Franklin India Smaller Companies Fund

1. Franklin India Smaller Companies Fund* Invest in potential leaders of tomorrow July 2018 *Please refer Slide 8 for product label.

2. Smaller Companies: A search beyond the bluechips Small Caps Next 250 Stocks INR 10 lac crores Large Caps Top 101 Stocks Mid Caps Next 150 Stocks INR 22 lac crores INR 99 lac crores Market Cap Market Cap Market Cap Nifty 500 INR 131 lac crores Market Cap India’s Equity Market Cap INR 143 lac crores Source: NSE, Capitalline As on 29thJun, 2018 1

3. Smaller Companies– Diverse nature of ideas Small Fish in a Big Pond Big Fish in a Growing Pond Different Fish in Different Pond 2

4. Small Fish in a Big Pond Competing through market share gain • Smaller sized businesses in large conventional sectors − Banks − Utilities − Energy − Information Technology − Materials • Growing through market share gain • Often differentiated from the larger players • Regulations generally tend to play a crucial role in large conventional sectors 3

5. Big Fish in a growing pond Competing through market growth • Leaders in their space − Media and Entertainment sector − Ancillary manufacturers − Niche Engineering companies − Logistics • Growing with the sector • A mix of regulated and not so regulated (Some sectors/companies are more regulated as compared to others) 4

6. Different Fish in Different Pond Businesses at different stages of evolution Innovating and creating distinct businesses − Internet led businesses − Retail and consumption sectors − Unique services • • Exploring new opportunities • Entrepreneurship led models 5

7. Smaller Companies – Offering a variety Nifty Smallcap 250 Nifty 100 18 15 Exposure (total sectors) 80.61% Concentration Weightage In top 5 sectors 55.37% Nifty Smallcap 250 is more diversified vis-a-vis the Nifty 100 Index at both sector and stock levels Smallcaps are represented by Nifty Smallcap 250 and Large Caps are represented by Nifty 100 Source: As on 29th June ’18. http://www.niftyindices.com/indices/equity/broad-based-indices/nifty-smallcap-250 https://www.nseindia.com/content/indices/ind_nifty_100.pdf 6

8. Why Smaller Companies throw opportunities? The Information Gap Nifty 100 Nifty Smallcap 250 Average Number of Analysts tracking a stock 33 8 Over 61% of Nifty Smallcap Stocksare tracked by < 10 Analysts Smaller Companies are represented by Nifty Smallcap 250 and Large Caps are represented by Nifty 100 Source: IIFL as on 29thJun‘18 7

9. Presenting Franklin India Smaller Companies Fund Product Label This product is suitable for investors who are seeking* • Long term capital appreciation • A fund that invests primarily in small cap companies *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 8

10. About the Fund 9

11. Investment Style Box Investment Style Growth Blend Value Large Mid Market Cap Small 10

12. True to its label Franklin India Smaller Companies Fund (FISCF)- (Allocation to Large Cap, Mid Cap and Small Cap) Average Allocation to small caps has been 40% in the last 10 years 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jun- 08 Dec -08 Jun- 09 Dec -09 Jun- 10 Dec -10 Jun- 11 Dec -11 Jun- 12 Dec -12 Jun- 13 Dec -13 Jun- 14 Dec -14 Jun- 15 Dec -15 Jun- 16 Dec -16 Jun- 17 Dec -17 Jun- 18 Small Cap 32 29 30 22 30 34 36 41 37 37 40 45 44 36 48 34 34 40 43 43 75 Mid Cap 53 51 59 72 68 56 57 57 61 56 50 49 44 48 35 53 56 49 46 48 11 Large Cap 15 21 11 6 2 10 6 2 2 7 9 6 11 16 17 13 10 11 12 9 14 Source: Internal Calculations. AMFI Classification (since Jan 2018) Data is as on Jun 29, 2018. Month end data from Jun ’08 – Jun ’18 is taken for calculations. The graph shows large cap, mid cap and small cap break as a % of the total equity. 11

13. Well Diversified Portfolio Franklin India Smaller Companies Fund In the last 10 years on a monthly average •Allocation to top 3 sectors – 62% •Stocks held in the portfolio – 59 80 70 60 50 40 30 20 10 0 Dec-16 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-17 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Top 3 Sectors (%) No. of Stocks Source: Factset. Data taken from Jun ’08 to Jun ‘18. 12

