FT per Feb 09 32.pdf by shenreng9qgrg132

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									Franklin Templeton
Monthly Fact sheet : January 2009
     Contents


Market Update                                      4    Templeton India Income Fund (TIIF)                20


Franklin India Bluechip Fund (FIBCF)               6    Templeton India Income Builder Account (TIIBA)    21


Templeton India Growth Fund (TIGF)                 7
                                                        Templeton Monthly Income Plan (TMIP) -
                                                        Half-Yearly Dividend & Growth Plan                22
Franklin India Prima Plus (FIPP)                   8

                                                        FT India Monthly Income Plan (FTIMIP)             23
Franklin India Prima Fund (FIPF)                   9


                                                        Templeton India
Franklin India Flexi Cap Fund (FIFCF)             10
                                                        Government Securities Fund (TGSF)                 24

Franklin India High Growth Companies Fund (FIHGCF) 11
                                                        Templeton Floating Rate Income Fund (TFIF) -

Franklin Asian Equity Fund (FAEF)                 12    Long Term                                         25



Franklin India Opportunities Fund (FIOF)          13    Templeton India Short-Term Income Plan (TISTIP)   26


Templeton India Equity Income Fund (TIEIF)        14    Templeton India Ultra-short Bond Fund (TIUBF)     27


Franklin India Taxshield (FIT)                    15
                                                        Templeton Floating Rate Income Fund (TFIF) -
                                                        Short Term                                        28
Franklin India Index Fund (FIIF)                  16

                                                        Templeton India Treasury
Franklin Infotech Fund (FIF)                      16
                                                        Management Account (TITMA)                        29

Franklin Pharma Fund (FPF)                        17
                                                        Templeton India Money Market Account (TIMMA) 30

FT India Life Stage Fund of Funds (FTLF)          17
                                                        Templeton Monthly Income Plan (TMIP) -

FT India Balanced Fund (FTIBF)                    18    Monthly & Quarterly Dividend Plan                 30



Templeton India Pension Plan (TIPP)               19    Dividend/Bonus History                            31
             Market Update

    Sukumar Rajah, CIO - Franklin Equity                                            The Central Statistical Organization reaffirmed FY08 GDP growth
                                                                                    estimates at 9% and indicated a per capita income growth (inflation-
    Equity Market Snap Shot                                                         adjusted) of 7.6% during the year. The rise in per capita income over the
                                                                                    last five years reiterates the domestic consumption story. This growth
    Global
                                                                                    along with recent fiscal stimuli and steady rural consumption could
        The markets started the year on a positive note on hopes of a quicker       compensate for the lag in investment growth. However, data is expected
    economic turnaround emanating out of the aggressive policy actions.             to be weak over the near term.
    Central banks and governments announced a slew of measures to boost
                                                                                    Corporate: The recent quarterly numbers were broadly in line with
    growth and absorb toxic assets. However, renewed concerns about the
                                                                                    expectations and there were no positive surprises, with profitability
    health of the financial sector in US and Europe along with weak economic
                                                                                    impacted across sectors due to higher borrowing costs and also forex
    and earnings data dampened sentiment. The MSCI World Index closed
                                                                                    losses. Most companies from consumer-oriented industries (telecom,
    the month down 8.63% with China and Korea being the only positive
                                                                                    FMCG, pharma, financials..etc) reported reasonable growth, while
    performers among major international markets. The latest economic data
                                                                                    numbers from commodity/infra businesses reflected the demand
    from across regions reflected the sharp fall in global trade activity -
                                                                                    slowdown. A few sectors such as energy also witnessed inventory losses.
    industrial production and export growth contracted sharply and impacted         Oil exploration and production major numbers were impacted by the
    business/ consumer confidence. IMF reduced its 2009 global GDP growth           continued downtrend in global refining margins. In the infrastructure
    estimate to 0.5% from 2.2% and pegged 2010 growth at 3%. It expects EM          segment, while revenue growth momentum stayed on track, net margins
    output to be impacted by the deep economic downturn in developed                were impacted by the rise in borrowing costs and higher input prices. IT
    economies. IEA’s latest estimates projected a demand contraction in both        majors reported results in line with expectations, but the global
    2008 and 2009. Commodity markets remained under pressure and the                uncertainty has clouded the business outlook for the coming quarters.
    Reuters Jefferies CRB Index fell by 4%. The sterling came under pressure
    on concerns about UK’s economy and problems faced by its leading                Outlook: Recent developments will have an impact on the perception
    banks.                                                                          about corporate governance levels in India, even as it continues to rank
                                                                                    high amongst its peers. We need to keep in mind that boom/bust cycles
                                Monthly                             Monthly         have resulted in such governance failures across the world. Such incidents
                               change (%)                          change (%)       have led to strengthening of the regulatory framework and we could see
     MSCI AC World Index           -8.63       Xetra DAX              -9.81         the same happening in India.
     FTSE Eurotop 100              -4.51       CAC 40                 -7.58         The latest earnings numbers clearly show the disparity in performance
     MSCI AC Asia Pacific          -7.22       FTSE 100               -6.42         between sector leaders/ large-caps and mid-cap stocks. In many cases,
     Dow Jones                     -8.84       Hang Seng              -7.71         managements refrained from providing guidance, underlining the
     Nasdaq                        -6.38       Nikkei                 -9.77         challenging road ahead. We expect quality companies to weather the
     S&P 500                       -8.57       KOSPI                   3.35         current cycle relatively well and better position themselves to take
    India                                                                           advantage of the medium to long term growth potential. Under the
                                                                                    current environment, we are seeing a divergence in stock as well as
    Domestic markets came under pressure due to FII outflows, corporate
                                                                                    operational performance between companies and the premium for quality
    governance issues and weak economic data. While leading indices
                                                                                    companies is likely to increase.
    declined for the month, they have relatively outperformed most global
    markets. Corporate governance worries and earnings growth concerns              An assessment of Indian equity valuations on various metrics – Price-to-
    impacted mid/ small cap stocks and realty sector stocks. Other top              Book Value, Price-to-Earnings, RoE, earnings yield gap etc – indicates that
    sectoral decliners included – banking and capital goods. Oil & gas, auto        stocks are attractively valued vis-à-vis historic timeframes and peers.
    and FMCG sectors were top gainers. Foreign fund outflows aggregated             While economic indicators are exhibiting signs of slowdown, research has
    $1.05 bln for the month.                                                        shown that markets tend to recover ahead of the real economy and
                                                                                    investors with a medium to long term investment perspective could
    Policy: Earlier in the month, RBI and the Government unveiled a range of
                                                                                    capitalize on these opportunities.
    policy measures to stem growth moderation. This was followed by a cut
    in domestic fuel prices. Though the central bank kept policy rates on hold                                                    Monthly change (%)
    at its policy meet later in the month, it indicated of further action as may
                                                                                     BSE Sensex                                           -2.31
    be required. RBI adjusted its FY09 growth projections downwards to 7%
    in its quarterly policy review, factoring in the weak economic dataflow in       CNX Nifty                                            -2.85
    recent times. The bank’s business confidence survey revealed weak                S&P CNX 500                                          -3.78
    business sentiment particularly amongst manufacturing firms.                     CNX Midcap                                          -10.13
    Macro: India's Index of Industrial Production (IIP) bounced back in              BSE Smallcap                                         -9.34
    November and rose by 2.4% (y-o-y), compared to a 4.9% rise in the
    previous year. Capital goods output fell 2.3%, for the first time since April
    2002, primarily on high base effect - November 07 output was up 24.2%.          Chetan Sehgal, Director - Research
    Aggregate industrial production for Apr-Nov stood at 4% vs. 5.4% in the         Confession Time
    corresponding period last year.
                                                                                    This month would be long remembered for the confessions made by
    On the other hand, the infrastructure index (26.6% weightage in IIP)
                                                                                    corporate India - the infamous case, followed by the results reflecting
    grew by 2.2% in November compared with 5.1% growth same time last
                                                                                    weakening fundamentals that the market had already anticipated and
    year. Coal and cement output were significantly higher over last year,
                                                                                    lastly, the pledges.
    while petroleum products and finished carbon steel production dipped.
    Direct and indirect tax collections also reflected impact of the                On the specific cases, investors would like to see what the real truth is and
    slowdown.                                                                       whether there are measures to compensate investors for the loss of value.

4
    In the absence of a pricing formula, it would be best to let investors vote    Macro
    for the bids rather than have a set of ad hoc measures. By giving more              Headline inflation, as measured by year-on-year variations in the
    powers to the minority shareholders to influence the ultimate destiny of       wholesale price index (WPI), retreated to 5.64% (week ended Jan 17)
    the company may improve confidence in the system. However, the                 from 6.38% in December. Consumer price inflation has dipped to
    priority should be to have an audited set of numbers that can be used by       9.70% in December from 10.45% in the previous month. The lag in
    investors to take a decision. From an investor point of view, if the bid is    decline in consumer price inflation has largely been due to rise in food
    for 100% of the shares then price would be important, if it is for a lesser    inflation, which has a higher weightage in the index when compared
    % then it becomes important who steps in. We are also waiting for              to WPI.
    specific measures to recover the money that was lost. We must all realise
                                                                                       At December end, India’s fiscal deficit for the ongoing financial year
    that the case is probably not isolated - bull markets tend to exacerbate
                                                                                   has further increased to 163% of the budgeted estimates. This compares
    human greed and transparency is certainly not a forte for real estate
                                                                                   with 51.4% at same time last year. Amidst increased government
    transactions. There remains an urgent need to reform the system rather
                                                                                   spending and ongoing slowdown in tax receipts, the government’s fiscal
    than just treating the symptoms.
                                                                                   burden is estimated to be around 8% of GDP, including off-balance sheet
    The resignations of the independent directors of several companies after       items.
    the episode probably reflects their lack of control over operations. It             Non-food bank credit growth has eased from its recent peaks and as
    would be a pity if people who could make a difference step aside - we          of Jan 2, 2009 was 23.9%. The incremental credit-deposit ratio stood at
    must evaluate the corporate structure, as there is no incentive for people     81.4%. Increased credit flow to commercial sector led monetary
    of repute to serve on boards.                                                  expansion and growth in broad money supply stood at 19.6%.
    Recent changes such as pledged shares disclosure and the change in             Policy
    amount to be paid upfront for preferential issue of warrants, are welcome.          In its latest quarterly policy review, RBI maintained status quo on
    The quarterly results did have the anticipated disclosures on forex and        policy rates as it looked to evaluate the impact of measures announced so
    negative surprises. Better accounting and transparency would lead to           far. It maintained focus on the real economy and the need to stem
    greater confidence - but may not prevent fraud. The fact that the market       economic growth slowdown. Acknowledging the need to improve credit
    did not break the October lows inspite of the new flows, is a positive sign.   flow to the economy amidst limited access to financial resources in
    However, there should be signs of improvement in fundamentals for the          domestic and overseas capital markets, the bank increased target rate for
    market to sustain these levels. A further deterioration could start            credit growth to 24% from 20%. As a result, money supply estimates were
    impacting the market sentiment, but one needs to have the confidence           revised also upwards to 19% from the 16.5-17%. It also indicated
    that the world ultimately belongs to the optimists.                            continued support in case of resource paucity to specific sectors and
                                                                                   extended the liquidity facilities for NBFCs and Mutual funds until
    Santosh Kamath, CIO - Fixed Income                                             September 2009.
    Fixed Income Market Snap Shot                                                      As per fresh bond issuance calendar, the Government will raise Rs.
                                                                                   50,000 crores in the period to March 31 to finance the fiscal stimulus.
        Policy rates across the world continued their sharp decline to             While excess supply in the near-term could be offset by MSS drawdown,
    historical lows, but treasury yields in developed markets moved up on          over the long term this may be a concern.
    supply concerns. With policy rates close to zero now, central banks in         Outlook
    developed economies have undertaken quantitative easing (QE). Rating
    agencies have started revising sovereign ratings for various countries in          With monetary easing (including QE) expected to continue amidst
    Europe downwards.                                                              weakening economic environment, the rally in global bond markets
                                                                                   could continue over the near term. However, the magnitude of stimulus
         Indian debt markets rallied in the earlier part of the month, after RBI   and bailout packages has started to increase concerns about deficit
    cut interest rates further. However, supply concerns and widening fiscal       financing and worries about supply.
    deficit weighed on market sentiment and at its quarterly policy review
    towards the end of the month, RBI left key rates unchanged. India bond             While easy liquidity and falling headline inflation could push yields
    yields closed mixed with the short-end of the curve (1-year) easing further,   lower at shorter end of the curve, Indian bond yields at the long end are
    while the long-end of the curve rose sharply. Corporate bond spreads           expected to remain under pressure as supplies increase. Latest RBI data
    contracted and increased number of companies tapped the debt markets.          indicates that bulk of the outstanding short-term trade credit has been
                                                                                   unwound. This is a key positive and near term headwinds to BoP
    Market Scenario                                                                balances seem substantially reduced. Reduced import expense amidst
        Yields: The yields on the benchmark 10-year paper rose 124 bps             growth moderation and fall in oil prices should help trade deficit narrow
    while 5-year gilts closed up 60 bps. The yield on corporate paper of           further even as exports slow. This along with thaw in global risk aversion
    similar tenor was up by 39 bps and consequently, spreads over gilts eased      could help the rupee resume its uptrend against the dollar.
    to 294 bps. Yields on the 30-year government paper increased 63 bps                 Corporate bond spreads have eased from peaks seen last quarter,
    while 1-year gilt yields eased 42 bps. As a result, the yield curve            however, they still remain wider than historical timeframes. Given the
    steepened and spreads between 1/30 year gilts expanded to 250 bps.             improved corporate balance sheet positions and minimal default rates,
        Forex: The rupee remained volatile amidst sustained FII selling and        corporate bonds could prove to be an attractive investment destination
    BoP concerns. The currency depreciated to below Rs.49/$ levels before          for investors with appropriate risk profile.
    bouncing back towards close of month to end at Rs.48.87/$. Dollar
    strengthening also added to rupee’s weakness, which closed down 0.3%                                                December 2008       January 2009
    versus the greenback. Forex reserves (as of Jan 23) stood at around $247           Exchange rate (Rs./$)                48.70              48.87
    bln – decline mainly on account of currency revaluation.
                                                                                       Average reverse repos (Rs. Cr)      31953               48124
        Liquidity/borrowings: Systemic liquidity remained in surplus
    through the month and RBI reverse repos averaged over Rs. 48,000                   WPI Inflation (%)*                  6.38%               5.64%
    crores. Call rates also eased to around 4% from about 6.5% at year end.            10-yr gilt yield (7.59% 2016)        5.00                6.24
    Bond issuances aggregated Rs. 35,000 crores during the month as the                5-yr gilt yield                      5.40                6.00
    government issued a new calendar, which included additional                        1-yr gilt yield                      5.02                4.60
    borrowings to finance the fiscal stimuli amidst slowing revenues. Given
    the improved liquidity conditions, bond auctions were preceded by MSS              Call rates                         6.40/6.50           4.10/4.20
    buyback for only part of the scheduled fresh issuance.                             * Inflation numbers based on latest data released.

5
           Franklin India Bluechip Fund                                                                                                                                FIBCF
                                                  Portfolio
    As of January 30, 2009
                                                   Company Name                        No. of         Market Value           % of       Company Name               No. of      Market Value      % of
    Investment Style                                                                   shares          Rs. Lakhs            Assets                                 shares       Rs. Lakhs       Assets

                                                    Auto                                                                                Industrial Capital Goods
    The fund manager seeks steady and
    consistent growth by focusing on well-          Hero Honda                          450000            3946.28              2.81     L&T *                       650000        4479.80          3.19
    established, large size companies               Mahindra & Mahindra                 480000            1442.88              1.03     BHEL                        300000        3961.35          2.82
    Type of Scheme / Investment Objective                                                                                               Bharat Electronics          340568        2818.54          2.01
                                                    Auto Ancillaries
                                                                                                                                        ABB                         580000        2782.84          1.98
    An open end equity fund which aims to           MICO                                 27000              833.10             0.59
    provide medium to long term capital                                                                                                 Siemens                     800000        1659.60          1.18
                                                    Banks                                                                               Industrial Products
    appreciation
    Date of Allotment                               HDFC Bank *                         900000            8321.40              5.93     Cummins India              1800000        3030.30          2.16
                                                    Axis Bank *                       1100000             4763.00              3.39     Oil
    December 1, 1993
                                                    Kotak Mahindra Bank * 1520000                         4309.20              3.07     ONGC                        450000        2961.90          2.11
    Fund Manager                                                                                                                        Petroleum Products
                                                    ICICI Bank                        1000000             4163.00              2.97
    Anand Radhakrishnan (since Apr. 2007)           SBI                                 110000            1267.42              0.90     Reliance Industries *       930000       12324.36          8.78
    Latest NAV                                                                                                                          BPCL                        700000        2741.90          1.95
                                                    Cement
                                                                                                                                        Reliance Petroleum         2000000        1728.00          1.23
    Growth Plan         Rs. 97.4246                 Grasim                              270000            3232.71              2.30
    Dividend Plan       Rs. 21.3682                                                                                                     Pharmaceuticals
                                                    ACC                                 500000            2524.25              1.80
                                                                                                                                        Sun Pharmaceutical          109991        1180.70          0.84
    Fund Size
                                                    Consumer Non Durables                                                               Dr. Reddy's                 200000         902.30          0.64
    Rs. 1403.45 crores                              Nestle *                            400000            5865.80              4.18     Cipla                       300000         576.00          0.41
    Turnover                                        Hindustan Unilever *              1900000             4962.80              3.54     Software

    Portfolio Turnover        90.43%                Asian Paints                        350000            2747.68              1.96     Infosys *                   700000        9138.50          6.51
                                                                                                                                        TCS                         300000        1535.85          1.09
    Volatility Measures (3 years)                   Dabur                             3100000             2728.00              1.94
                                                                                                                                        Satyam Computer             500000         270.25          0.19
    Standard Deviation            8.24              ITC                               1000000             1797.00              1.28
                                                                                                                                        Telecom - Services
    R-squared                     0.91              Ferrous Metals
                                                                                                                                        Bharti Airtel *            1600000       10141.60          7.23
    Beta                          0.91              Tata Steel                          500000              923.25             0.66     Idea Cellular              9000000        4230.00          3.01
    Sharpe Ratio*                 -0.18             Fertilisers                                                                         Transportation
    * Annualised. Risk-free rate assumed to be      Tata Chemicals                      600000              921.00             0.66     GE Shipping                 897431        1536.40          1.09
    5.54% (based on 3 month T-Bill Rate “during
    last 3 months”)
                                                    Finance                                                                             Total equity holdings                  133322.70         95.00
    Expense Ratio                                   HDFC *                              500000            7683.75              5.47     Other current assets                      7021.86          5.00
                                                    IDFC                              5000000             2890.00              2.06     Total assets                           140344.56        100.00
    1.96%
    Minimum Investment/                           * Top 10 holdings
    Multiples for New Investors

    Rs.5000/1                                     Portfolio Composition and Performance
    Additional Investment/
    Multiples for Existing Investors                Fund Manager ’s Commentary                                                          Sector Allocation - Total Assets
                                                    The fund’s equity exposure has increased to 95.00%
    Rs.1000/1
                                                    from 92.02% during the month. The fund added Cipla to
    Load Structure
                                                    the portfolio while paring exposures in Grasim, IDFC,
    Entry Load          <Rs.5 Crs: 2.25%            BHEL, ONGC and Bharti Airtel. The fund added to its
                        =>Rs.5 Crs < Rs.25
                                                    holdings in Axis Bank, Hindustan Unilever, HDFC, L&T
                        Crs : Nil
                        =>Rs.25 Crs: Nil            and Reliance Petroleum.
    Exit Load           <Rs.5 Crs: 1% (if
                        redeemed/switched-          NAV Performance
                        out within 6 months
                        of allotment); 0.5%                      Last    Last    Last     Last     Last      Last      Since
                                                               6 Months 1 Year 3 Years* 5 Years* 7 Years* 10 Years* Inception*
                        (if redeemed/
                        switched-out after 6      FIBCF (G)     -26.82% -41.53% 0.26%          13.53% 25.61% 25.07% 23.08%
                        months, but within
                                                  FIBCF (D)     -26.82% -41.53% 0.26%          13.53% 25.62% 25.08% 23.08%
                        1 year of allotment)
                                                  BSE Sensex -34.35% -46.60% -1.69% 10.58% 16.11% 11.00%                        7.18%
                        =>Rs.5 Crs < Rs.25
                        Crs : 1% (1% if the        Past performance may or may not be sustained in future.                              Rs. 10000 invested at inception in FIBCF & BSE Sensex
                        Units are redeemed/        *Compounded and annualised Dividends/Bonus declared assumed to be reinvested
                        switched-out within                                                                                                                                                   Rs. 233,743
                        6 months of                 SIP - If you had invested Rs. 1000 every month in FIBCF...
                        allotment)
                                                                 Rs.12,000         Rs.36,000         Rs.60,000          Rs.145,000
                        =>Rs.25 Crs: Nil
                                                                 for 1 year        for 3 years       for 5 years       since Jan 97*
                                                                 would have        would have        would have         would have
                                                                  grown to          grown to          grown to            grown to
                                                                                                                                                                                              Rs. 28,628
                                                   FIBCF           9,025              27,423            65,873            689,248
                                                                  -42.44%            -16.89%            3.69%             23.74%
                                                   BSE             8,478              25,549            61,157            279,328
                                                   Sensex         -49.36%            -21.04%            0.75%             10.32%
                                                                                                                                                           ____ FIBCF ____ BSE Sensex
                                                   Past performance may or may not be sustained in future.
                                                                                                                                         NAV is adjusted for dividend/bonus
                                                   *The scheme became open end in January 1997. Load is not taken into consideration.

6
     Templeton India Growth Fund                                                                                                                                           TIGF
                                              Portfolio
As of January 30, 2009
                                               Company Name                     No. of      Market Value         % of          Company Name                     No. of     Market Value     % of
Investment Style                                                                shares       Rs. Lakhs          Assets                                          shares      Rs. Lakhs      Assets

                                               Auto                                                                            Non - Ferrous Metals
Templeton Equity Portfolio Managers
adopt a long term disciplined approach         Bajaj Auto                        70000            331.73           1.55        Hindalco                     1132552            555.52         2.60
to investing and use the widely known                                                                                          Oil
philosophy of ‘value investing’                Ashok Leyland                  1600000             225.60           1.06
                                                                                                                               ONGC *                           243500       1602.72          7.51
                                               Banks
Type of Scheme / Investment Objective
                                                                                                                               Paper
                                               Federal Bank *                  512853             718.25           3.37
An open end equity fund which seeks to                                                                                         Tamilnadu Newsprint
provide long term capital growth               Union Bank of India *           420000             620.34           2.91
                                                                                                                               and Papers                       653000         403.88         1.89
Date of Allotment                              ING Vysya Bank                  400000             555.20           2.60
                                                                                                                               Ballarpur Industries             100000          14.75         0.07
September 10, 1996                             ICICI Bank                      130000             541.19           2.54        Petroleum Products
Fund Manager                                   Cement                                                                          Reliance Industries *            170000       2252.84        10.56
                                               Grasim                            50000            598.65           2.81        Pharmaceuticals
Dr. J. Mark Mobius (since Sep. 1996)
                                               Consumer Non Durables                                                           Dr. Reddy's *                    180000         812.07         3.81
Latest NAV
                                               EID Parry                       350000             502.78           2.36        Ranbaxy                          140113         302.22         1.42
Growth Plan           Rs. 50.4454
                                                                                                                               Software
Dividend Plan         Rs. 25.1960              Ferrous Metals
                                                                                                                               TCS *                            200000       1023.90          4.80
                                               Tata Steel                      264647             488.67           2.29
Fund Size
                                                                                                                               Infosys *                        50000          652.75         3.06
                                               SAIL                            500000             414.00           1.94
Rs. 213.36 crores                                                                                                              MindTree                         211767         434.02         2.03
                                               Sesa Goa                        483400             409.68           1.92
Turnover                                                                                                                       Telecom - Services
                                               Tata Steel (CCPS#)              800000             218.64           1.02
Portfolio Turnover        38.76%                                                                                               Bharti Airtel *                  200000       1267.70          5.94
                                               Finance
Volatility Measures (3 years)                                                                                                  Idea Cellular *              1650596            775.78         3.64
                                               Tata Investment Corporation * 609434             1354.16            6.35        Transportation
Standard Deviation        8.98
Sharpe Ratio*             -0.20                Sundaram Finance                335036             586.31           2.75        GE Shipping                      234383         401.26         1.88
R-squared                 0.85**     0.86#     Gas                                                                             Shipping Corporation of
Beta                      0.96**     0.93#
                                               Gujarat Gas                     249253             583.25           2.73        India                            84212           72.93         0.34
** BSE Sensex # MSCI India Value
*Annualised. Risk-free rate assumed to be      GAIL                              90000            175.64           0.82        Total equity holdings                        19211.86         90.04
5.54% (based on 3 month T-Bill Rate "during
last 3 months")                                Hardware                                                                        Other current assets                           2124.26         9.96
Expense Ratio                                  HCL Infosystems                 355416             315.43           1.48        Total assets                                 21336.12       100.00

2.37%                                                                                                                         # Cumulative Convertible Preference Shares            * Top 10 holdings

Minimum Investment/
                                              Portfolio Composition and Performance
Multiples for New Investors
Rs.5000/1                                       Fund Manager ’s Commentary                                                      Sector Allocation - Total Assets
Additional Investment/                         The fund’s equity exposure marginally decreased to 90.04%
Multiples for Existing Investors               from 90.75% over the month. The fund added to its holdings
Rs.1000/1                                      in ICICI Bank, Dr. Reddy’s and Bharti Airtel.

