0361 Aacc Usd PB Gem

Franklin Equity Group
Data as of 31 December 2017
Franklin Templeton Investment Funds

Franklin India Fund - A (acc) USD
For professional investor use only. Not for distribution to retail investors.
Franklin India Fund
Table of Contents
Franklin Templeton Investments Overview.....................................................3 Summary..............................................................................................................................23
Investment Capabilities Overview............................................................................................4 W hat are the Key Risks?......................................................................................................24
Local Insights from a Global Leader........................................................................................ 5 Sector Allocation...................................................................................................................25
Local Investment Management Capabilities—Local Knowledge, Global Reach.........................6 Top Ten Holdings..................................................................................................................26
Our Goal Is to Be “Best in Each Country”................................................................................7 Portfolio Characteristics........................................................................................................27
Franklin Local Asset Management Locations—Local Managers, Local Products.......................8 Discrete Performance........................................................................................................... 28
Historical Performance..........................................................................................................29
Franklin India Equity..........................................................................................9 Calendar Year Returns......................................................................................................... 30
W hy Consider This Strategy?............................................................................................... 10 Performance Risk Statistics.................................................................................................. 31
Experienced Local Market Specialists....................................................................................11 Long-Term Historical Performance Results............................................................................32
Local Expertise Combined with Global Capabilities................................................................ 12
Franklin India Equity Team Structure.....................................................................................13
Appendix............................................................................................................33
Management Profile..............................................................................................................34
Investment Philosophy and Process..............................................................14 Glossary...............................................................................................................................38
An Investment Process Focused on Quality, Sustainability and Growth..................................15 Important Disclosures...........................................................................................................39
Franklin India Equity Portfolio................................................................................................16
Stock Selection Philosophy...................................................................................................17
Research and Team Philosophy Aligned with Stock Selection Philosophy...............................18
Bottom-up Investment Process..............................................................................................19
Valuation Methodology..........................................................................................................20
Portfolio Review and Sell Discipline.......................................................................................21
Investment Performance and Portfolio Characteristics...............................22
For professional investor use only. Not for distribution to retail investors. 2
Franklin India Fund
Franklin Templeton Investments Overview
Franklin India Fund
Investment Capabilities Overview
FRANKLIN TEMPLETON INVESTMENTS

Total Combined Assets Under Management : US$753.8 Billion
2 5 8 11
Equity Fixed Income Multi-Asset Solutions Alternatives
AUM US$327.7 Billion US$289.0 Billion US$130.0 Billion US$15.3 Billion
CAPABILITIES • Value • Government • Income • Commodities
• Deep Value • Municipals • Real Return • Infrastructure
• Core Value • Corporate Credit • Balanced/Hybrid • Real Estate
• Blend • Bank Loans • Total Return • Hedge Funds
• GARP • Securitised • Target Date/Risk • Private Equity
• Growth • Multi-Sector • Absolute Return
• Convertibles • Currencies • Tactical Asset Allocation
• Sector • Sukuk • Managed Volatility
• Shariah
• Smart Beta
INVESTMENT • Templeton Global Equity Group (1940) • Franklin Templeton Fixed Income Group (1970) • Franklin Templeton Multi-Asset Solutions (1996) • Franklin Real Asset Advisors (1984)
TEAMS • Franklin Equity Group (1947) • Templeton Global Macro (1986) • Franklin SystematiQ (2011) • Darby Overseas Investments (1994)
• Franklin Mutual Series (1949) • Franklin LAM-Fixed Income (1993) • K2 Advisors (1994)
• Templeton Emerging Markets Group (1987) • Pelagos Capital Management (2005)
• Franklin LAM-Equity (1993)
Source: Franklin Templeton Investments (FTI), as of 31 December 2017, based on latest available data. Total combined Assets Under Management (Total AUM) combines U.S. and non-U.S. AUM of the investment management subsidiaries of the
parent company, Franklin Resources, Inc. (FRI) [NYSE: BEN], a global investment management organisation operating as FTI. Only selected business entities within FTI claim compliance with the GIPS standards as described in the table of contents if
applicable. Total and platform AUM includes discretionary and non-discretionary accounts, including pooled investment vehicles, separate accounts and other vehicles. Total and platform AUM may also include advisory accounts with or without trading
authority. In addition, assets for which certain FTI advisers provide limited asset allocation advisory services, and assets that are not allocated to FTI products are not included in the AUM figures shown. Franklin Templeton Multi-Asset Solutions may
invest in various investment platforms advised by a number of investment advisory entities within FTI. Platform AUM reported for FT Multi-Asset Solutions therefore may include certain AUM separately reported under each utilised investment platform.
Total AUM also includes assets managed by certain FTI advisers that do not form part of the selected investment platforms shown. As a result, the combined platform AUMs may not equal Total AUM and may be calculated and reported separately for
regulatory or other purposes under each investment adviser. Each local asset manager may be considered as an entity affiliated with or associated to FTI by virtue of being a direct or indirect wholly-owned subsidiary of FRI, an entity or joint venture in
which FRI owns a partial interest, which may be a minority interest, or a third party asset management company to which investment advisory services have been delegated by an FTI adviser.
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Franklin India Fund
Local Insights from a Global Leader
What Sets Us Apart
Access to Locally Broad Research Strength of a Global

Sourced Ideas & Insights Capabilities Worldwide Asset Management Leader
• Local investment professionals who • Extensive on-the-ground asset • Franklin Templeton was established
are based in the country or region management capabilities in 15 in 1947
where assets are managed countries to identify the best
• Manages US$754 billion of assets
investment opportunities in each
• Specialisation and focus on a single in 33 countries1
country or region
region to develop deep knowledge
• Credit ratings among the highest of
and unique insights • In-depth research across all any asset management company
markets—developed, emerging and
• First-hand knowledge of local market • Large research platform that operates
frontier—and market capitalisation for
dynamics as investment teams are
unparalleled insights into the markets seamlessly across the globe
embedded in their region’s local
we invest in • Comprehensive 24/7 coverage
business practices
• Access to investment opportunities and support of key operations such as
• Real-time response to local trading, risk analysis, legal,
beyond the mainstream and often
market events
before they are recognised by the technology, operations, client
• Networks of local business contacts broader market service and other key business
services
1. Source: Franklin Templeton Investments as of 31 December 2017.

