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PAGE 4
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PAGE 6
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PAGE 7
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PAGE 8
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PAGE 9
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PAGE 10
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PAGE 11
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<PAGE>
PAGE 12
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<PAGE>
PAGE 13
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PAGE 14
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<PAGE>
PAGE 15
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PAGE 16
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PAGE 17
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PAGE 18
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PAGE 19
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028 D030300 0
028 D040300 65236
028 E010300 66860
028 E020300 0
028 E030300 0
028 E040300 70587
028 F010300 128348
028 F020300 343505
028 F030300 0
028 F040300 97965
028 G010300 602571
028 G020300 343714
028 G030300 0
028 G040300 417164
028 H000300 62416
029 000300 Y
030 A000300 718
030 B000300 4.50
030 C000300 0.00
031 A000300 68
031 B000300 0
032 000300 650
033 000300 0
037 000300 N
038 000300 0
039 000300 N
040 000300 Y
041 000300 Y
042 A000300 0
042 B000300 0
042 C000300 0
042 D000300 0
042 E000300 0
042 F000300 0
<PAGE>
PAGE 20
042 G000300 0
042 H000300 100
043 000300 20
044 000300 0
045 000300 Y
046 000300 N
047 000300 Y
048 000300 0.600
048 A010300 0
048 A020300 0.000
048 B010300 0
048 B020300 0.000
048 C010300 0
048 C020300 0.000
048 D010300 0
048 D020300 0.000
048 E010300 0
048 E020300 0.000
048 F010300 0
048 F020300 0.000
048 G010300 0
048 G020300 0.000
048 H010300 0
048 H020300 0.000
048 I010300 0
048 I020300 0.000
048 J010300 0
048 J020300 0.000
048 K010300 0
048 K020300 0.000
055 A000300 N
055 B000300 N
056 000300 Y
057 000300 N
058 A000300 N
059 000300 Y
060 A000300 Y
060 B000300 Y
061 000300 1000
066 A000300 Y
066 B000300 N
066 C000300 N
066 D000300 N
066 E000300 Y
066 F000300 N
066 G000300 N
067 000300 N
068 A000300 N
068 B000300 N
069 000300 N
070 A010300 Y
<PAGE>
PAGE 21
070 A020300 Y
070 B010300 Y
070 B020300 Y
070 C010300 Y
070 C020300 N
070 D010300 Y
070 D020300 N
070 E010300 Y
070 E020300 N
070 F010300 Y
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 Y
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 Y
070 K010300 Y
070 K020300 Y
070 L010300 Y
070 L020300 Y
070 M010300 Y
070 M020300 Y
070 N010300 Y
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 Y
070 P020300 N
070 Q010300 Y
070 Q020300 N
070 R010300 Y
070 R020300 Y
071 A000300 2885277
071 B000300 2404375
071 C000300 3588619
071 D000300 67
072 A000300 12
072 B000300 60910
072 C000300 110467
072 D000300 0
072 E000300 0
072 F000300 26083
072 G000300 2163
072 H000300 0
072 I000300 2623
072 J000300 546
072 K000300 0
072 L000300 303
<PAGE>
PAGE 22
072 M000300 61
072 N000300 499
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 98
072 S000300 154
072 T000300 20
072 U000300 0
072 V000300 0
072 W000300 149
072 X000300 32699
072 Y000300 823
072 Z000300 139501
072AA000300 366777
072BB000300 26904
072CC010300 352415
072CC020300 0
072DD010300 123408
072DD020300 993
072EE000300 392339
073 A010300 0.0000
073 A020300 0.0000
073 B000300 0.0000
073 C000300 0.0000
074 A000300 6934
074 B000300 0
074 C000300 1005510
074 D000300 168979
074 E000300 49571
074 F000300 3750853
074 G000300 23318
074 H000300 0
074 I000300 0
074 J000300 43249
074 K000300 0
074 L000300 30588
074 M000300 3738
074 N000300 5082740
074 O000300 49964
074 P000300 0
074 Q000300 0
074 R010300 0
074 R020300 28258
074 R030300 91
074 R040300 15706
074 S000300 0
074 T000300 4988721
074 U010300 126316
074 U020300 1755
074 V010300 0.00
<PAGE>
PAGE 23
074 V020300 0.00
074 W000300 0.0000
074 X000300 134477
074 Y000300 3810
075 A000300 0
075 B000300 4350874
076 000300 0.00
015 A000401 WESTPAC BANKING CORPORATION
015 B000401 S
015 C010401 SYDNEY
015 D010401 AUSTRALIA
015 D020401 NSW 2000
015 E040401 X
015 A000402 CANADA TRUSTCO MORTGAGE COMPANY
015 B000402 S
015 C010402 TORONTO
015 D010402 CANADA
015 D020402 M5J2T2
015 E040402 X
015 A000403 CEDEL BANK SOCIETE ANONYME
015 B000403 S
015 C010403 LUXEMBOURG
015 D010403 LUXEMBOURG
015 D020403 L-1331
015 E040403 X
015 A000404 DEN DANSKE BANK
015 B000404 S
015 C010404 COPENHAGEN
015 D010404 DENMARK
015 E040404 X
015 A000405 EUROCLEAR CLEARANCE SYSTEM SOCIETE COOP
015 B000405 S
015 C010405 BRUSSELS
015 D010405 BELGIUM
015 D020405 B-1210
015 E040405 X
015 A000406 MERITA BANK, LTD.
015 B000406 S
015 C010406 HELSINKI
015 D010406 FINLAND
