o 132 P-PA2
SUPPLEMENT DATED DECEMBER 16, 1999
TO THE PROSPECTUSES OF
FRANKLIN GOLD FUND
DATED DECEMBER 1, 1999
Franklin Gold Fund's Board of Directors has approved certain proposals to change
some of the fund's investment policies. These proposals will be presented to
shareholders of the fund for their approval in March 2000. Currently, the fund
is permitted to invest at least 65% of its total assets in the equity securities
of companies that mine, process or deal in gold. The Board of Directors has
approved a proposal to change this investment criteria to permit the fund to
invest at least 65% of its total assets in the equity securities of companies
that mine, process or deal in both gold and other precious metals (such as
silver, platinum and paladium). This change in the fund's investment criteria
would necessitate changing the name of the fund to the "Franklin Gold and
Precious Metals Fund." The Board also has approved a proposal to change the
fund's sub-classification from diversified to non-diversified in order to
provide the fund with the investment flexibility to invest greater than 5% in
certain issuers. The Board believes these proposed changes will benefit
shareholders.
It is anticipated that during February 2000, fund shareholders will receive a
proxy and proxy statement requesting their votes on these and other specific
proposed changes.
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE.
