FRANKLIN TEMPLETON

INVESTMENTS

MUTUAL FUNDS AND FINANCIAL PLANNING

BY
NEENA MARHATTA
15 MBA 05
OBJECTIVES
TO KNOW ABOUT
 MUTUAL FUNDS

 FINANCIAL PLANNING

THROUGH MUTUAL FUNDS

METHODOLOGY
 PHASE 1: TRAINING ON MUTUAL
FUNDS.
 PHASE 2: LEARN ABOUT
OPERATIONS.
 PHASE 3: LEARN ABOUT
FINANCIAL PLANNING.
 PHASE 4: IN ACTION.
FRANKLIN TEMPLETON WORLDWIDE
51 offices across 30 countries.

Edinburgh Frankfurt Moscow

Montreal Luxembourg Warsaw
Vancouver Toronto
San Mateo Short Hills Paris Budapest
New York Milan Seoul Tokyo
Carmel Athens
Ft. Lauderdale Shanghai Taipei
St. Petersburg
Nassau Dubai Hong Kong
Mumbai

Singapore
Jakarta
Rio de Janeiro
Sao Paulo Johannesburg
Melbourne
Buenos Aires

USD 511 billion Assets under Management

(As on Oct 31, 2006)
FRANKLIN TEMPLETON-INDIA
 One of the largest Private Sector
Mutual Fund in India with over Jalandhar

Rs.23920.26 Crore in assets Ludhiana

Chandigarh Dehradun

Gurgaon Delhi

Jaipur Lucknow
 33 branches across the country Kanpur
Varanasi
Patna

Ahmedabad
Rajkot Baroda Indore
Calcutta
 40 Collection Centers Surat
Nagpur
Raipur
Bhubaneswar
Nasik
Mumbai
Hyderabad Visakhapatnam
 Over 19 lakh investor accounts Pune

Vijayawada

Bangalore Chennai
Mangalore
 Healthy asset mix and great Salem

choice in equity and fixed income Coimbatore Trichy

Madurai
investment management style Kochi
 MUTUAL FUNDS
 A Mutual Fund is a trust that pools the savings
of a number of investors who share a common
financial goal.
 These Investors buy units of a particular Mutual
Fund scheme that has a defined Investment
Objective & Strategy.
 Money collected is invested by the fund
manager in different type of securities, ranging
from shares to debentures to money market
instruments.
 Income earned by the scheme is shared by its
unit holders.
 ADVANTAGES OF MUTUAL FUNDS
 AFFORDABILITY
 DIVERSIFICATION
 VARIETY
 PROFESSIONAL MANAGEMENT
 REGULATION
 EASY & CONVENIENT
 LOW COST
 LIQUIDITY
TYPES OF MUTUAL FUNDS
BY STRUCTURE
 Open ended funds
 Close ended funds

BY INVESTMENT OBJECTIVE
 Equity oriented/Growth funds
 Debt oriented/income funds
 Hybrid/balanced funds
CONTINUED…
 Money market funds.
 Load funds.
 No – load funds.

OTHER FUNDS
 Tax saving funds.
 Index funds
 Sectoral funds.
FINANCIAL PLANNING IS…
… the process of meeting life goals through the
proper management of finances.

…about advising clients on how to manage their

finances so as to achieve their life goals.

Financial planners assimilate the aspirations

of their clients and draw a road map to
make them a reality and then guide them
towards realizing them.
STEPS IN FINANCIAL PLANNING
 ESTABLISH FINANCIAL GOALS
 GATHER RELEVANT DATA
 ANALYZE THE DATA
 DEVELOP A PLAN FOR ACHIEVING THE
GOALS
 IMPLEMENT THE PLAN
 MONITOR THE PLAN
SYSTEMATIC INVESTMENT PLAN
 What is systematic investing?
The term “systematic investing” applies
to the process of investing regularly i.e.
at fixed intervals – say - monthly or
quarterly
BENEFITS OF SIP
 The power of compounding
 Rupee cost averaging
 Convenience
 Affordability
POWER OF COMPOUNDING

The more we save, the better the returns.

Growth rate of 7% p.a.
Total Amount Value after
Saved 25 years
Amount saved per month

5,000 1,500,000 4,073,986

3,000 900,000 2,444,391

1,500 450,000 1,222,196

1,000 300,000 814,797

POWER OF COMPOUNDING

The sooner we start, the better the returns.

Rs. 1000 invested p.m. @
8% p.a. till the age of 60 Total Amount Value at the
Saved age of 60
Starting Age

25 420,000 2,309,175

30 360,000 1,500,295

35 300,000 957,367
40 240,000 592,947
POWER OF COMPOUNDING
The more we earn, the more the returns
Rs. 1000 invested p.m.
Value after 10 Value after
years 25 years
Growth Rate

5% 155,929 597,991

7% 174,094 814,797
10% 206,552 1,337,890

14% 262,091 2,727,278

Past performance may or may not be sustained in future

RUPEE-COST AVERAGING
 Rupee Cost Averaging is a strategy
involving investing a fixed amount of
money at regular intervals, irrespective
of market conditions.