14. Scheme Performance As on June 29, 2018 Compounded Annualised Growth Rate Performance (%) Last 3 Years Current Value of Investment of Rs. 10000 of Rs. 10000 NAV as on Jun 29, 2018 Inception Date Scheme Last 1 Year Last 5 Years Current Value of Investment of Rs. 10000 Since inception Current Value of Investment of Rs. 10000 Current Value of Investment Returns Returns Returns Returns 56.7586 5.76% 10,574 14.31% 14,938 28.43% 34,994 14.94% 56,759 13.1.2006 Franklin India Smaller Companies Fund (FISCF)- Growth - - 0.58% 14.13% 10,058 11,409 12.03% 10.00% 14,061 13,309 20.58% 14.28% 25,519 19,507 13.69% 12.58% 49,502 43,781 B:Nifty Smallcap 250 ^^ AB:Nifty 50 Performance of other schemes managed by the fund managers of the scheme 549.1251 7.99% 10,797 - 11.33% 11,130 - 14.13% 11,409 935.1438 5.86% 10,584 - 3.29% 10,328 - 14.13% 11,409 574.1287 7.67% 10,765 - 11.33% 11,130 - 14.13% 11,409 9.01% 11.27% 10.00% 12.20% 13.03% 10.00% 9.13% 11.27% 10.00% 12,954 13,775 13,309 14,123 14,439 13,309 12,998 13,775 13,309 18.78% 16.53% 14.28% 24.48% 21.22% 14.28% 18.95% 16.53% 14.28% 23,668 21,510 19,507 29,919 26,205 19,507 23,832 21,510 19,507 23.16% 16.20% 14.72% 20.27% 12.32% 11.28% 18.58% 10.82% 10.46% 549,125 179,577 140,401 935,144 174,040 138,372 574,129 114,778 106,352 10.04.1999 Franklin India Taxshield (FIT)-Growth @ B:Nifty 500 AB:Nifty 50 * Franklin India Prima Fund (FIPF)-Growth @^^^ B:Nifty Midcap 150 ## $ AB:Nifty 50 * Franklin India Equity Fund*** (FIEF) - Growth @ B:Nifty 500 $ AB:Nifty 50 * Franklin India Equity Advantage Fund *** (FIEAF) - Growth B:Nifty 500 AB:Nifty 50 Franklin India Opportunities Fund (FIOF)- Growth @ B:Nifty 500# $ AB:Nifty 50 1.12.1993 29.9.1994 78.3907 7.19% 10,717 7.99% 12,592 18.91% 23,800 16.70% 78,391 2.3.2005 - - 11.33% 14.13% 6.79% 12.05% 14.13% 11,130 11,409 10,677 11,201 11,409 11.27% 10.00% 8.01% 10.93% 10.00% 13,775 13,309 12,600 13,651 13,309 16.53% 14.28% 18.31% 16.14% 14.28% 21,510 19,507 23,204 21,147 19,507 14.29% 14.46% 11.36% 2.58% 11.94% 59,370 60,559 72,078 15,968 79,316 72.0782 - - 21.2.2000 Past performance may or may not be sustained in future. Fund Managers: FIPF/FISCF: R. Janakiraman (Managing Since 11-Feb-08) & Hari Shyamsunder (Managing Since 02-May-16), FIEAF: Lakshmikanth Reddy (Managing Since 02-May-16) & R. Janakiraman (Managing Since 21-Feb-14), FIT: Lakshmikanth Reddy (Managing Since 02-May-16) & R. Janakiraman (Managing Since 02-May-16), FIEF: Anand Radhakrishnan (Managing Since 31-Mar-07) & R. Janakiraman (Managing Since 01-Feb-11), FIOF: R. Janakiraman (Managing Since 01-Apr-13) & Hari Shyamsunder (Managing Since 02-May-16). B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. The FISCF fund manager R. Janakiraman & Hari Shyamsunder manages 6 & 3 schemes of Franklin Templeton Mutual Fund respectively. Period for which scheme’s performance has been provided is computed basis last day of the month-end preceding the date of advertisement. Different plans have a different expense structure. The performance details provided herein are of Regular Plan. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. 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 February 21, 2000 to March 10, 2004 with the performance of ET Mindex and for the period March 10, 2004 to June 4, 2018 with the performance of S&P BSE 200. ## Index is adjusted for the period December 1, 93 to May 20, 2013 with the performance of Nifty 500 and for the period May 20, 2013 to Jun 4, 2018 with the performance of Nifty Midcap 100. ^^ Index adjusted for the period January 13, 2006 to June 4, 2018 with the performance of Nifty Midcap 100. ^^^ As the scheme was launched before the launch of the benchmark index, benchmark index figures since inception are not available.Benchmark returns calculated based on Total Return Index Values. ***The features of few Schemes including category of schemes (like Scheme Name, Investment Objective, Benchmark etc.) has undergone changes with effect from June 4, 2018. For details, please refer https://www.franklintempletonindia.com/downloadsServlet/pdf/addendum-merger-and-fundamental-attribute-change-jfzh4g5a @ As TRI data is not available since inception of the scheme, benchmark performance is calculated using composite CAGR in FIT: * Nifty 50 PRI values from 10.04.1999 to 30.06.1999 and TRI values since 30.06.1999; FIPF: $ Nifty 500 PRI values from to 01.12.1993 to 26.11.1998, Nifty 500 TRI values from 26.11.1998 to May 20, 2013, Nifty Midcap 100 TRI values from May 20, 2013 to June 4, 2018 and Nifty Midcap 150 TRI values since June 4, 2018, * Nifty 50 PRI values from 01.12.1993 to 30.06.1999 and TRI values since 30.06.1999; FIEF: Nifty 500 PRI values from 29.09.1994 to 26.11.1998 and TRI values since 26.11.1998, * Nifty 50 PRI values from 29.09.1994 to 30.06.1999 and TRI values since 30.06.1999;FIOF: $ ET Mindex PRI values from 21.02.2000 to 10.03.2004,S&P BSE 200 PRI values from 10.03.2004to 01.08.2006,S&P BSE 200 TRI values from 01.08.2006 to 04.06.2018. 15

