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Risk Factors

SCHEME CLASSIFICATION AND INVESTMENT OBJECTIVES

Franklin India Bluechip Fund (FIBCF) is an open end growth scheme with an objective to primarily provide medium to long term capital appreciation.

Franklin India Prima Fund (FIPF) is an open end growth scheme with an objective to provide medium to long term capital appreciation as a primary objective and income as a secondary objective.

Franklin India Prima Plus (FIPP) is an open end growth scheme with an objective to provide growth of capital plus regular dividend through a diversified portfolio of equities, fixed income securities and money market instruments.

Franklin Infotech Fund (FIF) is an open end growth scheme with an objective to provide long term capital appreciation from a portfolio that is invested primarily in the information technology industry.

Franklin India Opportunities Fund (FIOF) is an open end diversified growth scheme with an objective to generate appreciation by capitalising on long – term growth opportunities in the Indian economy.

Franklin India Taxshield (FIT) is an open end equity linked savings scheme with an objective to provide medium to long term growth of capital along with income tax rebate.

Franklin India Income Builder Account (FIIBA ) is an open end income scheme with an objective to provide investors regular income under the Dividend Plan and Capital appreciation under the Growth Plan.

Franklin India Balanced Fund (FIBF) is an open end balanced scheme with an objective to provide long-term growth of capital and current income by investing in equity and equity related securities and fixed income instruments.

Templeton India Growth Fund (TIGF) is an open end growth scheme with the objective to provide long-term capital growth to its unitholders.

Franklin India Dynamic Accrual Fund (FIDA) is an open end income scheme with the objective to generate a steady stream of income through investment in fixed income securities.

Franklin India Index Fund (FIIF) is an open end index linked growth scheme with the objective to invest in companies whose securities are included in the Nifty and subject to tracking errors, endeavouring to attain results commensurate with the Nifty 50 Index (Nifty 50) under NSE Nifty Plan.

Franklin India Low Duration Fund (FILDF) is an open-end income scheme having an objective to earn regular income for investors through investment primarily in highly rated debt securities.

Franklin India Cash Management Account (FICMA) is an open end liquid scheme with the objective of providing income and liquidity consistent with prudent risk from a portfolio comprising of money market and debt instruments.

Franklin India Government Securities Fund (FIGSF) is an open end dedicated Gilts scheme with the objective to generate credit risk-free return through investments in sovereign securities issued by the Central Government and/or State Government and/or any security unconditionally guaranteed by the Central Government and/or State Government for repayment of Principal and Interest.

Franklin India Savings Plus Fund (FISPF) is an open end income scheme with the objective to provide income consistent with the prudent risk from a portfolio comprising substantially of floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns, and also fixed rate instrument and money market instruments.

Franklin India Monthly Income Plan (FIMIP) is an open end income scheme (with no assured returns) with an objective to provide regular income from a portfolio that is invested in predominantly high quality fixed income securities with a maximum exposure of 20% to equities.

Franklin India Pension Plan (FIPEP) is an open end tax saving scheme whose objective is to provide investors regular income under the Dividend Plan and capital appreciation under the Growth Plan.

Franklin India Treasury Management Account (FITMA) is an open end liquid scheme with an objective to provide current income with high liquidity.

Franklin India Short Term Income Plan (FISTIP) is an open end income scheme with an objective to provide stable returns by investing in fixed income securities.

Franklin India Flexi Cap Fund (FIFCF) is an open end diversified equity fund that seeks to provide medium to long-term capital appreciation by investing in stocks across the entire market capitalisation range.

Templeton India Equity Income Fund (TIEIF) is an open end diversified equity fund to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have current or potentially attractive dividend yield.

Franklin Asian Equity Fund (FAEF) is an open end diversified equity fund that seeks to provide medium to long term appreciation through investments primarily in Asian Companies / sectors (excluding Japan) with long term potential across market capitalisation.

Franklin India High Growth Companies Fund (FIHGCF) is an open-end diversified equity fund that seeks to achieve capital appreciation through investments in Indian companies/sectors with high growth rates or potential.

Franklin India Ultra Short Bond Fund (FIUBF) is an open-end income fund that 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.

Franklin Build India Fund (FBIF) is an open-end equity fund which seeks to achieve capital appreciation through investments in companies engaged either directly or indirectly in infrastructure-related activities.

Franklin India Income Opportunities Fund (FIIOF) is an open end income fund that seeks to provide regular income and capital appreciation by investing in fixed income securities across the yield curve.

Franklin India Smaller Companies Fund (FISCF) is an open end diversified equity fund that seeks to provide long-term capital appreciation by investing in mid and small cap companies.

Franklin India Feeder - Franklin U.S. Opportunities Fund (FIF-FUSOF) is an open-end fund of funds scheme investing overseas that seeks to provide capital appreciation by investing predominantly in units of Franklin U. S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America.

Franklin India Corporate Bond Opportunities Fund (FICBOF) is an open-end income fund which seeks to provide regular income and capital appreciation through a focus on corporate securities.

Franklin India Life Stage Fund of Funds (FILSF) is an open end fund of funds scheme seeking to generate superior risk adjusted returns to investors in line with their chosen asset allocation.

Franklin India Dynamic PE Ratio Fund of Funds (FIDPEF) is an open end fund of funds scheme seeking to provide long-term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and income funds. The equity funds allocation will be determined based on the month-end weighted average PE ratio of the Nifty 50 Index (Nifty 50).