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Franklin India Fund
Local Investment Management Capabilities—Local Knowledge, Global Reach

Reach
Franklin Templeton was one of the first investment managers offering “on-the-ground” services
20+ 15
Years1 Countries
Full Range of Investment Strategies
Global, Regional and Single Country
$55bn+ Equity Fixed

Income
Balanced/
Hybrid
Shariah-
Compliant
Sukuk
in local assets under management
Equity
110+
Portfolio Managers and Analysts
Source: Franklin Templeton Investments as of 31 December 2017.

1. The Franklin Local Asset Management platform was established in 1993 and is comprised of Fixed Income and Equity teams.
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Franklin India Fund
Our Goal Is to Be “Best in Each Country”
Five Key Reasons for Local Asset Management:
A global Most investments Access to Locally managed Finding the

company is “local” are local due to domestic growth domestic products right balance of
everywhere. domestic biases. is often not typically possess global practice
found in global strong competitive and local
portfolios. advantages. knowledge is key.
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Franklin India Fund
Franklin Local Asset Management Locations—Local Managers, Local Products
POLAND (2014)
WARSAW
CANADA1 (1982) Fixed Income
CALGARY UNITED KINGDOM (1985)
LEEDS
Equity, Fixed Income CHINA, JV2 (2003)
Equity HONG KONG, SHANGHAI SOUTH KOREA (1997)
Equity, Fixed Income SEOUL
UNITED STATES (1947) EUROPE (2008)
FRANKFURT, LONDON Equity, Fixed Income
Equity, Fixed Income INDIA (1993)

Equity
CHENNAI, MUMBAI
JAPAN4 (1996)
Equity, Fixed Income, Private Equity TOKYO
MEXICO (2013) MENA3 (2006) Equity

MEXICO CITY DUBAI MALAYSIA (2009)
KUALA LUMPUR
Fixed Income Equity, Sukuk, Fixed Income VIETNAM, JV2 (2008)
Sukuk, Fixed Income HO CHI MINH CITY,
HANOI
Equity, Fixed Income, Private Equity

BRAZIL (1997)
SÃU PAULO
Equity, Fixed Income AUSTRALIA (1988)

MELBOURNE
Equity, Fixed Income
Please note that all cities shown on the map above refer to the locations of the relevant country-specific and regional asset management teams.
The date refers either to the year the acquired company was established or the year Franklin Templeton Investments opened an office in that country, whichever came first.
Source: Franklin Templeton Investments as of 31 December 2017.
1. Managed under the Franklin Bissett Investment Management brand.
2. Minority interest in separate joint ventures with Sealand Securities Company, Ltd. (China), China Life (Hong Kong) and Vietcombank (Vietnam).
3. Franklin Templeton Investments (ME) is an indirect wholly owned subsidiary of Franklin Resources, Inc.
4. Offered through sub-delegation to a designated third-party asset management company.
Franklin India Fund
Franklin India Equity
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Franklin India Fund
Why Consider This Strategy?
• Rapidly Growing Economy—India is projected to become the fastest growing major economy in the world, surpassing China
by 2018, as measured by GDP Growth1
• Rising Population of Consumers—India’s growth potential is primarily driven by high consumption demand from their large
middle class population2
• Access to India’s Local Market Insight—Franklin Templeton’s deep India equity team has the resources to search for the best
investment ideas across all sectors and market capitalisations and to meet face-to-face with the senior management of companies
• Global Reach, Local Expertise—Franklin Templeton, recognised as a global leader in investing, is also the oldest mutual fund
company in India, with a strong local presence in the region since 19933
1. Source: International Monetary Fund (IMF), World Economic Outlook Database, October 2017.
2. Source: Brookings Institution - Development, Aid, and Governance Indicators (DAGI), Factset and Ministry of Statistics & Programme Implementation - India, March 2015. Important data provider notices and terms available at
www.franklintempletondatasources.com.
3. Pioneer ITI Asset Management Co. Limited was established in 1993 as India’s first mutual fund company in the private sector. Franklin Templeton acquired Pioneer in 2002.
The information is not a complete analysis of every aspect of any market, country, industry, security or portfolio. Statements of fact are from sources considered to be reliable, but no representation or warranty is made as to their completeness or
accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date indicated. The views expressed may not be relied upon as investment advice and are not share class specific. An
investment in the Fund entails risks, which are described in the Fund’s prospectus and where available, in the relevant Key Investor Information Document. Special risks may be associated with a Fund’s investment in certain types of securities, asset
classes, sectors, markets, currencies or countries and in the Fund’s possible use of derivatives. These risks are more fully described in the Fund’s prospectus and should be read closely before investing.
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Franklin India Fund
Experienced Local Market Specialists
Franklin India Equity Team

• Established in 1993 to serve Indian investors with Indian products1
• The Franklin India team manages over US$12.3 billion in AUM, including US$4.4 billion for international investors
• Dedicated to research and investing in India’s domestic equity market with one of the country’s largest investment teams
• On-the-ground investment experts speak the language, conduct over 600 annual company visits, leverage extensive industry
contacts, and understand India’s unique and evolving investment regulatory landscape
Investment Experience and Expertise in Indian Equities

