SUPPLEMENT TO THE PROSPECTUS DATED JANUARY 1, 1997
FRANKLIN CUSTODIAN FUNDS, INC.
GROWTH SERIES, UTILITIES SERIES, DYNATECH SERIES, INCOME SERIES,
U.S. GOVERNMENT SECURITIES SERIES
AND THE SEPARATE PROSPECTUSES FOR THE INCOME SERIES AND
U.S. GOVERNMENT SECURITIES SERIES
(DATED FEBRUARY 1, 1996 AS AMENDED SEPTEMBER 16, 1996)
I. As of January 1, 1997, the Fund began offering a third class of shares,
designated "Advisor Class." The DynaTech Series does not offer Advisor Class.
This prospectus describes the Class I and Class II shares of the Fund. 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 relating only to that class. For
more information concerning Advisor Class shares, contact your investment
representative or Distributors. Additional classes and series of shares may be
offered in the future.
II. The discussion under "How Do I Buy Shares? - Cumulative Quantity Discounts
Class I Only." is amended by replacing it with the following text:
To determine if you may pay a reduced sales charge, the amount of your current
purchase is added to the cost or current value, whichever is higher, of your
shares in other Franklin Templeton Funds, as well as those of your spouse,
children under the age of 21 and grandchildren under the age of 21. If you are
the sole owner of a company, you may also add any company accounts, including
retirement plan accounts. Companies with one or more retirement plans may add
together the total plan assets invested in the Franklin Templeton Funds to
determine the sales charge that applies.
III. The discussion under "How Do I Buy Shares? - Sales Charge Waivers" is
amended by adding the following new item as the last item in the list of waiver
categories:
17. Investors exchanging Advisor Class shares from any of the Franklin
Templeton Funds, or, beginning on or about May 1, 1997, Class Z shares of
Mutual Series
IV. The discussion under "May I Exchange Shares for Shares of Another Fund?
Exchange Restrictions" is amended by replacing the first restriction with the
following text:
You may only exchange shares within the same class.*
*Because the DynaTech Series does not offer Advisor Class shares, Advisor Class
shares of any Franklin Templeton Fund may be exchanged for Class I shares of
the DynaTech Series at Net Asset Value. Beginning on or about May 1, 1997,
Class Z shares of Mutual Series may also be exchanged into shares of the
DynaTech Series.
January 1, 1997
