Corporate Employee PartII

8/12/2019 Corporate Employee PartII

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MUTUAL FUNDS - Breaking Myths..

A Mutual fund is not an Equity fund in the firstplace.

A Mutual fund is a common pool of money into

which investors place their contribution that are to

be invested in accordance with a stated objective

The ownership of the Mutual Fund is thus joint or

mutual; the fund belongs to all investors
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A single investors ownership of the fund is in the

same proportion as the amount of contribution made

by him or her bears to the total amount of the fund

A mutual fund uses the money collected from

investors to buy those assets which are specificallypermitted by its stated investment objectives, e.g.

Equity fund buys equity assets, Debt funds buys debt

instruments, etc.

MUTUAL FUNDS - Breaking Myths..


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Graphically speaking...

MFStep 1 : Make investments

Investor community

Step 5: Returns provided to investors

Earnings to the

Fund House/ Distributor

Step 4: Expenses

deducted

from the returns

Various Assets


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Mutual Funds: The risk return trade-off..

Risk

Investment horizon

Liquid Funds

Debt Funds

Gilt Funds, Bond Funds, Hi Yield Funds

Balanced FundsRatio of Debt : Equity

Growth FundsIndex,Value, Growth, Aggressive

Sector Funds

Hedge Funds


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Rupee Cost Averaging

It can make youwealthy over time

THE NINTH WONDER OF THE WORLD...


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1-Jan-01

1-Feb-011-Mar-01

1-Apr-011-May-01

8

9

10

11

12

Rupee Cost Averaging by way of

Systematic investment plan (SIP)

Average Price per unit: Rs. 10.00

Average Cost per unit : Rs. 9.83

NAV - 10

Units - 100 NAV - 12

Units - 83.3

NAV - 10

Units - 100

NAV - 8

Units - 125

NAV - 10

Units - 100


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Make the Volati l ity of the Market work for you

By investing a fixed amount at regular intervals, youbuy more units when prices are low and buy less units

when prices are high

Thus your Average Cost could be less than the Average

Price and your chances to gain increase without havingto monitor or predict the markets.

Rupee Cost Averaging


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Systematic Investment Plan

I nvesting could never be more simple


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Here is a simple solution-

Easy & Flexible

Affordable savings

Choice of Debt v/s Equity

Risk reduction through diversification

Liquidity

An SIP with F rankl in Templeton Funds


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Systematic Investing made easy

Minimum investment of Rs. 500 on a monthly or quarterly basis.

Post-dated cheques (dated 1st or 7th of each month) for one year

/ six months accepted

Cheques drawn in favour of Franklin Templeton Fundspayable

anywhere in India Cheques presented on 1st/7th of each month dates mentioned and

allotted units (based on the prices prevalent on that day) added to

the investorsaccount (subject to the realisation of cheques)

Invest into one or more of Franklin Templeton Funds with just

one cheque

A statement of account provided for each transaction

Features of SIP


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SIP in an equity fundVolati le but healthy returns over the long-term

If you had invested in Franklin India Bluechip Fund.

This example is provided for illustrative purposes only and returns are computed on XIRR basis. Loads are

not taken into consideration. The past performance of the mutual fund is not necessarily indicative of

future performance of the scheme.

* The scheme became open-ended in January, 1997.

Monthly investment Rs. 1000

No. of investment periods (Since January 1997) * 71 months

Total investment Rs. 71,000

Value of investment (as of Navember 29, 2002) Rs. 1,28,781

Return on investment 20.05%


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Tax planning

Section 88 of the Income Tax


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The choices from Franklin Templeton

Franklin India Taxshield

An actively managed Equity Linked Savings Scheme

Franklin India Index Tax Fund

A passive (indexed) Equity Linked Savings Scheme

Templeton India Pension Plan

An asset allocation fund to help plan for your retirement


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FRANKLIN INDIA TAXSHIELD

Investment Objective: To provide medium to long term growth of capital along with

income tax rebate

Investment Style: Growth by maintaining a diversified portfolio pf equities across

sectors and market cap ranges

Fund Category :FITRisk: Medium to High

Risk: Medium to Low

Risk: Low to Medium

Section 88 Fund


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FRANKLIN INDIA TAXSHIELDNAV PERFORMANCE

SCHEME

PERFORMANCE

Last 3 months Last 1 year Last 3 years* Since inception*

FIT(G) - 1.01% 9.59% 11.22% 26.49%

S&PCNX 500 0.60% 5.45% -10.66% 1.83%

Fund Size : Rs. 94.80 crores

* Past performance may or may not be sustained in future *Compounded & Annualized