015 D020406 00500
015 E040406 X
015 A000407 BANQUE PARIBAS
015 B000407 S
015 C010407 PARIS
015 D010407 FRANCE
015 D020407 75002
015 E040407 X
015 A000408 DRESDNER BANK AG
015 B000408 S
015 C010408 FRANKFURT
<PAGE>
PAGE 24
015 D010408 GERMANY
015 D020408 D-60301
015 E040408 X
015 A000409 STANDARD CHARTERED BANK
015 B000409 S
015 C010409 HONG KONG
015 D010409 HONG KONG
015 E040409 X
015 A000410 SEOULBANK
015 B000410 S
015 C010410 SEOUL
015 D010410 KOREA
015 E040410 X
015 A000411 MEESPIERSON NV
015 B000411 S
015 C010411 AMSTERDAM
015 D010411 NETHERLANDS
015 E040411 X
015 A000412 CHRISTIANIA BANK OG KREDITKASSE
015 B000412 S
015 C010412 OSLO
015 D010412 NORWAY
015 E040412 X
015 A000413 BANCO COMERCIAL PORTUGUES
015 B000413 S
015 C010413 LISBON
015 D010413 PORTUGAL
015 D020413 1000
015 E040413 X
015 A000414 DEVELOPMENT BANK OF SINGAPORE
015 B000414 S
015 C010414 SINGAPORE
015 D010414 SINGAPORE
015 D020414 0104
015 E040414 X
015 A000415 BANCO SANTANDER, S.A.
015 B000415 S
015 C010415 MADRID
015 D010415 SPAIN
015 D020415 28022
015 E040415 X
015 A000416 SKANDINAVISKA ENSKILDA BANKEN
015 B000416 S
015 C010416 STOCKHOLM
015 D010416 SWEDEN
015 D020416 S-106 40
015 E040416 X
015 A000417 STATE STRRET BANK AND TRUST COMPANY
015 B000417 S
015 C010417 LONDON
015 D010417 ENGLAND
<PAGE>
PAGE 25
015 D020417 E145AF
015 E040417 X
015 A000418 UNION BANK OF SWITZERLAND
015 B000418 S
015 C010418 ZURICH
015 D010418 SWITZERLAND
015 D020418 8021
015 E040418 X
015 A000419 LOMBARD ODIER & CIE
015 B000419 S
015 C010419 GENEVE
015 D010419 SWITZERLAND
015 D020419 1204
015 E040419 X
015 A000420 STATE STREET BANK & TRUST COMPANY
015 B000420 C
015 C010420 NORTH QUINCY
015 C020420 MA
015 C030420 02171
015 E010420 X
015 A000421 MORGAN GUARANTY TRUST CO., FRANKFURT
015 B000421 S
015 C010421 FRANKFURT
015 D010421 GERMANY
015 D020421 60322
015 E040421 X
028 A010400 126958
028 A020400 -2
028 A030400 0
028 A040400 108879
028 B010400 151269
028 B020400 10
028 B030400 0
028 B040400 22286
028 C010400 126284
028 C020400 2
028 C030400 0
028 C040400 32710
028 D010400 191087
028 D020400 620
028 D030400 0
028 D040400 31293
028 E010400 88929
028 E020400 0
028 E030400 0
028 E040400 35990
028 F010400 91746
028 F020400 202567
028 F030400 0
028 F040400 43213
028 G010400 776273
<PAGE>
PAGE 26
028 G020400 203197
028 G030400 0
028 G040400 274371
028 H000400 40997
029 000400 Y
030 A000400 710
030 B000400 4.50
030 C000400 0.00
031 A000400 42
031 B000400 0
032 000400 668
033 000400 0
037 000400 N
038 000400 0
039 000400 N
040 000400 Y
041 000400 Y
042 A000400 0
042 B000400 0
042 C000400 0
042 D000400 0
042 E000400 0
042 F000400 0
042 G000400 0
042 H000400 100
043 000400 19
044 000400 0
045 000400 Y
046 000400 N
047 000400 Y
048 000400 0.800
048 A010400 0
048 A020400 0.000
048 B010400 0
048 B020400 0.000
048 C010400 0
048 C020400 0.000
048 D010400 0
048 D020400 0.000
048 E010400 0
048 E020400 0.000
048 F010400 0
048 F020400 0.000
048 G010400 0
048 G020400 0.000
048 H010400 0
048 H020400 0.000
048 I010400 0
048 I020400 0.000
048 J010400 0
048 J020400 0.000
<PAGE>
PAGE 27
048 K010400 0
048 K020400 0.000
055 A000400 N
055 B000400 N
056 000400 Y
057 000400 N
058 A000400 N
059 000400 Y
060 A000400 Y
060 B000400 Y
061 000400 1000
066 A000400 Y
066 B000400 N
066 C000400 Y
066 D000400 N
066 E000400 N
066 F000400 N
066 G000400 N
067 000400 N
068 A000400 N
068 B000400 N
069 000400 N
070 A010400 Y
070 A020400 Y
070 B010400 Y
070 B020400 Y
070 C010400 Y
070 C020400 N
070 D010400 Y
070 D020400 Y
070 E010400 Y
070 E020400 N
070 F010400 Y
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 Y
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 Y
070 K010400 Y
070 K020400 Y
070 L010400 Y
070 L020400 Y
070 M010400 Y
070 M020400 Y
070 N010400 Y
070 N020400 N
070 O010400 Y
<PAGE>
PAGE 28
070 O020400 N
070 P010400 Y
070 P020400 N
070 Q010400 Y
070 Q020400 N
070 R010400 Y
070 R020400 Y
071 A000400 2454818
071 B000400 1505285
071 C000400 1881607
071 D000400 80
072 A000400 12
072 B000400 22463
072 C000400 48842
072 D000400 0
072 E000400 0
072 F000400 17796
072 G000400 1232
072 H000400 0
072 I000400 1831
072 J000400 410
072 K000400 0
072 L000400 185
072 M000400 31
072 N000400 258
072 O000400 0
072 P000400 0
072 Q000400 0
072 R000400 70
072 S000400 129
072 T000400 19
072 U000400 0
072 V000400 0
072 W000400 69
072 X000400 22030
072 Y000400 641
072 Z000400 49916
072AA000400 234912
072BB000400 619
072CC010400 199750
072CC020400 0
072DD010400 49056
072DD020400 509
072EE000400 215980
073 A010400 0.0000
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 3332
074 B000400 0
074 C000400 457814
<PAGE>
PAGE 29
074 D000400 112729
074 E000400 36373
074 F000400 2355621
074 G000400 14010
074 H000400 0
074 I000400 0
074 J000400 40566
074 K000400 0
074 L000400 41682