• Portfolio managers average over 20 years of industry experience, managing equity strategies through various market cycles
• One of India’s deepest and most stable investment teams with 18 investment professionals, including 16 on-the-ground, with an
average of 6 years with the firm
• Experienced in managing a diverse range of domestic equity portfolios across market cycles and across small-, mid- and large-cap
stocks
• Manages four of India’s largest 25 India-domiciled equity funds (by AAUM)2 and seven local funds with over 15 years of track
record
1. Pioneer ITI Asset Management Co. Limited was established in 1993 as India’s first mutual fund company in the private sector. Franklin Templeton acquired Pioneer in 2002.
2. Source: Valueresearch. Average Assets Under Management (AAUM) for the quarter ending September 2017.
As of 30 September 2017.
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Franklin India Fund
Local Expertise Combined with Global Capabilities

Capabilities
A Dedicated and Regionally-Located Team, Fully Integrated into a World Class Platform
Franklin India Equity Team
STEPHEN DOVER, CFA* SUKUMAR RAJAH*

Managing Director & Managing Director & CIO
CIO International Asian Equity
Industry Experience: Industry Experience:
34 Years 26 Years
FRANKLIN LOCAL ASSET MANAGEMENT

Local Knowledge, Global Reach ANAND MURALI YERRAM**
RADHAKRISHNAN, CFA** Vice President, Portfolio
CIO Franklin Equity India Advisory Services
• 15 Office Locations Industry Experience: Industry Experience:
• Established in 1993 23 Years 10 Years
• Over 110 portfolio
Franklin
managers and analysts India Equity
Team
18 total investment Established Mumbai, Chennai, One of India’s largest
professionals in 1993 San Mateo, Singapore investment teams
Franklin Templeton Global Platform

Global Trading, Risk Management, Technology, Research
*The portfolio managers have ultimate decision-making authority for the strategy.
**Key idea contributors.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Investment professionals include portfolio managers and analysts.
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Franklin India Fund
Franklin India Equity Team Structure
Stephen H. Dover, CFA

Executive Vice President & Head of Equities
San Mateo
Sukumar Rajah
Managing Director & CIO—Asian Equity
Singapore
Anand Radhakrishnan, CFA Anand Vasudevan

CIO & Portfolio Manager—Franklin Equity India Senior Vice President & Head of Research
Chennai Mumbai
Roshi Jain, CFA Janakiraman Rengaraju, CFA Lakshmikanth Reddy Murali Yerram
Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager
Chennai Chennai Chennai Chennai
Hari Shyamsunder, CFA Krishna Prasad Natarajan, CFA Saurabh Das, CFA Rajasa K. Varun Sharma
Senior Research Analyst Portfolio Manager & Senior Research
Portfolio Manager & Senior Research Analyst Senior Research Analyst Senior Research Analyst
Banks, Finance, Insurance and Analyst
Auto, Auto Ancillaries, Telecom and Agrichemicals Health Care, Cement and Logistics Consumer
Building Materials Information Technology and Media
Chennai Chennai Chennai
Chennai Chennai
Kiran Sebastian Vinod Bansal, CFA Srikesh Nair Sandeep Manam Akhil Kalluri
Research Analyst Research Analyst Research Associate Research Associate Research Associate
Engineering and Capital Goods Oil & Gas Banks, Finance and Insurance Auto & Auto Ancillaries Mid-Cap Stocks
Chennai Chennai Chennai Chennai Chennai
Additional Resources
Trading Desk
Global Risk Management (Prakash Natarajan, Deepak Subramani and Product Management
Govind Patnaik)
As of 30 September 2017. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Franklin Templeton India provides nondiscretionary, nonbinding investment advice relating to Indian equities to Franklin Advisers, Inc.
Franklin India Fund
Investment Philosophy and Process
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Franklin India Fund
An Investment
Investment Process
Process Focused
Focused on Quality, Sustainability and Growth
Our process targets companies with the following characteristics:
Quality and Sustainability in Their Business Model

• Participates in India's strong economic growth
• Ability to sustain high return on equity and/or return on capital employed
• Recurring revenues
• Strong execution track record
• Sustainable competitive advantage(s)
• Other desirable characteristics may include: proprietary products or services, presence in multiple markets,
franchise value, high barriers to entry, earnings growth predictability
Financial Strength
• Strong balance sheets
• Conservative accounting
• High economic value added (EVA)
• Have incorrectly priced growth rates
The above table is for illustrative and discussion purposes only. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. There is no
assurance that any securities selected will be profitable.
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Franklin India Fund
Franklin India Equity Portfolio
Strategy Overview and Investment Approach
Investment Universe
• Over 5,000 equity securities in India‘s domestic Bombay stock exchange
• Benchmark: MSCI India Index
Research Driven Portfolio

• Collaborative, team based approach
• Focus on high quality Indian companies with sustainable growth prospects
• Long-term investment horizon of 3-5 years
Typical Investment Guidelines

