m.

f A vehicle for investing in stocks and bonds A mutual fund is not an alternative investment option to stocks and bonds, rather it pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.

Buying a mutual fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share of the funds gains, losses, income and expenses. Each mutual fund has a specific stated objective The funds objective is laid out in the fund's prospectus, which is the legal document that contains information about the fund, its history, its officers and its performance. Some popular objectives of a mutual fund are Fund Objective Equity (Growth) Debt (Income) Money Market (including Gilt) Balanced Only in stocks Only in fixed-income securities In short-term money market instruments (including government securities) Partly in stocks and partly in fixed-income securities, in order to maintain a 'balance' in returns and risk What the fund will invest in

Managed by an Asset Management Company (AMC) The company that puts together a mutual fund is called an AMC. An AMC may have several mutual fund schemes with similar or varied investment objectives.

The AMC hires a professional money manager, who buys and sells securities in line with the fund's stated objective. All AMCs Regulated by SEBI, Funds governed by Board of Directors The Securities and Exchange Board of India (SEBI) mutual fund regulations require that the funds objectives are clearly spelt out in the prospectus.

In addition, every mutual fund has a board of directors that is supposed to represent the shareholders' interests, rather than the AMCs. Net Asset Value or NAV NAV is the total asset value (net of expenses) per unit of the fund and is calculated by the AMC at the end of every business day. How is NAV calculated? The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the funds NAV. Expense Ratio AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries, advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges Rs1.50 for every Rs100 in assets under management.

A fund's expense ratio is typically to the size of the funds under management and not to the returns earned. Normally, the costs of running a fund grow slower than the growth in the fund size - so, the more assets in the fund, the lower should be its expense ratio. Load Some AMCs have sales charges, or loads, on their funds (entry load and/or exit load) to compensate for distribution costs. Funds that can be purchased without a sales charge are called no-load funds. Open- and Close-Ended Funds 1) Open-Ended Funds At any time during the scheme period, investors can enter and exit the fund scheme (by buying/ selling fund units) at its NAV (net of any load charge). Increasingly, AMCs are issuing mostly open-ended funds. 2) Close-Ended Funds Redemption can take place only after the period of the scheme is over. However, close-ended funds are listed on the stock exchanges and investors can buy/ sell units in the secondary market (there is no load).

Important documents Two key documents that highlight the fund's strategy and performance are 1) the prospectus (legal document) and the shareholder reports (normally quarterly). Professional Money Management Fund managers are responsible for implementing a consistent investment strategy that reflects the goals of the fund. Fund managers monitor market and economic trends and analyze securities in order to make informed investment decisions. Diversification Diversification is one of the best ways to reduce risk (to understand why, read The need to Diversify). Mutual funds offer investors an opportunity to diversify across assets depending on their investment needs. Liquidity Investors can sell their mutual fund units on any business day and receive the current market value on their investments within a short time period (normally three- to five-days). Affordability The minimum initial investment for a mutual fund is fairly low for most funds (as low as Rs500 for some schemes). Convenience Most private sector funds provide you the convenience of periodic purchase plans, automatic withdrawal plans and the automatic reinvestment of interest and dividends.

Mutual funds also provide you with detailed reports and statements that make record-keeping simple. You can easily monitor the performance of your mutual funds simply by reviewing the business pages of most newspapers or by using our Mutual Funds section. Flexibility and variety You can pick from conservative, blue-chip stock funds, sectoral funds, funds that aim to provide income with modest growth or those that take big risks in the search for returns. You can even buy balanced funds, or those that combine stocks and bonds in the same fund. Tax benefits on Investment in Mutual Funds

1) 100% Income Tax exemption on all Mutual Fund dividends

2) Equity Funds - Short term capital gains is taxed at 15%. Long term capital gains is not applicable. Debt Funds - Short term capital gains is taxed as per the slab rates applicable to you. Long term capital gains tax to be lower of - 10% on the capital gains without factoring indexation benefit and 20% on the capital gains after factoring indexation benefit.

3) Open-end funds with equity exposure of more than 65% (Revised from 50% to 65% in Budget 2006) are exempt from the payment of dividend tax for a period of 3 years from 1999-2000. Note: Equity Funds are those where the investible funds are invested in equity shares in domestic companies to the extent of more than 65% of the total proceeds of such funds.

