FRANKLIN INDIA FEEDER- FRANKLIN EUROPEAN

GROWTH FUNDNFO Closes: 09 May 2014

While Europe witnessed a recession post the global financial crisis in 2008, measures taken by the European Central Bank (ECB) and the individual governments of the European region have been instrumental in improving the overall economic environment and bringing it back on the path of steady economic recovery.

FUNDAMENTALS IN EUROPE HAVE STEADILY IMPROVED Debt Levels Have Steadily Decreased Each Year Since 2008

Many European companies have successfully reduced their debt and increased their cash levels since 2008

318%205%

INTERNATIONAL DIVERSIFICATION INTO ONE OF THE WORLD'S LARGEST REGIONAL EQUITY MARKETS

Franklin India Feeder – Franklin European Growth Fund provides investors access to European markets bringing about an effective diversification to their portfolio as developed markets show low correlation to Indian capital markets. Moreover, given the volatility in Indian markets since 2008, global diversification becomes especially relevant.

Indian Investors in R Franklin India Feeder-

Franklin European Growth Fund

in € Franklin European

Growth Fund

invests in European Companies

Source (most recent available data): 1. 2. 3. 4. As of 30 Sept 2013, MSCI FactSet Earnings growth is average earnings per share of companies in MSCI Europe

Index. 5. Debt levels is ratio of total debt to total equity of companies in MSCI Europe Index. 6. 2014 Factset Research Systems Inc, figures in Billion(USD) as of 30 Sept 2013.

Bloomberg, as on 31 March 2014. GDP share as per estimated 2013 Nominal GDP, International Monetary Fund. Europe trade: World Trade Organization. Statistics Database (as of 31 December 2012).

This product is suitable for investors who are seeking*•• A Fund of Funds investing in an overseas equity fund having exposure to Europe

Long term capital appreciationHIGH

(BROWN)RISK**

** Note: Risk may be represented as:

BROWN : Investors understand that their principal will be at high risk

YELLOW : Investors understand that their principal will be at medium risk

BLUE : Investors understand that their principal will be at low risk

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

PRODUCT LABEL:

Earnings Growth Has Rebounded From Financial Crisis

Earnings growth for European

companies has trended higher over

2012 and 2013

7.8%

-2.2% -2.0%

1.8%

7.0%

2009

2010 2011

2012

20132008

2013DEBTDEBT

NFO Opens: 25 April 2014

5

Europe based companies have demonstrated strong competitive advantage in several areas such as engineering, pharmaceuticals, consumer business etc. This is validated by the fact that they are the biggest exporters. In fact, companies in Europe export more than the combined total of North and South America, the Middle East and Africa.

EUROPEAN COMPANIES HAVE A GLOBAL COMPETITIVE ADVANTAGE

$2,001 North America

$5,993 Asia

$7,032 Europe

$565 South America

6

4

EUROPE IS TOO BIG TO IGNORE

Europe remains a significant producer of goods and services contributing to

24%2

of the world's gross domestic product (GDP)

34%3

of the world's trade

23% 1

of the global market capitalization

WHY INVEST IN EUROPE?

An open ended fund of funds scheme investing overseas that seeks to provide capital appreciation by investing predominantly in units of Franklin European Growth Fund, an overseas equity fund which primarily invests in securities of issuers incorporated or having their principal business in European countries.

FUND TYPE AND INVESTMENT OBJECTIVE

FUND FACTS

Fund Manager Neeraj Gaurh

NFO DatesOpens: 25 April 2014Closes: 09 May 2014Re-opens for ongoing sales and repurchases: 19 May 2014

PlansGrowthDividend (with Reinvestment & Payout Options)Direct – GrowthDirect – Dividend (with Reinvestment & Payout Options)

Load StructureEntry Load: NILExit Load: 1% if redeemed/switched out within 18 months of allotment

BenchmarkMSCI Europe Index

Minimum Application AmountR5,000 and in multiples of 1 thereafter

R

FUND FEATURES• The fund follows an active, bottom-up fundamental research process to search for

individual securities believed to possess superior risk-return characteristicsThe endeavour is to identify companies that have sustainable competitive advantages, strong balance sheet and available at attractive valuationsFund mandate provides investors with exposure to European companies, by investing in companies across market capitalizationAn experienced group of teams provide deep industry knowledge to find the leading growth companies in their respective sectors

•

•

•

Michael ClementsFUND MANAGER (for FEGF):

ABOUT FRANKLIN EUROPEAN GROWTH FUND (FEGF)

FUND PERFORMANCE

Compounded annualised returns (%) 1 Year 3 Years* 5 Years* Since Inception*

FEGF 19.24 17.17 23.38 11.79MSCI Europe Index 16.65 10.11 17.34 7.01

* Compounded and annualized returns based on 31 March 2014 NAV of Share class I (acc) EUR. AUM as of 31 March 2014: 2.8 billion.Past performance may or may not be sustained in future. Performance of the scheme may differ from the performance of underlying fund on account of various factors including but not limited to currency movements and expense ratios. Inception date: 31 August 2004 for Share class I

€

Risk factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The expenses of the Fund of Funds scheme will be over and above the expenses charged by the underlying scheme. Investments in overseas financial assets are subject to risks associated with currency movements, restrictions on repatriation, transaction procedures in overseas markets and country related risks.

Issuer Name % of net assets TGS NOPEC GEOPHYSICAL CO ASA 6.49FUGRO NV 5.83THE BERKELEY GROUP HOLDINGS PLC 5.22REED ELSEVIER NV 4.89ROCHE HOLDING AG 4.84BOSKALIS WESTMINSTER NV 4.66LEGRAND SA 4.63IMPERIAL TOBACCO GROUP PLC 4.43C&C GROUP PLC 3.93ANHEUSER-BUSCH INBEV NV 3.93

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. The portfolio details mentioned are as on 31 March 2014.

TOP 10 HOLDINGS

INDUSTRY EXPOSURE (% of NAV)

1.64 (IT)5.07 (HC)

22.58 (IND)16.49 (FIN)

12.90 (EN)

15.30 (CS)

26.02 (CD)

Information Technology (IT) Health Care (HC)

Consumer Discretionary (CD) Industrials (IND)

Financials (FIN) Energy (EN)

Consumer Staples (CS)

34.13 (UK)

16.11 (NL)9.94 (FR)

9.15 (SW)

5.96 (IRL)

5.50 (G)

6.80 (NW)

4.11 (BE)

4.09 (S) 1.91 (I) 2.30 (FI)

GEOGRAPHICAL EXPOSURE (% of NAV)

Ireland (IRL) Germany (G)

Norway (NW) Belgium (BE) Spain (S)

Italy (I) Finland (FI)

United Kingdom (UK) Netherlands (NL) France (FR)

Switzerland (SW)

Industry exposure and geographical exposure are as on 31 March 2014. Industry exposure is based on Global Industry Classification Standard (GICS).