• Portfolio consists of approximately 40-60 growth companies
• Individual security weighting is not expected to exceed 10%
• Sector weighting is not expected to exceed 30%, or 1.5x the sector's weight in the benchmark, whichever is greater
As of 31 December 2017.
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Franklin India Fund
Stock Selection Philosophy
We Focus on Selecting Companies That Meet Our Rigorous Investment Criteria
Growth Quality Sustainability
Financial analysis to assess: Capital return and management analysis Analysis of a company’s long-term ability
• Long-term growth potential of a company’s to determine: to sustain its product/service brand/cost
industry advantage:
• Management Integrity and highest
• Company’s ability to grow faster than the corporate governance standards in capital • Company’s ability to generate and sustain
overall economy or industry allocation, related party transactions and return on capital in excess of cost of capital
• Company’s ability to adapt to new protecting minority shareholders’ interest in the long term (at least 5% higher)
competition and market/product changes • Ability to generate attractive return on • Management ability to identify peripheral
• Management’s ability to scale up the capital opportunities (products/geographies) which
business and also take opportunities in the • Management depth and succession plans can potentially generate good return on
peripheral business capital
• Alignment of senior management interest
• Company’s ability to gain or protect with shareholder interests • Management ability to invest in
market share technology/brand/people to sustain long
• Management ability to manage the
term growth
business through downturns
• Management ability to return cash to
investors if there are no identified profitable
investment opportunities
The above chart is for illustrative and discussion purposes only. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. There is no
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Franklin India Fund
Research and Team Philosophy Aligned with Stock Selection Philosophy
Quality and sustainable growth are characteristics that we not only seek in companies but fully integrate in our
research process
Quantitative Evaluations Emphasis on Quality Sustainability of Results
Analyst Model Portfolio: Key focus of research efforts: Collaborative and Specialised Team:
• Each analyst creates a model portfolio from • Develop expertise within respective • Attract, develop & retain high quality talent
the stocks under coverage industries • Research framework (qualitative &
• Benchmark used is an equal weighted • Generate high-quality investment quantitative) cultivates analyst discipline
portfolio comprising of stocks in the analyst recommendations • Collaborative team approach
universe (core & non-core stocks) • Effectively communicate the ideas through to constructing the research portfolio
• Periodic rebalancing of portfolios by written and verbal channels reduces individual performance risk
analysts • Be agile & timely with respect to new ideas, • Regular reviews of actual fund portfolios vs.
• Analysts rated based on the alpha updates, changes, etc research model portfolio
generated • Have wide research coverage within the • Continuous learning and review of the
Benefits of Our Model Portfolio: assigned sectors investment process
• Provides a high conviction internal • Develop deep insight through interactions
benchmark for the actual portfolios with competitors and various parts of a
• Provides a quantitative performance company’s supply chain
evaluation tool
• Discipline and sensitivity to performance by
analysts & PMs
This approach is designed to enable us to sustain our competitive advantage over our peers
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Franklin India Fund
Bottom-up Investment Process
Building a Franklin India Equity Portfolio

1. 2. 3. 4. 5.
Develop Fundamental Valuations Stock Portfolio
Universe Research Recommendations Construction
• Shortlist companies from the • 360º analysis based on • Flexible approach—use • Conduct rigorous team • Model Portfolio constructed
universe of over 5,500 regular interactions with suitable valuation tools discussion and debate from the analysts’ “buy” and
companies management, employees, depending on the industry & between analysts and “hold” lists
customers, competitors & market situation managers on potential
• Identify companies with sound independent industry companies entry onto a “buy,”
• Final Portfolio:
business models, strong
professionals as well as study
• Focus on the long-term “hold” or “sell” list – Security sizing
growth opportunities, strategic view in the valuation determined by stock
reports/news to enable:
sustainable competitive approach • Stocks rated buy, sell or hold conviction as well as risk
advantages, quality – In-depth analysis of based on growth, quality and alignment
management environment, business valuation
model & strategy and – Portfolio Manager has
competitive advantages discretion over exposure
to stocks outside the
– Assessment of
model portfolio
management’s ability to
identify opportunities &
create value consistently
– Regulatory & corporate
governance issues Portfolio
• Financial Analysis and
forecasts
Over 5,500 companies listed Active Research Universe Core Research Universe Portfolio of 40–60 companies
in India Approximately 300 stocks Approximately 180 stocks which represent over 80%
which represent over 88% of the of Nifty 500 total market capitalisation
Nifty 500 total market
capitalisation
As of 31 December 2017.
Source for companies listed in India: Bombay stock exchange.
The above process chart is for illustrative and discussion purposes only. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. There is
no assurance that any securities selected will be profitable.
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Franklin India Fund
Valuation Methodology
Sectors Valuation Tools

• Price multiples: P/E, Enterprise Value to-Earnings
• Information Technology Before Interest, Taxes, Depreciation and Amortization
Growth • Capital Goods (EV/EBITDA)
• Telecommunications
• Discounted cash flows
• Consumer Staples
• Market-implied growth rate
• Normalised P/E, P/B

Cyclicals • Commodities • Discounted cash flows
• Real Estate
• Replacement cost based value
• Banks • Multistage free cash-flow-to-equity (FCFE) model to

Financials • Insurance Companies explicitly value long-term growth opportunities
• Financials
• Out-of-Favour Sectors • Asset valuation—replacement value

• Strategic Value • Discounted cash flows
Special Situations • Hidden Assets
• Conglomerates • Sum of parts (conglomerates)
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Franklin India Fund
Portfolio Review and Sell Discipline
Portfolio Review Sell Discipline
Regular Review for Sale If:

meetings with
risk managers • Relative attractiveness—better investment
opportunity becomes available
• Reaches valuation target—becomes expensive
on valuation parameters
• Reaches position size limit in portfolio—portfolio
rebalancing
Analysts Continuous
continually discussion between • Fundamentals deteriorate—negative
review Portfolio earnings surprise
recommendations Managers and
Analysts • Adverse policy changes
Regular meetings
with company
management
Franklin India Fund
Investment Performance and Portfolio Characteristics
Franklin India Fund
Summary

