You look for options in everything you do.Why not when it comes to your tax-saving instruments?

Before you invest, #AskWhatELSS

February 2016

Few Questions That Bother Investors?

?ŸTax saving avenues: Traditional or New?

*Ÿ Is ELSS a prudent avenue?

ŸWhen, how and which ELSS to invest in?

ŸHow important is market timing while

investing?

ŸWhat additional benefits does ELSS offer?

1

* Equity linked tax saving schemes

Tax Saving Or Tax Planning:

What Really Matters?

2

WHERE ONE

INVESTS

WHY

ONE INVESTS

WHAT TIME PERIOD

ONE INVESTS

How ONE

INVESTS

In Assets which offer only Regular Income Or Growth Potential also

Only Tax Savings OR Wealth Creation also

Fixed OR Based on Risk Appetite and Cash Flow Requirements

One Time OR Systematically

Equity-linked Savings Schemes (ELSS)

can be a one-stop solution for all these questions

Key Features:

ELSS vs Traditional Tax Saving Avenues

3

3 15^ 5 5

Capital gains & Dividends

Interest Interest Interest

Capital gains & Dividends are

Tax-free^^

Interest is Tax-free

Interest is Taxable

Interest is Taxable

Market Linked** Fixed Fixed Fixed

Avenues

Characteristics

Lock in period (in years)

Nature of gains

Tax treatment of gains^^

Type of returns

ELSS PPF NSC Bank FD

th^Partial withdrawals are allowed from 7 financial year and subject to conditions. However, full amount can only be withdrawn after 15 years.

Source: www.indiapost.gov.in for PPF and NSC and www.sbi.co.in for Bank FD.

^^ The information provided is for general information purpose only and the disclosures in respect of the tax implications are in accordance with prevailing tax laws and there can be no assurance or guarantee that the tax implications prevailing at the time of investment in the scheme will endure indefinitely. Further, statements with regard to tax implications mentioned herein are mere expressions of opinion and are not representations of the mutual fund to induce any investor to acquire units of the schemes of the mutual fund. In view of the individual nature of the implications, each investor is advised to consult with his or her own tax advisors/authorised dealers with respect to the specific tax and other implications arising out of his or her participation in the schemes.

**Returns are subject to market risks.

How Much Tax Can You Save?

Under section 80C, 80CCC and 80 CCD (1) of Income Tax Act 1961, an Individual / HUF

is entitled to an aggregate amount of deduction from Gross Total Income upto

Rs. 1.5 Lacs (from AY 2016-17) on specified qualifying investments / contributions /

deposits / payments.

Investments /

Contributions /

Deposits / Payments

of

Rs. 1,50,000

Tax savings

upto

Rs. 51,912*

*Assuming maximum marginal tax rate of 34.61% (including 30% income tax, 12% surcharge, 2% education cess and 1% secondary and higher education cess)

4

ELSS: Investment Rationale

BETTER INFLATION

ADJUSTED RETURNS

WEALTH

GENERATION OVER LONG TERM

PROFESSIONAL

MANAGEMENT

Equities may generate Real Positive Returns (adjusted for inflation)

Equities may help in Generating Wealth over long term

Active portfolio management with an objective to Reduce Volatility and Generate Alpha

5

Inflation and your returns

However, Equities may generate real positive returns (adjusted for inflation)

Average 3 year

rolling return** for

S&P BSE Sensex

11.8% 8.1%Average

Inflation^>*Assuming Inflation @ 6% for years 2020 and 2030. Past performance may or may not be sustained in future. **Returns: Compounded Annualized, 3 year rolling (with 1 month shift) from 30-Sep-2004 to 29-Feb-2016. ̂ Inflation taken for period between Sep-2004 & Feb-2016. Upto Dec 2011 CPI IW data is taken. From Jan 2012 CPI Combined data (new series) is taken.

6

Loaf of Bread

10

20

29*

48*

1 Litre Milk

25

45

60*

108*

1 Litre Petrol

28

69

92*

165*

HigherEducation

3 lakhs

17 lakhs

23 lakhs*

41 lakhs*

MILK

2000

2015

2020

2030

*Assuming Inflation @ 6% for years 2020 and 2030.

