Franklin India Smaller Companies fund - Invest Mutual funds with Franklin Templeton

1. SMALL CAN STILL BE POWERFUL FRANKLIN INDIA SMALLER COMPANIES FUND Over 516,176 unique investors* in this fund. *AS ON DECEMBER 31, 2018 AS ON 28 JUNE, 2019 WHY SHOULD YOU INVEST IN FRANKLIN INDIA SMALLER COMPANIES FUND?^ TOP 10 HOLDINGS • The fund focuses on investing predominantly in small cap companies. • It focuses on identifying high growth companies that are likely to transform into tomorrow’s market leaders resulting in capital appreciation over time Company Name % of Assets HDFC Bank Ltd. Vardhman Textiles Ltd. Finolex Cables Ltd. Cyient Ltd. Sobha Ltd. Deepak Nitrite Ltd. Brigade Enterprises Ltd. Voltas Ltd. Hindustan Petroleum Corporation Ltd. Nesco Ltd. 4.59 2.38 2.36 2.32 2.30 2.27 2.24 2.20 WHAT IS THE “IDEAL INVESTMENT HORIZON” WHILE INVESTING IN THIS FUND?^ The recommended investment horizon is 5 years and above WHAT ARE THE “TAX BENEFITS” OF INVESTING IN THIS FUND? (w.e.f. April 01, 2018) • Long term capital gains (LTCG) tax @10% (plus surcharge, if applicable and cess) without indexation if units held for more than 12 months^ • Short term capital gains (STCG) tax @ 15% (plus surcharge, if applicable and cess) if units are held for less than 12 months • Investor does not pay any tax on dividends but a Dividend Distribution Tax (DDT) is deducted at source @11.648% (10% + 12% surcharge + 4% Health & education cess) ^^ ^ Capital gain accrued up to January 31st 2018 is exempt form LTCG tax in respect of units acquired before January 31, 2018 & redeemed on or after April 1, 2018. ^^ The DDT is to be paid by the mutual fund after grossing-up income distributed to the investor. 2.17 2.17 WHY TRUST FRANKLIN TEMPLETON? All portfolio holdings are subject to change. The information stated above does not constitute an investment recommendation to subscribe or transact in these securities. • Premier global investment management organization with over 70 years of global investment experience • Extensive experience in both equity and debt across market cycles • Managing over 34 funds - 24 of them have a performance track record of over 10 years • Focus on local needs backed by global expertise advice or ALTERNATIVE TO:^ SUITABLE FOR: Retirement Corpus Education Corpus Long Term Wealth Creation Investments in predominantly Small Cap Companies

2. FUND DETAILS DIVIDEND HISTORY - DIVIDEND PLAN SCHEME CATEGORY Small Cap Fund Record Date Mar 15, 2019 Feb 23, 2018 Feb 23, 2017 Feb 19, 2016 Feb 20, 2015 Feb 14, 2014 Feb 22, 2013 Aug 8, 2007 Rate Per Unit (₹) 1.77 3.00 2.25 2.00 2.00 1.50 2.50 0.90 NAV* (₹) 26.3711 32.3911 28.4159 22.7612 26.6372 14.5369 15.3803 12.3641 SCHEME CHARACTERISTICS Min 65% Small Caps DATE OF ALLOTMENT January 13, 2006 (Launched as a closed end scheme, the scheme was converted into an open end scheme effective January 14, 2011) FUND MANAGER(S) R. Janakiraman, Hari Shyamsunder & Srikesh Nair (Dedicated for investments in foreign securities) Past performance may or may not be sustained in future. Dividend on face value of `10 per unit. Pursuant to payment of dividend, the NAV of the scheme would fall to the extent of payout and statutory levy (as applicable). *Record date NAV. Please refer to www.franklintempletonindia.com for dividend track record of the Direct Plan. 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. BENCHMARK Nifty Smallcap 250 (effective June 04, 2018) FUND SIZE (AUM) Month End Monthly Average NO OF STOCKS TOP 10 HOLDINGS TOP 5 SECTORS ASSET COMPOSITION `7368.89 crores `7448.99 crores 78 5.38% Call,cash and other current asset 25.01% Retailing 0.20% Transportation 0.20% 45.90% Auto Ancillaries 0.31% VOLATILITY MEASURES (3 YEARS) Standard Deviation Beta Sharpe Ratio* Gas 0.49% 4.13% 0.67 0.05 0.53% Auto 0.92% Minerals/Mining 0.95% Telecom - Services * Annualised. Risk-free rate assumed to be 5.97% (FBIL OVERNIGHT MIBOR) 1.33% Pesticides Cement 1.76% MINIMUM INVESTMENT/ MULTIPLES FOR NEW INVESTORS ₹5000/1 Industrial Capital Goods 1.83% Construction Project 1.93% Pharmaceuticals 2.12% MINIMUM INVESTMENT FOR SIP ₹500/1 Ferrous Metals 2.24% Healthcare Services 2.28% ADDITIONAL INVESTMENT/ MULTIPLES FOR EXISTING INVESTORS ₹1000/1 Textile Products 2.31% Textiles - Cotton 2.38% Commercial Services 3.46% LOAD STRUCTURE Entry Load: Nil Exit Load: (for each purchase of Units) 3.92% Petroleum Products 4.25% Consumer Non Durables Consumer Durables 4.76% 1% if the Units are redeemed/ switched-out within one year of allotment Media & Entertainment 5.11% Software 5.44% Different plans have a different expense structure 6.52% Chemicals 7.57% Finance 8.82% Industrial Products For more information, please contact your distributor: 10.02% Construction Banks 12.97% PRODUCT LABEL^ This fund is suitable for investors who are seeking*: • Long term capital appreciation • A fund that invests primarily in small cap companies ^Changes w.e.f June 04, 2018 in light of SEBI circulars on product categorization and rationalization *Investors should consult their fnancial advisers if in doubt about whether the product is suitable for them. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Copyright © 2018. Franklin Templeton Investments. All rights reserved.