As of 31 December 2017
Summary of Investment Objective
Morningstar Category™ India Equity The Fund aims to achieve long-term capital appreciation by principally investing in
Investment Style Growth equity securities of companies of any size located or performing business
predominately in India.
Fund Inception Date 25 October 2005
Share Class Inception Date 25 October 2005 Portfolio Manager(s)
Benchmark MSCI India Index Sukumar Rajah Singapore
Base Currency for Fund USD Stephen Dover, CFA United States
Base Currency for Share Class USD
Fund Identifiers
Total Net Assets (USD) 4,441,529,599.43
ISIN Code LU0231203729
Portfolio Turnover 27.92%
SEDOL Code B0LN2Y5
Asset Allocation Equity: 98.01%
Bloomberg Code FRAINAA LX
Cash & Cash Equivalents: 1.99%
Number of Issuers 50 Fund Ratings (31 December 2017)
Total Expense Ratio 1.88% Overall Morningstar Rating™ ««««
The Portfolio Turnover is calculated over a 12-month period as at the end of the fiscal year (30 June 2017).
Holdings of the same issuer have been combined.
© Morningstar, Inc. 2018. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither
Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
Past performance is not an indicator or a guarantee of future performance.
Franklin India Fund
What are the Key Risks?
The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested.
Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments.
The Fund invests mainly in equity and equity-related securities of a single emerging country. Such Indian securities have historically been subject to significant
price movements, frequently to a greater extent than equity markets globally. As a result, the performance of the Fund can fluctuate significantly over relatively
short time periods.
Other significant risks include: currency risk, emerging markets risk, liquidity risk.
For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin
Templeton Investment Funds.
Franklin India Fund
Sector Allocation
Franklin India Fund

vs. MSCI India Index
Portfolio % Index % Over/Under %
Financials Financials 32.74 23.01 9.73
Banks 28.13 19.64 8.50
Diversified Financials 3.94 3.37 0.57
Consumer Discretionary
Insurance 0.67 0.00 0.67
Consumer Discretionary 17.19 12.99 4.20
Industrials
Automobiles & Components 6.22 11.10 -4.89
Consumer Durables & Apparel 6.01 0.88 5.13
Materials Retailing 2.57 0.00 2.57
Consumer Services 1.69 0.00 1.69
Consumer Staples Media 0.70 1.01 -0.31
Industrials 13.25 5.93 7.32
Health Care Capital Goods 12.79 4.78 8.01
Transportation 0.46 1.15 -0.69
Information Technology Materials 11.51 9.92 1.58
Consumer Staples 6.67 9.49 -2.82
Telecommunication Services Household & Personal Products 4.62 4.79 -0.17
Food, Beverage & Tobacco 2.05 4.70 -2.65
Real Estate Health Care 5.10 5.94 -0.84
Pharmaceuticals, Biotechnology & Life Sciences 4.64 5.94 -1.30
Energy Health Care Equipment & Services 0.46 0.00 0.46
Information Technology 4.78 14.63 -9.85
Utilities Software & Services 4.78 14.63 -9.85
Telecommunication Services 4.54 3.41 1.14
Real Estate 2.23 0.00 2.23
Cash & Cash Equivalents
Energy 0.00 12.55 -12.55
Utilities 0.00 2.13 -2.13
0% 8% 16% 24% 32% 40% Cash & Cash Equivalents 1.99 0.00 1.99
Franklin India Fund
MSCI India Index
Weightings as percent of total. Percentage may not total 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
Franklin India Fund
Top Ten Holdings
Franklin India Fund

Name of Issuer Industry % of Total
HDFC BANK LTD Banks 7.62
KOTAK MAHINDRA BANK LTD Banks 5.75
TATA MOTORS LTD Automobiles & Components 4.43
YES BANK LTD Banks 4.08
ULTRATECH CEMENT LTD Materials 4.03
LARSEN & TOUBRO LTD Capital Goods 3.83
INFOSYS LTD Software & Services 3.79
STATE BANK OF INDIA Banks 3.67
HINDUSTAN UNILEVER LTD Household & Personal Products 3.53
AXIS BANK LTD Banks 3.06
Total 43.80
The Ten Largest Holdings represent the ten largest holdings of the fund as of the date indicated. These securities do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that
investment in the securities listed was or will be profitable. All portfolio holdings are subject to change.
Holdings of the same issuer have been combined.
The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top 10 holdings list.
Franklin India Fund
Portfolio Characteristics
Franklin India Fund

Portfolio Index
Historical 3 Yr Sales Growth 12.24% 8.23%
Estimated 3-5 Yr EPS Growth 22.99% 17.35%
Price to Earnings (12-mo Forward) 28.89x 21.77x
P/E to Growth 1.16x 1.26x
Price to Earnings (12-mo Trailing) 34.41x 23.57x
Price to Cash Flow 16.13x 14.99x
Price to Book 3.72x 3.30x
Market Capitalisation (Millions USD) 21,936 57,723
Market Capitalisation Breakdown in USD Portfolio %

<2.0 Billion 7.26
2.0-5.0 Billion 17.16
5.0-10.0 Billion 12.52
10.0-25.0 Billion 28.75
25.0-50.0 Billion 26.53
>50.0 Billion 7.78
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
The portfolio characteristics listed are based on the Fund’s underlying holdings, and do not necessarily reflect the Fund’s characteristics. Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or
common shares) of each security’s issuing company. This methodology may cause small differences between the portfolio’s reported characteristics and the portfolio’s actual characteristics. In practice, Franklin Templeton’s portfolio managers
invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalisation figures for both the portfolio and the benchmark are the security level, not aggregated up to the main issuer.
Source: FactSet. Price Ratio calculations for the weighted average use harmonic means. Any exceptions to this are noted. The IBES Estimated 3-5 Year EPS Growth uses simple weighted average means; there can be no assurance that the
estimated figure will be realised. Market capitalisation statistics are indicated in the base currency for the portfolio presented.
Franklin India Fund
Discrete Performance

Discrete Annual Performance (%)
Inception 12/16 12/15 12/14 12/13 12/12
Date 12/17 12/16 12/15 12/14 12/13
Franklin India Fund - A (acc) USD—Net of Fees 25.10.2005 38.08 1.93 -5.51 41.41 -4.95
MSCI India Index 38.76 -1.43 -6.12 23.87 -3.83
All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.
Performance data may represent blended share class performance, e.g., hybrid created from an A (dis) share class which was converted to A (acc).
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator
or a guarantee of future performance. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund
denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current performance.
Franklin India Fund
Historical Performance