Franklin
Very Good performance in the category The scheme is ranked 1 in Large Cap category by Crisil. If you are already invested in this scheme, you may continue to stay invested.

Returns (NAV as on Feb-22-2013)

Period 1 mth 3 mth 6 mth 1 year 2 year 3 year 5 year Returns (%) -3.8 5.2 9.7 8.2 6.5 9.1 7.6 33 5 17 34 18 7 4 Rank #

Absolute Returns (in %)

Year 2012 2011 2010 2009 2008 Qtr 1 4.8 -14.4 -4.9 -13.4 -33.7 Qtr 2 -2.1 -1.2 0.7 47.0 -14.1 6.1 -7.9 15.1 13.5 5.7 Qtr 3 Qtr 4 5.3 -4.7 6.2 -22.3 Annual 16.3 -27.0 11.7 57.9 -54.6

1 mth (%) Fund Returns Category avg Difference of Fund returns and Category returns Best of category Worst of category Benchmark returns # Difference of Fund returns and Benchmark returns Investment Objective -3.8 -4.0 0.2

3 mth (%) 5.2 2.6 2.6

6 mth 1 yr (%) 2 yr (%) 3 yr (%) (%) 9.7 8.2 6.5 9.1 7.3 7.2 4.0 5.5 2.4 1.0 2.5 3.6

5yr (%) 7.6 1.6 6.0

-1.4 -7.7 -3.3 -0.5

7.5 -5.0 4.3 0.9

14.0 -2.5 8.2 1.5

19.0 -1.4 6.5 1.7

10.1 -2.8 2.8 3.7

12.2 -4.5 6.0 3.1

9.1 -18.0 2.2 5.4

An open-end growth scheme with an objective primarily to provide medium to long-term capital appreciation.

Scheme details
Open-Ended Fund Type Dividend Investment Plan Nov 30, 1993 Launch date BSE SENSEX Benchmark 5,040.43 (Dec-31-2012) Asset Size (Rs cr) Minimum InvestmentRs.5000 Rs.4.00 (Feb-08-2013) View Dividend History Last Dividend N.A. Bonus Anand Radhakrishnan / Anand Vasudevan Fund Manager View performance of schemes managed by the Fund Manager N.A Notes

Load Details
N.A Entry Load 1.00% Exit Load Load Comments Exit Load 1% if units are redeemed / switched-out within 1 year from the date of allotment.

Contact Details
Regd. Office Sakhar Bhavan, 1st Floor, 230, Backbay Reclamation, Nariman Point, Mumbai, 400021

Tel. No. Fax No. Email Website

66325820-36 22886707/22886133 mktg@templeton.com http://www.franklintempletonindia.com

Top Holdings (Jan 31, 13)

Equity Bharti Airtel Infosys ICICI Bank HDFC Bank Reliance Grasim Dr Reddys Labs ONGC IndusInd Bank Coal India Sector Telecom Technology Banking/Finance Banking/Finance Oil & Gas Conglomerates Pharmaceuticals Oil & Gas Banking/Finance Metals & Mining Value (Rs cr) 393.70 376.48 375.12 257.36 234.94 231.52 222.52 183.41 169.81 137.88 Asset % 7.44 7.11 7.09 4.86 4.44 4.37 4.20 3.46 3.21 2.60

Sector Allocation (Jan 31, 13)

1-Year Sector Banking/Finance Oil & Gas Technology Metals & Mining Pharmaceuticals Telecom % 20.88 11.12 10.43 8.93 8.82 7.44 25.49 11.12 11.48 9.02 9.06 9.70 HighLow 20.88 9.21 7.92 5.46 6.66 6.40

Asset Allocation (%)(Jan 31, 13)

Equity Others Debt Mutual Funds Money Market Cash / Call 90.34 0.55 0.02 N.A 0.00 9.09