074 M000400 3
074 N000400 3062130
074 O000400 13608
074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 12947
074 R030400 0
074 R040400 12038
074 S000400 0
074 T000400 3023537
074 U010400 173179
074 U020400 2794
074 V010400 0.00
074 V020400 0.00
074 W000400 0.0000
074 X000400 115477
074 Y000400 3789
075 A000400 0
075 B000400 2228882
076 000400 0.00
015 A000501 GIROCREDIT BANK
015 B000501 S
015 C010501 VIENNA
015 D010501 AUSTRIA
015 D020501 225
015 E040501 X
015 A000502 DEN DANSKE BANK
015 B000502 S
015 C010502 COPENHAGEN
015 D010502 DENMARK
015 E040502 X
015 A000503 EUROCLEAR CLEARANCE SYSTEM SOCIETE COOP
015 B000503 S
015 C010503 BRUSSELS
015 D010503 BELGIUM
015 D020503 B-1210
015 E040503 X
015 A000504 MERITA BANK, LTD.
015 B000504 S
015 C010504 HELSINKI
015 D010504 FINLAND
<PAGE>
PAGE 30
015 D020504 00500
015 E040504 X
015 A000505 BANQUE PARIBAS
015 B000505 S
015 C010505 PARIS
015 D010505 FRANCE
015 D020505 75002
015 E040505 X
015 A000506 DRESDNER BANK AG
015 B000506 S
015 C010506 FRANKFURT
015 D010506 GERMANY
015 D020506 D-60301
015 E040506 X
015 A000507 MORGAN GUARANTY TRUST CO, FRANKFURT
015 B000507 S
015 C010507 FRANKFURT
015 D010507 GERMANY
015 D020507 60322
015 E040507 X
015 A000508 MORGAN GUARANTY TRUST CO, MILAN
015 B000508 S
015 C010508 MILAN
015 D010508 ITALY
015 D020508 20121
015 E040508 X
015 A000509 MEESPIERSON NV
015 B000509 S
015 C010509 AMSTERDAM
015 D010509 NETHERLANDS
015 D020509 1000
015 E040509 X
015 A000510 CHRISTIANIA BANK OG KREDITKASSE
015 B000510 S
015 C010510 OSLO
015 D010510 NORWAY
015 E040510 X
015 A000511 BANCO COMERCIAL PORTUGUES
015 B000511 S
015 C010511 LISBON
015 D010511 PORTUGAL
015 D020511 1000
015 E040511 X
015 A000512 BANCO SANTANDER, S.A.
015 B000512 S
015 C010512 MADRID
015 D010512 SPAIN
015 D020512 28022
015 E040512 X
015 A000513 SKANDINAVISKA ENSKILDA BANKEN
015 B000513 S
<PAGE>
PAGE 31
015 C010513 STOCKHOLM
015 D010513 SWEDEN
015 D020513 S-106 40
015 E040513 X
015 A000514 UNION BANK OF SWITZERLAND
015 B000514 S
015 C010514 ZURICH
015 D010514 SWITZERLAND
015 D020514 8021
015 E040514 X
015 A000515 STATE STREET BANK AND TRUST COMPANY
015 B000515 S
015 C010515 LONDON
015 D010515 ENGLAND
015 D020515 E145AF
015 E040515 X
015 A000516 LOMBARD ODIER & CIE
015 B000516 S
015 C010516 GENEVE
015 D010516 SWITZERLAND
015 D020516 1204
015 E040516 X
015 A000517 STATE STREET BANK & TRUST COMPANY
015 B000517 C
015 C010517 NORTH QUINCY
015 C020517 MA
015 C030517 02171
015 E010517 X
028 A010500 84182
028 A020500 0
028 A030500 0
028 A040500 1246
028 B010500 59475
028 B020500 0
028 B030500 0
028 B040500 2436
028 C010500 49554
028 C020500 0
028 C030500 0
028 C040500 2830
028 D010500 221919
028 D020500 0
028 D030500 0
028 D040500 6272
028 E010500 19975
028 E020500 0
028 E030500 0
028 E040500 4855
028 F010500 23653
028 F020500 2628
028 F030500 0
<PAGE>
PAGE 32
028 F040500 13678
028 G010500 458758
028 G020500 2628
028 G030500 0
028 G040500 31317
028 H000500 10460
029 000500 Y
030 A000500 153
030 B000500 4.50
030 C000500 0.00
031 A000500 0
031 B000500 0
032 000500 153
033 000500 0
037 000500 N
038 000500 0
039 000500 N
040 000500 Y
041 000500 Y
042 A000500 0
042 B000500 0
042 C000500 0
042 D000500 0
042 E000500 0
042 F000500 0
042 G000500 0
042 H000500 100
043 000500 4
044 000500 0
045 000500 Y
046 000500 N
047 000500 Y
048 000500 0.800
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048 B020500 0.000
048 C010500 0
048 C020500 0.000
048 D010500 0
048 D020500 0.000
048 E010500 0
048 E020500 0.000
048 F010500 0
048 F020500 0.000
048 G010500 0
048 G020500 0.000
048 H010500 0
048 H020500 0.000
048 I010500 0
048 I020500 0.000
<PAGE>
PAGE 33
048 J010500 0
048 J020500 0.000
048 K010500 0
048 K020500 0.000
055 A000500 N
055 B000500 N
056 000500 Y
057 000500 N
058 A000500 N
059 000500 Y
060 A000500 Y
060 B000500 Y
061 000500 1000
066 A000500 Y
066 B000500 N
066 C000500 Y
066 D000500 N
066 E000500 N
066 F000500 N
066 G000500 N
067 000500 N
068 A000500 N
068 B000500 N
069 000500 N
070 A010500 Y
070 A020500 Y
070 B010500 Y
070 B020500 Y
070 C010500 Y
070 C020500 N
070 D010500 Y
070 D020500 Y
070 E010500 Y
070 E020500 N
070 F010500 Y
070 F020500 N
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 Y
070 K010500 Y
070 K020500 Y
070 L010500 Y
070 L020500 Y
070 M010500 Y
070 M020500 Y
070 N010500 Y
<PAGE>
PAGE 34
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 Y
070 P020500 N
070 Q010500 Y
070 Q020500 N
070 R010500 Y
070 R020500 Y
071 A000500 305036
071 B000500 53055
071 C000500 14391
071 D000500 37
072 A000500 6
072 B000500 2725
072 C000500 797
072 D000500 0
072 E000500 0
072 F000500 950
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072 H000500 0
072 I000500 188
072 J000500 0
072 K000500 0
072 L000500 16
072 M000500 2
072 N000500 130
