SUPPLEMENT DATED
JANUARY 1, 1997
TO THE STATEMENT OF ADDITIONAL INFORMATION
FRANKLIN REAL ESTATE SECURITIES FUND
FRANKLIN SMALL CAP GROWTH FUND
DATED SEPTEMBER 1, 1996
FRANKLIN'S AGE HIGH INCOME FUND
DATED OCTOBER 1, 1996
FRANKLIN EQUITY FUND
DATED NOVEMBER 1, 1996
FRANKLIN GOLD FUND
DATED DECEMBER 1, 1996
I. As of January 1, 1997, the Fund offers a third class of shares designated
"Advisor Class." This SAI describes the Class I and Class II shares of the Fund.
All Fund shares outstanding before the offering of Advisor Class shares will
retain their previous rights and privileges.
Class I, Class II and Advisor Class shares differ as to sales charges, expenses
and services. Different fees and expenses will affect performance. Advisor Class
shares are described in a separate prospectus and SAI relating only to that
class. For more information concerning Advisor Class shares, contact your
investment representative or Distributors.
II. The discussion under "How Do I Buy, Sell and Exchange Shares? - Letter of
Intent" is amended to remove the reference to Class II shares.
III. The discussion under "The Fund's Underwriter - The Rule 12b-1 Plans" is
amended by replacing the first paragraph with the following text:
The Fund has adopted a distribution plan or "Rule 12b-1 plan" pursuant to Rule
12b-1 under the 1940 Act, with respect to its Class I and Class II shares.