Annualised Total Returns (%)
Inception Since
Date 1 Yr 3 Yrs 5 Yrs 10 Yrs Incept
Franklin India Fund - A (acc) USD—Net of Fees 25.10.2005 38.08 9.97 12.32 4.15 12.56
MSCI India Index 38.76 8.69 8.87 0.49 10.17
Cumulative Performance (%)

Inception Since
Date 1 Mth 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Incept
Franklin India Fund - A (acc) USD—Net of Fees 25.10.2005 4.50 11.35 38.08 38.08 32.99 78.76 50.23 322.75
MSCI India Index 4.88 11.82 38.76 38.76 28.39 52.94 5.02 225.62
Franklin India Fund
Calendar Year Returns

102.81
106%
80.16
63%
38.76 41.41
38.08
25.97 27.30
23.87 22.60 20.95
20%
1.93 -1.43 -5.51 -6.12 -4.95 -3.83 -31.62 -37.17 -56.29 -64.63
-23%
-66%
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Franklin India Fund - A (acc) USD—Net of Fees MSCI India Index
Franklin India Fund
Performance Risk Statistics

Performance Risk Statistics
1 Yr 3 Yrs* 5 Yrs* 10 Yrs*
Standard Deviation (%):
Franklin India Fund - A (acc) USD 11.42 16.64 18.78 26.14
MSCI India Index 12.37 16.74 18.04 29.56
Tracking Error (%)^^ 4.72 5.29 5.01 6.44
Information Ratio^^ -0.17 0.25 0.68 0.57
Beta^^ 0.86 0.95 1.02 0.87
Sharpe Ratio 3.26 0.58 0.64 0.15
The base currency of a fund determines the risk-free rate index used in calculating certain risk statistics on this page. A fund that is based in USD uses the US T-Bill Index as the risk free rate return, a EUR-based fund uses the Euro 3-Month T-Bill
Index, a GBP-based fund uses the UK Treasury Bills 3 Month Index, a JPY-based fund uses the Japan Financing Bill 3 Month Index, and an AUD-based fund uses the Australia T-Note 3 Month Index.
^^Measured against the MSCI India Index.
*Annualised.
Franklin India Fund
Long-Term Historical Performance Results

Monthly Rolling 3-Year Annualised Returns Discrete Annual Performance (%)
31 October 2008 to 31 December 2017 As of 31 December 2017
35% 12/16 12/15 12/14 12/13 12/12
OUTPERFORMED 12/17 12/16 12/15 12/14 12/13
Franklin India Fund - A (acc) USD—Net of Fees 38.08 1.93 -5.51 41.41 -4.95
MSCI India Index 38.76 -1.43 -6.12 23.87 -3.83

Franklin India Fund - A (acc) USD—Net of Fees
23%
Annualised Total Returns (%)

11% Inception
Date 3 Yrs 5 Yrs 10 Yrs
Franklin India Fund - A (acc) USD—Net of Fees 25.10.2005 9.97 12.32 4.15
MSCI India Index 8.69 8.87 0.49

-1%
Franklin India Fund - A (acc) USD outperformed the MSCI India Index 109 out
UNDERPERFORMED of the 111 monthly rolling 3-year periods shown
-13%
-13% -1% 11% 23% 35%
MSCI India Index
Annualized rolling periods are plotted on a monthly or quarterly basis as indicated. The leading diagonal line links points of return for the index (lower axis). For every point of return along this line there is a corresponding return for the fund represented by
the blue square (left axis). Any point above the line represents outperformance relative to the index for that period. Any point below the line represents underperformance relative to the index for that period.
Franklin India Fund
Appendix
Franklin India Fund
Management Profile
STEPHEN H. DOVER, CFA