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072 S000500 6
072 T000500 4
072 U000500 0
072 V000500 0
072 W000500 3
072 X000500 1389
072 Y000500 73
072 Z000500 2206
072AA000500 4654
072BB000500 139
072CC010500 28436
072CC020500 0
072DD010500 1948
072DD020500 33
072EE000500 794
073 A010500 0.0000
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 530
<PAGE>
PAGE 35
074 B000500 0
074 C000500 174200
074 D000500 19291
074 E000500 0
074 F000500 263254
074 G000500 2079
074 H000500 0
074 I000500 0
074 J000500 6800
074 K000500 0
074 L000500 0
074 M000500 2317
074 N000500 468471
074 O000500 5023
074 P000500 0
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 999
074 S000500 0
074 T000500 462449
074 U010500 39547
074 U020500 1050
074 V010500 0.00
074 V020500 0.00
074 W000500 0.0000
074 X000500 17461
074 Y000500 643
075 A000500 0
075 B000500 24456540
076 000500 0.00
SIGNATURE JAMES BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUTUAL SERIES FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL SHARES FUND CLASS I
<SERIES>
<NUMBER> 010
<NAME> MUTUAL SHARES FUND CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5217647033
<INVESTMENTS-AT-VALUE> 6583663455
<RECEIVABLES> 77653049
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 13563613
<TOTAL-ASSETS> 6674880117
<PAYABLE-FOR-SECURITIES> 33271660
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 47038533
<TOTAL-LIABILITIES> 80310193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5143648102
<SHARES-COMMON-STOCK> 373178
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3613636)
<ACCUMULATED-NET-GAINS> 92299922
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1362235536
<NET-ASSETS> 6594569924
<DIVIDEND-INCOME> 148454672
<INTEREST-INCOME> 72882658
<OTHER-INCOME> 0
<EXPENSES-NET> 41648076
<NET-INVESTMENT-INCOME> 179689254
<REALIZED-GAINS-CURRENT> 466793142
<APPREC-INCREASE-CURRENT> 478415187
<NET-CHANGE-FROM-OPS> 1124897583
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (548439)
<DISTRIBUTIONS-OF-GAINS> (1352354)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 381958
<NUMBER-OF-SHARES-REDEEMED> (26599)
<SHARES-REINVESTED> 17819
<NET-CHANGE-IN-ASSETS> 1364996007
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 179160512
<OVERDISTRIB-NII-PRIOR> (12074214)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 35687092
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42615522
<AVERAGE-NET-ASSETS> 14179744
<PER-SHARE-NAV-BEGIN> 94.49
<PER-SHARE-NII> 1.03
<PER-SHARE-GAIN-APPREC> 5.43
<PER-SHARE-DIVIDEND> (2.35)
<PER-SHARE-DISTRIBUTIONS> (5.79)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 92.81
<EXPENSE-RATIO> 1.09<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Commencement of offering of Sales.
<F2>The expense ratio per the Mutual Shares Fund annual report without
reimbursement at December 31, 1996 is 1.18%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUTUAL SERIES FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL SHARES FUND CLASS II
<SERIES>
<NUMBER> 012
<NAME> MUTUAL SHARES FUND CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5217647033
<INVESTMENTS-AT-VALUE> 6583663455
<RECEIVABLES> 77653049
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 13563613
<TOTAL-ASSETS> 6674880117
<PAYABLE-FOR-SECURITIES> 33271660
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 47038533
<TOTAL-LIABILITIES> 80310193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5143648102
<SHARES-COMMON-STOCK> 181853
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3613636)
<ACCUMULATED-NET-GAINS> 92299922
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1362235536
<NET-ASSETS> 6594569924
<DIVIDEND-INCOME> 148454672
<INTEREST-INCOME> 72882658
<OTHER-INCOME> 0
<EXPENSES-NET> 41648076
<NET-INVESTMENT-INCOME> 179689254
<REALIZED-GAINS-CURRENT> 466793142
<APPREC-INCREASE-CURRENT> 478415187
<NET-CHANGE-FROM-OPS> 1124897583
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (161313930)
<DISTRIBUTIONS-OF-GAINS> (560755894)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 174375
<NUMBER-OF-SHARES-REDEEMED> (1402)
<SHARES-REINVESTED> 8879
<NET-CHANGE-IN-ASSETS> 1364996007
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 179160512
<OVERDISTRIB-NII-PRIOR> (12074214)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 35687092
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42615522
<AVERAGE-NET-ASSETS> 6477335
<PER-SHARE-NAV-BEGIN> 94.49
<PER-SHARE-NII> .97
<PER-SHARE-GAIN-APPREC> 5.41
<PER-SHARE-DIVIDEND> (2.30)
<PER-SHARE-DISTRIBUTIONS> (5.79)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 92.78
<EXPENSE-RATIO> 1.71<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio per the Mutual Shares Fund annual report without
reimbursement at December 31, 1996 is 1.80%.