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FRANKLIN INDIA INDEX TAX FUND

Investment Objective: To invest in companies comprising of the NIFTY FIFTY to

attain the results commensurate with S& P CNX Index along with income tax rebate

Investment Style: Passive style of equity investing.

Fund Category :

FIITFRisk: Medium to High

Risk: Medium to Low

Risk: Low to Medium

Index & Section 88 Fund


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FRANKLIN INDIA INDEX TAX FUNDNAV PERFORMANCE

SCHEME

PERFORMANCE

Last 3 months Last 6 months Last 1 year Since inception*

FIITF(G) 3.81% 2.39% -0.83% -10.61%

S&PCNX NIFTY 3.91% 1% -1.5*% -11.92%


Tracking error: 0.69%



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FRANKLIN INDIA INDEX TAX FUNDNAV MOVEMENT

4

5

6

7

8

9

10

11

Feb-

01

Mar

-01

Apr-0

1

May

-01

Jun-01

Jul-0

1

Aug-01

Sep-01

Oct-0

1

Nov-01

Dec-01

Jan-02

Feb-

02

Mar

-02

Apr-0

2

May

-02

Jun-02

Jul-0

2

Aug-02

Sep-02

Oct-0

2

Nov-02


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TEMPLETON INDIA PENSION PLAN

Investment Objective: Seeks to provide regular income under dividend plan and capital

appreciation under growth plan.

Investment Style: A diversified portfolio of equities & fixed income instruments to

maintain steady capital appreciation & regular income.

Tax Rebate : Investments upto Rs. 70,000 qualify for tax rebate under Section 88 under I.T

Act.

Fund Category :

TIPPRisk: Medium to High

Risk: Medium to Low

Risk: Low to Medium

Hybrid Fund


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TEMPLETON INDIA PENSION PLANCOMPOSITION BY ASSETS

Equity

38%

Debt

51%

Others

8%Gilt

3%


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TEMPLETON INDIA PENSION PLANNAV PERFORMANCE


SCHEMEPERFORMANCE

Last 3 months Last 1 year Last 3 years* Last 5 years* Since inception*

TIPP(G) 1.11% 9.66% 8.91% 11.26% 12.06%



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FRANKLIN TEMPLETON INVESTMENTS

# As on 31stOctober, 02 * As on 29 November,02

1 USD = Rs. 48.25

Worldwide

Assets under Management : USD 252.6 Billion#

34 Offices across 29 countries

India

One of the largest Mutual Funds with over

Rs.9,414 crores* in assets.

Close to 1 million shareholder accounts

Healthy asset mix and great choice in equity and fixed- income

investment management style

Sizeable footprint in the country presence in 33 cities


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FRANKLIN TEMPLETON INDIA

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

FY'96 FY'97 FY'98 FY'99 FY'00 FY'01 FY'02 NOV'02

Assets Under Management ( Rs. Cr)

36 145 215 773

2072

3523

9414

8194


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BEST PERFORMING OPEN END FUNDS IN 4 OUT OF 5 CATEGORIES

Equity - Templeton India Growth Fund

Income - Templeton India Income Builder Account

Gilt - Templeton India Government Securities Fund

Liquid - Templeton India Treasury Management Account

Ranking Source:CRIS-RISC (a wholly owned subsidiary of CRISIL); The Crisil awards are for the best performing

open end fund in the category. The awards recognize the consistency of the scheme performance and are based

on CRISIL CPRs (Composite Performance rankings) across four quarters (Sep 01, Dec 01, Mar 02 & Jun 02). The

number of schemes considered for the analysis are: Equity

18; Income

16; Gilt - 6; Liquid

9. The criteria usedfor computing the CRISIL CPR are Superior Return Scorecard based on NAVs, Concentration, Liquidity and Asset

Size of the scheme. Sales load has not been taken into consideration.

