<PAGE> PAGE 1
000 A000000 12/31/96
000 C000000 0000083297
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 FRANKLIN EQUITY FUND
001 B000000 811-334
001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 FRANKLIN ADVISERS, INC.
008 B000001 A
008 C000001 801-26292
008 D010001 SAN MATEO
008 D020001 CA
008 D030001 94403
008 D040001 7777
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
010 B000001 00000
010 C010001 SAN MATEO
010 C020001 CA
010 C030001 94403
010 C040001 7777
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94403
<PAGE> PAGE 2
011 C040001 7777
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94403
012 C040001 7777
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2174
014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
014 A000006 DELETE
015 A000001 BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
015 A000002 CITIBANK DELAWARE
015 B000002 C
015 C010002 NEW CASTLE
015 C020002 DE
015 C030002 19720
015 C040002 2409
015 E010002 X
015 A000003 THE BANK OF BOSTON
015 B000003 S
015 C010003 BUENOS AIRES
015 D010003 ARGENTINA
015 E040003 X
015 A000004 AUSTRALIA AND NEW ZEALAND BANKING GROUP, LTD.
015 B000004 S
015 C010004 MELBOURNE
015 D010004 AUSTRALIA
015 E040004 X
015 A000005 CREDITANSTALT BANKVEREIN
015 B000005 S
015 C010005 VIENNA
015 D010005 AUSTRIA
015 E040005 X
015 A000006 STANDARD CHARTERED BANK PLC
015 B000006 S
015 C010006 DHAKA
015 D010006 BANGLADESH
015 E040006 X
015 A000007 BANQUE BRUXELLES LAMBERT
015 B000007 S
015 C010007 BRUSSELS
<PAGE> PAGE 3
015 D010007 BELGIUM
015 E040007 X
015 A000008 STANDARD CORPORATE AND MERCHANT BANK
015 B000008 S
015 C010008 GABARONE
015 D010008 BOTSWANA
015 E040008 X
015 A000009 THE FIRST NATIONAL BANK OF BOSTON
015 B000009 S
015 C010009 SAO PAULO
015 D010009 BRAZIL
015 E040009 X
015 A000010 ROYAL BANK OF CANADA
015 B000010 S
015 C010010 MONTREAL
015 D010010 CANADA
015 E040010 X
015 A000011 BANCO DE CHILE
015 B000011 S
015 C010011 SANTIAGO
015 D010011 CHILE
015 E040011 X
015 A000012 THE FIRST NATIONAL BANK OF BOSTON
015 B000012 S
015 C010012 SANTIAGO
015 D010012 CHILE
015 E040012 X
015 A000013 THE STANDARD CHARTERED BANK HONG KONG
015 B000013 S
015 C010013 HONG KONG
015 D010013 CHINA
015 E040013 X
015 A000014 CITIBANK NA, VIA CTTRST CLMBIA SA SOC FIDU
015 B000014 S
015 C010014 BOGOTA
015 D010014 COLOMBIA
015 E040014 X
015 A000015 CESKOSLOVENSKA OBCHODNI BANKA
015 B000015 S
015 C010015 PRAHA
015 D010015 CZECH REPUBLIC
015 E040015 X
015 A000016 DEN DANSKE BANK
015 B000016 S
015 C010016 COPENHAGEN
015 D010016 DENMARK
015 E040016 X
015 A000017 CITIBANK NA
015 B000017 S
015 C010017 QUITO
015 D010017 ECUADOR
<PAGE> PAGE 4
015 E040017 X
015 A000018 CITIBANK NA
015 B000018 S
015 C010018 CAIRO
015 D010018 EGYPT
015 E040018 X
015 A000019 MERITA BANK LTD.
015 B000019 S
015 C010019 HELSINKI
015 D010019 FINLAND
015 E040019 X
015 A000020 BANQUE PARABIS
015 B000020 S
015 C010020 PARIS
015 D010020 FRANCE
015 E040020 X
015 A000021 DRESDNER BANK AG
015 B000021 S
015 C010021 FRANKFURT
015 D010021 GERMANY
015 E040021 X