Load Structure
Entry Load          <Rs. 5 Crs : 2.25%;
                    =>Rs.5 Crs: Nil
                                                NAV Performance
Exit Load           <Rs. 5 Crs :1% if
                                                              Last    Last    Last     Last     Last      Last      Since
                    redeemed/                               6 Months 1 Year 3 Years* 5 Years* 7 Years* 10 Years* Inception*
                    switched-out within
                    6 months of               TIGF          -36.28% -42.70% -0.59% 10.80% 22.71% 22.07%           14.95%
                    allotment; 0.5% if        BSE Sensex    -34.35% -46.60% -1.69% 10.58% 16.11% 11.00%            8.48%
                    redeemed/ switched        MSCI
                                              India Value   -28.84% -46.23% 3.15% 12.32% 19.46% 13.88%              N.A
                    out after 6
                    months, but within 1       Past performance may or may not be sustained in future.
                    year of allotment         *Compounded and annualised       Dividends declared assumed to be reinvested

                    =>Rs.5 Crs : 1%
                                                                                                                                Rs. 10000 invested at inception in TIGF & BSE Sensex
                    (if redeemed
                    /switched-out within        SIP - If you had invested Rs. 1000 every month in TIGF...                                                                               Rs. 56,228
                    6 months of
                    allotment)                                Rs.12,000       Rs.36,000      Rs.60,000 Rs.148,000
                                                              for 1 year      for 3 years    for 5 years since inception
                                                              would have      would have     would have would have
                                                               grown to        grown to       grown to      grown to
                                              TIGF            8,393         26,768        62,100              482,555
                                                             -50.40%       -18.32%        1.36%               17.80%                                                                  Rs. 27,437
                                              BSE             8,478         25,549        61,157              288,568
                                              Sensex         -49.36%       -21.04%        0.75%               10.28%
                                              MSCI India      8,709         27,813        67,992                N.A
                                              Value          -46.47%       -16.05%        4.94%                 N.A                                 ____ TIGF     ____ BSE Sensex
                                              Past performance may or may not be sustained in future.                            NAV is adjusted for dividend
                                              Load is not taken into consideration.

                                                                                                                                                                                                        7
           Franklin India Prima Plus                                                                                                                                            FIPP
                                                  Portfolio
    As of January 30, 2009
                                                   Company Name                       No. of      Market Value        % of         Company Name                     No. of     Market Value        % of
    Investment Style                                                                  shares       Rs. Lakhs         Assets                                         shares      Rs. Lakhs         Assets
                                                   Auto                                                                            Network Eighteen Fincap           153191        135.96            0.13
    The fund manager seeks capital                 Hero Honda                          242301         2124.86           2.04       Network 18 Media &
    appreciation over the long-term by             Tata Motors                         373500          558.94           0.54       Investments (CCPS#)                 2606            2.20          0.00
    focusing     on     wealth     creating        Auto Ancillaries                                                                Minerals/Mining
    companies (companies that generate             MICO                                  84744        2614.82           2.51       Gujarat Mineral Development
    return on capital in excess of their           Banks                                                                           Corporation                       977400        401.22            0.39
    cost of capital) across all sectors.           HDFC Bank *                         861145         7962.15           7.65       Oil
                                                   Axis Bank *                         842946         3649.96           3.50       ONGC                               68200        448.89            0.43
    Type of Scheme / Investment Objective          Kotak Mahindra Bank                 952203         2699.50           2.59       Petroleum Products
                                                   ICICI Bank                          324863         1352.40           1.30       Reliance Industries *             444998       5897.11            5.66
    An open end equity fund which aims             ING Vysya Bank                      172501          239.43           0.23       BPCL                              566235       2217.94            2.13
    to provide growth of capital plus              Cement                                                                          HPCL                              616283       1761.03            1.69
    regular dividend                               ACC *                               592093         2989.18           2.87       Indian Oil Corporation            252553       1127.27            1.08
                                                   Shree Cements                       247777         1233.43           1.18       Pharmaceuticals
    Date of Allotment                              Consumer Non Durables                                                           Lupin Labs                        207300       1181.40            1.13
                                                   Nestle *                            353230         5179.94           4.97       Sun Pharmaceutical                100700       1080.96            1.04
    September 29, 1994                             Hindustan Unilever *               1856735         4849.79           4.66       Pfizer                            173402        908.63            0.87
                                                   Marico *                           6692624         3885.07           3.73       Cadila Healthcare                 210400        524.74            0.50
    Fund Manager                                   Titan                               153200         1412.43           1.36       Retailing
                                                   Asian Paints                        140800         1105.35           1.06
    Sukumar Rajah (since Sep. 1994)                Dabur                               862702          759.18           0.73       Pantaloon Retail                  361903        585.20            0.56
                                                   Kansai Nerolac Paints               145390          535.91           0.51       Trent                              71726        225.47            0.22
    Anand Radhakrishnan (since Apr. 2007)                                                                                          Software
                                                   United Spirits                       76586          453.35           0.44
                                                   GSK Consumer Healthcare              60000          357.18           0.34       Infosys *                         550590       7187.95            6.90
    Latest NAV                                                                                                                     Eclerx Services                   259796        249.53            0.24
                                                   Shaw Wallace                        209502          280.84           0.27
    Growth Plan         Rs. 105.6740               Carnation Nutra-analogue Food        27973           20.90           0.02       Telecom - Services
                                                   Ferrous Metals                                                                  Bharti Airtel *                  1038843       6584.71            6.32
    Dividend Plan Rs. 20.2142                      Tata Steel                          198300          366.16           0.35       Idea Cellular                    4143475       1947.43            1.87
                                                   Finance                                                                         Transportation
    Fund Size                                      HDFC                                153877         2364.70           2.27       GE Shipping                       574356        983.30            0.94
                                                   Crisil                               39479          915.58           0.88       Unlisted equity holdings
    Rs. 1041.48 crores
                                                   Industrial Capital Goods                                                        Pantaloon Retail                                 49.74            0.05
    Turnover                                       ABB *                               752519         3610.59           3.47       Quantum Information Services                      3.42            0.00
                                                   L&T                                 216700         1493.50           1.43       Numero Uno                                        0.01            0.00
    Portfolio Turnover        112.95%              Bharat Electronics                   25925          214.56           0.21       Warrants
                                                   Industrial Products                                                             Network 18 Media & Investments                      0.99          0.00
    Volatility Measures (3 years)                  Cummins India                      1587491         2672.54           2.57
                                                                                                                                    Debt Holdings                   Rating     Market Value         % of
                                                   Media & Entertainment                                                                                                       (Rs. in Lakhs)      Assets
    Standard Deviation        8.36                 IBN18 Broadcast                    3113004         2373.67           2.28
                                                   Television Eighteen                2554056         1911.71           1.84       Television Eighteen ZCB's          BBB-             8.21          0.01
    R-squared                 0.90                 HT Media                           2043071         1100.19           1.06       Total equity holdings                        97400.73          93.52
    Beta                      0.82                 Jagran Prakashan                   2384770         1049.30           1.01
                                                   NDTV                                874543          740.30           0.71       Total debt holdings                              8.21           0.01
    Sharpe Ratio*             -0.11                UTV Software Communications         179200          462.07           0.44       Other current assets                          6739.07           6.47
                                                   TV Today Network                    555625          356.16           0.34       Total assets                                104148.00         100.00
    *Annualised. Risk-free rate assumed to be
    5.54% (based on 3 month T-Bill Rate "during                                                                                   # Cumulative Convertible Preference Shares             * Top 10 holdings
    last 3 months")
    Expense Ratio                                 Portfolio Composition and Performance
    2.04%
                                                    Fund Manager ’s Commentary                                                      Sector Allocation - Total Assets
    Minimum Investment/
    Multiples for New Investors                    The fund’s equity exposure has decreased to 93.52% from
                                                   95.65% over the month. The fund added to holdings in Axis
    Rs.5000/1
                                                   Bank, Hindustan Unilever and Infosys and exited from
    Additional Investment/                         Reliance Communication.
    Multiples for Existing Investors
    Rs.1000/1
    Load Structure
                                                    NAV Performance
    Entry Load          <Rs. 5 Crs : 2.25%;
                        =>Rs.5 Crs: Nil                           Last    Last    Last     Last     Last      Last      Since
                                                                6 Months 1 Year 3 Years* 5 Years* 7 Years* 10 Years* Inception*
    Exit Load           <Rs. 5 Crs :1% if
                        redeemed/                  FIPP (G)     -26.47% -42.71% 2.35%      17.00% 26.10% 24.53% 17.86%
                        switched-out within        FIPP (D)     -26.47% -42.71% 2.32%      16.98% 26.09% 24.53% 17.85%
                        6 months of
                        allotment; 0.5% if         S&P
                                                   CNX 500 -36.09% -49.21% -5.12%           8.63% 17.49% 12.59%        5.06%
                        redeemed/ switched
                        out after 6                Past performance may or may not be sustained in future.
                        months, but within 1      *Compounded and annualised        Dividends declared assumed to be reinvested
                        year of allotment                                                                                           Movement of Rs. 10000 invested in FIPP & S&P CNX 500
                        =>Rs.5 Crs : 1%
                        (if redeemed
                        /switched-out within        SIP - If you had invested Rs. 1000 every month in FIPP...                                                                                 Rs. 105,674
                        6 months of
                        allotment)                               Rs.12,000       Rs.36,000       Rs.60,000 Rs.171,000
                                                                 for 1 year      for 3 years     for 5 years since inception
                                                                 would have      would have      would have    would have
                                                                  grown to        grown to        grown to      grown to
                                                                                                                                                                                                Rs. 20,300
                                                  FIPP             8,963           28,092         70,405         1,043,924
                                                                  -43.24%         -15.46%         6.33%           22.82%
                                                  S&P              8,352           24,621         56,169          374,619
                                                  CNX 500         -50.91%         -23.17%         -2.59%          10.32%
                                                  Past performance may or may not be sustained in future.                                               ____ FIPP   ____ S&P CNX 500
                                                  Load is not taken into consideration.

8
     Franklin India Prima Fund                                                                                                                                        FIPF
                                              Portfolio
As of January 30, 2009
                                               Company Name                     No. of        Market Value        % of       Company Name                  No. of   Market Value         % of
Investment Style                                                                shares         Rs. Lakhs         Assets                                    shares    Rs. Lakhs          Assets

The fund manager seeks aggressive              Auto                                                                          Alstom Projects               113046       257.12            0.54
growth by focusing primarily on mid            Hero Honda *                     157146           1378.09           2.89      Kirloskar Electric Company 639468          191.20            0.40
and small cap companies.                       Auto Ancillaries                                                              Industrial Products
                                               Amara Raja Batteries             807724             334.80          0.70      FAG Bearings *                752308      1711.12            3.58
Type of Scheme / Investment Objective          Banks                                                                         Cummins India                 539439       908.15            1.90
An open end equity fund which aims             HDFC Bank *                      146196           1351.73           2.83      Finolex Cables               4012992       804.60            1.69
to provide long term capital                   Federal Bank                     902552           1264.02           2.65      Greaves Cotton                774595       526.34            1.10
appreciation as primary objective              ING Vysya Bank                   730408           1013.81           2.12      Ess Dee Aluminium             397171       510.56            1.07
and income as secondary objective              Union Bank of India              665026            982.24           2.06      Sintex Industries             295761       405.34            0.85
                                               Axis Bank                        206887            895.82           1.88      Media & Entertainment
Date of Allotment                              Yes Bank                        1254835            767.96           1.61      Jagran Prakashan             2880323      1267.34            2.65
December 1, 1993                               Indian Overseas Bank            1060242            646.22           1.35      Deccan Chronicle holdings 2008192          761.10            1.59
                                               Chemicals                                                                     IBN18 Broadcast               115273        87.90            0.18
Fund Managers                                  Pidilite *                      1869799           1807.16           3.79      Minerals/Mining
K. N. Sivasubramanian (since Dec. 1993)        Construction                                                                  Gujarat NRE Coke              758804       180.60            0.38
                                               IVRCL Infrastructures and                                                     Pesticides
Janakiraman (since Feb. 2008)                  Projects                         284972             312.33          0.65      United Phosphorus             924164       865.48            1.81
                                               JMC Projects                     530912             283.24          0.59      Petroleum Products
Latest NAV                                     Consumer Non Durables
                                                                                                                             HPCL                          293507       838.70            1.76
Growth Plan         Rs. 107.2228               Marico *                        2390172           1387.49           2.91      Castrol                        82958       274.76            0.58
Dividend Plan Rs. 23.6213                      Asian Paints *                   167595           1315.70           2.76
                                                                                                                             Pharmaceuticals
                                               United Spirits                    53774            318.32           0.67
                                                                                                                             IPCA Labs *                   497576      1726.34            3.62
Fund Size                                      Britannia Industries              17799            247.16           0.52
                                                                                                                             Lupin Labs                    193135      1100.68            2.31
                                               Kansai Nerolac Paints             56997            210.09           0.44
Rs. 477.38 crores                                                                                                            Torrent Pharmaceuticals       800000      1056.80            2.21
                                               GSK Consumer Healthcare           30172            179.61           0.38
                                                                                                                             Cadila Healthcare             253212       631.51            1.32
                                               Carnation Nutra-analogue Food     66365             49.57           0.10
Turnover                                                                                                                     Nicholas Piramal              261634       557.41            1.17
                                               Fertilisers
Portfolio Turnover        121.01%                                                                                            Power
                                               Tata Chemicals *                 998148           1532.16           3.21
                                                                                                                             Calcutta Electric Supply
                                               Finance
Volatility Measures (3 years)                                                                                                Corporation                   168761       389.58            0.82
                                               LIC Housing Finance              394311             883.65          1.85
                                                                                                                             Kalpataru Power Transmission   92194       257.82            0.54
Standard Deviation          9.61               IDFC                            1500835             867.48          1.82
                                                                                                                             Neyveli Lignite               220409       176.44            0.37
R-squared                   0.85               Gas
                                                                                                                             Telecom - Services
Beta                        0.92               Gujarat State Petronet          1958239             588.45          1.23
Sharpe Ratio*               -0.64                                                                                            Bharti Airtel *               254844      1615.33            3.38
                                               Gujarat Gas                       15884              37.17          0.08
                                                                                                                             Transportation
                                               Industrial Capital Goods
*Annualised. Risk-free rate assumed to be                                                                                    GE Shipping                   691910      1184.55            2.48
5.54% (based on 3 month T-Bill Rate "during    BHEL *                           118585           1565.86           3.28
                                                                                                                             Unlisted equity holdings
last 3 months")                                Bharat Electronics               119681            990.48           2.07
                                                                                                                             HIM Technoforge                                  0.02        0.00
                                               Thermax                          448950            717.87           1.50
Expense Ratio                                  TIL                              586204            593.24           1.24      Total equity holdings                    41551.18           87.04
2.26%                                          L&T                               58923            406.10           0.85      Other current assets                      6186.70           12.96
                                               Havell's India                   291904            336.57           0.71      Total assets                             47737.88          100.00
Minimum Investment/
Multiples for New Investors                                                                                                                                                      * Top 10 holdings

Rs.5000/1                                     Portfolio Composition and Performance
Additional Investment/                          Fund Manager ’s Commentary                                                   Sector Allocation - Total Assets
Multiples for Existing Investors
                                               The fund’s equity exposure has marginally decreased to
Rs.1000/1                                      87.04% from 88.82% during the month. The fund added
                                               IDFC and IVRCL Infrastructure and Projects, while exiting from
                                               Kotak Mahindra Bank. The fund added to its holdings in
Load structure:
                                               Indian Overseas Bank and LIC Housing Finance, while paring
Entry Load: <Rs. 5 Crs : 2.25%;                exposures in ING Vysya Bank, Cummins India and GE
             =>Rs.5 Crs: Nil                   Shipping.
Exit Load:      <Rs. 5 Crs : 1% if
                redeemed/ switched-             NAV Performance
                out within 6 months of                    Last    Last    Last     Last     Last      Last      Since
                allotment; 0.5% if                      6 Months 1 Year 3 Years* 5 Years* 7 Years* 10 Years* Inception*
                redeemed/ switched             FIPF (G) -39.39% -57.89% -15.89% 7.84% 25.49% 22.84% 16.92%
                out after 6 months, but        FIPF (D) -39.39% -57.89% -15.88% 7.84% 25.50% 22.84% 16.92%
                within 1 year of               S&P
                allotment                      CNX 500 -36.09% -49.21% -5.12%         8.63%     17.49% 12.59%      6.55%
                =>Rs.5 Crs : 1% (if            CNX
                redeemed/switched-out          Midcap -39.36% -54.06% -7.98%          8.39%      N.A      N.A       N.A      Rs. 10000 invested at inception in FIPF & S&P CNX 500
                within 6 months of             Past performance may or may not be sustained in future.
                allotment)                    *Compounded and annualised       Dividends declared assumed to be reinvested                                                           Rs. 107,223
                                                SIP - If you had invested Rs. 1000 every month in FIPF...

                                                          Rs.12,000        Rs.36,000          Rs.60,000 Rs.182,000
                                                          for 1 year       for 3 years        for 5 years since inception
                                                          would have       would have         would have    would have
                                                           grown to         grown to           grown to      grown to                                                            Rs. 26,172

                                              FIPF          7,669        20,191          45,885                 861,187
                                                           -59.02%      -34.12%         -10.47%                 18.47%
                                              S&P           8,352        24,621          56,169                 398,677
                                              CNX 500 -50.91%           -23.17%          -2.59%                  9.67%
                                                                                                                                               ____ FIPF   ____ S&P CNX 500
                                              Past performance may or may not be sustained in future.
                                              Load is not taken into consideration.

                                                                                                                                                                                                     9
          Franklin India Flexi Cap Fund                                                                                                                                           FIFCF
                                                 Portfolio
     As of January 30, 2009
                                                  Company Name                       No. of        Market Value           % of               Company Name                     No. of    Market Value      % of
                                                                                     shares         Rs. Lakhs            Assets                                               shares     Rs. Lakhs       Assets
     Investment Style
                                                  Auto                                                                                       Industrial Capital Goods
     The fund manager will invest in              Hero Honda                         382547            3354.75              2.29             BHEL *                     581663              7680.57            5.24
     companies based on a research driven,        Ashok Leyland                     5081600             716.51              0.49             L&T                        633318              4364.83            2.98
     bottom-up stock selection process,           Auto Ancillaries                                                                           Bharat Electronics         341206              2823.82            1.93
     irrespective     of    their  market
                                                  Amara Raja Batteries              2415000            1001.02              0.68             ABB                        457060              2192.97            1.50
     capitalization and sectors.
                                                  Pricol                            7117529             565.84              0.39             Industrial Products
     Type of Scheme / Investment Objective        Banks                                                                                      Cummins India *           2649143              4459.83            3.04
                                                  Axis Bank *                       2985838          12928.68               8.82             Ess Dee Aluminium          149842               192.62            0.13
     An open end equity fund which seeks
     to provide medium to long-term capital       HDFC Bank *                        884211           8175.41               5.58             Media & Entertainment
     appreciation by investing in stocks          SBI *                              420362           4843.41               3.30             IBN18 Broadcast News 1657079                   1263.52            0.86
     across the entire market capitalization      ICICI Bank                         955010           3975.71               2.71             Television Eighteen       1055516               790.05            0.54
     range.                                       ING Vysya Bank                    1874809           2602.23               1.78             Deccan Chronicle holdings 1839166               697.04            0.48
                                                  Kotak Mahindra Bank                618440           1753.28               1.20             Oil
     Date of Allotment
                                                  Punjab National Bank               351570           1407.51               0.96             ONGC                       255900              1684.33            1.15
     March 2, 2005                                Indian Overseas Bank              2000000           1219.00               0.83             Pesticides
                                                  Bank of Baroda                     310100            783.16               0.53             United Phosphorus          892700               836.01            0.57
     Fund Managers
                                                  South India Bank                  1403107            708.57               0.48             Petroleum Products
     K.N. Sivasubramanian /                       Yes Bank                          1151069            704.45               0.48             Reliance Industries *      886911            11753.34             8.02
     Sukumar Rajah (since Mar. 2005)              Chemicals                                                                                  Indian Oil Corporation     698200             3116.42             2.13
     Latest NAV                                   Deepak Fertilizers &                                                                       BPCL                       466173             1826.00             1.25
                                                  Petrochemicals Corporation        3057905            1666.56              1.14             Pharmaceuticals
     Growth Plan        Rs. 14.2391               Clariant Chemicals                 222581             326.97              0.22             Lupin Labs *               820938              4678.53            3.19
     Dividend Plan      Rs. 9.0592                Construction                                                                               Nicholas Piramal           616000              1312.39            0.90
                                                  Simplex Infrastructure               74719             102.85             0.07             Cadila Healthcare          430306              1073.18            0.73
     Fund Size
                                                  Consumer Non Durables                                                                      Dr. Reddy's                139074               627.43            0.43
     Rs. 1465.56 crores                           Hindustan Unilever *              2816891            7357.72              5.02             Power
                                                  Marico                            6268824            3639.05              2.48             Calcutta Electric Supply
     Turnover
                                                  ITC                               1687313            3032.10              2.07             Corporation                242830               560.57            0.38
     Portfolio Turnover       176.19%             Asian Paints                       177738            1395.33              0.95             Telecom - Services
     Volatility Measures (3 years)                Kansai Nerolac Paints              359616            1325.54              0.90             Bharti Airtel *           1975105            12519.20             8.54
                                                  Carnation Nutra-analogue Food       70136              52.39              0.04             Idea Cellular *          13786340             6479.58             4.42
     Standard Deviation         8.47
     R-squared                  0.91              Ferrous Metals                                                                             Unlisted equity holdings
     Beta                       0.84              SAIL                              2381900            1972.21              1.35             Pantaloon Retail                                   7.37           0.01
     Sharpe Ratio*              -0.31             Fertilisers
                                                  Tata Chemicals                    1503761            2308.27              1.58             Total equity holdings                       140038.35        95.55
     *Annualised. Risk-free rate assumed to be                                                                                               Other current assets                          6518.07         4.45
                                                  Finance
     5.54% (based on 3 month T-Bill Rate
                                                  IDFC                              2041857            1180.19              0.81             Total assets                                146556.43       100.00
     "during last 3 months")

     Expense Ratio                               Large Cap : 77.82%, Mid Cap : 15.13%, Small Cap : 2.60% (Based on stocks in S&PCNX 500 index.                                                    * Top 10 holdings
                                                 Large cap : Top 20%, Mid cap : next 40% and Small cap: last 40%. (as of January 30, 2009)
     1.95%
                                                 Portfolio Composition and Performance
     Minimum Investment/
     Multiples for New Investors                   Fund Manager ’s Commentary                                                                    Sector Allocation - Total Assets
     Rs.5000/1                                     The fund’s equity exposure has marginally decreased
                                                   to 95.55% from 96.84%. The fund added Asian
     Additional Investment/
     Multiples for Existing Investors              Paints and SAIL to the portfolio while exiting from
                                                   Infosys. The fund added to its holdings in Axis Bank,
     Rs.1000/1                                     Hindustan Unilever, Reliance Industries and Bharti
     Load Structure                                Airtel, while paring exposures in ICICI Bank, Tata
                                                   Chemicals, BHEL, ONGC, Dr. Reddy’s and Idea
     Entry Load         <Rs. 5 Crs : 2.25%;        Cellular.
                        =>Rs.5 Crs: Nil
                                                   NAV Performance
     Exit Load          <Rs. 5 Crs :1% if
                        redeemed/                                      Last     Last             Last         Last      Since
                        switched-out within                          3 Months 6 Months          1 Year      3 Years* Inception*
                        6 months of
                        allotment; 0.5% if        FIFCF (G)           -2.59% -28.74%           -46.65%      -3.49%       9.44%
                        redeemed/ switched                                                                                                       Rs. 10000 invested at inception in FIFCF & S&P CNX 500
                                                  FIFCF (D)           -2.59% -28.74%           -46.65%      -3.49%       9.44%
                        out after 6 months,
                        but within 1 year of      S&P CNX 500         -0.75% -36.09%           -49.21%      -5.12%       4.99%
                        allotment                 Past performance may or may not be sustained in future.
                        =>Rs.5 Crs : 1%          *Compounded and annualised         Dividends declared assumed to be reinvested
                        (if redeemed
                        /switched-out within      SIP - If you had invested Rs. 1000 every month in FIFCF...
                        6 months of
                        allotment)                                    Rs.12,000            Rs.36,000            Rs.47,000
                                                                      for 1 year           for 3 years        since inception
                                                                      would have           would have           would have
                                                                       grown to             grown to             grown to
                                                 FIFCF              8,722            25,381               39,073
                                                                   -46.30%          -21.42%               -9.09%
                                                 S&P CNX 500        8,352            24,621               36,678                                      ____ FIFCF Rs. 14,239      ____ S&P CNX 500 Rs. 12,102
                                                                   -50.91%          -23.17%              -12.14%
                                                 Past performance may or may not be sustained in future.
                                                 Load is not taken into consideration.