Equities (S&P BSE Sensex):

Long Term Potential

Equities may help in generating wealth over long term

Historical instances of +ve Performance

Historical instances of -ve Performance

62.2%

29.3%

21.1%

-18.5%

47.2%

3.7%

-1.5%

8.3%

14.9% 15.8% 16.% 16.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

3 Year 5 Year 7 Year 10 Year

Maximum Returns Minimum Returns Average Returns

85.9%

14.1%

98.1%

1.9%

100%

0%

100%

0%

7

Past performance may or may not be sustained in future. Period – 10.04.1999 to 29.2.2016. Returns greater than 1 year period are compounded annualized. Note: The above graph shows the performance on a daily rolling return basis to compute returns for respective periods (3,5,7 and 10 years)

ELSS: Key Benefits

8

LOWER

LOCK-IN

PERIOD

TAX-FREE

GAINS

OPERATIONAL

EASE

POWER

OF TWO

ELSS currently has lowest lock-in period (3 years) among all tax saving investment avenues under section 80C of Income Tax Act,1961

Gains (either dividends or long term capital gains) are tax free as per current tax laws

Investment can be made either in lumpsum or systematically (SIPs)

Tax Saving + Potential for Long Term Wealth Creation

PRESENTING

FRANKLIN INDIA TAXSHIELD (FIT)An open end equity linked savings scheme

that is eligible for tax benefits on

investments up to Rs. 1.5 Lac under section

80C of the Income Tax Act, 1961

Investing in an ELSS gives you the double

advantage of saving tax and benefiting from

the growth potential of equities. What’s

more, it has a lock-in period of only 3 years.

9

About The Fund

FRANKLIN INDIA TAXSHIELD

Blend Of

Growth

And Value

Identifies

Opportunities Across

Market Cap

Resilient Across

Market Cycles

Long Term

Dividend

Track Record

10

Investment Style

Growth Blend Value

Large

Medium

Small

• Across market caps

• Blend of growth and value

Siz

e (

Ma

rke

t C

ap

)

11

Investing across Market Cap

Franklin India Taxshield (FIT) (Allocation to Large Cap, Mid Cap & Small Cap)

Large Cap (%) Mid Cap (%) Small Cap (%)

Focused on identifying opportunities irrespective of market cap

Past performance may or may not be sustained in future. Information is historical and may not reflect current or future portfolio characteristics. Portfolio holdings are subject to change. Source: As per the internal classification. Data is as on Feb 29, 2016. Equity allocation in the fund is rebased to 100%.

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Feb-0

6

Aug-0

6

Feb-0

7

Aug-0

7

Feb-0

8

Aug-0

8

Feb-0

9

Aug-0

9

Feb-1

0

Aug-1

0

Feb-1

1

Aug-1

1

Feb-1

2

Aug-1

2

Feb-1

3

Aug-1

3

Feb-1

4

Aug-1

4

Feb-1

5

Aug-1

5

Feb-1

6

Fund Facts:

Long Term Dividend Track Record

Past performance may or may not be sustained in future.

Dividends on face value of Rs.10/-. Pursuant to payment of dividend, the NAVs of the schemes would fall to the extent of payout and statutory levies (as applicable). *Dividend yield is mentioned for Dividend option.

13

Year Record DateDividend Per

Unit (Rs.) (A)

Record Date NAV (Rs.)

Dividend Plan (B)

Record Date NAV

(Rs) Direct –

Dividend Plan

Dividend Yield*

(A/B)

2015

2016

January 30

January 22

3.00

3.50

47.2441

40.6886

47.9514

41.7001

6%

9%

2014 January 24 3.00 31.1896 31.3999 10%

2013 January 18 2.00 32.2527 32.2617 6%

2012 February 03 3.00 30.3111 NA 10%

2011 January 14 4.00 34.0334 NA 12%

2010 January 15 3.00 33.0523 NA 9%

2008 December 17 3.00 20.6681 NA 15%

November 14 8.00 46.8922 NA 17%

January 10 8.00 39.43 NA 20%

2006 February 15 3.50 38.01 NA 9%

2005 March 18 3.00 27.25 NA 11%

2004 February 24 4.00 24.01 NA 17%

2001 March 30 1.25 11.57 NA 11%

May 24 6.00 19.82 NA 30%

March 31 8.00 31.02 NA 26%

2007

2000

Fund Facts: Scheme Performance

As on Dec 31, 2015

Past performance may or may not be sustained in future. Fund Managers: FIBCF: Anand Radhakrishnan & Anand Vasudevan, FIT: Anand Radhakrishnan, FIPP: Anand Radhakrishnan & R. Janakiraman, FIF: Anand Radhakrishnan & Varun Sharma, FILSF: Equity-Anand Radhakrishnan; Debt-Sachin Padwal-Desai, Pallab Roy, FIMIP: Equity-Anand Radhakrishnan; Debt-Sachin Padwal-Desai & Umesh Sharma. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV (beginning of period). $Benchmark: The 50s Plus Plan - 20% S&P BSE Sensex+ 80% Crisil Composite Bond Fund Index; The 50s Plus Floating Rate Plan - 20% S&P BSE Sensex + 80% Crisil Liquid Fund Index. Discrete 12 months performance is absolute and since inception returns are compounded annualized. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom three funds managed by the fund manager(s) have been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans). # Index adjusted for the period September 16, 2005 to April 15, 2015 with the performance of S&P BSE IT Index.