15. Serving investors for over 12 years Movement of Rs. 10,000 invested in FISCF - Growth, Nifty Smallcap 250, and Nifty 50 70000 60000 FISCF: Rs. 56,759 B: Nifty Smallcap 250: Rs. 49,502 50000 AB: Nifty 50 Rs. 43,781 40000 30000 20000 10000 0 May-07 Apr-09 Apr-11 Jul-12 Mar-13 Jul-14 Mar-15 Jul-16 Oct-17 Feb-17 Sep-06 Dec-07 Aug-08 Dec-09 Aug-10 Dec-11 Nov-13 Nov-15 Jan-06 Jun-18 FISCF B: Nifty Smallcap 250 AB: Nifty 50 Past performance may or may not be sustained in future. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Performance is as on June 29, 2018. B: Benchmark, AB: Additional Benchmark. Inception date: 13.01.2006. Benchmark Index adjusted for the period January 13, 2006 to June 4, 2018 with the performance of Nifty Midcap 100 Benchmark values calculated based on Total Return Index Values. The benchmark of the fund has been changed to Nifty Smallcap 250 w.e.f. Jun 4, 2018. 14

16. Calendar Year Performance 110 80 Absolute Returns (%) 50 20 (10) (40) (70) 2018 YTD 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 FISCF - Growth (11) 43 10 10 90 13 52 (26) 19 105 (63) 56 B: Nifty Smallcap 250 (16) 49 8 8 58 (4) 41 (30) 20 102 (59) 79 AB: Nifty 50 3 30 4 (3) 33 8 29 (24) 19 78 (51) 57 Outperformance over B 5 (6) 2 2 32 17 11 4 (1) 3 (4) (23) Outperformance over AB (13) 13 6 13 57 5 23 (2) (0) 27 (12) (1) Past performance may or may not be sustained in future. Inception Date: January 13, 2006. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. B: Benchmark, AB: Additional Benchmark. Benchmark Index adjusted for the period January 13, 2006 to June 4, 2018 with the performance of Nifty Midcap 100. YTD Performance is as on June 29, 2018. The superlative performance shown in 2009, 2012 and 2014 was on account of an overall sharp rise in the stock prices coupled with stock selection and fund’s overweight position in outperforming sectors. Benchmark returns calculated based on Total Return Index Values. The benchmark of the fund has been changed to Nifty Smallcap 250 w.e.f. Jun 4, 2018. 15