10
    Franklin India High Growth Companies Fund                                                                                      FIHGCF
                                         Portfolio
As of January 30, 2009
                                          Company Name                No. of     Market Value       % of     Company Name                    No. of    Market Value        % of
                                                                      shares      Rs. Lakhs        Assets                                    shares     Rs. Lakhs         Assets
Investment Style
                                          Auto Ancillaries                                                   ABB                             155405        745.63           1.00
The fund manager seeks high growth        Amara Raja Batteries        1517953        629.19        0.84      EMCO                            1914459       531.26           0.71
by focussing on companies/sectors
with high growth rates or potential.      Banks                                                              Voltamp Transformers            106286        372.90           0.50
                                          Axis Bank *                 1554855      6732.52         9.01      Kirloskar Electric Company      650000        194.35           0.26
Type of Scheme / Investment Objective
                                          HDFC Bank *                  409031      3781.90         5.06      Industrial Products
An open end equity fund which seeks       ICICI Bank *                 845625      3520.34         4.71      Cummins India                   1301066     2190.34            2.93
to achieve capital appreciation
through investments in Indian             SBI *                        243565      2806.36         3.76      FAG Bearings                    526800      1198.21            1.60
companies/sectors with high growth        ING Vysya Bank              1350495      1874.49         2.51      Media & Entertainment
rates or potential.                       Yes Bank                    1296670        793.56        1.06      Deccan Chronicle holdings 3200000           1212.80            1.62
Date of Allotment                         Federal Bank                 557862        781.29        1.05      Television Eighteen             1052912       788.10           1.05
July 26, 2007                             Punjab National Bank         179334        717.96        0.96      NDTV                            255820        216.55           0.29
                                          Bank of Baroda               158300        399.79        0.54
Fund Manager                                                                                                 Petroleum Products
                                          Kotak Mahindra Bank           92388        261.92        0.35
                                                                                                             Reliance Industries *           518892      6876.36            9.20
K. N. Sivasubramanian/
                                          Chemicals
Anand Radhakrishnan (since Jul. 2007)                                                                        Pharmaceuticals
                                          Pidilite                    1898683      1835.08         2.46
Latest NAV                                                                                                   Lupin Labs *                    500892      2854.58            3.82
                                          Consumer Non Durables
Growth Plan          Rs. 5.4563                                                                              Nicholas Piramal                800000      1704.40            2.28
                                          Marico *                    4491000      2607.03         3.49
Dividend Plan        Rs. 5.4563                                                                              IPCA Labs                       388578      1348.17            1.80
                                          Asian Paints                 210966      1656.19         2.22
                                                                                                             Venus Remedies                  176511        347.81           0.47
Fund Size                                 Hindustan Unilever           484311      1265.02         1.69
                                                                                                             Power
                                          ITC                          504684        906.92        1.21
Rs. 747.25 crores                                                                                            Calcutta Electric Supply
                                          Britannia Industries          40324        559.94        0.75
                                                                                                             Corporation                     427570        987.05           1.32
Turnover                                  Finance
                                                                                                             Kalpataru Power Transmission    116519        325.85           0.44
                                          IDFC                        1511697        873.76        1.17
Portfolio Turnover      172.01%                                                                              Telecom - Services
                                          Gas
Expense Ratio                                                                                                Bharti Airtel *                 888598      5632.38            7.54
                                          Gujarat State Petronet      1507657        453.05        0.61
2.15%                                     Industrial Capital Goods                                           Idea Cellular *                 7662362     3601.31            4.82

Minimum Investment/                       BHEL *                       251227      3317.33         4.44      Total equity holdings                       70318.15          94.10
Multiples for New Investors               L&T                          344752      2376.03         3.18      Other current assets                         4406.60             5.90
Rs.5000/1                                 Thermax                      650677      1040.43         1.39      Total assets                                74724.75         100.00

Additional Investment/                                                                                                                                              * Top 10 holdings
Multiples for Existing Investors
                                         Portfolio Composition and Performance
Rs.1000/1
                                           Fund Manager ’s Commentary                                         Sector Allocation - Total Assets
Load Structure

Entry Load       <Rs.5 Crs: 2.25%          The fund’s equity exposure has marginally decreased
                 =>Rs.5 Crs < Rs.25        to 94.10% from 94.71%. The fund added Asian
                 Crs : Nil                 Paints and Gujarat State Petronet to the portfolio,
                 =>Rs.25 Crs: Nil          while exited from HDFC, Infosys and Reliance
Exit Load        <Rs.5 Crs: 1% (if         Communication. The fund also added to holdings in
                 redeemed/switched-        HDFC Bank, while pared exposures in ICICI Bank,
                 out within 6 months       BHEL, L&T and Idea Cellular.
                 of allotment); 0.5%
                 (if redeemed/
                 switched-out after 6
                 months, but within        NAV Performance
                 1 year of allotment)
                                                             Last 1    Last 3   Last 6    Last      Since
                 =>Rs.5 Crs < Rs.25
                                                             Month    Months    Months   1 Year Inception*
                 Crs : 1% (1% if the
                 Units are redeemed/      FIHGCF             -8.35%   -7.33% -34.66% -54.55% -32.91%          Rs. 10000 invested at inception in FIHGCF & S&P CNX 500
                 switched-out within
                 6 months of              S&P CNX 500        -3.78%   -0.75% -36.09% -49.21% -30.64%
                 allotment)
                                         Past performance may or may not be sustained in future.
                 =>Rs.25 Crs: Nil
                                        *Compounded and annualised




                                                                                                                     ____ FIHGCF Rs. 5,456       ____ S&P CNX 500 Rs. 5,739




                                                                                                                                                                                        11
          Franklin Asian Equity Fund                                                                                                                                              FAEF
                                                    Portfolio
     As of January 30, 2009
                                                    Company Name                         No. of     Market Value        % of      Company Name                          No. of    Market Value        % of
                                                                                         shares      Rs. Lakhs         Assets                                           shares     Rs. Lakhs         Assets
     Investment Style
                                                    Auto                                                                          Hardware
     The fund manager seeks long term               Hyundai Motor (South Korea)            14765            249.17       0.78     Taiwan Semiconductor
     appreciation by focussing on Asian             Auto Ancillaries                                                              Manufacturing (Taiwan) *              2680503      1634.53            5.10
     Companies/Sectors        (excluding                                                                                          Samsung Electronics (South Korea) *      5870      1017.73            3.18
                                                    Hyundai Mobis (South Korea)            22466            520.41       1.63
     Japan) with long term growth                                                                                                 High Tech Computer
                                                    Banks
     potential.
                                                    Industrial and Commercial                                                     Corporation (Taiwan)                    41600       196.13            0.61
     Type of Scheme / Investment Objective          Bank of China (HongKong) *           4657000            986.00       3.08     Industrial Capital Goods
                                                                                                                                  Singapore Technologies
     An open end equity fund which seeks            PT Bank Rakyat Indonesia (Indonesia) 3145500            616.44       1.93
                                                                                                                                  Engineering (Singapore)                444000       328.75            1.03
     to provide medium to long term                 HDFC Bank                              48259            446.20       1.39
                                                                                                                                  Huabao International Holdings
     appreciation through investments               China Construction Bank
     primarily in Asian Companies /                                                                                               (HongKong)                             910000       287.57            0.90
                                                    Corporation (HongKong)               1256000            305.62       0.95
     sectors (excluding Japan) with long                                                                                          Media & Entertainment
                                                    Kotak Mahindra Bank                   101890            288.86       0.90
     term potential across market                                                                                                 Kangwon Land (South Korea)              33906       154.19            0.48
                                                    China Merchants Bank (HongKong)       296000            240.95       0.75
     capitalization.                                                                                                              Oil
                                                    Axis Bank                              39187            169.68       0.53     CNOOC (HongKong)                      1665000       715.56            2.23
     Date of Allotment                              Bangkok Bank Public Co. (Thailand)    135700            141.68       0.44     Petroleum Products
     January 16, 2008                               Kasikornbank Public                                                           PetroChina (HongKong) *               3152000      1159.40            3.62
                                                    Corporation (Thailand)                201600            127.65       0.40     China Petroleum and Chemical
     Fund Manager                                   Industrial and Commercial                                                     Corporation (HongKong)                1002000       269.14            0.84
     Sukumar Rajah / Roshi Jain (since Jan. 2008)   Bank of China (Asia) (HongKong)        93000             42.97       0.13     Reliance Industries                     20188       267.53            0.84
     Latest NAV                                     Construction                                                                  HPCL                                    87229       249.26            0.78
                                                    China Overseas Land &                                                         BPCL                                    50308       197.06            0.62
     Growth Plan            Rs. 6.4575              Investment (HongKong)                 821600            538.99       1.68     Pharmaceuticals
     Dividend Plan          Rs. 6.4575              Consumer Non Durables                                                         Sun Pharmaceutical                      38684       415.25            1.30
                                                    Dairy Farm International                                                      Power
     Fund Size                                                                                                                    China Shenhua Energy (HongKong)        185500       199.30            0.62
                                                    Holdings (USA) *                      502045        1070.44          3.34
     Rs. 320.19 crores                              Nestle *                               66311            972.42       3.04     Retailing
                                                    China Yurun Food Group                                                        Shinsegae (South Korea) *                6575      1044.19            3.26
     Expense Ratio                                                                                                                Parkson Retail Group (HongKong)       1555000       687.94            2.15
                                                    (HongKong)                           1523000            885.55       2.77
                                                                                                                                  Esprit Holdings (HongKong)             167900       443.56            1.39
     2.33%                                          Want Want China Holdings
                                                                                                                                  Software
                                                    (HongKong)                           3621980            709.63       2.22
     Minimum Investment/                                                                                                          Infosys                                 72047       940.57            2.94
     Multiples for New Investors                    China Mengniu Dairy (HongKong)        523000            343.76       1.07
                                                                                                                                  Travelsky Technology (HongKong)        734000       141.95            0.44
                                                    KT & G Corporation (South Korea)       10892            321.19       1.00
     Rs.5000/1                                                                                                                    Telecom - Services
                                                    Hindustan Unilever                    114759            299.75       0.94     China Mobile (HongKong) *              377500      1682.02            5.25
     Additional Investment/                         Ferrous Metals                                                                Singapore Telecommunications
     Multiples for Existing Investors               BHP Billiton (Australia)               34632            332.36       1.04     (Singapore) *                         1384000      1195.56            3.73
                                                    Finance                                                                       Bharti Airtel *                        155252       984.06            3.07
     Rs.1000/1
                                                    China Life Insurance (HongKong)       630000            828.19       2.59     PT Telekomunikasi Indonesia
     Load Structure                                 Singapore Exchange (Singapore)        384000            645.97       2.02     (Indonesia)                           2080000       564.40            1.76
     Entry Load         <Rs.5 Crs: 2.25%            Hong Kong Exchanges &                                                         Transportation
                        =>Rs.5 Crs < Rs.25          Clearing (HongKong)                   110200            473.60       1.48     Glovis (South Korea)                     7967       138.13            0.43
                        Crs : Nil                   Meritz Fire & Marine                                                          Travel
                        =>Rs.25 Crs: Nil            Insurance (Korea)                     256121            327.13       1.02     Ctrip.com International (USA)           24599       248.02            0.77
     Exit Load          <Rs.5 Crs: 1% (if           Crisil                                 11817            274.05       0.86     Total equity holdings                             27560.02         86.07
                        redeemed/switched-          Ping An Insurance (Group)                                                     Other current assets                               4459.30         13.93
                        out within 6 months         Co. of China (HongKong)               110500            239.54       0.75     Total assets                                      32019.32        100.00
                        of allotment); 0.5%
                                                                                                                                                                                               * Top 10 holdings
                        (if redeemed/
                        switched-out after 6        Portfolio Composition and Performance
                        months, but within
                        1 year of allotment)         Fund Manager ’s Commentary                                                    Sector Allocation - Total Assets
                        =>Rs.5 Crs < Rs.25
                                                    The fund’s equity exposure has decreased to 86.07%
                        Crs : 1% (1% if the
                        Units are redeemed/         from 91.34%. The fund exited from Hana Financial
                        switched-out within         Group Inc. (South Korea), Taiwan Fertilizer (Taiwan)
                        6 months of                 and NHN Corporation (South Korea). The fund pared
                        allotment)                  exposures in Industrial and Commercial Bank of China
                        =>Rs.25 Crs: Nil            (HongKong) and China Merchants Bank (HongKong).



                                                     NAV Performance
                                                                               Last 1    Last 3    Last 6      Last 1   Since
                                                                               Month     Months    Months       Year Inception*
                                                    FAEF                       -5.30%    -3.35% -25.64% -30.05% -34.30%
                                                    MSCI Asia (ex Japan)
                                                    Standard Index       -5.46%          -3.83% -34.58% -36.88% -39.26%

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



12
     Franklin India Opportunities Fund                                                                                                                                   FIOF
                                              Portfolio
As of January 30, 2009
                                               Company Name                    No. of         Market Value         % of     Company Name                      No. of     Market Value         % of
Investment Style                                                               shares          Rs. Lakhs          Assets                                      shares      Rs. Lakhs          Assets
The fund manager seeks long term               Auto                                                                         ABB                                  47584        228.31            0.55
capital appreciation by focusing on            Hero Honda                        45010                394.72        0.95    Siemens                              41940         87.00            0.21
                                               Bajaj Auto                        77986                369.58        0.89    Thermax                                504          0.81            0.00
companies that operate in the space            Maruti Suzuki                     47363                270.44        0.65    Media & Entertainment
where India has a strong competitive           Mahindra & Mahindra               68860                206.99        0.50    Television Eighteen                 379972        284.41            0.69
advantage, companies that are                  Auto Ancillaries                                                             Zee Entertainment Enterprises        51750         57.08            0.14
globally competitive and those that            Exide                            481485                195.72        0.47    Oil
                                               Banks                                                                        ONGC                                154004       1013.65            2.45
are grossly undervalued or have high           ICICI Bank *                     457901               1906.24        4.60    Cairn                                90475        148.92            0.36
growth potential                               SBI *                            116498               1342.29        3.24    Pesticides
                                               HDFC Bank                        130835               1209.70        2.92    United Phosphorus                   144006        134.86            0.33
Type of Scheme / Investment Objective          Axis Bank                        175237                758.78        1.83    Petroleum Products
                                               Bank of India                    198558                494.71        1.19    Reliance Industries *               309001       4094.88            9.88
An open end equity fund which seeks            Kotak Mahindra Bank               90002                255.16        0.62    BPCL                                115739        453.35            1.09
to provide long term capital                   Bank of Baroda                    84151                212.52        0.51    Reliance Petroleum                  510366        440.96            1.06
                                               Cement                                                                       Indian Oil Corporation               59303        264.70            0.64
appreciation by capitalising on the            ACC                              115438                582.79        1.41    HPCL                                 66254        189.32            0.46
long-term growth opportunities in              Gujarat Ambuja Cements           794360                559.63        1.35    Pharmaceuticals
the Indian economy                             Grasim                            23606                282.63        0.68    Cipla                               386917        742.88            1.79
                                               Construction                                                                 Dr. Reddy's                         128478        579.63            1.40
Date of Allotment                              Unitech                                200               0.06        0.00    Lupin Labs                           28446        162.11            0.39
                                               Consumer Non Durables                                                        Sun Pharmaceutical                    9873        105.98            0.26
February 21, 2000                              ITC *                           1054074               1894.17        4.57    Power
                                               Hindustan Unilever *             511893               1337.06        3.23    NTPC *                              774136       1466.99            3.54
                                               Colgative Palmolive               77400                327.60        0.79    Tata Power                           65030        495.17            1.20
Fund Manager                                   Titan                             21304                196.41        0.47    Power Grid Corporation of India     520012        458.39            1.11
Chakri Lokapriya (since July. 2008)            Asian Paints                      11100                 87.14        0.21    Neyveli Lignite                     381795        305.63            0.74
                                               United Spirits                    13200                 78.14        0.19    Reliance Energy                      43182        251.45            0.61
                                               Ferrous Metals                                                               Software
Latest NAV
                                               Jindal Steel & Power              22600                234.37        0.57    Infosys *                           199998       2610.97            6.30
Growth Plan         Rs. 16.2654                SAIL                             186440                154.37        0.37    TCS                                  85690        438.69            1.06
                                               Tata Steel                        79640                147.06        0.35    Wipro                                91633        211.76            0.51
Dividend Plan       Rs. 8.1193                 Fertilisers                                                                  Telecom - Services
                                               Tata Chemicals                    90814                139.40        0.34    Bharti Airtel *                     348003       2205.82            5.32
Fund Size                                      Finance                                                                      Reliance Communication              170509        290.21            0.70
                                               HDFC *                           103008               1582.98        3.82    Idea Cellular                       335489        157.68            0.38
Rs. 414.29 crores                              Power Finance Corporation        227488                312.80        0.76    Unlisted equity holdings
                                               IDFC                             471371                272.45        0.66    Quantum Information Services                          3.97          0.01
                                               Reliance Capital                  47463                199.80        0.48    GCI Solutions                                         0.05          0.00
Turnover                                       Gas                                                                          Numero Uno                                            0.01          0.00
Portfolio Turnover        271.73%              GAIL                             136064                265.53        0.64    Debt Holdings                       Rating    Market Value         % of
                                               Healthcare Services                                                                                                        (Rs. in Lakhs)      Assets
                                               Apollo Hospitals Enterprise       57498                233.67        0.56
Volatility Measures (3 years)                  Industrial Capital Goods                                                     Television Eighteen ZCB's             BBB-            26.66         0.06
Standard Deviation           9.99              L&T *                            182611               1258.56        3.04    Total equity holdings                           37819.35          91.29
                                               BHEL                              69509                917.83        2.22    Total debt holdings                                26.66           0.06
R-squared                    0.88              Bharat Electronics               101168                837.27        2.02    Other current assets                             3582.73           8.65
Beta                         0.99              Crompton Greaves                 320457                415.15        1.00    Total assets                                    41428.74         100.00
Sharpe Ratio*                -0.25
                                                                                                                                                                                     * Top 10 holdings
*Annualised. Risk-free rate assumed to be     Portfolio Composition and Performance
5.54% (based on 3 month T-Bill Rate "during
last 3 months")                                 Fund Manager ’s Commentary                                                  Sector Allocation - Total Assets
Expense Ratio                                  The fund’s equity exposure has decreased to 91.29%
2.30%                                          from 96.02%. Power Grid Corporation of India and
                                               Indian Oil Corporation were the new additions to the
Minimum Investment/                            portfolio. The fund also added to holdings in Power
Multiples for New Investors                    Finance Corporation, BPCL and NTPC, while paring
Rs.5000/1                                      exposures in ITC, SAIL, IDFC, L&T, Reliance Petroleum
                                               and Reliance Communication.
Additional Investment/
Multiples for Existing Investors
Rs.1000/1                                       NAV Performance
                                                                 Last         Last        Last     Last      Since
Load Structure
                                                               6 Months      1 Year     3 Years* 5 Years* Inception*
Entry Load: <Rs. 5 Crs : 2.25%;
             =>Rs.5 Crs: Nil                   FIOF (G)        -34.38% -50.46%              -3.16%     13.11%     5.59%
Exit Load: <Rs. 5 Crs : 1% if                  FIOF (D)        -34.38% -50.46%              -3.21%     13.07%     5.57%
            redeemed/ switched-out             BSE 200 #       -36.71% -50.36%              -4.00%     7.09%      -11.73%   Rs. 10000 invested at inception in FIOF & BSE 200
            within 6 months of
                                               Past performance may or may not be sustained in future.
            allotment; 0.5% if                                                                                                                                                            Rs. 16,265
                                               *Compounded and annualised. The scheme was launched as an open
            redeemed/switched out
                                               end sector equity scheme and has been repositioned in its new form with
            after 6 months, but                effect from March 10, 2004
            within 1 year of
            allotment
            =>Rs.5 Crs : 1% (if                SIP - If you had invested Rs. 1000 every month in FIOF...
            redeemed/switched-out                                                                                                                                                   Rs. 3,276
                                                           Rs.12,000      Rs.36,000          Rs.60,000 Rs.107,000
            within 6 months of                             for 1 year     for 3 years        for 5 years since inception
            allotment)                                     would have     would have         would have    would have
                                                            grown to       grown to           grown to      grown to
                                              FIOF           8,229            24,040           60,334           200,269                             ____ FIOF     ____ BSE 200#
                                                            -52.41%          -24.52%           0.22%            13.59%
                                              BSE 200#       8,210            24,639           56,511           130,250
                                                            -52.64%          -23.12%           -2.35%            4.33%
                                              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

                                                                                                                                                                                                         13
             Templeton India Equity Income Fund                                                                                                                                             TIEIF
                                              Portfolio
     As of January 30, 2009
                                               Company Name                             No. of       Market Value         % of         Company Name                                No. of   Market Value       % of
                                                                                        shares        Rs. Lakhs          Assets                                                    shares    Rs. Lakhs        Assets
     Investment Style
                                               Auto                                                                                    Industrial Products
     Templeton Equity Portfolio Managers       Ashok Leyland                             5967540           841.42          1.17        Shanghai Prime Machinery
     adopt a long term disciplined             Bajaj Auto                                 100000           473.90          0.66        Company (Hong Kong)               25000000              1327.22           1.84
                                               Banks                                                                                   Minerals/Mining
     approach of investing and use the
                                               Union Bank of India *                     3312462          4892.51          6.79        Anglo American PLC (South Africa)    35000               320.64           0.45
     value style of investing along with
                                               Hana Financial Group Inc. (Korea)          250000          2056.21          2.85        Non - Ferrous Metals
     focus on stocks with attractive           ICICI Bank                                 400000          1665.20          2.31        Hindalco                           3456680              1695.50           2.35
     dividend yields, both in India and        Cement                                                                                  Oil
     overseas.                                 Grasim                                     135333          1620.34          2.25        ONGC *                              760000              5002.32           6.94
                                               JK Cements                                2081802           825.43          1.15        Lukoil - ADR (Russia)               130000              2096.37           2.91
     Type of Scheme / Investment Objective     Siam City Cement (Thailand)                214700           388.14          0.54        Paper
                                               Construction                                                                            Tamilnadu Newsprint and Papers 1416229                   875.94           1.22
     An open end equity fund which seeks                                                                                               Ballarpur Industries               1743648               257.19           0.36
                                               Road King Infrastructure (Hong Kong)       466000            81.29          0.11
     to provide a combination of regular       Consumer Durables                                                                       Petroleum Products
     income and long-term capital              Samsung Heavy Industries (Korea) *         250000          2407.05          3.34        Reliance Industries *               180000              2385.36           3.31
     appreciation by investing primarily       Consumer Non Durables                                                                   Polski Koncern Naftowy
     in stocks that have a current or          EID Parry                                  750000          1077.38          1.50        Orlen SA (Poland)                   208100               649.03           0.90
     potentially attractive dividend yield.    Embotelladora Andina SA (Chile)            629579           626.79          0.87        Pharmaceuticals
                                               Ruchi Soya                                1012973           231.97          0.32        Ranbaxy                             107780               232.48           0.32
     Date of Allotment                         Uni-president China Holdings                                                            Retailing
                                               (Hong Kong)                                929000           136.80          0.19        Lotte Shopping (Korea)               30000              2035.78           2.83
     May 18, 2006                              Gruma SA (Mexico)                            2402             0.52          0.00        Massmart Holdings (South Africa)    500000              1982.26           2.75
                                               Ferrous Metals                                                                          Freeworld Coatings (South Africa) 4000000               1250.43           1.74
     Fund Manager                              SAIL *                                    3877497          3210.57          4.46        Semiconductors
                                               Sesa Goa *                                3413133          2892.63          4.01        United Microelectronics
     Dr. J. Mark Mobius assisted by                                                                                                    Corporation (Taiwan)              17484933              1860.74           2.58
                                               Ternium SA ADR (Argentina)                  90600           462.28          0.64
     Chetan Sehgal (since May 2006)                                                                                                    Novatek Microelectronics
                                               Tata Steel                                 161172           297.60          0.41
     Vikas Chiranwal (since Aug. 2006)         Tata Steel (CCPS#)                        2093214           975.13          1.35        Corporation (Taiwan)               1211068               613.59           0.85
     Latest NAV                                Fertilisers                                                                             Software
                                               Tata Chemicals *                          1850000          2839.75          3.94        Travelsky Technology (HongKong) 5556000                 1074.51           1.49
     Growth Plan              Rs. 8.5121       Finance                                                                                 TCS                                 121000               619.46           0.86
                                               Sundaram Finance *                        1588726          2780.27          3.86        Infosys                              27256               355.83           0.49
     Dividend Plan            Rs. 7.3323       Tata Investment Corporation *             1030151          2289.00          3.18        Telecom - Services
                                               IS Yatirim Menkul Degerler AS (Turkey)    2000000           502.43          0.70        Bharti Airtel *                     510000              3232.64           4.49
     Fund Size                                                                                                                         Idea Cellular                      2000000               940.00           1.30
                                               Korea Information Service Inc. (Korea)     100000           483.19          0.67
                                               Gas                                                                                     America Movil SA L ADR (Mexico)      50000               701.89           0.97
     Rs. 720.49 crores
                                               GAIL                                       525000          1024.54          1.42        Transportation
     Turnover                                  Gujarat Gas                                266942           624.64          0.87        GE Shipping                         573765               982.29           1.36
                                               Hardware                                                                                Shipping Corporation of India       914878               792.28           1.10
     Portfolio Turnover       32.40%           HCL Infosystems                           1234112          1095.27          1.52        Sinotrans (HongKong)               4208000               335.10           0.47
                                               Industrial Capital Goods                                                                Total equity holdings                                  69242.70        96.10
     Expense Ratio                             Chongqing Machinery and                                                                 Other current assets                                    2806.67         3.90
                                               Electric Company (HongKong)              20000000           821.61          1.14        Total assets                                           72049.38       100.00
     2.17%
                                                                                                                                      # Cumulative Convertible Preference Shares                         * Top 10 holdings
     Minimum Investment/Multiples for
     New Investors                            Portfolio Composition and Performance
     Rs.5000/1                                  Fund Manager ’s Commentary                                                              Sector Allocation - Total Assets
     Additional Investment/Multiples for        The fund’s equity exposure has marginally increased
     Existing Investors                         from 95.33% to 96.10% over the month. The fund
     Rs.1000/1                                  added to its holdings in Sesa Goa and Tata Chemicals
                                                and reduced exposure in SAIL. We will continue to
     Load Structure
                                                closely scan the investment universe for both domestic
     Entry:             <Rs. 5 Crs : 2.25%;     & overseas opportunities.
                        =>Rs.5 Crs: Nil

     Exit:              <Rs. 5 Crs :1% if
                         redeemed/              NAV Performance
                         switched-out
                         within 6 months                        Last            Last     Last                Last     Since
                         of allotment;0.5%                    1 Month         3 Months 6 Months             1 Year Inception*
                         if redeemed/
                         switched out after    TIEIF (G)       -3.46%          -3.63%         -40.76%      -44.25% -5.78%
                         6 months, but         TIEIF (D)       -3.46%          -3.63%         -40.76%      -44.20% -5.75%               Rs. 10000 invested at inception in TIEIF & BSE 200
                         within 1 year of
                                               BSE 200         -4.28%          -3.37%         -36.71%      -50.36% -8.49%
                         allotment
                         =>Rs.5 Crs : 1%       Past performance may or may not be sustained in future.
                         (if redeemed/        *Compounded and annualised                Dividends declared assumed to be reinvested
                         switched-out
                         within 6 months
                         of allotment)
                                                SIP - If you had invested Rs. 1000 every month in TIEIF...