CRISIL BEST FUNDS AWARDS 2002


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Source:

CPR :CRIS-RISC (a wholly owned subsidiary of CRISIL); The criteria used for computing the CRISIL CPR are Superior Return Scorecard based o

NAVs, Concentration, Liquidity and Asset Size of the scheme. Sales load has not been taken into consideration.

CPR 1 :Good performance (Top 10 % of the category) CPR 2 : Above average performance (Next 20% of the category)

Star Rat ings: Value Research fund rankings are based on 18 month weekly risk adjustedperformance. For equity funds , a minimum performanchistory of 3 years is required and for debt funds a minimum history of 18 months is required.

FRANKLIN TEMPLETON FUNDS RANKINGS

& RATINGS

CRISIL Composite Performance Ranking

Quarter ended September,02

CPR 1 : PRIMA, FIBF, TGSF, TMA

CPR 2 : IBA , PRIMA PLUS , FTIBF

Value Research Fund Ratings

Month ended October,02

BLUECHIP,PRIMA, PRIMA PLUS

TIGF,Taxshield (Open),Pension Plan,IBA,TILF,TMA


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AWARD WINNING RESULTS

Award Fund Type Fund Category

Moodys Equity TIGF 1 Year

Moodys Equity Bluechip 3 and 5 years

Moodys Debt Monthly Income Plan 1 year

Moodys Liquid Treasury Management Account 1 year

Moodys Fund HouseFranklin Templeton Investments

Moodys - 2001


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AWARD WINNING RESULTS

Award Fund Type Fund

S&P Micropal Equity TIGF ,Bluechip, InfoTech,Tax shield, Tax shield 95

S&P Micropal Debt TIIF

S&P Micropal Fund House Erstwhile Pioneer ITI

S&P Micropal - 2000


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The illustrations provided herein are not intended to reflect the price movements of a particular Franklin Templeton Fund,nor are they meant to represent actual investment performance. All investments in mutual funds and securities are subject

to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting thesecurities market including the fluctuations in the interest rates. There can be no assurance that a schemes investmentobjectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and itsaffiliates is not necessarily indicative of future performance of the schemes. Franklin India Index Fund, Franklin IndiaBalanced Fund, Franklin India Growth Fund, Templeton India Growth Fund, Templeton India Income Fund, TempletonMonthly Income Plan, Templeton India Government Securities Fund and Templeton India Liquid Fund are only the names ofthe schemes and do not in any manner indicate the quality of the schemes, their future prospects or returns. The MutualFund is not guaranteeing or assuring any dividend under any of the schemes. The Mutual Fund is also not assuring that itwill make any dividend distributions under the dividend plans of the schemes though it has every intention of doing so. Alldividend distributions are subject to the investment performance of the schemes. The investments made by the schemesare subject to external risks on transferring, pricing, trading volumes, settlement risks etc. of securities and henceredemptions may be delayed inordinately. The schemes may invest in various derivative instruments including index futureswhich are untested instruments in India Markets and may carry high risk return ratio. In the case of Franklin India IndexFund the existence, accuracy and performance of the S&P CNX Nifty Index will directly affect the scheme performance andtracking errors are inherent in any Index Fund. All subscriptions in Franklin India Index Fund will be subject to a lock-inperiod of 30 business days. In the case of Franklin India Balanced Fund, in the event that the investible funds of more than50% of the total proceeds of the scheme are not invested in equity shares, then tax exemption on income distribution maynot be available to the fund. Please call the Templeton Investor Service Centre numbers to obtain a copy of the offerdocument and go through the same before investing.

Statutory Details: Templeton Mutual Fund in India has been set up as a trust by Templeton International Inc. (liabilityrestricted to the seed corpus of Rs.1 lac) with Templeton Trust Services Pvt. Ltd. as the trustee (Trustee under the IndianTrust Act 1882) and with Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. The Fund offers NAVs,purchases and redemptions on all business days.

Risk Factors


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THANK YOU!!!

Corporate Employee PartII

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Transcript of Corporate Employee PartII