<F2>Commencement of offering of Sales.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUTUAL SERIES FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL SHARES FUND CLASS Z
<SERIES>
<NUMBER> 013
<NAME> MUTUAL SHARES FUND CLASS Z
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 5217647033
<INVESTMENTS-AT-VALUE> 6583663455
<RECEIVABLES> 77653049
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 13563613
<TOTAL-ASSETS> 6674880117
<PAYABLE-FOR-SECURITIES> 33271660
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 47038533
<TOTAL-LIABILITIES> 80310193
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5143648102
<SHARES-COMMON-STOCK> 70472770
<SHARES-COMMON-PRIOR> 60491264
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3613636)
<ACCUMULATED-NET-GAINS> 92299922
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1362235536
<NET-ASSETS> 6594569924
<DIVIDEND-INCOME> 148454672
<INTEREST-INCOME> 72882658
<OTHER-INCOME> 0
<EXPENSES-NET> 41648076
<NET-INVESTMENT-INCOME> 179689254
<REALIZED-GAINS-CURRENT> 466793142
<APPREC-INCREASE-CURRENT> 478415187
<NET-CHANGE-FROM-OPS> 1124897583
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (161313930)
<DISTRIBUTIONS-OF-GAINS> (560755894)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8816934
<NUMBER-OF-SHARES-REDEEMED> (6037372)
<SHARES-REINVESTED> 7201944
<NET-CHANGE-IN-ASSETS> 1364996007
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 179160512
<OVERDISTRIB-NII-PRIOR> (12074214)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 35687092
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42615522
<AVERAGE-NET-ASSETS> 5947958948
<PER-SHARE-NAV-BEGIN> 86.45
<PER-SHARE-NII> 2.77
<PER-SHARE-GAIN-APPREC> 14.80
<PER-SHARE-DIVIDEND> (2.48)
<PER-SHARE-DISTRIBUTIONS> (8.69)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 82.85
<EXPENSE-RATIO> .70<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio per the Mutual Shares Fund annual report without
reimbursement at December 31, 1996 is .72%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUTUAL SERIES FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL QUALIFIED FUND CLASS I
<SERIES>
<NUMBER> 020
<NAME> MUTUAL QUALIFIED
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 3586891102
<INVESTMENTS-AT-VALUE> 4312282861
<RECEIVABLES> 54026460
<ASSETS-OTHER> 2832906
<OTHER-ITEMS-ASSETS> 8193365
<TOTAL-ASSETS> 4377335592
<PAYABLE-FOR-SECURITIES> 30054189
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29961967
<TOTAL-LIABILITIES> 60016156
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3524185361
<SHARES-COMMON-STOCK> 132024411
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1596000)
<ACCUMULATED-NET-GAINS> 68761150
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 725968925
<NET-ASSETS> 4317319436
<DIVIDEND-INCOME> 90987120
<INTEREST-INCOME> 520555555
<OTHER-INCOME> 0
<EXPENSES-NET> 28079854
<NET-INVESTMENT-INCOME> 114962821
<REALIZED-GAINS-CURRENT> 276332748
<APPREC-INCREASE-CURRENT> 330171813
<NET-CHANGE-FROM-OPS> 721467382
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (353451)
<DISTRIBUTIONS-OF-GAINS> (711352)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 601500
<NUMBER-OF-SHARES-REDEEMED> (3225)
<SHARES-REINVESTED> 29625
<NET-CHANGE-IN-ASSETS> 1315186641
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 102648367
<OVERDISTRIB-NII-PRIOR> (5929311)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 22515334
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 29156181
<AVERAGE-NET-ASSETS> 8466533
<PER-SHARE-NAV-BEGIN> 32.80
<PER-SHARE-NII> .32
<PER-SHARE-GAIN-APPREC> 1.78
<PER-SHARE-DIVIDEND> (.81)
<PER-SHARE-DISTRIBUTIONS> (1.63)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 32.46
<EXPENSE-RATIO> 1.13<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>The expense ratio per the Mutual Qualified Fund annual report without
reimbursement at December 31, 1996 is 1.28%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUTUAL SERIES FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL QUALIFIED FUND CLASS II
<SERIES>
<NUMBER> 022
<NAME> FRANKLIN MUTUAL SERIES
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 3586891102
<INVESTMENTS-AT-VALUE> 4312282861
<RECEIVABLES> 54026460
<ASSETS-OTHER> 2832906
<OTHER-ITEMS-ASSETS> 8193365
<TOTAL-ASSETS> 4377335592
<PAYABLE-FOR-SECURITIES> 30054189
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29961967
<TOTAL-LIABILITIES> 60016156
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3524185361
<SHARES-COMMON-STOCK> 307021
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1596000)
<ACCUMULATED-NET-GAINS> 68761150
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 725968925
<NET-ASSETS> 4317319436
<DIVIDEND-INCOME> 90987120
<INTEREST-INCOME> 52055555
<OTHER-INCOME> 0
<EXPENSES-NET> 280798541
<NET-INVESTMENT-INCOME> 114962821
<REALIZED-GAINS-CURRENT> 276332748
<APPREC-INCREASE-CURRENT> 330171813
<NET-CHANGE-FROM-OPS> 721467382
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (182773)
<DISTRIBUTIONS-OF-GAINS> (378697)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 300727
<NUMBER-OF-SHARES-REDEEMED> (6667)
<SHARES-REINVESTED> 12961
<NET-CHANGE-IN-ASSETS> 1315186641
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10264836
<OVERDISTRIB-NII-PRIOR> (5929311)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 22515334
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 29156181
<AVERAGE-NET-ASSETS> 4932585
<PER-SHARE-NAV-BEGIN> 32.80
<PER-SHARE-NII> .26
<PER-SHARE-GAIN-APPREC> 1.81
<PER-SHARE-DIVIDEND> (.79)
<PER-SHARE-DISTRIBUTIONS> (1.63)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 32.45
<EXPENSE-RATIO> 1.78<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Expense ratio per the Mutual Shares Fund Class II annual report without
reimbursement at December 31, 1996 is 1.93%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUTUAL SERIES FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL QUALIFIED FUND CLASS Z
<SERIES>
<NUMBER> 023
<NAME> FRANKLIN MUTUAL QUALIFIED FUND CLASS Z
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 3586891102
<INVESTMENTS-AT-VALUE> 4312282861
<RECEIVABLES> 54026460
<ASSETS-OTHER> 2832906
<OTHER-ITEMS-ASSETS> 8193365
<TOTAL-ASSETS> 4377335592
<PAYABLE-FOR-SECURITIES> 30054189
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29961967
<TOTAL-LIABILITIES> 60016156
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3524185361
<SHARES-COMMON-STOCK> 132024411
<SHARES-COMMON-PRIOR> 100959394
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1596000)
<ACCUMULATED-NET-GAINS> 68761150
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 725968925
<NET-ASSETS> 4317319436
<DIVIDEND-INCOME> 90987120
<INTEREST-INCOME> 52055555
<OTHER-INCOME> 0
<EXPENSES-NET> 28079854
<NET-INVESTMENT-INCOME> 114962821
<REALIZED-GAINS-CURRENT> 276332748
<APPREC-INCREASE-CURRENT> 330171813
<NET-CHANGE-FROM-OPS> 721467382
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (107303548)