                                                                        Rs.12,000                          Rs.33,000
                                                                        for 1 year                       since inception
                                                                        would have                         would have
                                                                         grown to                           grown to
                                               TIEIF               8,181                         22,881
                                                                                                                                                           ____ TIEIF Rs. 8,512 ____ BSE 200 Rs. 7,866
                                                                  -52.99%                       -24.11%
                                               BSE 200             8,210                         22,201
                                                                  -52.64%                       -25.94%
                                               Past performance may or may not be sustained in future.
                                               Load is not taken into consideration.

14
     Franklin India Taxshield                                                                                                                                                   FIT
                                              Portfolio
As of January 30, 2009
                                               Company Name                   No. of       Market Value          % of         Company Name                   No. of    Market Value       % of
                                                                              shares        Rs. Lakhs           Assets                                       shares     Rs. Lakhs        Assets
Investment Style
                                               Auto                                                                           Industrial Products
The fund manager seeks steady                  Hero Honda                      124415          1091.06           2.95         Cummins India                  375000        631.31         1.71
growth by maintaining a diversified            Maruti Suzuki                    70000           399.70           1.08         Media & Entertainment
portfolio of equities across sectors
                                               Banks                                                                          IBN18 Broadcast                465200        354.72         0.96
and market cap ranges.
                                               HDFC Bank *                     197500          1826.09           4.94         Television Eighteen            315818        236.39         0.64
Type of Scheme / Investment Objective          ICICI Bank *                    300000          1248.90           3.38         UTV Software Communications     70000        180.50         0.49
An open end equity linked savings              Axis Bank                       221997           961.25           2.60         Minerals/Mining
scheme which aims to provide                   SBI                              67500           777.74           2.11         Gujarat Mineral
medium to long term growth of                  Kotak Mahindra Bank             247800           702.51           1.90         Development Corporation         400000       164.20         0.44
capital along with income tax rebate.          Federal Bank                    300000           420.15           1.14         Petroleum Products
Date of Allotment                              Cement                                                                         Reliance Industries *          198500      2630.52          7.12
                                               Grasim                           65000           778.25           2.11         Pharmaceuticals
April 10, 1999                                 Birla Corporation               150000           210.60           0.57         Sun Pharmaceutical              70000        751.42         2.03
Fund Manager                                   Chemicals                                                                      Lupin Labs                     130000        740.87         2.01
                                               Pidilite                        689394           666.30           1.80         Dr. Reddy's                     80000        360.92         0.98
Anand Radhakrishnan (since Apr. 2007)
                                               Consumer Non Durables                                                          Retailing
Latest NAV
                                               Nestle *               105000                   1539.77           4.17         Pantaloon Retail                100000       161.70         0.44
Growth Plan            Rs. 94.8744             Hindustan Unilever *   550000                   1436.60           3.89         Software
Dividend Plan          Rs. 17.1391             Marico *              1965000                   1140.68           3.09         Infosys *                      160000      2088.80          5.66
                                               Dabur                  900000                    792.00           2.14         TCS                            120000       614.34          1.66
Fund Size                                      Asian Paints            75000                    588.79           1.59         Satyam Computer                260000       140.53          0.38
Rs. 369.37 crores                              Britannia Industries    32737                    454.59           1.23         Telecom - Services
                                               United Spirits          50000                    295.98           0.80         Bharti Airtel *                 400000     2535.40          6.86
Turnover                                       Shaw Wallace           140000                    187.67           0.51         Idea Cellular                  1250000      587.50          1.59
Portfolio Turnover           62.50%            Finance                                                                        Transportation
                                               HDFC *                          124000          1905.57           5.16         GE Shipping                    225000        385.20         1.04
Volatility Measures (3 years)
                                               IDFC                            978812           565.75           1.53
                                                                                                                              Unlisted equity holdings
Standard Deviation           8.26              Industrial Capital Goods
R-squared                    0.91                                                                                             Pantaloon Retail                              13.74         0.04
                                               BHEL *                          150000          1980.68           5.36         Quantum Information Services                   0.31         0.00
Beta                         0.82
Sharpe Ratio*                -0.32             L&T                             160000          1102.72           2.99
                                               ABB                             152000           729.30           1.97         Total equity holdings                     34867.96         94.40
*Annualised. Risk-free rate assumed to be      Areva T&D India                 223930           411.02           1.11         Other current assets                        2069.19          5.60
5.54% (based on 3 month T-Bill Rate "during
last 3 months")                                Bharat Bijlee                    16788            75.95           0.21         Total assets                              36937.16        100.00

Expense Ratio                                                                                                                                                                   * Top 10 holdings

2.32%                                         Portfolio Composition and Performance
Minimum Investment/                             Fund Manager ’s Commentary                                                     Sector Allocation - Total Assets
Multiples for New Investors
                                                The fund’s equity exposure has marginally increased
Rs.500/500
                                                from 93.64% to 94.40% over the month. The fund
Additional Investment/                          added to its holdings in HDFC Bank and Marico.
Multiples for Existing Investors

Rs.500/500

Load Structure

Entry Load          2.25%
                                                NAV Performance
Exit Load           NIL                                           Last        Last         Last     Last      Since
Tax Benefits                                                    6 Months     1 Year      3 Years* 5 Years* Inception*

Investments will qualify for tax               FIT (G)          -28.41%     -43.79%      -3.73% 14.00% 25.76%
benefit under the Section 80C as per           FIT (D)          -28.41%     -43.79%      -3.73% 14.00% 25.76%
the income tax act.
                                               S&P CNX 500 -36.09%          -49.21%      -5.12%      8.63%      12.51%
                                               Past performance may or may not be sustained in future.
                                              *Compounded and annualised        Dividends declared assumed to be reinvested

                                                                                                                               Rs. 10000 invested at inception in FIT & S&P CNX 500

                                                                                                                                                                                      Rs. 94,874
                                                SIP - If you had invested Rs. 1000 every month in FIT...

                                                           Rs.12,000       Rs.36,000       Rs.60,000 Rs.118,000
                                                           for 1 year      for 3 years     for 5 years since inception
                                                           would have      would have      would have    would have
                                                            grown to        grown to        grown to      grown to
                                               FIT           8,818           26,573          62,731           319,898
                                                            -45.09%         -18.75%          1.75%            19.29%                                                            Rs. 31,818
                                               S&P           8,352           24,621          56,169           207,232
                                               CNX 500      -50.91%         -23.17%          -2.59%           11.04%
                                               Past performance may or may not be sustained in future.                                              ____ FIT ____ S&P CNX 500
                                               Load is not taken into consideration.

                                                                                                                                                                                                    15
            Franklin India Index Fund                                                                                                                                                                                    FIIF
                                                                 Portfolio
     As of January 30, 2009
                                                                                             No. of     Market    % of                                     No. of     Market    % of                                     No. of    Market    % of
     Investment Style                                            Company Name                shares      Value   Assets         Company Name               shares     Value    Assets          Company Name              shares     Value   Assets
                                                                                                       Rs. Lakhs                                                     Rs. Lakhs                                                    Rs. Lakhs
     The fund manager follows a passive style of
     equity investing                                            NSE NIFTY PLAN                                                  Cipla                     29196      56.04    0.82            ICICI Bank                42705    177.78     6.79
                                                                 Reliance Industries       59442       786.77 11.50              Idea Cellular            116902      54.94    0.80            Bharti Airtel             25477    161.49     6.17
     Type of Scheme / Investment Objective
                                                                 NTPC                     311163       590.12 8.63               BPCL                      13675      53.60    0.78            HDFC                       9278    142.58     5.44
     An open end equity index fund which aims                    ONGC                      80788       529.12 7.74               Reliance Energy            8807      51.34    0.75            L&T                       20191    139.16     5.31
     to provide returns that, before expenses,                   Bharti Airtel             71734       454.76 6.65               Tata Steel                27568      50.89    0.74            HDFC Bank                 13844    128.00     4.89
     closely correspond to the total return of                   Infosys                   21616       282.45 4.13               VSNL                      10781      48.84    0.71            SBI                       10963    126.32     4.82
     common stocks as represented by the S&P                     SBI                       23953       275.70 4.03               NALCO                     24389      48.55    0.71            Hindustan Unilever        41827    109.25     4.17
     CNX Nifty Index under the ‘Nifty’ Plan and                  ITC                      142518       256.67 3.75               Punjab National Bank      12030      48.19    0.70            ONGC                      16407    107.99     4.12
     BSE Sensex under the ‘BSE Sensex’ Plan.                     BHEL                      18510       244.48 3.57               Grasim                     3454      41.30    0.60            NTPC                      47521     90.05     3.44
                                                                 Hindustan Lever           82238       215.18 3.15               Gujarat Ambuja Cements    57924      41.04    0.60            BHEL                       6580     86.89     3.32
     Date of Allotment
                                                                 TCS                       36998       189.28 2.77               Reliance Capital           9310      39.19    0.57            TCS                        9350     47.87     1.83
     NSE Nifty Plan              August 4, 2000                                                                                  ABB                        7931      38.48    0.56
                                                                 ICICI Bank                42002       174.83 2.56                                                                             Reliance Communication    27664     47.08     1.80
     BSE Sensex Plan             August 27, 2001                 HDFC                      10724       164.25 2.40               ACC                        7046      35.68    0.52            Tata Power                 5964     45.41     1.73
     Fund Managers                                               L&T                       22152       152.90 2.24               Ranbaxy                   15642      33.76    0.49            Tata Steel                19682     36.34     1.39
     Sukumar Rajah /                                             HDFC Bank                 16087       148.90 2.18               Hindalco                  64819      31.73    0.46            Sun Pharmaceutical         3161     33.93     1.30
     Anil Prabhudas (Since Mar. 2004)                            Reliance Petroleum       170418       147.16 2.15               Mahindra & Mahindra        9770      29.53    0.43            Reliance Energy            5676     33.05     1.26
                                                                 Power Grid Corporation                                          HCL Tech.                 25179      29.23    0.43            Maruti Suzuki              5531     31.58     1.21
     Latest NAV                                                                                                                  Suzlon Energy             56603      26.74    0.39
                                                                 of India                 158704       140.06       2.05                                                                       Grasim                     2636     31.56     1.21
     BSE Sensex Plan                                             Reliance Communication    78222       133.02       1.94         Siemens                   12751      26.31    0.38            Sterlite                  10916     30.15     1.15
     Growth Plan                 Rs. 26.6341                     SAIL                     156546       130.01       1.90         Tata Motors               17196      25.73    0.38            Wipro                     11294     26.10     1.00
     Dividend Plan               Rs. 26.6341                     Wipro                     55238       127.90       1.87         Unitech                   61483      19.77    0.29            Hindalco                  45690     22.41     0.86
                                                                 Cairn India               71855       118.31       1.73         Zee Entertainment                                             Mahindra & Mahindra        7377     22.18     0.85
     NSE Nifty Plan
                                                                 DLF                       64325       114.27       1.67         Enterprises              16323       18.01    0.26            Jaiprakash Associates     27141     20.70     0.79
     Growth Plan                 Rs. 22.6623
                                                                 Reliance Power            90902        96.72       1.41         Total equity holdings              6766.71 98.94
     Dividend Plan               Rs. 22.6623                                                                                                                                                   ACC                        3978     20.08     0.77
                                                                 GAIL                      48132        94.00       1.37         Other current assets                 72.57   1.06
                                                                                                                                                                                               DLF                        9774     17.32     0.66
     Fund Size                                                   Sun Pharmaceutical         7835        84.18       1.23         Total assets                       6839.28 100.00
                                                                                                                                                                                               Tata Motors               11247     16.83     0.64
     BSE Sensex Plan             Rs. 26.19 crores                Sterlite                  26742        73.69       1.08         BSE SENSEX PLAN                                               Ranbaxy                    6475     13.97     0.53
     NSE Nifty Plan              Rs. 68.39 crores                Hero Honda                 7570        66.38       0.97         Reliance Industries  30192 400.10 15.28                       Total equity holdings              2592.17 98.98
     Expense Ratio                                               Tata Power                 8422        64.25       0.94         Infosys              18679 243.85 9.31                        Other current assets                 26.61   1.02
     BSE Sensex Plan             1.00%                           Maruti Suzuki             10987        62.44       0.91         ITC                 101360 182.14 6.96                        Total assets                       2618.78 100.00
     NSE Nifty Plan              1.00%
     Minimum Investment/
                                                                 Performance
     Multiples for New Investors
     Rs.5000/1
                                                                     NAV Performance                                                                            Rs. 10000 invested at inception in FIIF - NSE Nifty Plan
     Additional Investment/                                                            Last    Last    Last     Last      Since Tracking                                                                                  Rs. 22,662
     Multiples for Existing Investors                                                6 Months 1 Year 3 Years* 5 Years* Inception* Error**
     Rs.1000/1                                                      FIIF - Nifty Plan -33.83% -44.16% -1.58% 10.42% 10.11%                     1.02%
     Load Structure                                                 S&P CNX Nifty -33.65% -44.04% -1.42%                   9.69%     9.61%         -
     Entry Load                  NIL                                FIIF - BSE Plan -34.23% -46.11% -1.74%                 9.99% 14.09%        0.94%
     Exit Load                   1% (if redeemed
                                                                    BSE Sensex       -34.35% -46.60% -1.69% 10.58% 15.08%                          -
                                 within 30 days from
                                 date of allotment)                Past performance may or may not be sustained in future.
                                                                  *Compounded and annualised ** For 1 year period.




            Franklin Infotech Fund                                                                                                                                                                                            FIF
     As of January 30, 2009                                      Portfolio                                                                                    Portfolio Composition and Performance
     Investment Style                                             Company Name                   No. of shares      Market Value Rs. Lakhs % of Assets
     The fund manager seeks growth of capital by focusing                                                                                                           NAV Performance
     on companies in the information technology sector            Infosys                             320000               4177.60            59.48
                                                                                                                                                                                        Last        Last         Last         Last       Since
     Type of Scheme / Investment Objective                        TCS                                 210000               1075.10            15.31
                                                                                                                                                                                  6 Months         1 Year     3 Years*     5 Years* Inception*
     An open end equity sector fund which seeks to provide        Wipro                               260000               600.86             8.56
     long term capital appreciation by investing primarily in     Patni Computer Systems              180000               220.05             3.13              FIF (G)            -36.59%        -37.51%     -15.86%       4.00%       16.01%
     Information Technology industry.                             Infotech Enterprises                230000               201.02             2.86              FIF (D)            -36.59%        -37.51%     -15.85%       4.00%       16.01%
     Date of Allotment:       August 22, 1998                     Satyam Computer                     370000               199.99             2.85
     Fund Manager:            Anand Radhakrishnan                                                                                                               BSE IT Index       -39.38%        -39.72%     -15.82%       3.56%          N.A
                                                                  Eclerx Services                      81435                78.22             1.11
                              (since March 07)                                                                                                                 Past performance may or may not be sustained in future.
                              Murali Yerram (Since July 08)       Mastek                               40000                57.36             0.82
                                                                                                                                                              *Compounded and annualised
     Latest NAV                                                   Firstsource Solutions               400000                46.04             0.66            Dividends/Bonus declared assumed to be reinvested
     Growth Plan              Rs. 23.5904                         Financial Technologies               7100                 33.99             0.48
     Dividend Plan            Rs. 8.1796                          KPIT Cummins Infosystems            150000                33.23             0.47              Fund Manager ’s Commentary
     Fund Size               Rs. 70.23 crores                     Allsec Technologies                  76822                16.44             0.23
     Turnover                                                     Unlisted equity holdings                                                                      The fund’s equity exposure has decreased to 95.97%
     Portfolio Turnover              7.62%                        GCI Solutions                                              0.10              0.00
     Volatility Measures (3 years)                                                                                                                              from 97.20%. The fund exited from Tech Mahindra.
     Standard Deviation      8.33                                 Total equity holdings                                    6739.98             95.97
                                        *Annualised. Risk-free
     R-squared               0.93       rate assumed to be        Other current assets                                      283.39             4.03
     Beta                    0.92       5.54% (based on 3         Total assets                                             7023.37            100.00            Rs. 10000 invested at inception in FIF
     Sharpe Ratio*           -0.74      month T-Bill Rate
     Expense Ratio           2.50% "during last 3 months")                                                                                                                                                               Rs. 47,187
     Minimum Investment/
     Multiples for New Investors                Rs.5000/1           SIP - If you had invested Rs. 1000 every month in FIF...
     Additional Investment/
                                                                                  Rs.12,000           Rs.36,000        Rs.60,000         Rs.126,000
     Multiples for Existing Investors           Rs.1000/1
                                                                                  for 1 year          for 3 years      for 5 years      since inception
     Load Structure                                                               would have          would have       would have         would have
     Entry Load <Rs. 5 Crs : 2.25%; =>Rs.5 Crs: Nil                                grown to            grown to         grown to           grown to
     Exit Load <Rs. 5 Crs :1% if redeemed/switched-                FIF              8,216              20,454              43,193          166,342
                   out within 6 months of allotment;
                                                                                   -52.56%             -33.43%             -12.81%           5.16%
                   0.5% if redeemed/ switched out after
                   6 months, but within 1 year of                  BSE IT Index     7,850              19,912              42,422            N.A
                   allotment =>Rs.5 Crs : 1% (if                                   -56.91%             -34.87%             -13.50%           N.A                     NAV is adjusted for Bonus
                   redeemed /switched-out within 6
                                                                   Past performance may or may not be sustained in future.
                   months of allotment)
                                                                   Load is not taken into consideration.
16
      Franklin Pharma Fund                                                                                                                                                                                         FPF
As of January 30, 2009
                                                             Portfolio                                                                                   Portfolio Composition and Performance
Investment Style                                             Company Name                         No. of            Market Value           % of
                                                                                                  shares             Rs. Lakhs            Assets
                                                                                                                                                            NAV Performance
The fund manager seeks to achieve long term capital
appreciation by focusing on companies in                     Lupin Labs                             55000               313.45               9.10                          Last           Last          Last     Last      Since
Pharmaceutical / Life Sciences sector                        Cipla                                 150000               288.00               8.36                        6 Months        1 Year       3 Years* 5 Years* Inception*
Type of Scheme / Investment Objective                        GSK Pharmaceuticals                    24569               286.43               8.32
                                                             Cadila Healthcare                     112623               280.88               8.15         FPF (G)         -25.06%       -17.02%       -7.21%       5.60%         8.03%
An open end equity sector fund which seeks to provide        Nicholas Piramal                      116607               248.43               7.21
long term capital appreciation by investing primarily
                                                                                                                                                          FPF (D)         -25.06%       -17.02%       -7.22%       5.60%         8.03%
                                                             Dr. Reddy's                            55000               248.13               7.20
in shares of companies operating in Pharmaceutical/          Apollo Hospitals Enterprise            59535               241.95               7.02         ET Pharma -35.52%             -24.46%       -6.64%       3.06%         6.90%
Life Sciences industry                                       Pfizer                                 41340               216.62               6.29
Date of Allotment           March 31, 1999                   Sun Pharmaceutical                     20000               214.69               6.23         Past performance may or may not be sustained in future.
Fund Manager                Anand Radhakrishnan              IPCA Labs                              53000               183.88               5.34        *Compounded and annualised         Dividends declared assumed to be reinvested
                            (since April 2007)               Torrent Pharmaceuticals                95945               126.74               3.68
Latest NAV                                                   Aurobindo Pharmaceuticals              75253               120.37               3.49
Growth Plan             Rs. 21.3938                          Jubilant Organosys                     72986                88.06               2.56           Fund Manager ’s Commentary
Dividend Plan           Rs. 11.3215                          Dishman Pharmaceuticals &
                                                             Chemicals                              75444                84.42               2.45           The fund’s equity exposure has increased to 91.58%
Fund Size               Rs. 34.45 crores
                                                             Fulford                                16310                57.57               1.67           from 89.01%. The fund pared exposures in Lupin Labs
Portfolio turnover           47.88%                          Sun Pharma Advanced                                                                            and added to holdings in Cipla and GSK
Volatility Measures (3 years)                                Research Company                      107481                51.32               1.49
                                                             Fortis Healthcare                      50000                32.65               0.95
                                                                                                                                                            Pharmaceuticals.
Standard Deviation 7.47
R-squared             0.79                                   Venus Remedies                         12000                23.65               0.69
Beta                  0.79
                                   *Annualised. Risk-free    Carnation Nutra-analogue Food          30032                22.43               0.65          Rs. 10000 invested at inception in FPF & ET Pharma
                                   rate assumed to be
Sharpe Ratio*         -0.49                                  Indoco Remedies                        17000                19.86               0.58
                                   5.54% (based on 3
                                   month T-Bill Rate         NPIL Research & Development            15671                 5.14               0.15
Expense Ratio         2.50%
                                   "during last 3 months")   Total equity holdings                                    3154.68             91.58
Minimum Investment/
Multiples for New Investors                                  Other current assets                                      289.96              8.42
                                                             Total assets                                             3444.64            100.00
Rs.5000/1
Additional Investment/
Multiples for Existing Investors                              SIP - If you had invested Rs. 1000 every month in FPF...

Rs.1000/1                                                                  Rs.12,000        Rs.36,000             Rs.60,000          Rs.118,000
Load Structure                                                              for 1 year         for 3 years        for 5 years        since inception
Entry Load <Rs. 5 Crs : 2.25%; =>Rs.5 Crs: Nil                              would have         would have         would have           would have
                                                                             grown to           grown to           grown to             grown to
Exit Load <Rs. 5 Crs :1% if redeemed/switched-
           out within 6 months of allotment;                 FPF              9,841              28,074              54,950            180,123
           0.5% if redeemed/ switched out after                              -31.55%            -15.50%              -3.45%             8.34%
           6 months, but within 1 year of
                                                             ET Pharma        8,801              26,261              51,547            164,105
           allotment =>Rs.5 Crs : 1% (if                                                                                                                            ____ FPF   Rs. 21,394            ____ ET Pharma    Rs. 19,285
           redeemed /switched-out within 6                                   -45.31%            -19.44%              -5.95%             6.53%
           months of allotment)                              Past performance may or may not be sustained in future.
                                                             Load is not taken into consideration.