015 A000022 FIRST CHICAGO CLEARING CENTER
015 B000022 S
015 C010022 LONDON
015 D010022 UNITED KINGDOM
015 E040022 X
015 A000023 STANDARD CORPORATE AND MERCHANT BANK
015 B000023 S
015 C010023 ACCRA
015 D010023 GHANA
015 E040023 X
015 A000024 NATIONAL BANK OF GREECE SA
015 B000024 S
015 C010024 ATHENS
015 D010024 GREECE
015 E040024 X
015 A000025 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000025 S
015 C010025 HONG KONG
015 D010025 HONG KONG
015 E040025 X
015 A000026 CITIBANK NA
015 B000026 S
015 C010026 BUDAPEST
015 D010026 HUNGARY
015 E040026 X
015 A000027 THE HONGKONG AND SHANGHAI BANKING CO., LTD.
015 B000027 S
015 C010027 MUMBAI
015 D010027 INDIA
015 E040027 X
<PAGE> PAGE 5
015 A000028 THE HONGKONG AND SHANGHAI BANKING CO., LTD.
015 B000028 S
015 C010028 JAKARTA
015 D010028 INDONESIA
015 E040028 X
015 A000029 ALLIED IRISH BANK PLC
015 B000029 S
015 C010029 DUBLIN
015 D010029 IRELAND
015 E040029 X
015 A000030 BANK LEUMI LE-ISRAEL B.M.
015 B000030 S
015 C010030 TEL AVIV
015 D010030 ISRAEL
015 E040030 X
015 A000031 BANCA COMMERCIALE ITALIANA
015 B000031 S
015 C010031 MILAN
015 D010031 ITALY
015 E040031 X
015 A000032 BANK OF TOKYO MITSUBISHI
015 B000032 S
015 C010032 TOKYO
015 D010032 JAPAN
015 E040032 X
015 A000033 THE BRITISH BANK OF THE MIDDLE EAST
015 B000033 S
015 C010033 AMMAN
015 D010033 JORDAN
015 E040033 X
015 A000034 STANDARD CORPORATE AND MERCHANT BANK
015 B000034 S
015 C010034 NAIROBI
015 D010034 KENYA
015 E040034 X
015 A000035 BANQUE INTERNATIONALE A LUXEMBOURG
015 B000035 S
015 C010035 LUXEMBOURG CITY
015 D010035 LUXEMBOURG
015 E040035 X
015 A000036 CEDEL
015 B000036 S
015 C010036 LUXEMBOURG CITY
015 D010036 LUXEMBOURG
015 E040036 X
015 A000037 THE HONGKONG AND MALAYSIA BERHAD
015 B000037 S
015 C010037 KUALA LUMPUR
015 D010037 MALAYSIA
015 E040037 X
015 A000038 BANCO NACIONAL DE MEXICO
<PAGE> PAGE 6
015 B000038 S
015 C010038 MEXICO CITY
015 D010038 MEXICO
015 E040038 X
015 A000039 BANQUE COMMERCIALE DU MAROC
015 B000039 S
015 C010039 CASABLANCA
015 D010039 MOROCCO
015 E040039 X
015 A000040 STANDARD CORPORATE AND MERCHANT BANK
015 B000040 S
015 C010040 WINDHOEK
015 D010040 NAMIBIA
015 E040040 X
015 A000041 MEESPIERSON
015 B000041 S
015 C010041 AMSTERDAM
015 D010041 NETHERLANDS
015 E040041 X
015 A000042 AUSTRALIAN AND NEW ZEALAND BANKING GROUP INC.
015 B000042 S
015 C010042 WELLINGTON
015 D010042 NEW ZEALAND
015 E040042 X
015 A000043 STANDARD CORPORATE AND MERCHANT BANK
015 B000043 S
015 C010043 LAGOS
015 D010043 NIGERIA
015 E040043 X
015 A000044 DEN NORSKE BANK ASA
015 B000044 S
015 C010044 OSLO
015 D010044 NORWAY
015 E040044 X
015 A000045 STANDARD CHARTERED BANK
015 B000045 S
015 C010045 KARACHI
015 D010045 PAKISTAN
015 E040045 X
015 A000046 CITIBANK NA
015 B000046 S
015 C010046 LIMA
015 D010046 PERU
015 E040046 X
015 A000047 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000047 S
015 C010047 MANILA
015 D010047 PHILIPPINES
015 E040047 X
015 A000048 BANK HANDLOWY W WARSZAWIE S.A.
015 B000048 S
<PAGE> PAGE 7
015 C010048 WARSAW
015 D010048 POLAND
015 E040048 X
015 A000049 BANCO COMMERCIAL PORTUGUES S.A.