17. The advantage of Long term investing Franklin India Smaller Companies Fund Historical instances of +ve performance 60.0% Historical instances of –ve performance 49.0% 50.0% 40.0% 33.4% 32.5% 99.8% 93.4% 100% 30.0% 0.2% 6.6% 0% 18.5% 18.7% 18.2% 20.0% 10.0% 4.8% 0.0% -0.3% 3-Year 5-Year 7-Year -10.0% -20.0% -21.3% -30.0% Maximum Minimum Average Past performance may or may not be sustained in future. Period – 13.1.2006 to 29.06.2018. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Returns greater than 1 year period are compounded annualized. Note: The above table shows the performance on a daily rolling return basis to compute returns for respective periods (3,5,7) years. 16

18. The advantage of Long term investing Nifty Smallcap 250* Nifty 50** 35.0% 50.0% 28.8% 30.0% 39.7% 40.0% 25.0% 99.9% 21.8% 97.2% 100% 19.8% 88.7% 30.0% 99.7% 100% 24.4% 20.0% 24.5% 0.1% 2.8% 0% 11.3% 0.3% 0% 15.0% 20.0% 14.3% 10.5% 10.3% 13.3% 10.3% 12.9% 10.0% 10.0% 5.1% 4.9% 5.0% 0.0% 0.0% -0.7% 3-Year 5-Year 7-Year 0.0% 3-Year 5-Year 7-Year -10.0% -5.0% -5.2% -12.5% -10.0% -20.0% Maximum Minimum Average Maximum Minimum Average Historical instances of +ve performance Historical instances of –ve performance Past performance may or may not be sustained in future. Period – 13.01.2006 to 29.06.2018. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. Returns greater than 1 year period are compounded annualized. *Benchmark**Additional Benchmark. Benchmark Index adjusted for the period January 13, 2006 to June 4, 2018 with the performance of Nifty Midcap 100. Note: The above table shows the performance on a daily rolling return basis to compute returns for respective periods (3,5 and 7 years) Benchmark returns calculated based on Total Return Index Values. The benchmark of the fund has been changed to Nifty Smallcap 250 w.e.f. Jun 4, 2018. 17

19. Market Resilience (as of June 29, 2018) 110 90 70 50 30 Returns (%) 10 (10) (30) (50) (70) P1 31 52 51 (21) (20) P2 (65) (63) (53) (2) (12) P3 103 108 73 (5) 30 P4 (22) (23) (15) 2 (6) P5 22 6 12 16 10 P6 67 43 30 24 38 P7 (10) (11) (20) 1 10 P8 24 21 22 3 2 P9 15 14 13 1 2 FISCF-Growth B: Nifty Smallcap 250 AB: Nifty 50 Outperformance over B Outperformance over AB P5: Rebound in US and QE3 buoying global rally: 30thJan ‘12 – 28thJun ‘13 P6: Post European Crisis: 28thJun ‘13 – 27thFeb ’15 P7: Chinese economic Slowdown: 27thFeb ‘15 – 29thFeb ’16 P8: Global Liquidity and Domestic Reforms: 29thFeb ‘16 – 29thJun’18 P9: Since Inception: 13thJan’06– 29thJun ‘18 P1: India Re-rating: 13thJan ‘06- 8thJan ‘08. P2: Global Crisis Lows: 8thJan’08- 9thMar ‘09. P3: Post Crisis Peak: 9thMar ‘09 – 9thNov ‘10. P4: High inflation, slow growth: 9thNov’10 – 30th Jan’12 Past performance may or may not be sustained in future. Returns are compounded and annualized. Load is not taken into consideration. Dividends are assumed to be reinvested and bonus is adjusted. Refer annexure for market resilience of other funds managed by the fund managers of FISCF. B: Benchmark and AB: Additional Benchmark. Inception Date: January 13, 2006. Benchmark Index adjusted for the period January 13, 2006 to June 4, 2018 with the performance of Nifty Midcap 100. The above graph depicts performance of the fund vis-à-vis benchmark and additional benchmark in the specified time periods which have displayed significant market movement due to change in domestic/global macroeconomic variables. 18 Benchmark returns calculated based on Total Return Index Values. The benchmark of the fund has been changed to Nifty Smallcap 250 w.e.f. Jun 4, 2018.