      FT India Life Stage Fund of Funds                                                                                                                                                                     FTLF
                                                             Portfolio Composition and Performance
As of January 30, 2009
Investment Style
                                                              How does the scheme work?                                                                   NAV Performance
The fund managers maintain the allocation to the
underlying schemes by rebalancing the portfolio                                                                                                                                  Last    Last     Last      Last      Since
once in 6 months to the steady state levels.                 The scheme invests in a combination of Franklin Templeton
                                                             India’s equity and income schemes, with a steady state                                                            6 Months 1 Year 3 Years** 5 Years** Inception**
Moreover, based on market conditions, the
portfolio managers can make a tactical allocation of         allocation as shown below. The debt and equity allocation is                                The 20s Plan          -23.42% -35.33% -0.24%             11.06%       12.55%
                                                             automatically rebalanced every 6 months to revert to the steady
10% on either side of the steady state asset                                                                                                             Benchmark*            -27.00% -38.17%          0.15%      9.82%       11.29%
allocation.                                                  state levels.
                                                                                                                                                         The 30s Plan          -14.18% -24.68%          1.83%      9.08%       10.12%
Type of Scheme / Investment Objective
An open end fund of funds which seeks to generate
                                                                                                                                                         Benchmark*            -16.70% -25.69%          2.72%      8.79%        9.82%
                                                              FTLF ’s Investment Strategy
superior risk adjusted returns to investors in line                                                                                                      The 40s Plan          -11.23% -19.09%          1.96%      6.78%        7.49%
with their chosen asset allocation.                          Steady State Asset Allocation                                                               Benchmark*            -7.95% -14.71%           4.26%      7.53%        8.23%
Date of Allotment                                                                                            Underlying schemes
                                                                                 Equity Debt                                                             The 50s Plus Plan     -5.09% -11.61%           3.56%      5.23%        5.69%
December 1, 2003                                                                                 FIBCF       FIPF     TIGF    TIIF     TIIBA TFIF(LT)
July 9, 2004     (The 50s Plus                                                                                                                           Benchmark*            -0.88%       -5.48%      5.45%      6.51%        6.93%
                                                             The 20s Plan        80%     20%     50%         15%      15%     10%      10% -
                 Floating Rate Plan)                         The 30s Plan        55%     45%     35%         10%      10%     25%      20% -             The 50s Plus
Fund Managers                                                The 40s Plan        35%     65%     15%         10%      10%     35%      30% -             Floating Rate Plan -2.50%          -3.03%      6.85%         N.A       9.06%
Sukumar Rajah (since December 2003)                          The 50s Plus Plan   20%     80%     10%          0%      10%     40%      40% -             Benchmark*            -3.71%       -4.36%      6.34%         N.A       8.80%
Sachin Padwal-Desai (since August 2006)                      The 50s Floating
Pallab Roy (since June 2008)                                 Rate Plan           20% 80%          10%        0%       10%     0%        0% 80%          Past performance may or may not be sustained in future.
Expense Ratio                                                                                                                                           *Benchmark: The 20s Plan - 65% BSE Sensex + 15% S&P CNX 500 + 20% Crisil
The 20s Plan:            0.75%                                Fund Size                                                                                 Composite Bond Fund Index; The 30s Plan - 45% BSE Sensex + 10% S&P CNX 500 +
The 30s Plan:            0.75%                                                                                                                          45% Crisil Composite Bond Fund Index; The 40s Plan - 25% BSE Sensex + 10% S&P
The 40s Plan:            0.50%                               The   20s   Plan:                                        Rs.10.78 crores                   CNX 500 + 65% Crisil Composite Bond Fund Index; The 50s Plus Plan - 20% BSE
The 50s Plus Plan:       0.25%                               The   30s   Plan:                                        Rs. 8.27 crores                   Sensex+ 80% Crisil Composite Bond Fund Index; The 50s Plus Floating Rate Plan - 20%
The 50s Plus Floating                                        The   40s   Plan:                                        Rs.11.35 crores                   BSE Sensex + 80% Crisil Liquid Fund Index.
Rate Plan                0.25%                               The   50s   Plus Plan:                                   Rs.10.54 crores
Minimum Investment/                                          The   50s   Plus Floating Rate Plan                      Rs.94.39 crores
Multiples for New Investors                                                                                                                               Latest NAV
Rs.5000/1
                                                              Load Structure                                                                                                                    Growth                  Dividend
Additional Investment/
Multiples for Existing Investors                                                                               Entry Load         Exit Load              The 20s Plan                        Rs.   18.4301            Rs.   18.4301
Rs.1000/1                                                    The   20s   Plan:                                      2.00%             Nil                The 30s Plan                        Rs.   16.4592            Rs.   16.4592
Minimum Investment for Systematic Investment                 The   30s   Plan:                                      1.50%             Nil                The 40s Plan                        Rs.   14.5274            Rs.   11.9379
Plan                                                         The   40s   Plan:                                      1.00%             Nil                The 50s Plus Plan                   Rs.   13.3139            Rs.   10.1158
Minimum of 12 cheques of Rs. 2000 or more each               The   50s   Plus Plan:                                 0.50%             Nil                The 50s Plus Floating
Minimum of 6 cheques of Rs. 4000 or more each                The   50s   Plus Floating Rate Plan:                   0.50%             Nil                Rate Plan                           Rs. 14.8569              Rs. 11.1499

                                                                                                                                                                                                                                              17
          FT India Balanced Fund                                                                                                                            FTIBF
                                             Portfolio
     As of January 30, 2009
                                              Company Name                    No. of     Market Value       % of    Company Name                      No. of    Market Value        % of
     Investment Style                                                         shares      Rs. Lakhs        Assets                                     shares     Rs. Lakhs         Assets

     The fund manager seeks to strike an      Auto                                                                  Petroleum Products
     optimum balance between growth           Hero Honda *                      80461         705.60        3.37    Reliance Industries *              80868      1071.66           5.12
     and stability, by maintaining a          Mahindra & Mahindra               45000         135.27        0.65    BPCL                               63036       246.91           1.18
     diversified portfolio of equities and    Banks                                                                 Reliance Petroleum                255851       221.06           1.06
     managing interest rate movements         HDFC Bank *                     110593        1022.54         4.88    Pharmaceuticals
     and credit risk on the fixed income      Kotak Mahindra Bank             196301         556.51         2.66    Sun Pharmaceutical                 20000        214.69          1.02
     component                                ICICI Bank                      120417         501.30         2.39    Lupin Labs                         25000        142.48          0.68
                                              Cement                                                                Cipla                              73490        141.10          0.67
                                              Grasim                            51162         612.56        2.92    Merck                              39529        122.01          0.58
     Type of Scheme / Investment Objective    Shree Cements                     57826         287.86        1.37    Software
                                              ACC                               32525         164.20        0.78    Infosys *                          83890      1095.18           5.23
     An open end balanced fund which
     seeks to provide long term growth of     Construction                                                          Satyam Computer                   128582        69.50           0.33
     capital and current income               Maytas Infra                       1549            1.15       0.01    Telecom - Services
                                              Consumer Non Durables                                                 Bharti Airtel *                   178700      1132.69           5.41
                                              Marico                          830197          481.93        2.30    Idea Cellular                     127344        59.85           0.29
     Date of Allotment                        Nestle                           30869          452.68        2.16    Transportation
                                              Asian Paints                     26000          204.11        0.97    GE Shipping                       116855        200.06          0.96
     December 10, 1999
                                              Dabur                           158922          139.85        0.67
                                                                                                                    Unlisted equity holdings
                                              Britannia Industries              2272           31.55        0.15
                                                                                                                    Globsyn Tech.                                      0.03         0.00
     Fund Managers                            Ferrous Metals
                                              Tata Steel                        20000          36.93        0.18    Debt Holdings                      Rating   Market Value       % of
     Anand Radhakrishnan (since Dec. 2006)                                                                                                                      (Rs. in Lakhs)     Assets
                                              Finance
     Sachin Padwal-Desai (since Aug. 2006)    HDFC *                           66288        1018.68         4.86    LIC Housing Finance *               AAA       1529.03           7.30
     Vivek Ahuja (since June 2008)            IDFC                            197000         113.87         0.54    Rural Electrification Corporation * AAA       2005.72           4.95
                                              Future Capital Holdings            947           1.35         0.01    Investment Vehicle For
     Latest NAV                               Industrial Capital Goods                                              Structured Transactions SR.A3 * AAA (SO)        795.86          3.80
                                              BHEL *                           59771          789.25        3.77    Investment Vehicle for
     Growth Plan      Rs. 27.9908             L&T                              94746          652.99        3.12    Structured Transactions SR.A3X AAA (SO)         699.85          3.34
     Dividend Plan Rs. 15.3656                ABB                             100857          483.91        2.31    Nabard                              AAA         505.97          2.42
                                              Siemens                          50596          104.96        0.50    Indian Railway Finance
     Fund Size                                Industrial Products                                                   Corporation                         AAA         990.71          2.40
                                              Cummins India                   130795          220.19        1.05    EXIM Bank                           AAA         255.97          1.22
     Rs. 209.48 crores                        Media & Entertainment                                                 Citibank NA                         AA+         205.42          0.98
                                              IBN18 Broadcast                 123600           94.25        0.45    Power Grid Corporation              AAA         147.70          0.71
     Bond Portfolio                           Television Eighteen              91627           68.58        0.33    Reliance Capital                    A1+          98.34          0.47
                                              Non - Ferrous Metals                                                  Total equity holdings                        13850.19         66.12
     Average maturity      2.88 years         Sterlite                          55000         151.91        0.73    Total debt holdings                           7234.58         34.54
     Yield to maturity     8.70%              Oil                                                                   Other current assets                          -137.04         -0.65
                                              ONGC                              15040          98.99        0.47    Total assets                                 20947.73        100.00
     Expense Ratio
                                                                                                                                                                          * Top 10 holdings
     2.37%
                                             Portfolio Composition and Performance
     Minimum Investment/
     Multiples for New Investors               Fund Manager ’s Commentary                                            Sector Allocation - Equity Holdings
     Rs.5000/1                                 The fund’s equity exposure increased from 62.65% to
                                               66.12% during the month, while debt allocation
     Additional Investment/                    decreased to 34.54% from 36.85%. The fund added
     Multiples for Existing Investors          Asian Paints and Cipla to the equity portfolio and
                                               exited from India Infoline.
     Rs.1000/1

     Load Structure

     Entry Load       <Rs. 5 Crs : 2.25%;      NAV Performance
                      =>Rs.5 Crs: Nil                             Last    Last    Last     Last      Since
                                                                6 Months 1 Year 3 Years* 5 Years* Inception*
     Exit Load        <Rs. 5 Crs :1% if
                      redeemed/               FTIBF (G)         -19.98% -33.21% 3.05%          11.63%      11.91%
                      switched-out within     FTIBF (D)         -19.98% -33.21% 3.04%          11.63%      11.91%
                      6 months of
                      allotment; 0.5% if      Crisil Balanced                                                        SIP - If you had invested Rs. 1000 every month in FTIBF...
                                              Fund Index        -20.04% -28.25% 2.09%           8.48%       N.A
                      redeemed/ switched
                      out after 6 months,                                                                                             Rs.12,000 Rs.36,000 Rs.60,000 Rs.109,000
                                             Past performance may or may not be sustained in future. *Compounded
                      but within 1 year of                                                                                            for 1 year for 3 years for 5 years since inception
                                             and annualised Dividends declared assumed to be reinvested.
                      allotment                                                                                                       would have would have would have would have
                      =>Rs.5 Crs : 1%                                                                                                  grown to   grown to    grown to      grown to
                      (if redeemed                                                                                  FTIBF               9,686         30,453     66,635          215,597
                      /switched-out within                                                                                             -33.69%       -10.57%     4.15%           14.48%
                      6 months of
                      allotment)                                                                                    Crisil Balanced     9,952         31,175     64,321            N.A
                                                                                                                    Fund Index         -30.04%        -9.12%     2.74%             N.A

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




18
     Templeton India Pension Plan                                                                                                                                            TIPP
                                           Portfolio
As of January 30, 2009
                                           Company Name                   No. of     Market Value          % of        Company Name                         No. of          Market Value      % of
                                                                          shares      Rs. Lakhs           Assets                                            shares           Rs. Lakhs       Assets
Investment Style
                                           Auto                                                                        Petroleum Products
The fund manager seeks steady capital      Hero Honda                28887                253.32            1.74       Reliance Industries *                 29731             394.00          2.71
appreciation by maintaining a              Mahindra & Mahindra        9261                 27.84            0.19       Reliance Petroleum                   102957              88.95          0.61
diversified portfolio of equities and      Banks                                                                       BPCL                                  20427              80.01          0.55
seeks to earn regular income on the        HDFC Bank *               45221                418.11            2.87       Pharmaceuticals
fixed income component by managing         Kotak Mahindra Bank       68324                193.70            1.33       Cipla                                  29762              57.14         0.39
interest rate movements and credit risk.   ICICI Bank                39144                162.96            1.12       Lupin Labs                             10000              56.99         0.39
                                           Cement                                                                      Sun Pharmaceutical                      4593              49.30         0.34
Type of Scheme / Investment Objective      Grasim                    15719                188.20            1.29       Software
                                           Shree Cements             16892                 84.09            0.58       Infosys                                26644            347.84          2.39
An open end pension fund which seeks                                                                                   Telecom - Services
                                           ACC                       10864                 54.85            0.38
to provide regular income under the
                                           Construction                                                                Bharti Airtel *                       73000             462.71          3.18
Dividend Plan and capital appreciation                                                                                 Idea Cellular                        142534              66.99          0.46
                                           Maytas Infra                491                   0.36           0.00
under the Growth Plan                                                                                                  Transportation
                                           Consumer Non Durables
                                           Nestle                    11732                172.04            1.18       GE Shipping                            39708              67.98         0.47
Date of Allotment
                                           Marico                   250167                145.22            1.00       Debt Holdings                          Rating        Market Value       % of
March 31, 1997                             Asian Paints              10000                 78.51            0.54                                                            (Rs. in Lakhs)    Assets
                                           Dabur                     64361                 56.64            0.39       Receivable Sec Trust Sr IV A1 *     AAA (SO)           1602.32         11.01
Fund Managers                              Britannia Industries        750                 10.41            0.07       Receivable Securitisation
                                           Ferrous Metals                                                              Trust Sr. III A6 *                  LAAA (SO)          1510.96         10.39
Anand Radhakrishnan (since Dec. 2006)      Tata Steel                 8000                 14.77            0.10       Indian Retail ABS Trust
Sachin Padwal-Desai (since Aug. 2006)      Finance                                                                     Series 75 A7 PTC *                  LAAA (SO)          1500.65         10.32
                                           HDFC                      24227                372.31            2.56       Shriram Transport Finance *          AA (Ind)           836.12          5.75
Vivek Ahuja (since June 2008)
                                           IDFC                     124000                 71.67            0.49       Indian Railway Finance
Latest NAV                                 Future Capital Holdings     287                  0.41            0.00       Corporation *                          AAA              730.48          5.02
                                           Industrial Capital Goods                                                    CLSS 56 TRUST 2008 SR.A2 *           AA (SO)            589.25          4.05
TIPP (G)            Rs. 41.3166                                                                                        Cholamandalam DBS Finance *            LAA              507.84          3.49
                                           L&T                       34644                238.77            1.64
TIPP (D)            Rs. 12.3223            ABB                       48493                232.67            1.60       Rural Electrification Corporation      AAA              291.26          2.00
                                                                                                                       Power Finance Corporation              AAA              283.00          1.95
                                           BHEL                      15101                199.40            1.37
Fund Size                                                                                                              Power Grid Corporation                 AAA              251.09          1.73
                                           Siemens                   15322                 31.79            0.22
                                                                                                                       Citifinancial Consumer Finance         AA+              219.20          1.51
Rs. 145.47 crores                          Industrial Products
                                                                                                                       BHPC Auto Sec Trust PTC A2            A (SO)            204.79          1.41
                                           Cummins India             42235                  71.10           0.49       JM Financial Products                  P1+              187.81          1.29
Bond Portfolio                             Media & Entertainment                                                       Reliance Capital                       A1+              147.49          1.01
                                           IBN18 Broadcast           40930                  31.21           0.21       Credit Asset Trust Sr. XLVII A1     AAA (ind) (SO)      108.18          0.74
Average maturity        2.31 years         Television Eighteen       31217                  23.37           0.16       Cholamandalam DBS Finance               LAA             101.54          0.70
Yield to maturity       9.30%              Non - Ferrous Metals                                                        Total equity holdings                                  4875.21         33.51
                                           Sterlite                  17200                 47.51            0.33       Total debt holdings                                    9071.95         62.36
Expense Ratio
                                           Oil                                                                         Other current assets                                    599.86          4.13
2.17%                                      ONGC                       3353                  22.07           0.15       Total assets                                          14547.03        100.00

Minimum Investment/                                                                                                                                                                  * Top 10 holdings
Multiples for New Investors
Rs.500/1                                   Portfolio Composition and Performance
Additional Investment/                      Fund Manager ’s Commentary                                                  Sector Allocation - Equity Holdings
Multiples for Existing Investors
                                            The fund’s equity exposure has increased to 33.51%,
Rs.500/1
                                            while debt allocation decreased to 62.36% from
Load Structure                              66.59%. The fund added Asian Paints to the equity
Entry Load       2.25%                      portfolio and Indian Railways Finance Corporation, a
Exit Load        3%, if redeemed before     corporate paper to the debt portfolio and exited from
                 the age of 58 years        India Infoline.
                 (subject to a 3 year
                 lock-in period)
                 NIL, if redeemed after     NAV Performance
                 the age of 58 years
Tax Benefits                                                  Last    Last    Last     Last      Since
                                                            6 Months 1 Year 3 Years* 5 Years* Inception*
Investments will qualify for tax
benefit under the Section 80C as per       TIPP (G)           -9.86% -21.41% 3.23%           8.35%        12.73%
the income tax act.                        TIPP (D)           -9.86% -21.41% 3.24%           8.36%        12.73%
                                           Benchmark**       -10.69% -18.49% 3.02%           7.45%         N.A
                                           Past performance may or may not be sustained in future. Dividends            Composition by Assets
                                           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...

                                                       Rs.12,000      Rs.36,000      Rs.60,000        Rs.142,000
                                                        for 1 year    for 3 years    for 5 years     since inception
                                                       would have     would have     would have        would have
                                                         grown to      grown to       grown to          grown to
                                           TIPP           10,723       33,638          65,573          290,604
                                                         -19.13%       -4.36%          3.51%           11.49%
                                           Bechmark*      10,837       33,985          65,903            N.A                     ■ Equity                                        33.51%
                                                         -17.47%       -3.70%          3.71%             N.A                     ■ Debt                                          62.36%

                                           Past performance may or may not be sustained in future.                               ■ Other current assets                           4.13%
                                           Load is not taken into consideration. *40% S&P CNX 50 + 60% Crisil
                                           Composite Bond Fund Index

                                                                                                                                                                                                         19
         Templeton India Income Fund                                                                                                                                  TIIF
                                                 Portfolio
     As of January 30, 2009
                                                    Company Name                                                     Rating       Market Value (Rs. Lakhs)           % of Assets
     Investment Style
                                                   Receivable Securitisation Trust Sr. III A6 *                      LAAA (SO)             2374.36                      12.51
     The Fund Manager strives to earn
     steady returns in the fixed income
     market by actively managing the               Cholamandalam DBS Finance *                                          LAA                1293.99                       6.82
     funds portfolio on interest rate
     movements and credit risks
                                                   Kotak Mahindra Prime *                                               LAA                1204.04                       6.34
     Type of Scheme / Investment Objective
                                                   Receivable Sec Trust Sr IV A1 *                                   AAA (SO)               858.38                       4.52
     An open end income fund which
     seeks to generate a steady stream of
     income through investment in fixed            CLSS 56 TRUST 2008 SR.A2 *                                         AA (SO)               824.95                       4.35
     income securities
                                                   Total Corporate Debt                                                                    6555.74                      34.53
     Date of Allotment
     March 5, 1997
                                                   Indian Railway Finance Corporation *                                 AAA                2680.06                      14.12
     Fund Manager
     Sachin Padwal-Desai (since Aug . 2006)        Rural Electrification Corporation *                                  AAA                1789.36                       9.43

     Vivek Ahuja (since June 2008)
                                                   Power Grid Corporation                                               AAA                1028.81                       5.42
     Latest NAV
     Growth Plan        Rs. 29.9387                EXIM Bank *                                                          AAA                1020.25                       5.37
     Dividend Plan      Rs. 10.5762
                                                   Power Finance Corporation                                            AAA                 565.99                       2.98
     Fund Size
     Rs. 189.84 crores                             Total PSU/PFI Bonds                                                                     7084.47                      37.32

     Maturity & Yield
                                                   7.56% GOI 2014 *                                                     SOV                3232.05                      17.02
                 Avg Maturity        YTM
      Fund         4.19 years       7.88%*         GOI 07.55% 2010                                                      SOV                      0.31                    0.00
                           * Pre fund expenses
                                                   Total Gilts                                                                             3232.36                      17.03
     Modified Duration
     2.91 years                                    Call, Cash & Other Current Assets                                                       2111.64                      11.12

     Expense Ratio
                                                   Net Assets                                                                             18984.21                     100.00
     1.36%
                                                                                                                                                                        * Top 10 holdings
     Minimum Investment/
     Multiples for New Investors                 Portfolio Composition and Performance
     Rs.10000/1

     Additional Investment/
                                                   Fund Manager ’s Commentary                                                    NAV Movement (since inception)
     Multiples for Existing Investors              The fund’s maturity period decreased to 4.19 years
     Rs.1000/1                                     from 5.40 years during the month. The fund’s
     Load Structure                                exposure to corporate debt decreased to 34.53%,
                                                   while exposure to Gilts increased during the month.
     Entry Load NIL
     Exit Load     0.50%, if redeemed
                   within 6 months of
                   allotment*                      NAV Performance
                                                                        Last    Last    Last     Last      Since
     *w.e.f. Jan 5, 2009
                                                                      6 Months 1 Year 3 Years* 5 Years* Inception*
                                                  TIIF(G)              7.22%      3.37%       6.84%     4.93%       9.64%
                                                  TIIF (D)             7.22%      3.37%       6.84%     4.93%       9.76%
                                                  Crisil Composite
                                                  Bond Fund Index      8.82%      7.30%       6.37%     4.73%        N.A
                                                                                                                                 Composition by Assets
                                                  Past performance may or may not be sustained in future.
                                                 *Compounded and annualised       Dividends declared assumed to be reinvested




                                                  Composition by Rating




                                                                                                                                       ■ Corporate Debt               34.53%
                                                                                                                                       ■ Gilts                        17.03%
                                                                                                                                       ■ Call, Cash & Other Assets    11.12%
                                                        ■ AAA/P1+/PR1+/A1+/SOV                      82.50%                             ■ PSU/PFI Bonds                37.32%
                                                        ■ AA (SO)                                   17.50%


20
      Templeton India Income Builder Account                                                                                                                    TIIBA
                                                    Portfolio
As of January 30, 2009
Investment Style                                       Company Name                                                   Rating       Market Value (Rs. Lakhs)           % of Assets
The fund manager strives to deliver
superior risk-adjusted returns by                    CLSS 56 TRUST 2008 SR.A2 *                                         AA (SO)             1649.91                      14.08
actively managing a portfolio of high
quality fixed income securities.
Type of Scheme / Investment Objective                Investment Vehicle For Structured Transactions SR.A3 *            AAA (SO)             1591.73                      13.58

An open end income fund which seeks
to provide regular returns to investors              Receivable Securitisation Trust Sr. III A6 *                     LAAA (SO)              971.33                       8.29
primarily through investments in
quality fixed income instruments
                                                     HongKong Bank *                                                       NR                915.99                       7.82
Date of Allotment
June 23, 1997
Fund Manager                                         Kotak Mahindra Prime *                                               LAA                401.22                       3.42

Sachin Padwal-Desai (since Aug. 2006)
Vivek Ahuja (since June 2008)                        Deutsche Postbank Home Finance                                      LAA+                 30.94                       0.26
Latest NAV
Growth Plan                   Rs. 28.4018            Total Corporate Debt                                                                  5561.11                       47.46
Dividend Plan                 Rs. 10.7619
Monthly Plan                  Rs. 12.3810
Quarterly Plan                Rs. 13.1210            Indian Railway Finance Corporation *                                 AAA               1523.83                      13.00
Half-yearly Plan              Rs. 13.2159
Bonus                         Rs. 17.8324
                                                     Power Finance Corporation *                                          AAA                848.99                       7.24
Fund Size
Rs. 117.18 crores
                                                     Rural Electrification Corporation *                                  AAA                728.14                       6.21
Maturity & Yield
              Avg Maturity         YTM               EXIM Bank *                                                          AAA                277.84                       2.37
  Fund           3.06 years       7.62%*
                          * Pre fund expenses
                                                     Power Grid Corporation                                               AAA                 73.85                       0.63
Modified Duration
2.04 years                                           Total PSU/PFI Bonds                                                                   3452.65                       29.46
Expense Ratio
2.21%                                                Call, Cash & Other Current Assets                                                      2704.72                      23.08
Minimum Investment/Multiples for
New Investors                                        Net Assets                                                                           11718.48                      100.00
Plan A >Rs.50,00,000 (MD, QD,
       HD, AD, BP & GP)                                                                                                                                                  * Top 10 holdings
Plan B Rs.25,000/1 (MD & QD)
       Rs.10,000/1                                  Portfolio Composition and Performance
       (HD, AD, BP & GP)
Additional Investment/Multiples for                   Fund Manager ’s Commentary
Existing Investors
                                                                                                                                  NAV Movement (since inception)
Rs. 1000/1 (for all plans)                            The fund’s maturity period decreased to 3.06 years
Load Structure                                        from 5.03 years during the month. The fund’s
Entry Load Plan A & Plan B: NIL                       exposure to corporate debt increased to 47.46%,
Exit Load:                                            while exposure to PSU/PFI bonds increased to
Plan A:           0.50%, if redeemed within           29.46% during the month.
                  6 months of allotment*
Plan B:           0.50%, if redeemed within
                  6 months of allotment*              NAV Performance
MD- Monthly Dividend Plan, QD- Quarterly Dividend
                                                                           Last    Last    Last     Last      Since
Plan, HD- Half-yearly Dividend Plan, AD- Annual
Dividend Plan, BP- Bonus Plan, GP- Growth Plan.
                                                                         6 Months 1 Year 3 Years* 5 Years* Inception*
                                                     TIIBA (G)        6.74% 2.87% 5.82%                   4.12%       9.40%
*w.e.f. Jan 5, 2009                                  TIIBA (D)        6.74% 2.87% 5.82%                   4.12%       9.39%
                                                     Crisil Composite
                                                     Bond Fund Index 8.82% 7.30% 6.37%                    4.73%        N.A        Composition by Assets
                                                     Past performance may or may not be sustained in future.
                                                    *Compounded and annualised      Dividends declared assumed to be reinvested



