SUPPLEMENT TO THE PROSPECTUS
PROSPECTUS DATED JANUARY 1, 1995
TEMPLETON MONEY FUND
* * *
The following text is added to the second paragraph of the section entitled "HOW
TO BUY SHARES OF THE FUND":
Instruments drawn on other investment companies may not be accepted.
The following text is added to the section entitled "HOW TO BUY SHARES OF THE
FUND-DEALER COMPENSATION":
Effective February 1, 1995, for Shares acquired from an exchange into the Fund
of Shares of another of the Franklin Templeton Funds which would have assessed
a contingent deferred sales charge upon redemption, dealers will be paid a
continuing trail fee beginning in the 13th month after the date of the original
purchase of the exchanged Shares.
The first sentence of the section entitled "EXCHANGE PRIVILEGE" is deleted and
replaced with the following:
A Shareholder may exchange Shares into other funds in the Franklin Templeton
Group (except Templeton American Trust, Inc., Templeton Capital Accumulator
Fund,
Inc., Templeton Variable Annuity Fund, Templeton Variable Products Series Fund,
Franklin Valuemark Funds and Franklin Government Securities Trust).
The following text is added to the section entitled "EXCHANGE PRIVILEGE":
EXCHANGES BY TIMING ACCOUNTS. In the case of market timing or allocation
services
("Timing Accounts"), FTD will deduct an administrative service fee of $5.00 per
exchange. Timing Accounts generally include accounts administered so as to
redeem or purchase shares based upon certain predetermined market indicators.
In accordance with the terms of their respective prospectuses, certain funds in
the Franklin Templeton Group do not accept or amy place differing limitations
than those described below on exchanges by Timing Accounts.
The Fund reserves the right to temporarily or permanently terminate the exchange
privilege or reject any specific purchase order for any Timing Account or any
person whose transactions seem to follow a timing pattern who: (i) makes an
exchange request out of the Fund within two weeks of an earlier exchange request
out of the Fund, (ii) makes more than two exchanges out of the Fund per calendar
quarter, or (iii) exchanges Shares equal in value to at least $5 million, or
more
than 1% of the Fund's net assets. Accounts under common ownership or control,
including accounts administered so as to redeem or purchase Shares based upon
certain predetermined market indicators, will be aggregated for purposes of the
exchange limits.
In addition, the Fund reserves the right to refuse the purchase side of exchange
requests by any Timing Account, person, or group if, in the Investment Manager's
judgement, the Fund would be unable to invest effectively in accordance with its
investment objectives and policies, or would otherwise potentially be adversely
affected. A Shareholder's exchanges into the Fund may be restricted or refused
if the Fund receives or anticipates simultaneous orders affecting significant
portions of the Fund's assets. In particular, a pattern of exchanges that
coincide with a "market timing" strategy may be disruptive to the Fund and
therefore may be refused.
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Finally, as indicated under "HOW TO BUY SHARES OF THE FUND," the Fund and FTD
reserve the right to refuse any order for the purchase of Shares.
The following text is added to the section entitled "HOW TO SELL SHARES OF THE
FUND":
CONTINGENT DEFERRED SALES CHARGE. The Fund does not impose either an initial
sales charge or a contingent deferred sales charge. If, however, the Shares
redeemed were Shares acquired from an exchange into the Fund of Shares of
another
of the Franklin Templeton Funds which would have assessed a contingent deferred
sales charge upon redemption, such charge will be made by the Fund, as described
below. The 12-month period will be tolled (or stopped) for the period such
Shares are exchanged into and held in the Fund.
In certain Franklin Templeton Funds, in order to recover commissions paid to
dealers on qualified investments of $1 million or more, a contingent deferred
sales charge of 1% applies to certain redemptions made by those investors within
12 months of the calendar month after such investments. The charge is 1% of the
lesser of the value of the Shares redeemed (exclusive of reinvested dividends
and
capital gain distributions) or the total cost of such Shares, and is retained by
FTD. In determining if a charge applies, Shares not subject to a contingent
deferred sales charge are deemed to be redeemed first, in the following order:
(i) Shares representing amounts attributable to capital appreciation; (ii)
Shares purchased with reinvested dividends and capital gain distributions; and
(iii) other Shares held longer than 12 months, followed by any Shares held
less than 12 months, on a "first in, first out" basis.
REQUESTS FOR REDEMPTIONS FOR A SPECIFIED DOLLAR AMOUNT WILL RESULT IN ADDITIONAL
SHARES BEING REDEEMED TO COVER ANY APPLICABLE CONTINGENT DEFERRED SALES CHARGE
WHILE REQUESTS FOR REDEMPTION OF A SPECIFIC NUMBER OF SHARES WILL RESULT IN THE
APPLICABLE CONTINGENT DEFERRED SALES CHARGE BEING DEDUCTED FROM THE TOTAL DOLLAR
AMOUNT REDEEMED.
February 1, 1995 TL307 STKR 01/95