20. SIP Returns as on June 29, 2018 If you had invested Rs. 10000 every month in FISCF - Growth Since Jan 14, 2011 FISCF 1 year 3 year 5 year 7 year 120,000 360,000 600,000 840,000 900,000 Total amount Invested (Rs) 115,723 432,443 998,007 1,953,808 2,196,653 Total value as on 29-Jun-2018 (Rs) -6.62% 12.33% 20.51% 23.74% 23.27% Returns 110,544 414,271 881,792 1,492,023 1,637,908 Total value of B: Nifty Smallcap 250 ^^ -14.44% 9.37% 15.43% 16.15% 15.63% B:Nifty Smallcap 250 ^^ Returns 125,931 443,926 826,265 1,340,488 1,465,979 Total value of AB: Nifty 50 9.41% 14.15% 12.79% 13.14% 12.75% AB: Nifty 50 Returns Past performance may or may not be sustained in future. B: Benchmark, AB: Additional Benchmark. Inception Date: January 13, 2006. Load is not taken into consideration. Dividends are assumed to be reinvested and bonus is adjusted. The fund was launched as a closed ended scheme and was converted into an open ended scheme effective January 14, 2011. Returns over 1 year period are compounded annualized. Calculations assume investment on the 1st business day of every month. On account of difference in the type/category, asset allocation or investment strategy, inception dates, performances of the fund is not strictly comparable. ^^Index adjusted for the period January 13, 2006 to June 4, 2018 with the performance of Nifty Midcap 100 Benchmark returns calculated based on Total Return Index Values.The benchmark of the fund has been changed to Nifty Smallcap 250 w.e.f. Jun 4, 2018. 19

21. Dividend History Record Date Nav(Rs.) - Direct Dividend Plan Dividend Per Unit (Rs.) (A) Record Date Nav(Rs.) - Dividend Plan (B) Year Record Date Dividend Yield* (A/B) 3.00 32.3911 34.6225 9% February 23 2018 2.25 28.4159 29.8648 8% February 23 2017 2.00 22.7612 23.5553 9% February 19 2016 2.00 26.6372 27.1103 2015 February 20 8% 1.50 14.5369 14.6188 2014 February 14 10% 2.50 15.3803 15.3934 2013 February 22 16% 0.90 12.3641 NA 2007 August 8 7% The fund was launched as a closed ended scheme and was converted into an open ended scheme effective January 14, 2011. Dividends on face value of Rs.10. Past performance may or may not be sustained in future. 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 Plan. 20

22. 21 Portfolio Composition Share of equity AUM Share of equity AUM Top 10 holdings Sector Top Sector Allocation Finolex Cables Ltd. Industrial Products 3.31% Banks 11.44% Vardhman Textiles Ltd. Textiles - Cotton 2.84% Industrial Products 9.72% HDFC Bank Ltd. Banks 2.66% Construction 7.99% Repco Home Finance Ltd. Finance 2.59% Finance 7.54% eClerx Services Ltd. Software 2.38% Software 6.76% Infosys Ltd. Software 2.28% Media & Entertainment 6.12% Cyient Ltd. Software 2.10% Chemicals 4.33% Nesco Ltd. Commercial Services 2.05% Consumer Durables 4.00% Karur Vysya Bank Ltd. Banks 2.01% Consumer Non Durables 3.99% Dr. Lal Path Labs Ltd. Healthcare Services 1.99% Construction Project 3.94% Total 24.20% Total 65.82% Total (Equity) 93.03% These securities represent the ten largest holdings held in the Fund as of the date indicated. All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation to subscribe or transact in these securities. Sector classification based on AMFI. 25 As of Jun 29, 2018

23. Why invest in FISCF Provides an opportunity to participate in smaller companies. Smaller companies defined as companies with market capitalization below that of 251stStock of full market capitalization 1 2 Benefit from Blend Investment style (combination of Growth and Value) 3 Portfolio focus on Bottom-up approach to stock selection – strong impetus on quality 4 Long term performance record (over 12 years) 22