Franklin India Banking & PSU Debt Fund (FIBPDF) is an open-end income fund that seeks to provide regular income through a portfolio of debt and money market instruments consisting predominantly of securities issued by entities such as Banks and Public Sector Undertakings (PSUs).

Franklin India Feeder - Franklin European Growth Fund (FIF-FEGF) is an open ended fund of funds scheme investing overseas that seeks to provide capital appreciation by investing predominantly in units of Franklin European Growth Fund, an overseas equity fund which primarily invests in securities of issuers incorporated or having their principal business in European countries.

Franklin India Multi-Asset Solution Fund (FIMAS) is an open end fund of funds scheme that seeks to achieve capital appreciation and diversification through a mix of strategic and tactical allocation to various asset classes such as equity, debt, gold and cash by investing in funds investing in these asset classes.

RISK FACTORS AND DISCLAIMERS

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 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. 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. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. The Mutual Fund is also not assuring that it will make any dividend distributions under the dividend plans of the schemes though it has every intention of doing so and payment of dividend is at the sole discretion of trustees. Portfolio holdings of a scheme are subject to change. Any information provided about securities in scheme’s portfolio does not constitute an investment advice or recommendation to subscribe or transact in these securities.

Any calculators/simulators provided on this website are designed to assist you in determining the appropriate amount. These Calculators alone are not sufficient and shouldn’t be used for the development or implementation of an investment strategy. There is no warranty about the accuracy of the calculators/ reckoners. The recipient is advised to consult his or her adviser/ tax consultant prior to arriving at any investment decision.

Investments in overseas financial assets are subject to risks associated with currency movements, restrictions on repatriation, transaction procedures in overseas markets and country related risks. The expenses of the Fund of Funds scheme(s) will be over and above the expenses charged by the underlying schemes. The existence, accuracy and performance of the Nifty 50 Index will directly affect the performance of FIIF and FIDPEF. Tracking errors are inherent in any index scheme. At the peak of a bull market in FIDPEF, a portfolio balanced on PE ratios may not outperform a fully invested portfolio. In the event that the investible funds of more than 65% of the total proceeds of the scheme/plan are not invested in equity shares of domestic companies, then the scheme/plan TIEIF, FIBF & FIF may not qualify as equity oriented fund for taxation purpose. All subscriptions in FIT are subject to a lock-in period of 3 years from the date of allotment and the unitholder cannot redeem, transfer, assign or pledge the units during this period. All subscriptions in FIPEP are locked in for a period of 3 full financial years. 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 schemes are wound up before the completion of the lock-in period. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme. In respect of the scheme whose units are listed on NSE, although Units are listed on NSE, there can be no assurance that an active secondary market will develop or be maintained.

The risks associated with debt and money market securities issued by banks and PSUs are perceived to be lower compared to other fixed income instruments. However, these entities are unique in terms of being heavily regulated and affected by government policies, which could impact the credit profile of these issuers.

The schemes of Franklin Templeton Mutual Fund are not registered in the United States of America under the Investment Company Act of 1940. The units of the schemes have not been registered in the United States of America under the Securities Act of 1933. The units made available under this Statement of Additional Information (SAI) or the respective Scheme Information Document (SID) may not be directly or indirectly offered or sold in the United States of America or any of its territories or possessions or areas subject to its jurisdiction or to or for the benefit of nationals or residents thereof, unless pursuant to an exemption from registration requirements available under the U.S. law, any applicable statute, rule or interpretation. Applicants for units may be required to declare that they are not a U.S. Person and are not applying for Units on behalf of any U.S. Person. Hence, the units of the schemes can be purchased by persons other than “U. S. Person”.

The term “US Person” shall mean any person that is a United States person within the meaning of Regulation S under the United States Securities Act of 1933 or as defined by the U.S. Commodity Futures Trading Commission for this purpose, as the definition of such term may be changed from time to time by legislation, rules, regulations or judicial or administrative agency interpretations.”

In the absence of written notice to the schemes/AMC/TC to the contrary, if a prospective investor provides a non-US address on the application form for investment in the schemes, this will be deemed to be a representation and warranty from such investor that he/she/it is not a US Person and that such investor will continue to be a non-US Person unless and until the scheme(s)/AMC/TC are otherwise notified of a change in the investor’s US Person status.

The schemes of Franklin Templeton Mutual Fund are not registered in any provincial or territorial jurisdiction in Canada and Units of the Scheme have not been qualified for sale in any Canadian jurisdiction under applicable securities laws. The Units made available under this SAI or the respective SID may not be directly or indirectly offered or sold in any provincial or territorial jurisdiction in Canada or to or for the benefit of residents thereof. Applicants/subscribers applying for allotment of the Units may be required to declare that they are not a Canadian resident and are not applying for Units on behalf of any Canadian residents. If an Investor becomes a Canadian resident after purchasing Units of the Scheme, the investor will not be able to purchase any additional Units of the Scheme. Hence, Units of the Schemes of Franklin Templeton Mutual Fund are not available for sale to persons resident in Canada.

Mutual Fund / AMC /Trustee reserves the right to redeem investors’ investments in the event of failure on the part of the investor(s) to redeem his/her/their holdings, subsequent to his/her/their becoming (a) United States Persons with the meaning of Regulation (S) under the United States Securities Act of 1933 or as defined by the U.S. Commodity Futures Trading Commission, as amended from time to time or (b) residents of Canada.