

17.9%

100.0%

0.0%

9 years

22.0%

16.0%

18.7%

100.0%

0.0%

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

Thank You

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