14

Scheme

NAV as on Dec 31, 2015

Discrete Returns (%)

Since inception till Dec 31, 2015

Value of Investment of

Rs.10,000 since

inception

Inception DateDec 31, 2014 to Dec 31, 2015

Dec 31, 2013 to Dec 31, 2014

Dec 31, 2012 to Dec 31, 2013

NAV* Returns NAV* Returns NAV* Returns NAV* Returns

Franklin India Taxshield (FIT) -Growth 418.2161 401.9406 4.05% 256.1355 56.92% 241.3250 6.14% 10 24.99% 418,216 10.04.1999

B:Nifty 500 - - -0.72% - 37.82% - 3.61% - 14.53% 96,861

AB:Nifty 50 - - -4.06% - 31.39% - 6.76% - 13.23% 79,991

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the scheme

Franklin India Bluechip Fund (FIBCF) - Growth 344.8196 338.0004 2.04% 246.3181 37.22% 236.6664 4.08% 10 22.12% 827,300 1.12.1993

B:S&P BSE SENSEX - - -5.03% - 29.89% - 8.98% - 9.83% 79,316

AB:Nifty 50 - - -4.06% - 31.39% - 6.76% - 9.80% 78,836

Franklin Infotech Fund (FIF) – Growth 113.8764 109.7588 3.75% 94.0101 16.75% 61.3091 53.34% 10 19.72% 227,784 22.8.1998

B: S&P BSE Information Technology # - - 4.51% - 16.54% - 59.78% - N.A. N.A.

AB:Nifty 50 - - -4.06% - 31.39% - 6.76% - 13.69% 92,891

Franklin India Prima Plus (FIPP) – Growth 435.8831 417.6007 4.38% 266.3419 56.79% 252.3438 5.55% 10 19.42% 435,883 29.9.1994

B:Nifty 500 - - -0.72% - 37.82% - 3.61% - 8.94% 61,796

AB:Nifty 50 - - -4.06% - 31.39% - 6.76% - 8.84% 60,593

Franklin India Monthly Income Plan (FIMIP) –Growth

44.3674 41.9480 5.77% 34.2746 22.39% 32.3434 5.97% 10 10.25% 44,367 28.9.2000

B: Crisil MIP Blended Fund Index - - 6.79% - 16.83% - 4.41% - N.A. N.A.

AB: Crisil 10 Year Gilt Index - - 7.39% - 14.14% - -0.68% - N.A. N.A.

Franklin India Life Stage Fund of Funds (FILSF) - The 50s Plus Floating Rate Plan – Growth

29.4135 27.5055 6.94% 23.9664 14.77% 22.2535 7.70% 10 9.85% 29,414 9.7.2004

Benchmark$ - - 5.57% - 13.21% - 9.15% - 9.22% 27,530

Additional Benchmark - - N.A - N.A - N.A - N.A N.A

FILSF - The 50s Plus Plan – Growth 27.9002 26.0729 7.01% 22.2305 17.28% 21.4038 3.86% 10 8.86% 27,900 1.12.2003

Benchmark$ - - 5.87% - 17.40% - 4.91% - 8.35% 26,380

Additional Benchmark - - N.A - N.A - N.A - N.A N.A

Fund Facts: Market Resilience

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

Te

ch

bu

bb

le p

ea

k

Te

ch

Cra

sh

& 9

/11

Re

co

ve

ry p

os

t 9

/11

Ind

ia R

e-r

ati

ng

20

08

Pe

ak

Glo

ba

l c

ris

is

Po

st-

Cri

sis

Pe

ak

Cu

rre

nt

Re

turn

s s

inc

e

inc

ep

tio

n

FIT-Growth B: Nifty 500 AB: Nifty 50

Tech Bubble Peak: th th10 Apr ‘99– 11 Feb ‘00.

Tech Crash and 9/11: th st

11 Feb ’00 – 21 Sep ‘01.

Recovery Post 9/11: st th21 Sep ‘01 – 14 Jan ’04.

India Re-rating: th th

14 Jan ‘04- 10 May ‘06.

2008 Peak: th th10 May ‘06- 8 Jan ‘08.

Global Crisis Lows: th th8 Jan’08- 9 Mar ‘09.

Post Crisis Peak: th th

9 Mar ‘09 – 9 Nov ‘10.

Current: th st9 Nov ‘10 – 31 Dec ‘15.

Past performance may or may not be sustained in future. Returns are calculated for growth plan and are compounded annualized for more than 1 year period. Inception Date: April 10 1999. Dividends are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration. B: Benchmark, AB: Additional Benchmark.

