o 111 STKP
113 STKP
SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUSES OF
FRANKLIN MONEY FUND
FRANKLIN FEDERAL MONEY FUND
DATED NOVEMBER 1, 1997
The prospectus is amended as follows:
I. The minimum investments table in the section "How Do I Buy Shares? - Opening
Your Account" is replaced with the following:
MINIMUM
INVESTMENTS
- --------------------------------------------------------------------------------
To open a regular, non-retirement account ......................... $1,000
To open an IRA, IRA Rollover, Roth IRA, or Education IRA .......... $ 250*
To open a custodial account for a minor (an UGMA/UTMA account) .... $ 100
To open an account with an automatic investment plan .............. $ 50**
To add to an account .............................................. $ 50***
*For all other retirement accounts, there is no minimum investment requirement.
**$25 for an Education IRA.
***For all retirement accounts except IRAs, IRA Rollovers, Roth IRAs, or
Education IRAs, there is no minimum to add to an account.
For purchases by broker-dealers, registered investment advisors or certified
financial planners who have entered into an agreement with Distributors for
clients participating in comprehensive fee programs, the minimum initial
investment is $250. The minimum initial investment is $100 for officers,
trustees, directors and full-time employees of the Franklin Templeton Funds or
the Franklin Templeton Group, and their family members, consistent with our
then-current policies.
We reserve the right to change the amount of these minimums from time to time
or to waive or lower these minimums for certain purchases. We also reserve the
right to refuse any order to buy shares.
II. 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.
III. 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 and custodial accounts for minors. 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 and custodial accounts for
minors. These minimums do not apply to IRAs and other retirement plan accounts
or to accounts managed by the Franklin Templeton Group.
Please keep this supplement for future reference.