                                                      Composition by Rating




                                                                                                                                        ■ Corporate Debt               47.46%
                                                                                                                                        ■ Call, Cash & Other Assets    23.08%
                                                                   ■ AAA/P1+/A1+             74.42%
                                                                   ■ AA/AA+/AA-              17.77%                                     ■ Total PSU/PFI Bonds          29.46%
                                                                   ■ N.R.                    7.81%


                                                                                                                                                                                             21
         Templeton Monthly Income Plan
         @
           An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus                                                TMIP
                                                    Portfolio - Half-Yearly Dividend & Growth Plan                                                      Marginal Equity Allocation
     As of January 30, 2009
                                                     Company Name                    No. of   Market Value         % of        Company Name                   No. of      Market Value       % of
                                                                                     Shares    Rs. Lakhs          Assets                                      Shares       Rs. Lakhs        Assets
     Investment Stzyle
                                                     HDFC *                           6763         103.93           1.83       Lupin Labs                       1000            5.70           0.10
     The fund managers strive to earn
     steady returns in the fixed income              Bharti Airtel *                 14000           88.74          1.56       IBN18 Broadcast                  7415            5.65           0.10
     market by actively managing the                 Infosys *                        6582           85.93          1.51       Television Eighteen              6688            5.01           0.09
     funds portfolio on interest rate
     movements and credit risks, and                 HDFC Bank                        8359           77.29          1.36       ONGC                             717             4.72           0.08
     seeks to enhance overall portfolio
                                                     Hero Honda                       6762           59.30          1.04       Idea Cellular                    9102            4.28           0.08
     returns with a marginal equity
     allocation                                      Reliance Industries              4319           57.24          1.01       Britannia Industries             250             3.47           0.06

     Type of Scheme / Investment Objective           L&T                              7676           52.90          0.93       Total equity holdings                         947.43          16.68
     An open end income fund which                   ICICI Bank                      11615           48.35          0.85
     seeks to earn regular income through                                                                                      Debt Holdings                  Rating      Market Value       % of
                                                     Grasim                           3637           43.55          0.77
     investment in fixed income securities                                                                                                                                 Rs. Lakhs        Assets
                                                     BHEL                             3281           43.32          0.76
     Date of Allotment                                                                                                         Investment Vehicle For
                                                     Marico                          58993           34.25          0.60
     February 7, 2000                                                                                                          Structured Transactions SR.A3 * AAA (SO)     1492.25          26.28
                                                     Kotak Mahindra Bank             10529           29.85          0.53
                                                                                                                               CLSS 56 TRUST 2008 SR.A2 *     AA (SO)        824.95          14.53
     Fund Managers                                   ABB                              6015           28.86          0.51
     Anand Radhakrishnan (since Dec. 2006)                                                                                     Indian Retail ABS
                                                     Nestle                           1227           17.99          0.32
     Pallab Roy (since Aug. 2006)                                                                                              Trust Sr.87 A3 PTC *          LAAA (SO)       720.03          12.68
                                                     Shree Cements                    3606           17.95          0.32
     Vivek Ahuja (since June 2008)                                                                                             Indian Retail ABS
                                                     Cummins India                   10648           17.93          0.32
     Latest NAV                                                                                                                Trust Sr.88 A3 PTC *          LAAA (SO)       718.31          12.65
     Growth Plan         Rs. 21.3545                 BPCL                             4467           17.50          0.31
                                                                                                                               Indian Retail ABS
     Half-Yearly Plan Rs. 11.3282                    Reliance Petroleum              17025           14.71          0.26       Trust 85 Series A1 B *        AAA (SO)        386.20            6.80
     Fund Size                                       GE Shipping                      8501           14.55          0.26       JUS Trust PTC -
     Rs. 56.79 crores                                ACC                              2408           12.16          0.21       Jet Airways Series 9 *        AAA (SO)        311.70            5.49
     Maturity & Yield**                              Sun Pharmaceutical                983           10.55          0.19       Loan Securitisation Trust -
                  Avg Maturity       YTM             IDFC                            16000             9.25         0.16       Reliance Industries PTC *     AAA (SO)        126.56            2.23
      Fund         0.82 years    9.42%*              Cipla                            4400             8.45         0.15       Total Corporate Debt                         4580.00          80.65
                       * Pre-fund expenses           Dabur                            9516             8.37         0.15       Call, Cash & Other
     Modified Duration**                             Mahindra & Mahindra              2621             7.88         0.14       Current Assets                                151.29            2.67
     0.75 years                                      Siemens                          3766             7.81         0.14       Net Assets                                   5678.72        100.00
              ** based on debt portfolios only
                                                                                                                                                                                       * Top 10 holdings
     Expense Ratio                                  Portfolio Composition and Performance
     1.96%
     Minimum Investment/Multiples for                 Fund Manager ’s Commentary                                                Composition by Assets
     New Investors
                                                      The fund’s equity allocation at the end of the month
     Rs.10000/1
                                                      was 16.68%, with a marginal decrease over the
     Additional Investment/Multiples for              period. In the debt portion, exposure to corporate
     Existing Investors
                                                      debt has marginally increased to 80.65% during the
     Rs.1000/1                                        month.
     Load Structure
     Entry Load      NIL
                                                      NAV Performance
     CDSC            Rs.10 lakhs &
                     below - 0.5%,                                       Last      Last    Last     Last      Since
                     if redeemed within                               6 Months    1 Year 3 Years* 5 Years* Inception*
                     6 months of allotment                                                                                        ■ Corporate Debt                    80.65%
                                                     TMIP - Growth     -0.89%    -4.62% 5.37% 6.38% 8.81%
                     Above Rs.10 lakhs -                                                                                          ■ Equity                            16.68%
                     0.25%, if redeemed              TMIP - Halfyearly -0.89%    -4.62% 5.37% 6.38% 8.75%
                     within 3 months of              Crisil MIP                                                                   ■ Call cash and Other Current Assets 2.67%
                     allotment                       Blended Index      1.80%    -1.55% 5.91%          6.11%        N.A
                                                     Past performance may or may not be sustained in future.
                                                    *Compounded and annualised   Dividends declared assumed to be reinvested
                                                                                                                                Composition by Rating - Debt Portfolio
                                                      NAV Movement (since inception)

                                                                       Growth Plan




                                                                                                                                          ■ AAA/A1+/SOV                         82.56%
                                                                                                                                          ■ AA/AA+/AA-                          17.44%




22
     FT India Monthly Income Plan
     @
         An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus
                                                                                                                                                           FTIMIP
                                                  Portfolio
As of January 30, 2009
                                                      Company Name               No. of     Market Value    % of       Debt Holdings                          Rating        Market Value       % of
                                                                                 Shares      Rs. Lakhs     Assets                                                            Rs. Lakhs        Assets
Investment Style
                                                      Bharti Airtel              84000         532.43       1.63       Cholamandalam DBS Finance *           LAA              3317.89         10.13
The fund manager strives to earn regular
                                                      Infosys                    38620         504.18       1.54       Shriram Transport Finance *          AA (Ind)          3016.48          9.21
income (with no assured returns) in the
                                                      HDFC Bank                  51319         474.50       1.45       Loan Securitisation Trust -
fixed income market by actively
                                                      HDFC                       29939         460.09       1.40       PTC Series - IX B *                 LAAA (SO)          1811.30           5.53
managing the funds portfolio on interest
rate movements and credit risks, while                Reliance Industries        27786         368.22       1.12       Long Bond Receivables
seeking to enhance the returns with a                 Hero Honda                 39723         348.35       1.06       Trust 2007 - Series V *             AAA (SO)            989.29           3.02
marginal equity allocation.                           L&T                        45698         314.95       0.96       Indian Retail ABS
                                                      Grasim                     25696         307.66       0.94       Trust Sr.88 A3 PTC *                LAAA (SO)           957.75           2.92
Type of Scheme / Investment Objective                 ICICI Bank                 67963         282.93       0.86       CLSS 56 TRUST 2008 SR.A2 *           AA (SO)            824.95           2.52
An open end income fund which seeks to                BHEL                       20390         269.24       0.82       Credit Asset Trust Sr. XLVII A1     AAA (ind) (SO)      757.23           2.31
provide regular income through a                      Marico                    442648         256.96       0.78       BHPC Auto Sec Trust PTC A2           A (SO)             696.29           2.13
portfolio of predominantly high quality               Kotak Mahindra Bank        83419         236.49       0.72       ILSS 2 TRUST 2008 SR.A. PTC         AAA (SO)            550.98           1.68
fixed income securities with a maximum                ABB                        39071         187.46       0.57       GE Money Financial Services           AAA               499.92           1.53
exposure of 20% to equities.                          Sun Pharmaceutical         14000         150.28       0.46       Investment Vehicle For
                                                      Cummins India              71398         120.20       0.37       Structured Transactions SR.A3       AAA (SO)            298.45           0.91
Date of Allotment                                     Shree Cements              23458         116.77       0.36       Loan Securitisation Trust -
September 28, 2000                                    Nestle                      7924         116.20       0.35       Reliance Industries PTC             AAA (SO)           295.30           0.90
                                                      Reliance Petroleum        131338         113.48       0.35       Citifinancial Consumer Finance        AA+              219.20           0.67
Fund Managers
                                                      BPCL                       28756         112.64       0.34       HDFC                                  AAA              181.03           0.55
Anand Radhakrishnan (since Dec. 2006)                 GE Shipping                54893          93.98       0.29       Tata Motor Finance                     A               160.03           0.49
Pallab Roy (since Aug. 2006)                          ACC                        15657          79.04       0.24       HongKong Bank                          NR              101.78           0.31
                                                      Cipla                      33982          65.25       0.20       ICICI Bank                            AAA               49.78           0.15
Vivek Ahuja (since June 2008)
                                                      Dabur                      73486          64.67       0.20       Total Corporate Debt                                 22202.62          67.77
Latest NAV                                            IDFC                      105000          60.69       0.19       Indian Railway
Growth Plan          Rs. 21.8699                      Siemens                    24462          50.75       0.15       Finance Corporation *                   AAA             803.57           2.45
Monthly Plan         Rs. 10.1483                      Mahindra & Mahindra        16287          48.96       0.15       Rural Electrification Corporation      AAA              631.05           1.93
Quarterly Plan       Rs. 10.1665                      IBN18 Broadcast            58005          44.23       0.13       EXIM Bank                              AAA              255.97           0.78
Bonus                Rs. 12.1694                      Television Eighteen        43102          32.26       0.10       IDFC                                   LAAA              51.92           0.16
                                                      ONGC                        4665          30.71       0.09       Nabard                                 AAA               19.99           0.06
Fund Size
                                                      Lupin Labs                  5000          28.50       0.09       Total PSU/PFI Bonds                                    1762.50           5.38
Rs. 327.62 crores                                     Idea Cellular              59171          27.81       0.08       LIC Housing Finance *                   AAA            1529.03           4.67
Modified Duration#                                    Britannia Industries        1150          15.97       0.05       Total Mibor Linked
                                                      Total Equity Holdings                   5915.83      18.06       Instruments                                            1529.03           4.67
1.28 years                                                                                                             Reliance Capital                        A1+             196.65           0.60
                                                      Debt Holdings             Rating      Market Value    % of
                # based on debt portfolios only                                                                        Total Money Market
                                                                                             Rs. Lakhs     Assets
                                                                                                                       Instruments                                             196.65           0.60
Expense Ratio                                         Kotak Mahindra Prime *       LAA        3913.44      11.94       Call, Cash & Other
2.08%                                                 Receivable Securitisation                                        Current Assets                                        1155.73           3.53
                                                      Trust Sr. III A6 *        LAAA (SO)     3561.54      10.87       Net Assets                                           32762.36         100.00
Minimum Investment/Multiples for New
                                                                                                                                                                                        * Top 10 holdings
Investors
Plan A       Rs.40,000/1 (MD&QD)
             Rs.20,000/1 (BP & GP)                Portfolio Composition and Performance
Plan B       Rs.25,000/1 (MD & QD)
             Rs.10,000/1 (BP & GP)                     Fund Manager ’s Commentary                                       NAV Performance
                                                                                                                                               Last    Last    Last     Last      Since
Additional Investment/Multiples for                    The equity allocation in the portfolio at the end of the
Existing Investors                                                                                                                           6 Months 1 Year 3 Years* 5 Years* Inception*
                                                       month was 18.06%. In the debt portion, the allocation
Rs. 1000/1 (for all plans)                             to corporate debt has decreased to 67.77%, while                FTIMIP                 -2.19% -6.96% 5.00%                 6.85%        9.83%
Load Structure                                         exposure to PSU/PFI bonds increased during the                  Crisil MIP
                                                       month.                                                          Blended Index           1.80% -1.55% 5.91%                 6.11%          N.A
Entry Load
Plan A           Plan B
                                                                                                                       Past performance may or may not be sustained in future.
  NIL            Above Rs.10 lakhs - 0.5%,
                                                      NAV Movement (since inception)                                   *Compounded and annualised
                 Upto Rs.10 lakhs - NIL
Exit Load
  Plan A         Plan B
  NIL            Rs.10 lakhs &
                 below - 1.00%,                                                                                         Composition by Rating - Debt Portfolio
                 if redeemed within
                 1 year of allotment
                 Above Rs.10 lakhs - NIL
MD- Monthly Dividend Plan, QD- Quarterly
Dividend Plan, BP- Bonus Plan, GP- Growth
Plan.




                                                                Average maturity#            Yield to maturity#
                                                                                                                               ■ AAA/P1+/SOV                                    56.96%

                                                       Fund            1.55 years                  9.19%*                      ■ AA/AA+/AA-                                     42.66%
                                                                                                                               ■ N.R.                                            0.38%
                                                  #   based on debt portfolios only              * Pre fund expenses

                                                                                                                                                                                                            23
          Templeton India Government Securities Fund                                                                                                       TGSF
                                              Portfolio
     As of January 30, 2009
                                               Company Name                       Rating   Market Value     % of    Company Name                         Rating   Market Value    % of
     Investment Style                                                                       Rs. Lakhs      Assets                                                  Rs. Lakhs     Assets
     The Fund Managers strive to enhance                                                                            Long Term
                                              Composite Plan/PF Plan
     portfolio returns by actively
     managing the portfolio duration and
     market volatility
     Type of Scheme / Investment Objective    7.56% GOI 2014                      SOV        5386.75       28.48    8.24% GOI 2018                       SOV           8008       42.27
     An open end gilt fund which seeks to
     generate credit risk-free return
     through investments in sovereign         8.24% GOI 2018                      SOV        4004.00       21.17    7.56% GOI 2014                       SOV        5386.75       28.44
     secutiries
     Date of Allotment
     TGSF - CP          June 21, 1999         7.95% GOI 2032                      SOV        1087.00        5.75    7.95% GOI 2032                       SOV        1630.50        8.61
     TGSF - TP          February 11, 2002
     TGSF - PF Plan     May 7, 2004
     TGSF - LT          December 7, 2001      Total Gilts                                   10477.75       55.39    Total Gilts                                    15025.25       79.32
     Fund Managers
     Composite / PF / LT Plans
     Sachin Padwal - Desai (since August      Call, Cash & Other Current Assets              8438.90       44.61    Call, Cash & Other Current Assets               3917.57       20.68
     2006) & Vivek Ahuja (since June
     2008)
     Treasury Plan                            Net Assets                                    18916.65      100.00    Net Assets                                     18942.82      100.00
     Sachin Padwal - Desai (since August
     2006) & Vivek Ahuja (since June
     2008)
     Latest NAV
     TGSF - CP                                       Company Name                                 Rating            Market Value (Rs.Lakhs)                       % of Assets
     Growth Plan         Rs. 32.1243
     Dividend Plan       Rs. 11.0521           Treasury Plan
     TGSF - LT
     Growth Plan         Rs. 22.3512           91 Day Treasury Bill                                 SOV                         3976.47                               51.07
     Dividend Plan       Rs. 11.0374
     Bonus Plan          Rs. 12.5302
     TGSF - PF Plan                            7.33% OIL MKT CO GOI BOND 2009                       SOV                         3507.18                               45.04
     Growth Plan         Rs. 14.1098
     Dividend Plan       Rs. 14.1098           Total Gilts                                                                      7483.64                               96.11
     TGSF - TP
     Growth Plan         Rs. 15.7743           Call, Cash & Other Current Assets                                                  302.69                               3.89
     Dividend Plan       Rs. 10.4157
     Fund Size
                                               Net Assets                                                                       7786.33                              100.00
     TGSF - CP           Rs. 157.70 crores
     TGSF - PF Plan      Rs. 31.47 crores
     TGSF - TP           Rs. 77.86 crores
     TGSF - LT           Rs. 189.43 crores    Portfolio Composition and Performance
     Expense Ratio
     TGSF - CP / LT /                           Fund Manager ’s Commentary                                           NAV Movement - TGSF (since inception)
     TGSF-PF Plan       1.25%
     TGSF-TP            0.90%
                                                The maturity period of the composite plan has
     Minimum Investment for New /                                                                                                       Composite Plan
     Existing Investors                         increased to 5.02 years from 3.81 years, while that of
                                                the long term plan has increased to 7.61 years during
     TGSF - CP/LT Rs.10,000/1 (G)
                    Rs.25,000/1 (D)             the month. The maturity period of treasury plan has
     TGSF (TP)      Rs.5000 /1                  increased to 0.12 years from 0.08 years during the
     TGSF-PF Plan Rs.25,000/1                   month.
     Additional Investment/multiples for
     Existing Investors
     TGSF - CP/LT Rs. 1000/1                    NAV Performance
     TGSF - TP        Rs. 5000 /1
     TGSF - PF Plan Rs. 5000/1                                       Last    Last    Last     Last      Since
     Load Structure                                                6 Months 1 Year 3 Years* 5 Years* Inception*
     Entry Load     Exit Load                  TGSF - CP (G)       19.77% 20.91% 11.62% 7.75%             12.90%
     TGSF                                      TGSF - CP (D)       19.77% 20.92% 11.62% 7.75%             12.60%
     NIL            Rs.10 lakhs & below -                                                                                                         Average         Yield to    Modified
                    0.5%, if redemption is     I-Sec Composite Index 20.37% 15.06% 10.03% 7.07%            N.A                                    maturity        maturity    duration
                    made within 6 months       TGSF - PF Plan      19.77% 20.91% 11.64%         N.A       7.54%
                    of allotment.                                                                                    TGSF - CP/PF Plan
                    Above Rs.10 lakhs - Nil    I-Sec Composite Index 20.37% 15.06% 10.03%       N.A       6.98%
     TGSF - TP / LT                            TGSF - TP (G)        4.37%     6.69%     6.15% 5.49%       6.76%      Fund                        5.02 years       4.78%*      3.30 years
     NIL            Nil
     TGSF-PF                                   TGSF - TP (D)        4.37%     6.69%     6.15% 5.50%       6.78%      TGSF - LT
     NIL            0.35%, if redemption is    I-Sec Si-BEX        11.77% 13.96% 9.47% 7.36%               N.A
                    made within 6 months                                                                             Fund                        7.61 years       5.48%*      4.94 years
                    of allotment.              TGSF - LT Plan      21.15% 22.60% 12.80% 8.96%             11.90%
                                               I Sec Libex         30.22% 18.28% 11.48% 7.61%              N.A       TGSF - TP
                                                                                                                     Fund                        0.12 years       4.61%*      0.12 years
                                               Past performance may or may not be sustained in future.
                                              *Compounded and annualised.                                                                                            * Pre fund expenses
                                              Dividends declared assumed to be reinvested




24
     Templeton Floating Rate Income Fund - Long Term                                                                                                                TFIF
                                          Portfolio
As of January 30, 2009
                                          Company Name                          Rating       Market Value    % of     Company Name                         Rating   Market Value      % of
                                                                                              Rs. Lakhs     Assets                                                   Rs. Lakhs       Assets
Investment Style
                                          Investment Vehicle For Structured                                           National Housing Bank                 AAA            503.32      1.64
The fund managers strive to
                                          Transactions SR.A3 *                 AAA (SO)         2586.56      8.44
minimise the risk arising from
interest rate fluctuations                                                                                            LIC Housing Finance                   AAA            495.87      1.62
Type of Scheme / Investment Objective     BHPC Auto Sec Trust PTC A2 *          A (SO)          2293.65      7.48
An open end income fund which                                                                                         Total PSU/PFI Bonds                               999.19         3.26
aims to provide income consistent
                                          Investment Vehicle for Structured
with the prudent risk from a
portfolio comprising primarily of         Transactions SR.A3X *                AAA (SO)         1749.62      5.71
                                                                                                                      LIC Housing Finance *                 AAA        3567.74        11.64
floating rate debt instruments
Date of Allotment                         Cholamandalam DBS Finance *             LAA           1488.54      4.86
                                                                                                                      Tata Sons *                           AAA        2027.56         6.61
Retail Option             Feb. 11, 2002
Institutional Option Sep. 6, 2005
                                          Credit Asset Trust Sr. XLVII A1 * AAA (ind) (SO)      1111.04      3.62
Sup. Institutional Option May. 9, 2007                                                                                Citifinancial Consumer Finance        AA+            498.50      1.63
Fund Manager
                                          Shriram Transport Finance             AA (Ind)         926.27      3.02
Sachin Padwal-Desai (since Aug. 2006)                                                                                 Total Mibor Linked Instruments                   6093.80        19.88
Pallab Roy (since June 2008)
                                          Receivable Securitisation
Latest NAV                                                                                                            JM Financial Products *               P1+        3124.72        10.19
                                          Trust Sr. III A6                    LAAA (SO)          755.48      2.46
Retail Plan
Growth Option           Rs. 15.7085
                                                                                                                      Edelweiss Capital *                   P1+        2907.13         9.48
Dividend Option         Rs. 10.7909       Loan Securitisation
Institutional Plan                        Trust - Series 49 B                 AA IND (SO)        734.57      2.40
                                                                                                                      Reliance Capital *                    P1+        2781.67         9.07
Growth Option           Rs. 12.9703
Dividend Option         Rs. 10.3507       Corporate Debt
Super Institutional Plan                  Trust 08-09 Sr 10 A2                 P1+ (SO)          699.93      2.28     Kotak Mahindra Prime                  P1+             97.03      0.32
Growth Option           Rs. 11.6637
Dividend Option         Rs. 10.3997       Kotak Mahindra Prime                    LAA            675.70      2.20     ICICI Bank                            A1+              4.66      0.02
Daily Dividend Option Rs. 10.0048
Fund Size                                 CLSS 36 Trust Sr. B                 F1+ IND (SO)       558.96      1.82     Total Money Market Instruments                   8915.22        29.09
Rs. 306.52 crores
Average Maturity                          Indian Retail ABS Trust 92 Sr.A9 X LAAA (SO)           315.73      1.03     Call, Cash & Other Current Assets                    748.01      2.44
Fund                 0.70 years
Yield to Maturity                         Total Corporate Debt                                13896.04      45.33     Net Assets                                      30652.26      100.00
9.45% (Pre-fund expenses)
                                                                                                                                                                            * Top 10 holdings
Modified Duration
0.49 years                                Portfolio Composition and Performance
Expense Ratio                              Fund Manager ’s Commentary                                                  NAV Performance
1.00% (R), 0.55% (I), 0.30% (SIP)
                                           The maturity period for the plan has decreased to                                             Last     Last    Last    Last    Last     Since
Minimum Investment/Multiples for                                                                                                       3 Months 6 Months 1 Year 3 Years*5 Years*Inception*
New Investors                              0.70 years over the month. The allocation to
                                           corporate debt has marginally decreased and the                            Long-Term Plan       2.58%   4.89%    8.90% 7.90% 6.73%         6.69%
Retail Option:              Rs.10,000/1
                                           allocation to money market instruments has increased                       Crisil Liquid
Institutional Option:       1 Crore/1                                                                                 Fund Index           2.59%   4.89%    8.76% 7.43% 6.21%          N.A
                                           to 29.09% from 11.82% over the month.
Super Insti. Option:        5 Crores/1                                                                                Long-Term
                                                                                                                      Institutional Plan   2.70%   5.13%    9.40% 8.33% N.A           7.94%
Additional Investment/Multiples for
Existing Investors                                                                                                    Crisil Liquid
                                           NAV Movement (since inception)                                             Fund Index           2.59%   4.89%    8.76% 7.43% N.A           7.11%
Retail Plan:                Rs.1000/1
                                                                                                                      Long-Term Super
Institutional Option:       1 Crore/1                                                                                 Institutional        2.76%   5.25%    9.67%    N.A      N.A     9.29%
Super Insti. Option:        1 Crore/1                                                                                 Crisil Liquid
                                                                                                                      Fund Index           2.59%   4.89%    8.76%    N.A      N.A     7.91%
Load Structure
                                                                                                                      Past performance may or may not be sustained in future.
Entry Load     NIL
                                                                                                                     *Compounded and annualised                **Absolute
Exit Load      NIL

                                                                                                                       Composition by Assets




                                                                                                                               ■     Corporate Debt                   45.33%
                                                                                                                               ■     Mibor Linked Instruments         19.88%
                                                                                                                               ■     PSU/PFI Bonds                     3.26%
                                                                                                                               ■     Money Market Instruments         29.09%
                                                                                                                               ■     Call, Cash & Other Assets         2.44%


