oFCF STKPA1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUS OF
FRANKLIN CUSTODIAN FUNDS, INC. - ADVISOR CLASS
DATED FEBRUARY 1, 1998
The prospectus is amended as follows:
I. The section "Management Team - Income Series," found under "Who Manages the
Fund?", is revised to add Frederick G. Fromm to the management team, effective
January 1998, and to add the following:
Frederick G. Fromm
Portfolio Manager of Advisers
Mr. Fromm holds a Bachelor of Arts degree in Business Economics from the
University of California, Santa Barbara. He has been with the Franklin Templeton
Group since 1992.
II. The second category under "How Do I Buy Shares? - Minimum Investments,"
discussing minimum investments for qualified registered investment advisors, is
replaced with the following:
2. Qualified registered investment advisors or certified financial planners
who have clients invested in the Franklin Mutual Series Fund Inc. on
October 31, 1996, or who buy through a broker-dealer or service agent who
has entered into an agreement with Distributors, subject to a $1,000
minimum initial and $50 minimum subsequent investment requirement
III. The following new item is added under "May I Exchange Shares for Shares of
Another Fund? - Exchange Restrictions":
o You must meet the applicable minimum investment amount of the fund you are
exchanging into, or exchange 100% of your Fund shares.
IV. The section "Keeping Your Account Open," found under "Transaction Procedures
and Special Requirements," is replaced in its entirety with the following:
KEEPING YOUR ACCOUNT OPEN
Due to the relatively high cost of maintaining a small account, we may close
your account if the value of your shares is less than $250, or less than $50
for employee accounts. We will only do this if the value of your account fell
below this amount because you voluntarily sold your shares and your account has
been inactive (except for the reinvestment of distributions) for at least six
months. Before we close your account, we will notify you and give you 30 days
to increase the value of your account to $1,000, or $100 for employee accounts.
These minimums do not apply to IRAs, accounts managed by the Franklin Templeton
Group, the Franklin Templeton Profit Sharing 401(k) Plan, the series of
Franklin Templeton Fund Allocator Series, or certain defined contribution plans
that qualify to buy shares with no minimum initial investment requirement.
Please keep this supplement for future reference.