EVP, Head of Equities, Franklin Templeton Investments
Chief Investment Officer, Templeton Emerging Markets
Franklin Templeton Investments
San Mateo, California, United States
Stephen Dover is head of Equities for Franklin Templeton. In this role, he focuses on global oversight and administration of the company's equity investment
business including Franklin Equity Group, Templeton Global Equity Group, Franklin Mutual Series, and Franklin U.S. Value. He leads key initiatives for the
equity business and also serves as a company spokesperson, sharing equity views with clients and the public. In addition, he is a member of Franklin
Resources' executive committee, a small group of the company's top leaders responsible for shaping the firm's overall strategy.
Stephen is also the CIO for Templeton Emerging Markets Group, Templeton Private Equity Partners, and the head of the equity teams of Franklin Local Asset
Management. In this capacity, he oversees the Templeton emerging markets strategies, investment process and day-to-day management of the team, as well
as the investment functions of Franklin Templeton's local asset management teams and joint-ventures located in Australia, Brazil, Canada, China, Germany,
India, Japan, Malaysia, United Arab Emirates, Mexico, Poland, South Korea, Vietnam and the United Kingdom. He also manages the Franklin World
Perspectives Fund, a global equity fund leveraging Franklin LAM team insights.
Prior to serving in his current role, Mr. Dover was a founder and chief investment officer of Bradesco Templeton Asset Management (BTAM), a joint venture
between Franklin Templeton Investments and Banco Bradesco. Under Mr. Dover's direction, BTAM became the largest joint-venture asset management
company in Brazil. Mr. Dover also served on the Board of Directors of several publicly-traded Brazilian companies.
Prior to joining Franklin Templeton Investments in 1997, Mr. Dover was a portfolio manager and principal at Newell Associates in Palo Alto, CA where he co-
managed retail and institutional equity assets including the Vanguard Equity Income Fund. Previously, Mr. Dover worked for Towers Perrin Consulting in New
York, London and San Francisco. Over the course of his 32 years in the industry, Mr. Dover has lived in China, Costa Rica, England, Brazil and the United
States.
Mr. Dover holds a B.A., with honors, in communications and business administration from Lewis and Clark College and an M.B.A. in finance from The Wharton
School of the University of Pennsylvania. He is a Chartered Financial Analyst (CFA) charterholder.
Mr. Dover is on the Board of Trustees of Lewis and Clark College and Law School.
Franklin India Fund
Management Profile
SUKUMAR RAJAH
Managing Director and Chief Investment Officer
LAM Asian Equity
Franklin Local Asset Management
Singapore
Sukumar Rajah is the Managing Director and Chief Investment Officer (Asian Equity) for Franklin Templeton's Local Asset Management Group. Based in
Singapore, Mr. Rajah is responsible for overseeing regional and multi-country products, investment process development and enhancements in Asia. He is
responsible for overseeing the India Equity group and is the lead portfolio manager of India-related funds and institutional accounts distributed outside of India.
He also plays a key role in developing synergies between the local asset management groups throughout Asia and the region's long-term equity product
strategy.
Mr. Rajah joined Pioneer ITI in 1994, which was acquired by Franklin Templeton in 2002. As part of the original equity team, he had helped shape the
investment philosophy, which has helped various flagship funds deliver consistent returns for over a decade.
Prior to joining Pioneer ITI, Mr. Rajah was assistant vice president of Indbank Merchant Banking Services, Ltd. responsible for advising the Indian
Opportunities Fund, which was jointly managed by Martin Currie and Indbank. Before this, he worked for Tata Steel in the Decisions Support Systems Group
from 1986 to 1988.
Mr. Rajah earned his MBA specializing in finance and marketing from the Indian Institute of Management, Bangalore. He earned his Bachelors' Degree in
Engineering, specializing in industrial engineering, from the Indian Institute of Technology, Roorkee.
Mr. Rajah is the recipient of Business Standard's Fund Manager of the Year and India Today's India's Best Fund Manager (Equity), and manages, among
others, the Franklin India Fund that bagged the Institutional Investor's Asia Money Masters' Best Indian Equities (2015)
Other awards received by funds under Mr. Rajah include the Outlook Money Award (2013), Money Today FPCIL's Best Equity 2012, Lipper Award for Best
Fund Performance (2011), ICRA Gold Award (2010), CNBC India-BNP Paribas Mutual Fund Award for Best Performing Fund and CRISIL Best Fund Award.
Franklin India Fund
Management Profile
ANAND RADHAKRISHNAN, CFA

Chief Investment Officer
Franklin Equity India
Franklin Templeton AMC (India) Pvt Ltd.
Chennai, India
Anand Radhakrishnan is chief investment officer for Franklin Equity - India, Franklin Templeton Asset Management (India) Pvt Ltd. Mr. Radhakrishnan is
responsible for overseeing all the local equity funds. His responsibility includes mentoring all the portfolio managers and also acting as portfolio manager for
some key products. He manages Franklin India Bluechip Fund, Franklin India Prima Plus, and Franklin India Taxshield, Franklin India Infotech Fund, and
equity portfolio of all hybrid funds.
Mr. Radhakrishnan has been in the investment management industry since 1994. His past assignments include 8 years as fund manager for Sundaram Mutual
Fund. He was also deputy manager in equity research with SBI Funds Management Ltd.
Mr. Radhakrishnan holds a postgraduate diploma in management from Indian Institute of Management, Ahmedabad, and a bachelor of technology degree with
a specialization in chemical engineering from Anna University, Chennai. He is a Chartered Financial Analyst (CFA) charterholder.
Franklin India Fund
Management Profile
MURALI YERRAM
Vice President, Portfolio Advisory Services
Franklin Templeton AMC (India) Pvt Ltd..
Chennai, India
Murali Yerram is a Vice President & Portfolio Manager - Equities for Franklin Templeton India AMC Ltd. He is responsible for advising offshore funds including
FTIF Franklin India Fund and FTIF Franklin World Perspectives Fund. His responsibilities also include equity research on Australia and New Zealand,
Singapore and Thailand markets for the Asian Portfolios managed by the Franklin Local Asset Management Asia Equity team.
Prior to joining Franklin Templeton Investments, Mr. Yerram worked in the software services industry for Deloitte Consulting, Infosys Technologies and Satyam
Computer Services for 7 years.
Mr. Yerram earned his MBA in Finance and Accounting from The Wharton School in May, 2007 and his Bachelor degree in Electrical and Electronics
Engineering from JNTU college of Engineering, Hyderabad in 1998.
Franklin India Fund
Glossary
Beta: A measure of the magnitude of a portfolio's past share-price fluctuations in relation to the ups and downs of the overall market (or appropriate market index). The market (or index)
is assigned a beta of 1.00, so a portfolio with a beta of 1.20 would have seen its share price rise or fall by 12% when the overall market rose or fell by 10%.
Estimated 3-5 Yr EPS Growth: An estimated measure of the growth of earnings per share over a forward-looking period. For a portfolio, the value represents a weighted average of
the stocks it holds.
Historical 3 Yr Sales Growth: The rate at which sales have increased for the fund's underlying holdings over the last three years.
Information Ratio: In investing terminology, the ratio of expected return to risk. Usually, this statistical technique is used to measure a manager's performance against a benchmark.
This measure explicitly relates the degree by which an investment has beaten the benchmark to the consistency by which the investment has beaten the benchmark.
Market Capitalisation: A determination of a company's value, calculated by multiplying the total number of company stock shares outstanding by the price per share.
P/E to Growth: A ratio used to determine a stock's value while taking into account earnings growth. For a portfolio, the value represents a weighted average of the stocks it holds.
Price to Book: The price per share of a stock divided by its book value (i.e., net worth) per share. For a portfolio, the value represents a weighted average of the stocks it holds.
Price to Cash Flow: Supplements price/earnings ratio as a measure of relative value for a stock. For a portfolio, the value represents a weighted average of the stocks it holds.
Price to Earnings (12-mo Forward): A measure of the price to earnings ratio for a stock using the forecasted earnings for the next 12 months. For a portfolio, the value represents a
weighted average of the stocks it holds.
Price to Earnings (12-mo Trailing): The share price of a stock, divided by its per-share earnings over the past year. For a portfolio, the value represents a weighted average of the
stocks it holds.
Sharpe Ratio: To calculate a Sharpe ratio, an asset's excess returns (its return in excess of the return generated by risk-free assets such as Treasury bills) are divided by the asset's
standard deviation.
Standard Deviation: A measure of the degree to which a fund's return varies from the average of its previous returns. The larger the standard deviation, the greater the likelihood (and
risk) that a fund's performance will fluctuate from the average return.
Tracking Error: Measure of the deviation of the return of a fund compared to the return of a benchmark over a fixed period of time. Expressed as a percentage. The more passively the
investment fund is managed, the smaller the tracking error.
Franklin India Fund
Important Disclosures
This document is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of the Luxembourg-domiciled
SICAV Franklin Templeton Investment Funds (the “Fund”). Nothing in this document should be construed as investment advice. Given the rapidly changing market environment, Franklin
Templeton Investments disclaim responsibility for updating this material.