                                                                                                                                                                                                25
          Templeton India Short-Term Income Plan                                                                                                                TISTIP
                                             Portfolio
     As of January 30, 2009
                                             Company Name                         Rating       Market Value     % of         Company Name                    Rating      Market Value      % of
                                                                                                Rs. Lakhs      Assets                                                     Rs. Lakhs       Assets
     Investment Style                        Cholamandalam DBS Finance *           LAA           6551.97        13.82        CLSS 56 TRUST 2008 SR.A2        AA (SO)       589.25          1.24
     The fund manager strives to provide
     a steady stream of income while         Loan Securitisation Trust -                                                     Tata Motor Finance                 A          510.04          1.08
     avoiding interest rate volatility.      Series 49 A1 *                      AA (SO)         4876.70        10.28
                                                                                                                             HDFC                              AAA         497.73          1.05
     Type of Scheme / Investment Objective   Kotak Mahindra Prime *                LAA           4201.31         8.86
                                                                                                                             ICLS Trust 2008 Series 39 A7    F1+ (SO)      471.47          0.99
     An open end income fund which           Loan Securitisation Trust -
     seeks to provide stable returns by      Bajaj Auto PTC *                   AAA (SO)         4058.51         8.56        ICLS Trust 2008 Series 36 A1 F1+ IND (SO)     465.65          0.98
     investing in shorter term fixed
     income securities.
                                             BHW Home Finance *                    LAA+          3162.73         6.67        LST Series 51 Series 1 B        AA (SO)       185.87          0.39
     Date of Allotment
                                             Sundaram BNP Paribas                                                            Loan Securitisation Trust -
     TISTIP              January 31, 2002
     TISTIP - I Plan     September 6, 2005   Home Finance *                        LAA           2655.41         5.60        Reliance Industries PTC         AAA (SO)      147.65          0.31

     Fund Manager                            Shriram Transport Finance *         AA (Ind)        2499.49         5.27        ILSS 2 TRUST 2008 SR.A. PTC     AAA (SO)      110.20          0.23
     Sachin Padwal-Desai (since Aug. 2006)
     Vivek Ahuja (since June 2008)           GE Capital Services *                 AAA           2469.12         5.21        DSP Merrill Lynch Capital      AA+ (FSO)       81.16          0.17

     Latest NAV                              Citifinancial Consumer Finance *      AA+           2099.81         4.43        Mahindra and Mahindra
     TISTIP - Retail Plan                                                                                                    Financial Services                AA+          39.83          0.08
                                             Receivable Securitisation
     Growth Plan             Rs. 1640.7358   Trust Sr V A1                      F1+ IND (SO)     1193.75         2.52        Indian Retail ABS
     Weekly Plan             Rs. 1075.9116                                                                                   Trust Sr.68 A1 PTC             LAAA (SO)       3.85           0.01
     Monthly Plan            Rs. 1089.6837   Kotak Mahindra Investments            A1+           1193.05         2.52
     Quarterly Plan          Rs. 1065.7455                                                                                   Total Corporate Debt                         43225.13         91.14
                                             Tata Motor Finance                      A           1119.87         2.36
     Bonus                   Rs. 1072.0481
                                                                                                                             SBI *                             P1+         2025.16         4.27
     TISTIP - Institutional Plan             Investment Vehicle for
     Growth Plan             Rs. 1314.0173   Structured Transactions SR.A3X     AAA (SO)         962.29          2.03        Reliance Capital                  P1+         563.85          1.19
     Weekly Plan             Rs. 1012.6954
                                             Sundaram Finance                      AA+           918.43          1.94        Total Money Market
     Monthly Plan            Rs. 1120.4451
                                                                                                                             Instruments                                   2589.01         5.46
     Fund Size                               Tata Steel                         AAA (Ind)        747.13          1.58
                                                                                                                             Call, Cash & Other
     Rs. 474.25 crores                       IRS Trust Series I A3              LAAA (SO)        728.02          1.54        Current Assets                                1610.95         3.40
     Modified Duration
                                             GE Money Financial Services           AAA           684.85          1.44        Net Assets                                   47425.09        100.00
     0.85 years
                                                                                                                                                                                * Top 10 holdings
     Expense Ratio
     1.00% (R), 0.90% (I)                    Portfolio Composition and Performance
     Minimum Investment/Multiples for
     New Investors                            Fund Manager ’s Commentary                                                      NAV Performance
     Retail: Rs.5000/1
                                              The maturity period of the fund marginally increased                                              Last     Last    Last    Last     Last      Since
     Institutional: Rs 5 Crores/1                                                                                                             3 Months 6 Months 1 Year 3 Years* 5 Years* Inception*
                                              to 0.99 years from 0.97 years over the month. The
     Additional Investment/Multiples for      exposure to corporate debt has increased to 91.14%.                            TISTIP             4.49%      7.13% 9.41% 8.90% 7.24%         7.33%
     Existing Investors
                                                                                                                             Crisil Short-Term
     Retail: Rs.5000/1
                                                                                                                             Bond Fund Index 5.24%         7.27% 9.63% 7.83% 6.18%           N.A
     Institutional: Rs 1 Crores/1             NAV Movement (since inception)
                                                                                                                             TISTIP
     Load Structure                                                                                                          Institutional Plan 4.52%      7.18% 9.52% 9.02%        N.A    8.36%
                                                                                                                             Crisil Short-Term
     TISTIP
                                                                                                                             Bond Fund Index 5.24%         7.27% 9.63% 7.83%        N.A    7.23%
     Entry Load        NIL
     Exit Load         0.50%, if redeemed                                                                                    Past performance may or may not be sustained in future.
                       within 3 months                                                                                       *Compounded and annualised
                       from the date of
                       allotment.*
     TISTIP - Institutional Plan                                                                                              Composition by Assets
     Entry Load        Nil
     Exit Load         0.50%, if redeemed
                       within 3 months
                       from the date of
                       allotment.*
     *w.e.f. Jan 5, 2009
                                                             Average maturity                    Yield to maturity


                                              Fund                   0.99 years                        10.89%*
                                                                                                                                      ■ Corporate Debt                        91.14%
                                                                                                       * Pre-fund expenses            ■ Money Market Instruments               5.46%
                                                                                                                                      ■ Call, Cash & Other Assets              3.40%




26
        Templeton India Ultra-short Bond Fund                                                                                                     mfA1+ Rating
                                                                                                                                                    by ICRA*                  TIUBF
                                            Portfolio
As of January 30, 2009
                                            Company Name                             Rating        Market Value    % of              Company Name                      Rating         Market Value             % of
                                                                                                    Rs. Lakhs     Assets                                                               Rs. Lakhs              Assets
Type of Scheme / Investment Objective       UBL Trust Sr. 63 B *                   P1+ (SO)         15217.88       21.00             CLSS 20 Trust A1 PTC              P1+ (SO)              264.15             0.36
An open end income fund which seeks to
                                            Indian Retail ABS                                                                        Indian Retail ABS
provide a combination of regular income
                                            Trust Series 76 A7 PTC *              LAAA (SO)          2659.91       3.67              Trust 85 Series A1 B              AAA (SO)              257.47             0.36
and high liquidity by investing primarily
in a mix of short term debt and money       TGS Investments & Trade *                 A1+            2500.00       3.45              Loan Receivable Securitisation
market instruments.                                                                                                                  Trust A Sr. A1                 AAA (SO)                 201.06             0.28
                                            Birla TMT Holdings *                      P1+            2500.00       3.45
Date of allotment:                                                                                                                   CDT Series 12 A2                  A1+ (SO)              200.91             0.28
                                            Indian Retail ABS
December 18, 2007                                                                                                                    HDFC                                    AAA             199.30             0.27
                                            Trust Series 77 A4 PTC                LAAA (SO)          1706.23       2.35
Fund Manager:
                                            CLSS 56 TRUST 2008 SR.A2                AA (SO)          1178.51       1.63              CDT Series 11 A2                  A1+ (SO)              195.82             0.27
Sachin Padwal Desai (Dec. 07)
Pallab Roy (June 08)                        Investment Vehicle for                                                                   Credit Asset Trust Series LV A2 F1+ (IND) (SO)          158.52             0.22
Latest NAV                                  Structured Transactions SR.A3X         AAA (SO)          1049.77       1.45
                                                                                                                                     CLSS 10 Trust 2009 A1             P1+ (SO)              146.63             0.20
TIUBF - Retail Plan                         Indian Retail ABS Trust 92 Sr. A8 X   LAAA (SO)          1012.62       1.40
                                                                                                                                     Receivable Securitisation
Growth Plan                 Rs. 11.0672                                                                                              Trust Sr. III A1                  A1+ (SO)              136.52             0.19
                                            CLSS 30 Trust Sr. .B                  F1+ (IND) (SO)     1001.39       1.38
Weekly Dividend Plan        Rs. 10.0159
                                            IRS Trust Series I A1                 LAAA (SO)          924.55        1.28              ICLS Trust 2008 Sr. 13 A2         A1+ (SO)              104.36             0.14
Daily Dividend Plan         Rs. 10.0106
                                            GE Money Financial Services               AAA            893.65        1.23              CLSS 19 Trust A1 PTC              P1+ (SO)              99.06              0.14
TIUBF - Insitutional Plan
Growth Plan                 Rs. 11.0921     Cholamandalam DBS Finance                 LAA            886.95        1.22              ICLS Trust 2008 Series 27 A3 LAA+ (SO)                  97.26              0.13
Weekly Dividend Plan        Rs. 10.2061                                                                                              ICLST 2008 Series 14 A3           P1+ (SO)              83.13              0.11
                                            CLSS 56 TRUST 2008 SR.A1                AA (SO)          769.96        1.06
Daily Dividend Plan         Rs. 10.0111
                                                                                                                                     Indian Retail ABS
TIUBF - Super Insitutional Plan             CLSS 23 Trust A PTC                    P1+ (SO)          738.02        1.02
                                                                                                                                     Trust Sr.68 A1 PTC               LAAA (SO)               1.54              0.00
Growth Plan                 Rs. 11.1170     Indian Retail ABS
                                                                                                                                     Total Corporate Debt                                   42337.58           58.42
Weekly Dividend Plan        Rs. 10.1082     Trust Sr.78 A4 PTC                    LAAA (SO)          653.92        0.90
                                                                                                                                     LIC Housing Finance *                   AAA            4179.35             5.77
Daily Dividend              Rs. 10.0116     CLSS 24 Trust A PTC                    P1+ (SO)          633.11        0.87
Fund Size:                                                                                                                           Global Trade Finance *                  P1+            2500.00             3.45
                                            Receivable Securitisation
Rs. 724.72 crores                           Trust Sr III A5                       LAAA (SO)           535.01       0.74              Edelweiss Capital                       P1+            1000.00             1.38
Expense Ratio:
                                            Loan Receivable Securitisation                                                           Total Mibor Linked Instruments                         7679.35            10.60
RP : 0.72%; IP :0.52%; SIP:0.32%            Trust C Sr. C1                         AAA (SO)          532.02        0.73
Minimum investment/Multiples for New                                                                                                 Reliance Capital                        A1+            1573.24             2.17
                                            ICLS Trust 2008 Series 39 A6           F1+ (SO)           476.57       0.66
investors:                                                                                                                           SBI Cards and Payments                  P1+             989.55             1.37
RP: Rs.25,000/1; IP : Rs.1 crore/1; SIP :   ICLS Trust 2008 Series 36 A1 F1+ IND (SO)                465.65        0.64
                                                                                                                                     Reliance Communications                 A1+             951.03             1.31
Rs.5 crores/1                               CLSS 10 Trust 2009 A2                  P1+ (SO)          412.79        0.57
Additional investment/Multiples for                                                                                                  Reliance Capital                        P1+             639.21             0.88
                                            RB Loan Trust Sr.27 A3                 P1+ (SO)           401.95       0.55
existing investors:                                                                                                                  Yes Bank                                A1+             487.60             0.67
RP: Rs.25,000/1; IP : Rs.1 crore/1; SIP :   Citifinancial Consumer Finance            AA+            391.54        0.54
                                                                                                                                     Tata Motors Finance                     A1+             481.63             0.66
Rs.1 crore/1
                                            ICLS Trust 2008 Series 36 A2           F1+ (IND)         376.81        0.52
Load Structure                                                                                                                       Edelweiss Capital                       P1+             473.12             0.65
                                            ICLS Trust 2008 Series 39 A8           F1+ (SO)          357.40        0.49
Entry Load Nil,                                                                                                                      EXIM Bank                               P1+             463.07             0.64
Exit:         0.25% (if redeemed within 7   ICLS Trust 2008 Series 33 A7              PR1+           350.22        0.48
                                                                                                                                     Axis Bank                               P1+             374.04             0.52
              days from the date of         LST Series 51 Series 1 A                AA (SO)          333.42        0.46
              allotment)                                                                                                             State Bank of Travancore                P1+             198.64             0.27
                                            Corporate Debt
Average Maturity :                                                                                                                   Kotak Mahindra Prime                    P1+             194.06             0.27
                                            Trust 2008-09 Sr 9 A2 PTC              P1+ (SO)          323.11        0.45
0.29 yrs
                                                                                                                                     Total Money Market Instruments                         6825.19             9.42
Yield to Maturity :                         Receivable Securitisation
                                            Trust Sr. III A2                       A1+ (SO)          322.31        0.44              Total Bank Deposit *                                   16000.00           22.08
10.11%
Modified duration :                         Indian Retail ABS Trust 92 Sr.A9 X    LAAA (SO)          315.73        0.44              Call, Cash & Other
                                                                                                                                     Current Assets $                                       15629.47           21.57
0.26 yrs                                    Loan Receivable Securitisation
                                            Trust B Sr. B1                         AAA (SO)          270.84        0.37              Net Assets                                             72471.59           100.00
RP-Retail Plan, IP-Institutional Plan,
                                                                                                                                     $ Inclusive of Bank Deposit                                        * Top 10 holdings
SIP-Super Institutional Plan

                                            Portfolio Composition and Performance

                                             Fund Manager ’s Commentary                                                    NAV Performance
                                                                                                                                                            Last      Last           Last        Last        Since
                                             The maturity period of the fund has decreased
                                                                                                                                                         1 Month   3 Months        6 Months    1 Year Inception *
                                             to 0.29 years from 0.33 years during the
                                             month. The exposure to corporate debt                                     TIUBF - Regular                    0.68%     2.50%           4.76%      9.38%        9.47%
                                             increased from 52.10% to 58.42%. Exposure                                 TIUBF - Institutional              0.69%     2.55%           4.87%      9.60%        9.69%
                                             to mibor linked instruments increased over the                            TIUBF - Super Institutional        0.71%     2.60%           4.97%      9.82%        9.91%
                                             month.                                                                    Crisil Liquid Fund Index           0.81%     2.59%           4.89%      8.76%        8.57%

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


                                                                                                                                                                                                                            27
         Templeton Floating Rate Income Fund - Short Term                                                                                                                           TFIF
                                             Portfolio
     As of January 30, 2009
                                             Company Name                        Rating Market Value        % of                  Company Name                        Rating       Market Value           % of
                                                                                         Rs. Lakhs         Assets                                                                   Rs. Lakhs            Assets
     Investment Style
                                             UBL Trust Sr. 63 B *             P1+ (SO)     2679.20          8.17                   Industrial Development
     The fund managers strive to
                                                                                                                                   Finance Corporation                  AAA              1015.42          3.09
     minimise the risk arising from          Investment Vehicle for
     interest rate fluctuations
                                             Structured Transactions SR.A3ZA AAA (SO)      1320.13          4.02                   IDFC                                 AAA              1010.77          3.08
     Type of Scheme / Investment Objective
     An open end liquid plan which aims      HDFC                               AAA        1295.42          3.95                   Edelweiss Capital                    P1+               500.00          1.52
     to provide income consistent with
     the prudent risk from a portfolio       Kotak Mahindra Prime               LAA         589.72          1.80                   Total Mibor Linked Instruments                        3557.66         10.84
     comprising primarily of floating rate
     debt instruments                        Loan Receivable                     AAA                                               Edelweiss Capital *                  P1+              3307.28         10.08
     Date of Allotment                       Securitisation Trust Sr. C2      (ind) (SO)    281.46          0.86
                                                                                                                                   JM Financial Products *              P1+              3153.95          9.61
     Short Term              Feb. 11, 2002
                                             CLSS 21 Trust A1 PTC             P1+ (SO)      264.15          0.81
     Short Term - I Plan     Sep. 2, 2005
                                                                                                                                   Kotak Mahindra Prime *               P1+              2644.91          8.06
     Fund Manager                            Citifinancial Consumer Finance     AA+          97.88          0.30
     Sachin Padwal-Desai (since Aug. 2006)                                                                                         Reliance Capital *                   A1+              2587.07          7.89
     Pallab Roy (since June 2008)            ICLS Trust 2008 Series 39 A7     F1+ (SO)       94.29          0.29
                                                                                                                                   Reliance Communications *            A1+              1992.51          6.07
     Latest NAV                              GE Money Financial Services        AAA          49.23          0.15
     Short-Term Plan                                                                                                               GE Capital Services                  P1+               503.72          1.54
     Growth Option          Rs. 15.7581      Indian Retail ABS
                                             Trust Sr.68 A1 PTC               LAAA (SO)      29.99          0.09                   SBI                                  P1+               276.16          0.84
     Dividend Option        Rs. 10.0588
     Short-Term Institutional Plan           Total Corporate Debt                          6701.49       20.43                     Axis Bank                            P1+                93.51          0.29
     Growth Option          Rs. 12.9764
     Dividend Option        Rs. 10.1455      LIC Housing Finance *              AAA        3940.94        12.01                    Reliance Capital                     P1+                18.80          0.06

     Fund Size
                                             National Housing Bank              AAA         603.98          1.84                   Total Money Market Instruments                       14577.91         44.43
     Rs. 328.09 crores
     Average Maturity                        Indian Railway Finance                                                                Total Bank Deposit *                                  2000.00          6.10
     Fund                0.64 years          Corporation                        AAA         503.31          1.53
                                                                                                                                   Call, Cash & Other
     Yield to Maturity                       Total PSU/PFI Bonds                           5048.23       15.39                     Current Assets $                                      2924.21          8.91
     9.60% (Pre-fund expenses)
                                             Tata Steel                       AAA (Ind)    1031.47          3.14                   Net Assets                                           32809.50 100.00
     Modified Duration
     0.58 years                                                                                                               $    Inclusive of Bank Deposit                                  * Top 10 holdings

     Expense Ratio                           Portfolio Composition and Performance
     0.75% (R), 0.45% (I)
                                              Fund Manager ’s Commentary                               NAV Performance
     Minimum Investment/Muliples for
     New Investors                            The maturity period for the plan has                                         Last       Last 15     Last 1   Last 3   Last 6     Last 1    Last 3 Last 5    Since

                                              increased to 0.64 years over the                                            7 Days         Days** Month** Months** Months** Year** Years* Years* Inception*
     Rs.5000 /1
                                              month. The exposure to corporate                       Short-Term Plan      0.17%          8.85%   8.96%     8.84%    9.22%      9.09% 8.02% 6.83%          6.74%
     Additional Investment/Multiples for
     Existing Investors                       debt decreased to 20.43% from                          Crisil Liquid
                                              24.66%, while exposure to money                        Fund Index           0.15%          8.20%   9.88%     10.40%   9.76%      8.76% 7.43% 6.21%           N.A
     Rs.5000 /1
     Load Structure                           market instruments has increased to                    Short-Term
                                              44.43% from 40.95% over the                            Institutional Plan   0.17%          9.15%   9.26%     9.15%    9.53%      9.38% 8.27%       N.A      7.93%
     Entry Load             NIL
     Exit Load              NIL               month.                                                 Crisil Liquid
                                                                                                     Fund Index           0.15%          8.20%   9.88%     10.40%   9.76%      8.76% 7.43%       N.A      7.11%

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


                                              NAV Movement (since inception)                                                       Composition by Assets




                                                                                                                                            ■    Corporate Debt                          20.43%
                                                                                                                                            ■    PSU/PFI Bonds                           15.39%
                                                                                                                                            ■    Money Market Instruments                44.43%
                                                                                                                                            ■    Call, Cash & Other Assets                8.91%
                                                                                                                                            ■    Mibor Linked Instruments                10.84%




28
                                                                                                                                                                                                 mfA1+ Rating by ICRA*


     Templeton India Treasury Management Account                                                                                                                                    TITMA
                                             Portfolio
As of January 30, 2009
                                             Company Name                           Rating       Market Value           % of                Company Name                           Rating        Market Value               % of
Investment Style                                                                                  Rs. Lakhs            Assets                                                                     Rs. Lakhs                Assets
The fund manager strives to strike an        CLSS 21 Trust A2 PTC *                P1+ (SO)        12335.15                  4.50           Canara Bank *                               P1+            21346.37              7.79
optimum balance between steady
income and high liquidity through a          CLSS 20 Trust A2 PTC *                P1+ (SO)        11150.98                  4.07           Citibank *                                  P1+            19272.54              7.03
judicious mix of fixed and floating rate
                                             Loan Receivable                                                                                Reliance Capital                            A1+            12931.81              4.72
debt instruments.
Type of Scheme / Investment Objective        Securitisation Trust Sr. A 2          AAA (SO)         5567.80                  2.03
                                                                                                                                            SBI Cards and Payments *                    P1+             8905.96              3.25
An open end liquid fund which seeks to       Sundaram Finance                        A1+            5000.00                  1.83
provide current income along with high                                                                                                      Edelweiss Capital                           P1+             8398.13              3.07
liquidity.                                   CLSS 19 Trust A2 PTC                  P1+ (SO)         4539.34                  1.66
                                                                                                                                            Kotak Mahindra Prime                        P1+             4827.82              1.76
Date of Allotment                            Indian Retail ABS Trust 85 Series A1 B AAA (SO)        3765.50                  1.37
TITMA - R Plan       April 29, 1998                                                                                                         Reliance Communications                     A1+             3510.62              1.28
TITMA - I Plan       June 22, 2004           Birla TMT Holdings                       P1+           2500.00                  0.91
                                                                                                                                            JM Financial Products                       P1+             3449.81              1.26
TITMA - L Plan       September 17, 2004
TITMA - SI Plan      September 2, 2005       TGS Investments & Trade                 A1+            2500.00                  0.91           GE Capital Transportation
Fund Manager                                 Corporate Debt                                                                                 Financial Services                          A1+             3366.35              1.23
Sachin Padwal-Desai (since Aug. 2006)        Trust 2008-09 Sr. 4 A1                P1+ (SO)         2220.88                  0.81           Indian Bank                            F1+ IND              2962.92              1.08
Pallab Roy (since June 2008)                 Auto Securitisation Trust Sr. A1      AAA (SO)         1576.87                  0.58           Sundaram BNP Paribas Home Finance           P1+             2884.29              1.05
Latest NAV
TITMA - R Plan                               ILSS 2 TRUST 2008 SR.A. PTC           AAA (SO)         1185.36                  0.43           Sundaram Fasteners                          P1              2493.30              0.91
Growth Option          Rs. 2154.1428         HDFC                                    AAA                996.48               0.36           GE Capital Services                         P1+             1908.63              0.70
Weekly Option          Rs. 1245.3162
Daily Dividend Option Rs. 1512.3400          Indian Retail ABS Trust Sr.68 A1 PTC LAAA (SO)             195.35               0.07           GE Money Housing                            P1+             1872.81              0.68
TITMA - I Plan                               Credit Asset Trust Sr. XLVIII A1     F1+ IND (SO)           98.27               0.04
Growth Option          Rs. 1361.6687                                                                                                        State Bank of Indore                        P1+             1485.00              0.54
Weekly Option          Rs. 1045.9427         Total Corporate Debt                                  53631.96                 19.58           Corporation Bank                            P1+              988.78              0.36
Daily Dividend Option Rs. 1000.6730
                                             National Housing Bank                   AAA            7348.48                  2.68           State Bank of Patiala                       P1+              494.42              0.18
TITMA - L Plan
Growth Option          Rs. 1318.8294         Total PSU/PFI Bonds                     AAA            7348.48                  2.68           ICICI Home Finance                          A1+              479.99              0.18
Dividend Option Rs. 1001.3455
Daily Dividend Option Rs. 1000.6730          Global Trade Finance *                  A1+           21500.00                  7.85           ICICI Home Finance                          P1+              473.19              0.17
TITMA Super Insitutional Plan                Edelweiss Capital                        P1+           8500.00                  3.10           ICICI Bank                                  A1+              278.88              0.10
Growth Option          Rs. 1292.0412
Weekly Dividend Option Rs. 1021.9891         LIC Housing Finance                     AAA            5198.71                  1.90           Yes Bank                                    P1+              232.93              0.09
Daily Dividend Option Rs. 1000.6730          Birla Global Finance                    A1+            5000.00                  1.83           Oriental Bank of Commerce                   P1+              198.16              0.07
Fund Size
                                             Birla TMT                                P1+           3000.00                  1.10           Total Money Market Instruments                         102762.73                37.51
Rs. 2739.66 crores
                                             Citicorp Finance                        AA+                500.48               0.18           Total Bank Deposit *                                     53000.00               19.35
Maturity & Yield
                                             Citifinancial Consumer Finance          AA+                500.19               0.18           Call, Cash & Other Current Assets $                        66023.15             24.10
            Avg Maturity          YTM
  Fund      0.16 years          8.84%*       Total Mibor Linked Instruments                        44199.38                 16.13           Net Assets                                             273965.70               100.00
                    * Pre fund expenses
                                                                                                                                            $   Inclusive of Bank Deposit                                        *Top 10 holdings
Modified Duration
0.14 years
                                             Portfolio Composition and Performance
Expense Ratio
TITMA-R Plan     0.85%                        Fund Manager ’s Commentary
TITMA-I Plan     0.60%
                                                                                                             NAV Performance
TITMA L Plan     1.10%                                                                                                               Last     Last      Last      Last       Last     Last     Last     Last     Since
TITMA SIP Plan   0.40%                       The maturity period of the fund has
                                                                                                                                    7 Days 15 Days** 1 Month** 3 Months** 6 Months**1 Year** 3 Years* 5 Years*Inception*
Minimum Investment/Multiples for             decreased to 0.16 years from 0.31                              TITMA - Regular Plan    0.14%       7.13%      7.46%       8.23%        8.95%      8.68%     7.63%     6.53%     7.39%
New Investors
                                             years        during            the    month.        The        Crisil Liquid
TITMA - R Plan         Rs. 1 lakh /1
TITMA - I Plan         Rs. 1 crore/1                                                                        Fund Index              0.15%       8.20%      9.88%       10.40%       9.76%      8.76%     7.43%     6.21%      N.A
TITMA - L Plan         Rs. 25000/1           exposure to corporate debt has                                 TITMA - I Plan          0.14%       7.39%      7.72%       8.49%        9.21%      8.95%     7.90%      N.A      6.92%
TITMA - SIP Plan       Rs. 5 crores/1
                                             decreased              from          22.58%           to       Crisil Liquid
Additional Investment/Multiples for                                                                         Fund Index              0.15%       8.20%      9.88%       10.40%       9.76%      8.76%     7.43%      N.A      6.40%
Existing Investors                           19.58%. Exposure to mibor linked
                                                                                                            TITMA - Liquid Plan     0.13%       6.88%      7.21%       7.97%        8.69%      8.41%     7.36%      N.A      6.53%
TITMA - R Plan       Rs. 1 lakh /1           instruments increased.
TITMA - I plan       Rs. 1 crore/1                                                                          Crisil Liquid
TITMA - L Plan       Rs. 5000/1                                                                             Fund Index              0.15%       8.20%      9.88%       10.40%       9.76%      8.76%     7.43%      N.A      6.54%
TITMA - SIP Plan     Rs. 1 crore/1                                                                          TITMA -
Load Structure                                                                                              Super Institutional     0.14%       7.59%      7.92%       8.69%        9.41%      9.16%     8.11%      N.A      7.79%
TITMA - R Plan / I Plan / L Plan                                                                            Crisil Liquid
Entry Load        Nil                                                                                       Fund Index              0.15%       8.20%      9.88%       10.40%       9.76%      8.76%     7.43%      N.A      7.11%
Exit Load         Nil
R Plan: Regular Plan; L Plan: Liquid Plan;                                                                 Past performance may or may not be sustained in future.
I Plan: Institutional Plan
                                                                                                           *Compounded and annualised. **Annualised.