<DISTRIBUTIONS-OF-GAINS> (311919654)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 34226041
<NUMBER-OF-SHARES-REDEEMED> (15506528)
<SHARES-REINVESTED> 12345504
<NET-CHANGE-IN-ASSETS> 1315186641
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 102648367
<OVERDISTRIB-NII-PRIOR> (5929311)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 22515334
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 29156181
<AVERAGE-NET-ASSETS> 3753926387
<PER-SHARE-NAV-BEGIN> 29.74
<PER-SHARE-NII> .94
<PER-SHARE-GAIN-APPREC> 5.24
<PER-SHARE-DIVIDEND> (.87)
<PER-SHARE-DISTRIBUTIONS> (2.58)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 32.47
<EXPENSE-RATIO> .75<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Expense ratio per the Mutual Shares Fund Class Z annual report without
reimbursement at December 31, 1996 is .78%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL BEACON FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL BEACON FUND CLASS I
<SERIES>
<NUMBER> 030
<NAME> MUTUAL BEACON FUND CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 4253017499
<INVESTMENTS-AT-VALUE> 4998231479
<RECEIVABLES> 73836892
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 10671403
<TOTAL-ASSETS> 5082739774
<PAYABLE-FOR-SECURITIES> 49963660
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 44055059
<TOTAL-LIABILITIES> 94018719
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4174075017
<SHARES-COMMON-STOCK> 1337413
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1622610)
<ACCUMULATED-NET-GAINS> 76197617
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 740071031
<NET-ASSETS> 4988721055
<DIVIDEND-INCOME> 110466891
<INTEREST-INCOME> 60910279
<OTHER-INCOME> 0
<EXPENSES-NET> 31876479
<NET-INVESTMENT-INCOME> 139500691
<REALIZED-GAINS-CURRENT> 339872662
<APPREC-INCREASE-CURRENT> 352415288
<NET-CHANGE-FROM-OPS> 831788641
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (733476)
<DISTRIBUTIONS-OF-GAINS> (1661478)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1327664
<NUMBER-OF-SHARES-REDEEMED> (47590)
<SHARES-REINVESTED> 57339
<NET-CHANGE-IN-ASSETS> 1415423913
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 119814140
<OVERDISTRIB-NII-PRIOR> (7873167)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 26083112
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 32699431
<AVERAGE-NET-ASSETS> 18854195
<PER-SHARE-NAV-BEGIN> 39.64
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 2.07
<PER-SHARE-DIVIDEND> (1.00)
<PER-SHARE-DISTRIBUTIONS> (2.26)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 38.93
<EXPENSE-RATIO> 1.03<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>THE COMMENCEMENT OF OPERATIONS WAS ON NOVEMBER 01, 1996
<F2>THE EXPENSE RATIO PER THE MUTUAL BEACON FUND ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 1.13%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL BEACON FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL BEACON FUND CLASS II
<SERIES>
<NUMBER> 032
<NAME> MUTUAL BEACON FUND CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 4253017499
<INVESTMENTS-AT-VALUE> 4998231479
<RECEIVABLES> 73836892
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 10671403
<TOTAL-ASSETS> 5082739774
<PAYABLE-FOR-SECURITIES> 49963660
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 44055059
<TOTAL-LIABILITIES> 94018719
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4174075017
<SHARES-COMMON-STOCK> 417780
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1622610)
<ACCUMULATED-NET-GAINS> 76197617
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 740071031
<NET-ASSETS> 4988721055
<DIVIDEND-INCOME> 110466891
<INTEREST-INCOME> 60910279
<OTHER-INCOME> 0
<EXPENSES-NET> 31876479
<NET-INVESTMENT-INCOME> 139500691
<REALIZED-GAINS-CURRENT> 339872662
<APPREC-INCREASE-CURRENT> 352415288
<NET-CHANGE-FROM-OPS> 831788641
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (258962)
<DISTRIBUTIONS-OF-GAINS> (601432)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 414977
<NUMBER-OF-SHARES-REDEEMED> (17823)
<SHARES-REINVESTED> 20626
<NET-CHANGE-IN-ASSETS> 1415423913
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 119814140
<OVERDISTRIB-NII-PRIOR> (7873167)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 26083112
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 32699431
<AVERAGE-NET-ASSETS> 6648882
<PER-SHARE-NAV-BEGIN> 39.64
<PER-SHARE-NII> 0.38
<PER-SHARE-GAIN-APPREC> 2.14
<PER-SHARE-DIVIDEND> (0.97)
<PER-SHARE-DISTRIBUTIONS> (2.26)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 38.93
<EXPENSE-RATIO> 1.75<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>THE COMMENCEMENT OF OPERATIONS WAS ON NOVEMBER 01, 1996
<F2>THE EXPENSE RATIO PER THE MUTUAL BEACON ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 1.85%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL BEACON FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> MUTUAL BEACON FUND CLASS Z
<SERIES>
<NUMBER> 033
<NAME> MUTUAL BEACON FUND CLASS Z
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 4253017499
<INVESTMENTS-AT-VALUE> 4998231479
<RECEIVABLES> 73836892
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 10671403
<TOTAL-ASSETS> 5082739774
<PAYABLE-FOR-SECURITIES> 49963660
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 44055059
<TOTAL-LIABILITIES> 94018719
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4174075017
<SHARES-COMMON-STOCK> 126316355
<SHARES-COMMON-PRIOR> 99411071
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1622610)
<ACCUMULATED-NET-GAINS> 76197617
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 740071031
<NET-ASSETS> 4988721055
<DIVIDEND-INCOME> 110466891
<INTEREST-INCOME> 60910279
<OTHER-INCOME> 0
<EXPENSES-NET> 31876479
<NET-INVESTMENT-INCOME> 139500691
<REALIZED-GAINS-CURRENT> 339872662
<APPREC-INCREASE-CURRENT> 352415288
<NET-CHANGE-FROM-OPS> 831788641
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (123408070)
<DISTRIBUTIONS-OF-GAINS> (390075901)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 34429925
<NUMBER-OF-SHARES-REDEEMED> (19412747)
<SHARES-REINVESTED> 11888106
<NET-CHANGE-IN-ASSETS> 1415423913
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 119814140
<OVERDISTRIB-NII-PRIOR> (7873167)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 26083112
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 32699431
<AVERAGE-NET-ASSETS> 4347383745
<PER-SHARE-NAV-BEGIN> 35.94
<PER-SHARE-NII> 1.20
<PER-SHARE-GAIN-APPREC> 6.28
<PER-SHARE-DIVIDEND> (1.06)
<PER-SHARE-DISTRIBUTIONS> (3.41)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 38.95
<EXPENSE-RATIO> 0.73<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>THE EXPENSE RATIO PER THE MUTUAL BEACON ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 0.75%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL EUROPEAN FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> FRANKLIN MUTUAL SERIES FUND INC.