Subscriptions to shares of the Fund can only be made on the basis of the current prospectus of the Fund, accompanied by the latest available audited annual report and the latest semi-annual
report if published thereafter. An investment in the Fund entails risks which are described in the Fund's prospectus.

The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a
guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be
affected by currency fluctuations.

In emerging markets, the risks can be greater than in developed markets. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more
fully described in the Fund’s prospectus. If the fund invests in a specific sector or geographical area, the returns may be more volatile than a more diversified fund.

No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of the Fund are not available for distribution in all jurisdictions and
prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.

Opinions expressed are the author’s at publication date and they are subject to change without prior notice. Any research and analysis contained in this document has been procured by Franklin
Templeton Investments for its own purposes and is provided to you only incidentally.

A copy of the latest prospectus, the annual report and semi-annual report, if published thereafter can be found, on our website: www.franklintempletongem.com or can be obtained, free of
charge, from the address below.

Issued by Franklin Templeton Investments (ME) Limited, authorized and regulated by the Dubai Financial Services Authority.

Dubai office: Franklin Templeton Investments, The Gate, East Wing, Level 2, Dubai International Financial Centre, P.O. Box 506613, Dubai, U.A.E., Tel.: +9714-4284100 Fax:+9714-4284140.

References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and
one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund.

© 2018 Franklin Templeton Investments. All rights reserved.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Franklin India Fund
Important Disclosures (continued)
Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
All MSCI data is provided “as is.” The Fund described herein is not sponsored or endorsed by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind
in connection with the MSCI data or the Fund described herein. Copying or redistributing the MSCI data is strictly prohibited.
In emerging markets, the risks can be greater than in developed markets.

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Franklin Equity Group

Data as of 31 December 2017

Franklin Templeton Investment Funds

Franklin Templeton Investments Overview.....................................................3 Summary..............................................................................................................................23

Investment Capabilities Overview............................................................................................4 W hat are the Key Risks?......................................................................................................24

Local Insights from a Global Leader........................................................................................ 5 Sector Allocation...................................................................................................................25

Our Goal Is to Be “Best in Each Country”................................................................................7 Portfolio Characteristics........................................................................................................27

Investment Performance and Portfolio Characteristics...............................22

Franklin Templeton Investments Overview

Investment Capabilities Overview

FRANKLIN TEMPLETON INVESTMENTS

Franklin India Fund

Local Insights from a Global Leader

What Sets Us Apart

Access to Locally Broad Research Strength of a Global

1. Source: Franklin Templeton Investments as of 31 December 2017.

Franklin India Fund

Local Investment Management Capabilities—Local Knowledge, Global Reach

$55bn+ Equity Fixed

Source: Franklin Templeton Investments as of 31 December 2017.

Franklin India Fund

Our Goal Is to Be “Best in Each Country”

Five Key Reasons for Local Asset Management:

A global Most investments Access to Locally managed Finding the

Franklin India Fund

Franklin Local Asset Management Locations—Local Managers, Local Products

Equity, Fixed Income INDIA (1993)

MEXICO (2013) MENA3 (2006) Equity

Equity, Fixed Income, Private Equity

Equity, Fixed Income AUSTRALIA (1988)

Equity, Fixed Income

Franklin India Equity

Franklin India Fund

Why Consider This Strategy?

Franklin India Fund

Experienced Local Market Specialists

Franklin India Equity Team

Investment Experience and Expertise in Indian Equities

Franklin India Fund

Local Expertise Combined with Global Capabilities

Franklin India Equity Team

STEPHEN DOVER, CFA* SUKUMAR RAJAH*

FRANKLIN LOCAL ASSET MANAGEMENT

Franklin Templeton Global Platform

Franklin India Fund

Franklin India Equity Team Structure

Stephen H. Dover, CFA

Anand Radhakrishnan, CFA Anand Vasudevan

Investment Philosophy and Process

Franklin India Fund

Our process targets companies with the following characteristics:

Quality and Sustainability in Their Business Model

Franklin India Fund

Franklin India Equity Portfolio

Strategy Overview and Investment Approach

Research Driven Portfolio

Typical Investment Guidelines

Franklin India Fund

Stock Selection Philosophy

We Focus on Selecting Companies That Meet Our Rigorous Investment Criteria

Growth Quality Sustainability

Franklin India Fund

Research and Team Philosophy Aligned with Stock Selection Philosophy