15

Fund Facts: Portfolio Journey

Movement of Rs. 10,000 invested in FIT, Nifty 500 & Nifty 50

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Ap

r-9

9

Ma

r-0

0

Fe

b-0

1

Ja

n-0

2

De

c-0

2

Oc

t-0

3

Se

p-0

4

Au

g-0

5

Ju

l-0

6

Ju

n-0

7

Ma

y-0

8

Ap

r-0

9

Ma

r-10

Fe

b-1

1

Ja

n-1

2

De

c-1

2

No

v-1

3

Oc

t-14

Se

p-1

5

FIT B: Nifty 500 AB: Nifty 50

Calendar year

FIT: Rs. 418,216

B: Nifty 500 - Rs. 96,861

AB: Nifty 50 - Rs. 79,991

Past performance may or may not be sustained in future. The graph shows the movement of Rs. 10,000 invested in FIT– Growth Plan , Nifty 500 and Nifty 50 since inception of the fund as on Dec 31, 2015. B: Benchmark and AB: Additional Benchmark. Inception Date: April 10, 1999. Please refer www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans).

Ru

pe

es

16D

ec

-15

Fund Facts: Rolling Returns

Past performance may or may not be sustained in future. Period – 10.04.1999 to 31.12.2015. Load is not taken into consideration. Dividends are assumed to be reinvested. Returns greater than 1 year period are compounded annualized. Note: The above graph shows the performance on a daily rolling return basis to compute returns for respective periods (3,5,7 and 10 years).

74.3%

44.7%

31.4%

-12.9%

53.7%

15.4%

3.7%

8.9%

22.7%22.6%23.4%23.1%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

3 Year 5 Year 7 Year 10 Year

Maximum Returns Minimum Returns Average Returns

93.8%

6.2%

100%

0%

100%

0%

100%

0%

Historical instances of +ve Performance

Historical instances of -ve Performance

Franklin India Taxshield

17

Though past performance may or may not be sustained in future, historically,

there have been no instances of loss for investments held for over 5 years

Rolling Returns:

Benchmark & Additional Benchmark

65.2%

30.2%

22.5%

-23.5%

48.1%

-2.6%

2.7%9.4%

15.8% 16.5% 16.3% 16.3%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

3 Year 5 Year 7 Year 10 Year

83.1%

16.9%

97.8%

2.2%

100%

0%

100%

0%

58.6%

28.4%

20.6%

-16.4%

44.5%

10.5%

-1.2%

3.7%

15.7%15.6%15.5%14.5%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

3 Year 5 Year 7 Year 10 Year

Maximum Returns Minimum Returns Average Returns

85.9%

14.1%

98.6%

1.4%

100%

0%

100%

0%

B: Nifty 500 AB: Nifty 50

Historical instances of +ve Performance Historical instances of -ve Performance

Past performance may or may not be sustained in future. B: Benchmark, AB: Additional Benchmark for Franklin India Taxshield. Returns: Compounded Annualized. Period – 10.04.1999 to 31.12.2015 Returns greater than 1 year period are compounded annualized. Note: The above graph shows the performance on a daily rolling return basis to compute returns for respective periods (3,5,7 and 10 years).

18

Why Invest In Franklin India Taxshield?

Avail dual benefitsTax Saving + Growth potential (through equities)

Benefit from Blend Investment style(combination of Growth and Value)

Market Cap agnostic portfolio with focus onBottom up stock selection

Long term Performance + Dividend track recordof over 15 years

1234

19

Risk Factors

This presentation is dated February 2016.

representation of every material fact regarding any industry, security or the fund and is neither an offer for units nor

an invitation to invest. This communication is meant for use by the recipient and not for circulation/reproduction

without prior approval. The views expressed by the portfolio managers are based on current market conditions and

information available to them and do not constitute investment advice. Regulatory/ taxation details mentioned in

the article are provided on a best effort basis and are as per the existing laws and subject to change from time to time.

The recipient is advised to consult its advisor/ tax consultant prior to arriving at any investment decision.

Scheme Classification and Objective: Franklin India Taxshield (FIT): An open-ended Equity Linked Savings Scheme

with an objective to provide medium to long term growth of capital along with income tax rebate. Load Structure:

FIT Entry Load: Nil: Exit Load: Nil. All subscriptions in FIT are subject to a lock in period of 3 years from the date of

allotment and the unit holder cannot redeem, transfer, assign or pledge the during the period. The Trustee, AMC,

their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that

the schemes are wound up before the completion of the lock-in period. Investors are requested to review the

prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial

implications of the investment/participation in the scheme.

The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market.

The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to

the availability and adequacy of distributable surplus. The past performance of the mutual funds managed by the

Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes.

The information contained in this presentation is not a complete

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Franklin Templeton Asset Management (India) Pvt. Ltd.

Indiabulls Finance Centre, Tower 2, 12th and 13th floor, Senapati Bapat Marg, Elphinstone (W), Mumbai 400013

Tel (91-22) 6751 9100 • Fax (91-22) 6639 1281 • www.franklintempletonindia.com