24. Fund Characteristics as on Jun 29, 2018 A diversified equity portfolio predominantly investing in small-cap stocks. Fund Positioning January 13, 2006 (launched as a closed end scheme and converted into an open-end one effective Jan, 14 2011) Inception Date Rs. 7,113.83 crore (Jun 29, 2018) Assets R. Janakiraman & Hari Shyamsunder. Srikesh Nair (dedicated fund manager for foreign securities) Managed by Investment Style Blend of ‘growth’ and ‘value’ Subscription: Fresh Purchase - Rs.5,000/-. Additional Purchase - Rs.1,000/-. Redemption: Rs.1,000/-. The amount for subscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re. 1/-. Minimum Amount Benchmark Nifty Smallcap 250 (effective June 04, 2018) Standard deviation: 4.31% Beta: 0.77 Sharpe Ratio*: 0.54 Volatility Measures (3 years) (Jun 29, 2018) Portfolio Turnover (Jun 29, 2018) 23.55% Exit Load 1% if the units are redeemed/switched-out within one year of allotment *Annualised. Risk free rate assumed to be 6.25% (FBIL overnight MIBOR) 23

25. Equity MFs - Positioning Thematic – Asian Equity FoF – Overseas – Europe FoF – Overseas - U.S. Thematic – Technology Thematic – Special Situations Thematic – Infrastructure FAEF FIF-FEGF FIF-FUSOF FITF FIOF FBIF Small Cap Mid Cap FISCF FIPF Dividend Yield Value Focused ELSS Large & Mid Cap TIEIF TIVF FIFEF FIT FIEAF Multi Cap Large Cap Index – Nifty FIEF FIBCF FIIF DIVERSIFIED STYLE / THEME FIIF: Franklin India Index Fund – NSE Nifty Plan, FIBCF: Franklin India Bluechip Fund, FIEF: Franklin India Equity Fund, FIEAF: Franklin India Equity Advantage Fund, FIT: Franklin India Taxshield, FIFEF: Franklin India Focused Equity Fund, TIVF: Templeton India Value Fund, TIEIF: Templeton India Equity Income Fund, FIPF: Franklin India Prima Fund, FISCF: Franklin India Smaller Companies Fund, FBIF: Franklin Build India Fund, FIOF: Franklin India Opportunities Fund, FITF: Franklin India Technology Fund, FIF-FUSOF: Franklin India Feeder – Franklin U.S. Opportunities Fund, FIF-FEGF: Franklin India Feeder – Franklin European Growth Fund, FAEF: Franklin Asian Equity Fund 24

26. Equity MFs – Risk Matrix FIF-FUSOF FIF-FEGF FAEF FBIF FIOF FITF R: Risk Probability FIPF FISCF FIEAF FIT FIFEF TIVF TIEIF FIIF FIBCF FIEF RP: Return Potential FIIF: Franklin India Index Fund – NSE Nifty Plan, FIBCF: Franklin India Bluechip Fund, FIEF: Franklin India Equity Fund, FIEAF: Franklin India Equity Advantage Fund, FIT: Franklin India Taxshield, FIFEF: Franklin India Focused Equity Fund, TIVF: Templeton India Value Fund, TIEIF: Templeton India Equity Income Fund, FIPF: Franklin India Prima Fund, FISCF: Franklin India Smaller Companies Fund, FBIF: Franklin Build India Fund, FIOF: Franklin India Opportunities Fund, FITF: Franklin India Technology Fund, FIF-FUSOF: Franklin India Feeder – Franklin U.S. Opportunities Fund, FIF-FEGF: Franklin India Feeder – Franklin European Growth Fund, FAEF: Franklin Asian Equity Fund Note: Relative fund positioning is indicative in nature and is based on fundamental factors pertaining to relative risk return potential of 1) large caps vs mid caps vs small caps, 2) diversified vs style/theme and 3) exposure to foreign currencies. For ex: higher the mid/small cap exposure, higher the risk return potential. This is a simplified illustration of potential Risk-Return profile of the schemes and does not take into account various complex factors that may have a potential impact on the schemes. 25

27. 26 Risk Factors The information contained in this presentation is not a complete 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. Scheme Classification and Objective: Franklin India Smaller Companies Fund (FISCF): An open ended equity scheme which seeks to to provide long-term capital appreciation by investing predominantly in small cap companies. Load Structure: FISCF Entry Load: Nil: Exit Load: In respect of each purchase of Units - 1% if the Units are redeemed/switched-out within one year of allotment. Risk Factors: 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. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 26

28. Franklin Templeton Asset Management (India) Pvt. Ltd. Indiabulls Finance Centre, Tower 2, 12thand 13thfloor, Senapati Bapat Marg, Elphinstone (W) Mumbai 400013 Tel (91-22) 6751 9100 Fax (91-22) 6639 1281 www.franklintempletonindia.com © 2014 Franklin Templeton Investments. All rights reserved.