 It enables investors to buy less when

prices are high and buy more when
prices are low.
RUPEE COST AVERAGING
Making Volatility Work for you

Month Amount NAV Units

1 1000 12 83.333
2 1000 11 90.909
3 1000 13 76.923
4 1000 15 66.667
5 1000 14 71.429
6 1000 12 83.333
7 1000 10 100.000
8 1000 9 111.111
9 1000 11 90.909
10 1000 8 125.000
11 1000 10 100.000
12 1000 12 83.333
Average Sales Price of Units : Rs.11.42
Average Purchase Cost of Units : Rs 11.08
FRANKLIN INDIA BLUECHIP FUND
Invests in large cap, well-established companies
Asset size : Rs.2546.01crores (as on oct 31,2006)
SECTOR ALLOCATION
Banks 16.32%
Auto Ancillaries 13.53%
Cement 12.27%

Software 10.26%
Non - Ferrous Metals 8.36%
Auto 8.22%
Media & Entertainment 7.44%

Consumer Non Durables 7.38%

Industrial Capital Goods 4.74%
Finance 3.81%
Oil 3.81%

Rest 3.86%
FRANKLIN INDIA BLUECHIP FUND

SNAPSHOT PERFORMANCE

SCHE Last Last Last Last

ME Last
3 5 7 10 Since
1 inception*
year years years years
year
s* * * *

FIBCF 63.2 44.4 48.30 31.45 37.80

30.02%
(G) 1% 3% % % &
BSE
64.2 38.2 34.08 16.49 15.14
SENS 11.19%
3% 0% % % %
EX

*Compounded & Annualized as on oct 31, 2006

 FRANKLIN INDIA TAX SHIELD
 Invests in a diversified portfolio of equities across sectors & market
cap ranges.
 Asset size: Rs 325.86 crores (as on oct 31,2006).
SECTOR ALLOCATION
Consumer Non Durables 15.03%

Software 10.14%

Media & Entertainment 8.25%

Banks 7.97%

Cement 7.14%

Industrial Capital Goods 6.70%

Non - Ferrous Metals 6.20%

Construction 4.38%

Auto 4.28%

Finance 4.04%

Rest 25.87%
FRANKLIN INDIA TAX SHIELD

SNAPSHOT PERFORMANCE
SCHE
Since
ME Last 3 Last 1 Last 3 Last 5
inceptio
months year years* years*
n*

FIT 19.17 45.42 45.35 39.33

5O.79
(G) % % % %
%
S&P
21.54 36.70 37.98 21.95
CNX 50.62
% % % %
500 %
*Compounded & Annualized as on oct 31, 2006
 FRANKLIN INDIA PRIMA FUND
 Invests in India's finest small & medium sized companies.
 Asset size: Rs.1790.39 crores (as on oct 31, 2006)
SECTOR ALLOCATION
Consume r Non Durable s 10.65%

Pharmace uticals 9.22%

Auto Ancillarie s 9.05%

Construction 9.03%

Te xtile Products 8.41%

Software 6.91%

Finance 6.20%

Transportation 5.87%

Gas 5.31%

Industrial Products 4.94%

Re st 24.41%
FRANKLIN INDIA PRIMA FUND
SNAPSHOT PERFORMANCE

SCHE Last Last Last Last

ME Last
3 5 7 10 Since
1 inception*
year years years years
year
s* * * *

FIPF( 68.1 47.5 48.73 30.14 34.94

23.42%
G) 3% 9% % % %
S&P
50.6 36.7 37.98 18.06 17.76
CNX 9.08%
2% 0% % % %
500

*Compounded & Annualized as on oct 31, 2006

FT INDIA BALANCED FUND
 Maintains a diversified portfolio of equities & managing interest rate
movements & credit risk on fixed income component.
 Asset size: Rs 246.54 crores (as on oct 31, 2006)
SECTOR ALLOCATION
Banks 16.32%
Auto Ancillaries 13.53%
Cement 12.27%

Software 10.26%
Non - Ferrous Metals 8.36%
Auto 8.22%
Media & Entertainment 7.44%

Consumer Non Durables 7.38%

Industrial Capital Goods 4.74%
Finance 3.81%
Oil 3.81%

Rest 3.86%
 FT INDIA BALANCED FUND
SNAPSHOT PERFORMANCE

Last Last
SCHEME Last Last Since
3 3
1 5 incepti
mont years
year years* on*
hs *
17.76 44.58 31.58 33.56 18.02
FTIBF(G)
% % % % %

Crisil
11.93 34.47 21.82
Balanced N.A N.A
% % %
Fund Index

*Compounded & Annualized as on oct 31, 2006

CONCLUSIONS
 WEALTH IS CREATED ONLY THROUGH LONG TERM
INVESTMENT.
 EQUITY CAN BE EASILY USED TO BUILD WEALTH BY
FOLLOWING SOME THUMB RULES AS:

 LONG TERM INVESTING

 POWER OF COMPOUNDING
 100-AGE= INVESTMENT IN EQUITY
 RUPEE COST AVERAGING
 DIVERSIFICATION IN MID, SMALL & LARGE CAP STOCKS
 PERIODIC REALLOCATION.

 POWER OF SIP AS AN INVESTMENT OPTION.

 DO NOT TIME THE MARKET, GIVE TIME TO THE
MARKET.
THANK YOU