Franklin India Short Term Fund - Regular (IDCW)

To achieve the investment objective of generating regular income in the short term, the scheme will invest in debt and money market instruments. The scheme will actively manage a portfolio of Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 1 and 3 years. The scheme may also invest in debt derivatives as stated in the indicative table. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. For detailed derivative strategies, please refer to SAI.