                                              NAV Movement (since inception)                                                                    Composition by Assets




                                                                                                                                            ■ Money Market Instruments      37.51%        ■ Call, Cash & Other Assets      24.10%
                                                                                                                                            ■ Corporate Debt                19.58%        ■ Mibor Linked Instrumens        16.13%
                                                                                                                                            ■ PSU/PFI Bonds                     2.68%



                                                                                                                                                                                                                                     29
            Templeton India Money Market Account                                                                                                                                      TIMMA
     As of January 30, 2009                                   Portfolio
     Investment Style                                         Company Name                           Rating      Market Value        % of             Company Name                          Rating    Market Value       % of
     The fund manager seeks to achieve                                                                            Rs. Lakhs         Assets                                                             Rs. Lakhs        Assets
     capital preservation alongwith current
                                                              Reliance Capital                        A1+           1979.93           43.26           Kotak Mahindra Prime                   P1+        667.93          14.59
     income through a portfolio of money
     market instruments                                                                                                                               Total Money Market Instruments                    4542.92         99.26
     Type of Scheme / Investment Objective                    Reliance Telecom                        A1+           948.82            20.73
     An open end liquid fund which seeks to                                                                                                           Call, Cash & Other Current Assets                  34.08           0.74
     provide investors with high safety, a high
                                                              Edelweiss Capital                       P1+           946.24            20.67           Net Assets                                        4577.00         100.00
     degree of liquidity and current income
     through investment in high quality
     money market instruments.                                Portfolio Composition and Performance
     Date of Allotment: March 17, 1997
     Fund Manager:      Pallab Roy (Aug. 06)                    Fund Manager ’s Commentary                                                             Composition by assets
                        Vivek Ahuja (June 08)
     NAV:               Re. 1 (Constant)                        The fund had a 99.26% exposure to money market
     Fund Size:         Rs. 45.77 crores                        instruments by end of the month.
     Expense Ratio:     0.75%
     Minimum Investment/Multiples for New
     Investors
                                                                                                                                                                     ■ Money Market Instruments         99.26%
     Regular Account  Rs.5000/1
     Cheque Writing   Rs.10,000/1                                                                                                                                    ■ Call, Cash & Other Assets        0.74%

     Additional Investment/Multiples for
     Existing Investors                                         NAV Performance
     Rs.1000/1 (for all plans)                                                     Last     Last      Last     Last     Last      Last    Last                              Last      Since
     Load Structure                                                               7 Days 15 days** 1 Month** 3 mths** 6 mths** 1 year** 3 years*                          5 years* Inception*
     Entry Load                 NIL                            TIMMA              0.18%            9.54%       9.50%      9.23%      9.22%        8.90%     7.80%          6.03%          5.70%
     Exit Load                  NIL                            Crisil Liquid
     Lock-in Period             15 days from the               Fund Index         0.15%            8.20%       9.88%     10.40%      9.76%        8.76%     7.43%          6.21%          N.A
                                date of allotment
                                                               Past performance may or may not be sustained in future.                **Annualised.
                                                               *Compounded and annualised.




            Templeton Monthly Income Plan
            @
             An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus                                                                           TMIP
                                                              Portfolio - Monthly & Quarterly Dividend Plan                                                                                        Pure Debt Portfolio
     As of January 30, 2009
                                                              Company Name                           Rating      Market Value        % of             Company Name                          Rating    Market Value       % of
     Investment Style
                                                                                                                  Rs. Lakhs         Assets                                                             Rs. Lakhs        Assets
     The fund manager maintains a pure debt portfolio
     and strives to earn steady returns in the fixed income    Loan Securitisation Trust -                                                            Reliance Capital                       A1+         98.32           9.05
     market by actively managing the funds portfolio on        PTC Series - IX B                   LAAA (SO)        393.76            36.23
                                                                                                                                                      Total Money Market
     interest rate movements and credit risks                  Loan Securitisation Trust -
     Type of Scheme / Investment Objective
                                                               Reliance Industries PTC              AAA (SO)        168.74            15.53           Instruments                                        98.32           9.05
     An open end income fund which seeks to earn regular
     income through investment in fixed income securities      BHPC Auto Sec Trust PTC A2            A (SO)         122.87            11.31           Call, Cash & Other
     Date of Allotment                                         Total Corporate Debt                                 685.37            63.07
     February 7, 2000                                                                                                                                 Current Assets                                    205.94           18.95
                                                               Rural Electrification Corporation      AAA              97.09           8.93
     Fund Managers
                                                               Total PSU/PFI Bonds                    AAA              97.09          8.93            Net Assets                                        1086.73         100.00
     Anand Radhakrishnan (since Dec. 2006)
     Pallab Roy (since Aug.2006)
     Vivek Ahuja (since June 2008)
     Latest NAV
                                                              Portfolio Composition and Performance
     Monthly Plan              Rs. 10.7613
     Quarterly Plan            Rs. 10.6396                      Fund Manager ’s Commentary                                                             Composition by Assets
     Fund Size                 Rs. 10.87 crores
     Maturity & Yield                                           The fund’s maturity period increased to 1.76 years
                           Average           Yield to           from 0.91 yrs during the month. The fund’s exposure
                           Maturity         Maturity            to corporate debt has marginally decreased to
     Fund                 1.76 years         8.26%*             63.07% from 64.56%, while exposure to money
                                       * Pre-fund expenses      market instruments decreased during the month.
     Modified Duration                1.31 years
     Expense Ratio                    1.40%
     Minimum Investment/Multiples for New Investors
                                                                NAV Performance
     Rs.25000/1                                                                   Last    Last                  Last     Last      Since
     Additional Investment/Multiples for Existing Investors                     6 Months 1 Year               3 Years* 5 Years* Inception*                       ■     Corporate Debt                       63.07%
     Rs.5000/1                                                 TMIP - Monthly    5.92% 7.18%                   6.68% 5.22% 7.17%                                 ■     Call, Cash & Other Assets            18.95%
     Load Structure                                            TMIP - Quarterly 5.92% 7.19%                    6.68% 5.22% 7.20%                                 ■     Money Market Instruments                 9.05%
     Entry Load NIL                                            Crisil MIP                                                                                        ■     PSU/PFI Bonds                            8.93%
     CDSC           Rs.10 lakhs & below - 0.5%,                Blended Index     1.80% -1.55%                  5.91%      6.11%        N.A
                    if redeemed within 6 months of
                    allotment Above Rs.10 lakhs -              Past performance may or may not be sustained in future.
                    0.25%, if redeemed within 3               *Compounded and annualised            Dividends declared assumed to be reinvested
                    months of allotment

30
                                        DIVIDEND∞/BONUS HISTORY                                                    (for select schemes)

Record Date        Dividend Rate   Rate per       NAV*        Record Date          Dividend Rate      Rate per       NAV*         Record Date          Dividend Rate     Rate per         NAV*
                   /Bonus Ratio    unit (Rs.)     (Rs.)                            /Bonus Ratio       unit (Rs.)     (Rs.)                             /Bonus Ratio      unit (Rs.)       (Rs.)
                                                                                                                                                               a               a
FIBCF**                                                       FTIBF**                                                             Sep 26, 2008          2.190%          0.2190         10.6863
                                                                                                                                                              b                b
Jan 01, 1997         20%            2.00          12.03       Nov 25, 2003             15%              1.50         13.99                              2.038%          0.2038         10.6863
Jul 30, 1999         35%            3.50          30.17       June 15, 2005            20%              2.00         17.77                                    a                a
                                                                                                                                  Jun 27, 2008          0.964%          0.0964         10.6314
Mar 14, 2000    65% /1:1 bonus      6.50          50.38       May 4, 2006              25%              2.50         24.26                                    b               b
Nov 10, 2000         25%            2.50          16.85       May 23, 2007             30%              3.00       24.6370                              0.897%          0.0897         10.6314
Mar 09, 2001       22.50%           2.25          14.08       May 21, 2008             30%              3.00       24.9250        (Half-yearly Dividend)        a              a
Mar 18, 2002         10%            1.00          12.93                                                                           Sep 26, 2008           2.193%         0.2193         11.8817
                                                              TIPP**                                                                                            b              b
Jul 30, 2003         20%            2.00          15.45                                                                                                  2.042%         0.2042         11.8817
Feb 3, 2004          20%            2.00          22.43       Dec 31, 1997              12%       1.20               11.31                                                     a
                                                              Dec 14, 1998              12%       1.20               11.46        Mar 28, 2008           3.504%a        0.3504         12.4811
Jan 19, 2005         25%            2.50          24.07                                                                                                        b               b
Jan 24, 2006         30%            3.00          33.94       Mar 16, 2000              12%       1.20               12.41                               3.261%         0.3261         12.4811
                                                                                                                                                                               a
Feb 07, 2007         60%            6.00          46.31       Jul 13, 2001              12%       1.20               12.09        Sep 28, 2007           7.621%a        0.7621         13.1210
                                                              Mar 22, 2002              10%       1.00               11.72                                      b              b
Jan 09, 2008         70%            7.00        56.2212                                                                                                  7.093%         0.7093         13.1210
                                                              Dec 23, 2003              12%       1.20               15.81                                     a               a
Jan 21, 2009         30%            3.00        23.4686       Dec 15, 2004              12%       1.20               16.27        Mar 28, 2007           2.193%         0.2193         12.2180
                                                                                                                                                                b             b
TIGF**                                                        Dec 21, 2005              15%       1.50               17.74                               2.042%         0.2042         12.2180
Apr 28, 2000           15%          1.50          14.45       Dec 20, 2006              20%       2.00             18.8017        FTIMIP #
Sep 16, 2003           20%          2.00          20.48       Nov 14, 2007              25%       2.50             20.4519        (Monthly Dividend)
Feb 24, 2004           30%          3.00          27.16                                                                                                        a               a
Dec 8, 2004            25%          2.50          27.29       Dec 17, 2008              12%       1.20             13.7490        Aug 29, 2008          0.263%b         0.0263b        10.5605
Dec 21, 2005           35%          3.50          35.94       FTLF-The 50s Plus Plan$                                                                   0.245%          0.0245         10.5605
                                                                                                                                                               a               a
Dec 20, 2006           40%          4.00          41.07       Dec 26, 2008            0.876%a   0.0876a            10.1951        Jul 25, 2008          0.263%b         0.0263b        10.4589
                                                                                            b          b                                                0.245%          0.0245         10.4589
Dec 26, 2007           45%          4.50        60.5998                               0.815%    0.0815             10.8156                                    a                a
                                                                                                                                  Jun 27, 2008          0.876%b         0.0876b        10.4645
Dec 10, 2008           25%          2.50        28.2833       Sep 26, 2008            1.752%a   0.1752a            10.8156                              0.815%          0.0815         10.4645
FIPP**                                                                                      b          b
                                                                                      1.631%    0.1631             10.8156
Sep 10, 1999           20%          2.00          18.83                                     a          a                          (Quarterly Dividend)$
Oct 13, 2000           30%          3.00          17.41
                                                              Jun 27, 2008            1.314%
                                                                                            b
                                                                                                0.1314
                                                                                                       b
                                                                                                                   11.0318        Dec 26, 2008          0.438%a         0.0438a        10.1710
                                                                                      1.223%    0.1223             11.0318                                     b               b
Jan 19, 2001           25%          2.50          16.79                                                                                                 0.408%          0.0408         10.1710
Mar 18, 2002           20%          2.00          15.36       FTLF-The 50s Plus Floating Rate Plan$                               Sep 26, 2008           1.927%a        0.1927a        10.6783
Aug 19, 2003           20%          2.00          18.10       Dec 26, 2008            1.314%a   0.1314a            11.2170                                     b               b
                                                                                            b          b                                                1.794%          0.1794         10.6783
Mar 23, 2004           25%          2.50          23.63
Oct 27, 2004           40%          4.00          23.02
                                                                                      1.223%    0.1223             11.2170        Jun 27, 2008          3.854%a         0.3854a        11.0357
                                                              Sep 26, 2008            2.190%a   0.2190a            11.8403                                     b              b
Nov 9, 2005            55%          5.50          28.85                                     b          b                                                3.587%          0.3587         11.0357
Nov 15, 2006           60%          6.00          38.81                               2.038%    0.2038             11.8403        TGSF (Composite Plan) $
                                                                                            a          a                                                        a              a
Mar 7, 2007            30%          3.00          31.32       Jun 27, 2008            1.314%    0.1314             11.8579        Dec 26, 2008          10.073%         1.0073         12.0838
                                                                                            b          b                                                       b               b
Feb 13, 2008           60%          6.00        38.9872                               1.223%    0.1223             11.8579                              9.376%          0.9376         12.0838
                                                                                                                                                               a               a
FIPF**                                                        FTLF – The 40s Plan                                                 Sep 26, 2008           3.241%         0.3241         10.8152
                                                                                                                                                               b               b
Nov 03, 1999           30%          3.00          26.34       Oct 24, 2007           10.314% a
                                                                                             b   1.314 a
                                                                                                       b           15.8275                              3.016%          0.3016         10.8152
Sep 22, 2000           30%          3.00          18.93                              10.223%     1.223             15.8275                                     a               a
                                                                                                                                  Jun 27, 2008          1.314%          0.1314         10.6178
Jan 17, 2001           25%          2.50          15.27       TIIF $                                                                                           b              b
Mar 18, 2002           30%          3.00          16.78                                                                                                 1.223%          0.1223         10.6178
Jun 27, 2003           25%          2.50          20.73       Dec 26, 2008            3.679%a   0.3679a            10.9711        TGSF (TP)$
                                                                                            b          b
Jan 20, 2004           40%          4.00          35.64                               3.424%    0.3424             10.9711        Dec 26, 2008          2.102%a         0.0210a        10.6126
                                                                                                                                                               b               b
Oct 5, 2004            35%          3.50          34.97       Sep 26, 2008            1.139%a   0.1139a            10.4958                              1.957%          0.1957         10.6126
Jul 13, 2005           55%          5.50          47.49                                     b          b
                                                                                      1.060%    0.1060             10.4958        Sep 26, 2008           1.752%a        0.1752a        10.5605
Jul 19, 2006           60%          6.00          48.13       Jun 27, 2008            0.876%a   0.0876a            10.4612                                     b               b
                                                                                            b          b                                                1.631%          0.1631         10.5605
Jul 18, 2007           60%          6.00        65.3063                                                                                                        a               a
                                                                                      0.815%    0.0815             10.4612        Jun 27, 2008          1.314%          0.1314         10.4780
Jun 18, 2008           60%          6.00        48.8451       TIIBA                                                                                            b              b
FIFCF**                                                                                                                                                 1.223%          0.1223         10.4780
                                                              (Annual Dividend)•            a          a                          TGSF (LT-Quarterly)$
Mar 14, 2006           20%          2.00          17.48       Mar 28, 2008            8.234%b   0.8234b            11.0593
May 9, 2007            25%          2.50        18.5404                               7.663%    0.7663             11.0593        Dec 26, 2008          9.548%a         0.9548a        11.9949
Mar 12, 2008           30%          3.00        18.1619                                     a          a                                                       b               b
                                                              Mar 28, 2007            2.631%b   0.2631b            10.6028                              8.886%          0.8886         11.9949
TIEIF**                                                                               2.450%    0.2450             10.6028        Sep 26, 2008           3.942%a        0.3942a        10.7531
                                                                                            a          a                                                       b               b
Apr 18, 2007           7%           0.70        12.3379       Mar 29, 2006            2.631%    0.2631             10.4752                              3.669%          0.3669         10.7531
                                                                                                       b                                                       a               a
Nov 28, 2007           7%           0.70        15.7362                               2.450%b   0.2450             10.4752        Jun 27, 2008          1.314%          0.1314         10.4947
May 21, 2008           7%           0.70        15.0994                             •                                                                          b              b
                                                              (Half Yearly Dividend)                                                                    1.223%          0.1223         10.4947
FIT**                                                         Sep 26, 2008            3.504%a   0.3504a            12.8888        TFIF (LT-Quarterly)$
Mar 31, 2000          80%           8.00          31.02                                     b          b
                                                                                      3.261%    0.3261             12.8888
May 24, 2000          60%           6.00          19.82                                     a          a                          Dec 26, 2008          1.927%a         0.1927a        10.9124
                                                              Mar 28, 2008            6.044%b   0.6044b            13.5135                                     b               b
Mar 30, 2001         12.50%         1.25          11.57                               5.625%    0.5625             13.5135                              1.794%          0.1794         10.9124
Feb 24, 2004          40%           4.00          24.01
                                                              Sep 28, 2007
                                                                                            a
                                                                                      6.132%b   0.6132b
                                                                                                       a
                                                                                                                   13.7322        Sep 26, 2008           1.752%a        0.1752a        10.8520
Mar 18, 2005          30%           3.00          27.25                                                                                                        b               b
Feb 15, 2006          35%           3.50          38.01                               5.707%    0.5707             13.7322                              1.631%          0.1631         10.8520
                                                                                            a          a
Jan 10, 2007          80%           8.00          39.43       Mar 28, 2007            6.139%b   0.6139b            13.9650        Jun 27, 2008          1.402%a         0.1402a        10.7776
                                                                                      5.717%    0.5717             13.9650                                     b              b
Nov 14, 2007          80%           8.00        46.8922                                                                                                 1.304%          0.1304         10.7776
                                                              (Monthly Dividend)#                                                 TISTIP#
Dec 17, 2008          30%           3.00        20.6681                                     a          a
                                                              Jan 30, 2009            0.350%b   0.0350b            12.3810
FIOF**                                                                                0.326%    0.0326             12.3810        (Monthly Dividend)
Sep 14, 2005           25%          2.50          15.96       Dec 26, 2008
                                                                                            a
                                                                                      3.942%b   0.3942b
                                                                                                       a
                                                                                                                   12.8018        Jan 30, 2009           1.059%a        10.599a       1089.6837
                                                                                                                                                               b              b
Sep 13, 2006           30%          3.00          18.88                               3.669%    0.3669             12.8018                               0.986%         9.864         1089.6837
Nov 29, 2006           30%          3.00          18.82                                     a          a                          Dec 26, 2008           1.620%a        16.205a       1093.1712
                                                              Nov 28, 2008            0.263%b   0.0263b            12.1204                                     b               b
Sep 12, 2007           30%          3.00        17.8556                               0.245%    0.0245             12.1204                               1.508%         15.082        1093.1712
FIF**                                                         (Quarterly Plan) $
                                                                                                                                  Nov 28, 2008           0.263%a        2.627a        1066.8105
Oct 08, 1999        40%             4.00          39.59       Dec 26, 2008            4.117%a   0.4117a            13.5601                                     b              b
                                                                                            b          b                                                 0.245%         2.445         1066.8105
Jan 12, 2000    60%/1:1 bonus       6.00          64.00
Mar 24, 2000        60%             6.25          37.57
                                                                                      3.832%    0.3832             13.5601        (Quarterly Dividend)$
Mar 16, 2004        20%             2.00          12.67       Sep 26, 2008            1.226%a   0.1226a            12.9837        Dec 26, 2008            2.049%a        20.497a      1074.4577
                                                                                            b          b                                                        b              b
Nov 23, 2005        30%             3.00          20.26                               1.141%    0.1141             12.9837                                1.907%         19.077       1074.4577
                                                                                            a          a
Nov 29, 2006        15%             1.50          25.61       Jun 27, 2008            1.314%    0.1314             13.0022        Sep 26, 2008            2.189%a        21.899a      1064.3917
                                                                                            b          b                                                        b              b
Oct 24, 2007        25%             2.50        21.4765                               1.223%    0.1223             13.0022                                2.038%         20.382       1064.3917
Aug 20, 2008        25%             2.50        16.0852       TMIP#                                                               Jun 27, 2008            1.581%a        15.811a      1056.6332
FFF**                                                                                                                                                           b              b
                                                              (Monthly Dividend)                                                                          1.471%         14.715       1056.6332
Mar 09, 2004         25.00%         2.50          15.26                                   a                 a
                                                              Jan 30, 2009          1.489%b           0.1489b      10.7613        (Institutional Monthly)
Nov 23, 2005          30%           3.00          22.84                             1.386%            0.1386       10.7613
                                                                                          a                 a                     Jan 30, 2009            1.094%a       10.949a       1120.4451
Nov 29, 2006          30%           3.00          25.80       Dec 26, 2008          1.489%b           0.1489b      10.8487                                       b             b
                                                                                                                                                          1.019%        10.190        1120.4451
Oct 24, 2007           6%           0.60        25.0725                             1.386%            0.1386       10.8487
FPF**
                                                                                          a                 a                     Dec 26, 2008            1.699%a       16.993a       1124.3023
                                                              Nov 28, 2008          0.526%b           0.0526b      10.6495                                       b             b
Mar 09, 2004         25.00%         2.50          16.60                             0.489%            0.0489       10.6495                                1.581%        15.816        1124.3023
Nov 23, 2005          30%           3.00          20.06       (Quarterly Dividend)$                                               Nov 28, 2008            0.263%a       2.627a        1097.0217
                                                                                          a                 a                                                    b            b
Nov 29, 2006          30%           3.00          20.39       Dec 26, 2008          2.365%            0.2365       10.8278                                0.245%        2.445         1097.0217
                                                                                          b                 b
Oct 24, 2007          25%           2.50        16.8882                             2.201%            0.2201       10.8278        Face Value : Rs.1000

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

                                                                      FUND MANAGERS INDUSTRY EXPERIENCE

 Franklin Equity                                                                                   Templeton Equity                                Fixed Income
  Name             Industry experience            Name             Industry experience             Name               Industry experience          Name                Industry experience
  Sukumar Rajah          17 years                 Janakiraman            12 years                                                                  Santosh Kamath             14 yrs
                                                                                                   Mark Mobius               39 years
  K. N. Sivasubramanian 19 years                  Roshi Jain              5 years                                                                  Sachin Desai                3 yrs
  Anand Radhakrishnan 13 years                    Chakri Lokapriya       11 years                  Chetan Sehgal             15 years              Pallab Roy                  6 yrs
  Anil Prabhudas         15 years                 Murali Yerram           2 years                  Vikas Chiranewal          4 years               Vivek Ahuja                10 yrs

                                                                                                                                                                                                  31
                                                                                                                         Head Office:
                                                                                                                         Franklin Templeton Asset Management (India) Pvt. Ltd.
                                                                                                                         Level 4,Wockhardt Towers,Ist Bandra Kurla Complex,
                                                                                                                         Bandra (East), Mumbai 400 051
                                                                                                                         email: mktg@templeton.com
                                                                                                                         www. franklintempletonindia.com



       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 service@templeton.com


* 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, Franklin Pharma Fund,
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: FTLF 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 Franklin India Taxshield and Templeton India Pension Plan are subject to a lock-in-period of 3 financial years and 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.

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