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Franklin India
Equity Savings Fund


- Investors who need tax-ef cient income with a low to medium risk appetite typically
Equity prefer xed-income oriented funds
Seeks to follow a - Increase in the holding period from 1 year to 3 years* for xed-income oriented funds has
diversi ed multi-cap led to tax-inef ciency over the short term
strategy - Equity Savings Funds offer tax ef ciencies of an equity oriented fund (with a minimum
65% gross equity exposure) but with a low to moderate risk appetite^
* For long term capital gains from other than equity-oriented funds. ^ See table – Tax Ef ciency of ESFs

Arbitrage** KEY BENEFITS

Seeks to employ
cash-futures arbitrage - Potential for Growth from the net long equity exposure
strategy for hedging - Relatively Lower Volatility and Potential for income owing to predominant xed income
equity exposure /arbitrage exposure
- Tax Efficiency as the fund is classi ed as an equity oriented fund with a minimum 65%
gross equity exposure
Fixed Income
` Seeks to follow a WHO SHOULD INVEST?
combination of strategies
including accrual and - Those with an investment horizon of 1 year and above
duration strategies - Those seeking growth but less comfortable with equity market volatility
- Those seeking a better return potential than xed income but with marginally higher risk
**The ef ciency of the strategy depends on the availability of - Those looking for potentially better post tax returns than conservative hybrid funds with
arbitrage opportunities in the market. There is no assurance that
the Scheme will always be able to capture such opportunities. marginally higher risk
The strategy can be employed when the price of futures exceeds
the price of the underlying stock.
Product Label
ALTERNATIVE TO: SUITABLE FOR: This fund is suitable for investors who are seeking*:
• Income generation and capital appreciation over medium to
long term.
• Investment in equity and equity related securities including
the use of equity derivatives strategies and arbitrage
Reasonable opportunities with balance exposure in debt and money
Capital Appreciation market instruments
*Investors should consult their financial advisors if in doubt whether the product is suitable for them.

ESFs are positioned between Conservative Hybrid and Balanced Advantage Funds
The Scheme intends to generate long-term
capital appreciation by investing a portion of
the Scheme’s assets in equity and equity

related instruments. The Scheme also intends
to generate income through investments in Equity Thematic/
Small Sectoral
xed income securities and using arbitrage and Equity
Equity Mid Cap Cap

other derivative Strategies. There can be no Equity Multi
Large cap
assurance that the investment objective of the Aggressive
Balanced Hybrid
scheme will be realized. Equity Advantage/
Savings Dynamic
Conserva Asset
SCHEME TYPE Medium -tive Allocation
Short Duration Hybrid
An open-ended scheme investing in equity, Liquid Duration Fund
arbitrage and xed income

Nifty Equity Savings Index Risk High
ESFs offer an alternative to Conservative Hybrid Funds on account of superior taxation advantage
Note: The above matrix is based on schemes classi ed under a particular category
Equity - Lakshmikanth Reddy
Fixed Income - Sachin Padwal-Desai and ASSET ALLOCATION PATTERN
Umesh Sharma
Under normal circumstances, the asset allocation pattern will be as follows:
Foreign Securities - Srikesh Nair
Net Long Equity* Units issued by
LOAD STRUCTURE (Of Equity and Equity REITs & InvITS
Entry Load – Nil Related Securities)
Exit Load - In respect of each purchase of Units: Min: 0% Max: 10%
Min:15% Max: 65%
• Upto 10% of the Units may be redeemed
without any exit load in each year from the date
of allotment.*
• Any redemption in excess of the above limit
shall be subject to the following exit load:
Ÿ 1% - if redeemed on or before 1 year from `
Debt & Money
the date of allotment Market Instruments
Ÿ Nil - if redeemed after 1 year from the date Equity and Equity including cash &
Related Securities cash equivalent^
of allotment Equity Derivatives**
Equity Derivatives** (Of Equity
Min: 0% Max: 75%

Min: 65% Max: 90% and Equity Related Securities) Min: 10% Max: 35%
*This no load redemption limit is applicable on a yearly Min: 0% Max: 75%
basis (from the date of allotment of such units) and the * Net long equity exposure is a directional equity exposure that will not be hedged. This equity exposure means exposure to equity shares
limit not availed during a year shall not be clubbed or alone without a corresponding equity derivative exposure.** Equity derivative exposure would normally be taken against the underlying
carried forward to the next year. equity investments and such exposure will not be considered for calculating the gross exposure of the scheme. ^Investment in Securitized
debt, if undertaken, would not exceed 20% of the net assets of the Scheme. Note: For detailed asset allocation, please refer to the Scheme
Information Document (SID).
Growth Assuming similar return profile and 1 year holding period, Equity-oriented Funds (which include
Dividend (Payout and Reinvestment) ESFs) may generate better post-tax gains than Other than equity-oriented Funds
Monthly Dividend (Payout and Reinvestment)
Quarterly Dividend (Payout and Reinvestment) Other than Equity- Equity-oriented
oriented Funds Funds
Purchase Amount (INR) 10000 10000
Purchase NAV (INR) 10 10
Rs. 5,000 and in multiples of Re. 1 thereafter.
Units 1000 1000
NAV appreciation during the 1 year period 7.50% 7.50%
Corpus at the end of 1 year (Sale NAV) (INR) 10750 10750
Taxation on gain
Other than Equity- oriented funds Short Term Capital Gain
(STCG) taxation @35.88% (INR)*
Equity oriented funds Long Term Capital Gain (LTCG) taxation
@11.96% (INR)** 90
Post tax gain (INR) 10481 10660
Post tax gain % 4.81% 6.60%
*Assuming maximum marginal tax rate of 35.88% for other than equity-oriented funds (including 30% income tax, 15% surcharge
applicable where income of individual/HUF investor exceeds INR 1 crores, 4% health and education cess). **Assuming maximum marginal
tax rate of 11.96% for equity-oriented funds (including 10% income tax, 10% surcharge applicable where income of individual/HUF
investor exceeds INR 1 crores, 4% health and education cess). Exemption of INR 1 lakh for LTCG is not considered in the above assumption.
The aforesaid illustration is hypothetical in nature and only to describe the tax-ef ciency of Equity-oriented funds over Other than equity-
In view of the individual circumstances and risk pro le, oriented funds and is not to be considered as any guarantee of returns in the funds for the investors. Investments made in equity-oriented
each investor is advised to consult his/her nancial/tax funds carry relatively higher risk. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities
advisor(s) before making a decision to invest. market.

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