SUPPLEMENT TO THE PROSPECTUS DATED JANUARY 1, 1997
Franklin California Tax-Free Trust
Franklin California Insured Tax-Free Income Fund
Franklin California Tax-Exempt Money Fund
Dated November 1, 1996
I. The discussion under "How Do I Buy Shares? - Insured Fund - 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
Class I 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.
II. As of January 1, 1997, certain Franklin Templeton Funds began offering a new
class of shares, designated "Advisor Class." Advisor Class shares of any
Franklin Templeton Fund may be exchanged for shares of the Money Fund. Beginning
on or about May 1, 1997, Class Z shares of Franklin Mutual Series Fund Inc. may
also be exchanged for shares of the Money Fund.
The discussion under "How Do I Buy Shares? - Insured Fund - Sales Charge
Waivers" is amended by adding the following new item as the last item in the
list of waiver categories: 14. 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
III. 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 Fund does not offer Advisor Class shares, Advisor Class shares of
any Franklin Templeton Fund may be exchanged for Class I shares of the Fund 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 Fund.
January 1, 1997