Concentration
Holdings Top 5 Top 10 Sector Top 3 (%) 30.94 48.78 (%) 42.43

Franklin India Bluechip Fund (D) - Performance Snapshot as on Feb 22, 2013 Period 1 week 1 month 3 months 6 months 1 year 2 years 3 years 5 years Absolute Returns (%) -0.4 -3.8 5.2 9.7 8.2 13.4 29.9 44.3 Annualised Returns (%) ** ** ** ** 8.2 6.5 9.1 7.6 33 5 17 34 18 7 4 Performance Rank # (within fund classes) 15

Sbi magnum
Investment Objective To provide the investor long-term capital appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market nstruments. Scheme details Fund Type Open-Ended Investment Plan Dividend Launch date Jan 01, 1991 Benchmark BSE-100 Asset Size (Rs cr) 1,083.90 (Dec-31-2012) Minimum Investment Rs.1000 Last Dividend Rs.4.00 (Dec-14-2012) View Dividend History Bonus N.A. Fund Manager R. Srinivasan View performance of schemes managed by the Fund Manager Notes SBI One India Fund has been merge with SBI Magnum Equity Fund w.e.f. August 10, 2012. Load Details Entry Load N.A. Exit Load 1.00% Load Comments Exit Load 1% if units are redeemed / switched-out within 1 year from the date of allotment. Contact Details Regd. Office 191 Maker Towers E, Cuffe Parade, Mumbai, 400005 Tel. No. 91 22 22180221/ 27 Fax No. 91 22 22189663 Email partnerforlife@sbimf.com

Average performance in the category The scheme is ranked 3 in Large Cap category by Crisil. If you are already invested in this scheme, you may consider switching to a better performing scheme

Dividend History Record Date 14-Dec-2012

Dividend (Rs/unit) 4.00

28-Jan-2011 3.50 31-Dec-2009 5.00 07-Nov-2007 5.00 03-Oct-2006 5.00 29-Dec-2003 2.00 23-Oct-2003 1.40 15-Mar-2000 2.20 01-Apr-1999 0.80 28-Mar-1997 1.00 31-Mar-1996 1.50 24-Mar-1995 2.20 25-Mar-1994 2.00 26-Mar-1993 1.80

Fund returns v/s Category average (Large Cap)

* Returns over 1 year are Annualised 1 mth (%) 3 mth (%) Fund Returns -3.9 3.6 Category avg -4.0 2.6 Difference of Fund 0.1 1.0 returns and Category returns Best of category -1.4 7.5 Worst of category -7.7 -5.0 Benchmark returns # -3.7 4.1 Difference of Fund -0.2 -0.5 returns and Benchmark returns

6 mth 1 yr (%) 2 yr (%) 3 yr (%) (%) 9.6 10.5 7.4 9.0 7.3 7.2 4.0 5.5 2.3 3.3 3.4 3.5

5yr (%) 5.4 1.6 3.8

14.0 -2.5 9.1 0.5

19.0 -1.4 6.8 3.7

10.1 -2.8 3.4 4.0

12.2 -4.5 5.5 3.5

9.1 -18.0 1.9 3.5

Sector Allocation (Jan 31, 13)

1-Year Sector Banking/Finance Technology Oil & Gas Automotive Tobacco Pharmaceuticals % 30.87 15.86 11.98 8.28 8.13 5.11 34.06 15.86 14.75 10.79 8.13 10.53 HighLow 21.77 11.45 10.38 3.78 5.09 5.11

Asset Allocation (%)(Jan 31, 13)

Equity Others Debt Mutual Funds Money Market Cash / Call 95.35 0.00 0.00 N.A 0.00 4.67

Top Holdings (Jan 31, 13)

Equity Infosys HDFC Bank ITC ICICI Bank Reliance SBI HDFC Larsen Bharti Airtel Tata Motors Sector Technology Banking/Finance Tobacco Banking/Finance Oil & Gas Banking/Finance Banking/Finance Engineering Telecom Automotive Value (Rs cr) 9.41 8.21 8.13 7.60 7.27 6.00 5.02 4.64 4.33 3.50 Asset %

Concentration
Holdings Top 5 Top 10 Sector Top 3 Asset Breakup (Jan-31-2013) Class %
Equity

(%) 40.62 64.11 (%) 58.71

95.35
Others / Unlisted

0.00
Debt

N.A
Mutual Funds

N.A
Money Market

N.A
Cash / Call

4.67
Net Receivable / Payable

N.A