<SERIES>
<NUMBER> 050
<NAME> MUTUAL EUROPEAN FUND-CLASS 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 430292422
<INVESTMENTS-AT-VALUE> 458823937
<RECEIVABLES> 9116462
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 530404
<TOTAL-ASSETS> 468470803
<PAYABLE-FOR-SECURITIES> 5023495
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 998352
<TOTAL-LIABILITIES> 6021847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 430067727
<SHARES-COMMON-STOCK> 808273
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 580686
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3364491
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28436052
<NET-ASSETS> 462448956
<DIVIDEND-INCOME> 796851
<INTEREST-INCOME> 2724820
<OTHER-INCOME> 0
<EXPENSES-NET> 1315882
<NET-INVESTMENT-INCOME> 2205789
<REALIZED-GAINS-CURRENT> 4514505
<APPREC-INCREASE-CURRENT> 28436052
<NET-CHANGE-FROM-OPS> 35156346
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (25784)
<DISTRIBUTIONS-OF-GAINS> (10995)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 813014
<NUMBER-OF-SHARES-REDEEMED> (7579)
<SHARES-REINVESTED> 2838
<NET-CHANGE-IN-ASSETS> 462448956
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 949616
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1389034
<AVERAGE-NET-ASSETS> 3509233
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> .58
<PER-SHARE-DIVIDEND> (.05)
<PER-SHARE-DISTRIBUTIONS> (.02)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.38
<EXPENSE-RATIO> 1.32<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>COMMENCEMENT OF OFFERING SALES WAS NOVEMBER 01, 1996.
<F2>THE EXPENSE RATIO PER THE MUTUAL EUROPEAN FUND ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 1.42%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL EUROPEAN FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> FRANKLIN MUTUAL SERIES FUND INC.
<SERIES>
<NUMBER> 052
<NAME> MUTUAL EUROPEAN FUND-CLASS 2
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 430292422
<INVESTMENTS-AT-VALUE> 458823937
<RECEIVABLES> 9116462
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 530404
<TOTAL-ASSETS> 468470803
<PAYABLE-FOR-SECURITIES> 5023495
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 998352
<TOTAL-LIABILITIES> 6021847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 430067727
<SHARES-COMMON-STOCK> 242005
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 580686
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3364491
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28436052
<NET-ASSETS> 462448956
<DIVIDEND-INCOME> 796851
<INTEREST-INCOME> 2724820
<OTHER-INCOME> 0
<EXPENSES-NET> 1315882
<NET-INVESTMENT-INCOME> 2205789
<REALIZED-GAINS-CURRENT> 4514505
<APPREC-INCREASE-CURRENT> 28436052
<NET-CHANGE-FROM-OPS> 35156346
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7669)
<DISTRIBUTIONS-OF-GAINS> (4015)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 242959
<NUMBER-OF-SHARES-REDEEMED> (1814)
<SHARES-REINVESTED> 860
<NET-CHANGE-IN-ASSETS> 462448956
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 949616
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1389034
<AVERAGE-NET-ASSETS> 1494664
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> .58
<PER-SHARE-DIVIDEND> (.04)
<PER-SHARE-DISTRIBUTIONS> (.02)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.38
<EXPENSE-RATIO> 1.94<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>COMMENCEMENT OF OFFERING SALES WAS ON NOVEMBER 01, 1996.
<F2>THE EXPENSE RATIO PER THE MUTUAL EUROPEAN FUND ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 2.04%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL EUROPEAN FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> FRANKLIN MUTUAL SERIES FUND INC.
<SERIES>
<NUMBER> 053
<NAME> MUTUAL EUROPEAN FUND-CLASS Z
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JUL-03-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 430292422
<INVESTMENTS-AT-VALUE> 458823937
<RECEIVABLES> 9116462
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 530404
<TOTAL-ASSETS> 468470803
<PAYABLE-FOR-SECURITIES> 5023495
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 998352
<TOTAL-LIABILITIES> 6021847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 430067727
<SHARES-COMMON-STOCK> 39546933
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 580686
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3364491
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28436052
<NET-ASSETS> 462448956
<DIVIDEND-INCOME> 796851
<INTEREST-INCOME> 2724820
<OTHER-INCOME> 0
<EXPENSES-NET> 1315882
<NET-INVESTMENT-INCOME> 2205789
<REALIZED-GAINS-CURRENT> 4514505
<APPREC-INCREASE-CURRENT> 28436052
<NET-CHANGE-FROM-OPS> 35156346
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1947610)
<DISTRIBUTIONS-OF-GAINS> (779044)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 42171939
<NUMBER-OF-SHARES-REDEEMED> (2854509)
<SHARES-REINVESTED> 229503
<NET-CHANGE-IN-ASSETS> 462448956
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 949616
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1389034
<AVERAGE-NET-ASSETS> 239561463
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> 1.40
<PER-SHARE-DIVIDEND> (.05)
<PER-SHARE-DISTRIBUTIONS> (.02)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.39
<EXPENSE-RATIO> 1.09<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>THE COMMENCEMENT OF OPERATIONS WAS ON JULY 03, 1996.
<F2>THE EXPENSE RATIO PER THE MUTUAL EUROPEAN FUND ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 1.15%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL DISCOVERY FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> FRANKLIN MUTUAL SERIES FUND INC.
<SERIES>
<NUMBER> 040
<NAME> MUTUAL DISCOVERY FUND-CLASS 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 2613569608
<INVESTMENTS-AT-VALUE> 2976546497
<RECEIVABLES> 61537217
<ASSETS-OTHER> 3382
<OTHER-ITEMS-ASSETS> 24042834
<TOTAL-ASSETS> 3062129930
<PAYABLE-FOR-SECURITIES> 13607767
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24985419
<TOTAL-LIABILITIES> 38593186
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2616046060
<SHARES-COMMON-STOCK> 1743246
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (4135091)
<ACCUMULATED-NET-GAINS> 55664483
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 355961292
<NET-ASSETS> 3023536744
<DIVIDEND-INCOME> 48842362
<INTEREST-INCOME> 22462789
<OTHER-INCOME> 0
<EXPENSES-NET> 21389219
<NET-INVESTMENT-INCOME> 49915932
<REALIZED-GAINS-CURRENT> 234293883
<APPREC-INCREASE-CURRENT> 199749620
<NET-CHANGE-FROM-OPS> 483959435
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (316033)
<DISTRIBUTIONS-OF-GAINS> (1188595)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1741544
<NUMBER-OF-SHARES-REDEEMED> (76554)
<SHARES-REINVESTED> 78256
<NET-CHANGE-IN-ASSETS> 1653315304
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 37098017
<OVERDISTRIB-NII-PRIOR> (4232205)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17795530
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22030495
<AVERAGE-NET-ASSETS> 11848141
<PER-SHARE-NAV-BEGIN> 17.66
<PER-SHARE-NII> .11
<PER-SHARE-GAIN-APPREC> .74
<PER-SHARE-DIVIDEND> (.29)
<PER-SHARE-DISTRIBUTIONS> (1.07)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.15
<EXPENSE-RATIO> 1.38<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>COMMENCEMENT OF OFFERING SALES WAS ON NOVEMBER 01, 1996.
<F2>THE EXPENSE RATIO PER THE MUTUAL DISCOVERY FUND ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS 1.51%.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL DISCOVERY FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> FRANKLIN MUTUAL SERIES FUND INC.
<SERIES>
<NUMBER> 042
<NAME> MUTUAL DISCOVERY FUND-CLASS 2
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> NOV-01-1996<F1>
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 2613569608
<INVESTMENTS-AT-VALUE> 2976546497
<RECEIVABLES> 61537217
<ASSETS-OTHER> 3382
<OTHER-ITEMS-ASSETS> 24042834
<TOTAL-ASSETS> 3062129930
<PAYABLE-FOR-SECURITIES> 13607767
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24985419
<TOTAL-LIABILITIES> 38593186
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2616046060
<SHARES-COMMON-STOCK> 1050641
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (4135091)
<ACCUMULATED-NET-GAINS> 55664483
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 355961292
<NET-ASSETS> 3023536744
<DIVIDEND-INCOME> 48842362
<INTEREST-INCOME> 22462789
<OTHER-INCOME> 0
<EXPENSES-NET> 21389219
<NET-INVESTMENT-INCOME> 49915932
<REALIZED-GAINS-CURRENT> 234293883
<APPREC-INCREASE-CURRENT> 199749620
<NET-CHANGE-FROM-OPS> 483959435
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (193382)
<DISTRIBUTIONS-OF-GAINS> (756559)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1024931
<NUMBER-OF-SHARES-REDEEMED> (24083)
<SHARES-REINVESTED> 49793
<NET-CHANGE-IN-ASSETS> 1653315304
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 37098017
<OVERDISTRIB-NII-PRIOR> (4232205)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17795530
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22030495
<AVERAGE-NET-ASSETS> 7707508
<PER-SHARE-NAV-BEGIN> 17.66
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> .76
<PER-SHARE-DIVIDEND> (.27)
<PER-SHARE-DISTRIBUTIONS> (1.07)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.17
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Commencement of offering sales was on November 01, 1996.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MUTUAL DISCOVERY FUND DECEMBER 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000825063
<NAME> FRANKLIN MUTUAL SERIES FUND INC.
<SERIES>
<NUMBER> 043
<NAME> MUTUAL DISCOVERY FUND-CLASS Z
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 2613569608
<INVESTMENTS-AT-VALUE> 2976546497
<RECEIVABLES> 61537217
<ASSETS-OTHER> 3382
<OTHER-ITEMS-ASSETS> 24042834
<TOTAL-ASSETS> 3062129930
<PAYABLE-FOR-SECURITIES> 13607767
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24985419
<TOTAL-LIABILITIES> 38593186
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2616046060
<SHARES-COMMON-STOCK> 173179167
<SHARES-COMMON-PRIOR> 90356946
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (4135091)
<ACCUMULATED-NET-GAINS> 55664483
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 355961292
<NET-ASSETS> 3023536744
<DIVIDEND-INCOME> 48842362
<INTEREST-INCOME> 22462789
<OTHER-INCOME> 0
<EXPENSES-NET> 21389219
<NET-INVESTMENT-INCOME> 49915932
<REALIZED-GAINS-CURRENT> 234293883
<APPREC-INCREASE-CURRENT> 199749620
<NET-CHANGE-FROM-OPS> 483959435
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (49056367)
<DISTRIBUTIONS-OF-GAINS> (214035299)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 92579326
<NUMBER-OF-SHARES-REDEEMED> (24057746)
<SHARES-REINVESTED> 14300641
<NET-CHANGE-IN-ASSETS> 1653315304
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 37098017
<OVERDISTRIB-NII-PRIOR> (4232205)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17795530
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22030495
<AVERAGE-NET-ASSETS> 2225631135
<PER-SHARE-NAV-BEGIN> 15.16
<PER-SHARE-NII> .34
<PER-SHARE-GAIN-APPREC> 3.39
<PER-SHARE-DIVIDEND> (.31)
<PER-SHARE-DISTRIBUTIONS> (1.40)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.18
<EXPENSE-RATIO> .96<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>THE EXPENSE RATIO PER THE MUTUAL DISCOVERY FUND ANNUAL REPORT WITHOUT
REIMBURSEMENT AT DECEMBER 31, 1996 IS .99%.
</FN>
</TABLE>
To the Board of Directors
Franklin Mutual Series Fund Inc.
In planning and performing our audit of the financial statements of Franklin
Mutual Series Fund Inc. (comprising, respectively, Mutual Shares Fund, Mutual
Qualified Fund, Mutual Beacon Fund, Mutual Discovery Fund, and Mutual European
Fund) for the year ended December 31, 1996, we considered its internal control
structure, including procedures for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR, not
to provide assurance on the internal control structure.
The management of the Franklin Mutual Series Fund Inc. is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and transactions
are executed in accordance with management's authorization and recorded properly
to permit preparation of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that procedures may
become inadequate because of changes in conditions or that the effectiveness of
the design and may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above at
December 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/ERNST & YOUNG LLP
Boston, Massachusetts
February 7, 1997