015 B000049 S
015 C010049 LISBON
015 D010049 PORTUGAL
015 E040049 X
015 A000050 UNITED OVERSEAS BANK LIMITED
015 B000050 S
015 C010050 SINGAPORE
015 D010050 SINGAPORE
015 E040050 X
015 A000051 DEVELOPMENT BANK OF SINGAPORE
015 B000051 S
015 C010051 SINGAPORE
015 D010051 SINGAPORE
015 E040051 X
015 A000052 CESKOSLOVENSKA OBCHODNA BANKA AS
015 B000052 S
015 C010052 BRATISLAVA
015 D010052 SLOVAK REPUBLIC
015 E040052 X
015 A000053 STANDARD CORPORATE AND MERCHANT BANK
015 B000053 S
015 C010053 JOHANNESBURG
015 D010053 SOUTH AFRICA
015 E040053 X
015 A000054 SEOULBANK
015 B000054 S
015 C010054 SEOUL
015 D010054 SOUTH KOREA
015 E040054 X
015 A000055 BANCO BILBOA VIZCAYA
015 B000055 S
015 C010055 MADRID
015 D010055 SPAIN
015 E040055 X
015 A000056 STANDARD CHARTERED BANK PLC
015 B000056 S
015 C010056 COLOMBO
015 D010056 SRI LANKA
015 E040056 X
015 A000057 STANDARD CORPORATE AND MERCHANT BANK
015 B000057 S
015 C010057 MBABANE
015 D010057 SWAZILAND
015 E040057 X
015 A000058 SKANDINAVISKA ENSKILDA BANKEN
015 B000058 S
015 C010058 STOCKHOLM
<PAGE> PAGE 8
015 D010058 SWEDEN
015 E040058 X
015 A000059 UNION BANK OF SWITZERLAND
015 B000059 S
015 C010059 ZURICH
015 D010059 SWITZERLAND
015 E040059 X
015 A000060 THE HONGKONG AND SHANGHIA BANKING CORP., LTD.
015 B000060 S
015 C010060 TAIPEI
015 D010060 TAIWAN
015 E040060 X
015 A000061 THE SIAM COMMERCIAL BANK PUBLIC CO., LTD.
015 B000061 S
015 C010061 BANGKOK
015 D010061 THAILAND
015 E040061 X
015 A000062 CITIBANK NA
015 B000062 S
015 C010062 ISTANBUL
015 D010062 TURKEY
015 E040062 X
015 A000063 THE BANK OF NEW YORK
015 B000063 S
015 C010063 LONDON
015 D010063 UNITED KINGDOM
015 E040063 X
015 A000064 THE FIRST NATIONAL BANK OF BOSTON
015 B000064 S
015 C010064 MONTEVIDEO
015 D010064 URUGUAY
015 E040064 X
015 A000065 CITIBANK NA
015 B000065 S
015 C010065 CARACAS
015 D010065 VENEZUELA
015 E040065 X
015 A000066 STANDARD CORPORATE AND MERCHANT BANK
015 B000066 S
015 C010066 LUSAKA
015 D010066 ZAMBIA
015 E040066 X
015 A000067 STANDARD CORPORATE AND MERCHANT BANK
015 B000067 S
015 C010067 HARARE
015 D010067 ZIMBABWE
015 E040067 X
015 A000068 CREDIT COMMERCIAL DE FRANCE
015 B000068 S
015 C010068 PARIS
015 D010068 FRANCE
<PAGE> PAGE 9
015 E040068 X
015 A000069 BANQUE PARIBAS SA
015 B000069 S
015 C010069 MILAN
015 D010069 ITALY
015 E040069 X
015 A000070 BANK LEU LTD.
015 B000070 S
015 C010070 ZURICH
015 D010070 SWITZERLAND
015 E040070 X
015 A000071 BANGKOK BANK PUBLIC COMPANY LTD.
015 B000071 S
015 C010071 BANGKOK
015 D010071 THAILAND
015 E040071 X
015 A000072 JASDEC (DEPOSITORY)
015 B000072 S
015 C010072 TOKYO
015 D010072 JAPAN
015 E040072 X
015 A000073 KAS-ASSOCIATIE NV
015 B000073 S
015 C010073 AMSTERDAM
015 D010073 NETHERLANDS
015 E040073 X
015 A000074 BANK OF AMERICA NT & SA
015 B000074 C
015 C010074 SAN FRANCISCO
015 C020074 CA
015 C030074 94104
015 C040074 1502
015 E010074 X
018 000000 Y
019 A000000 Y
019 B000000 212
019 C000000 FRNKTEMGRP
020 A000001 EDWARDS (AG) & SONS INC
020 B000001 43-0895447
020 C000001 26
020 A000002 MORGAN (JP) SECURITIES INC
020 B000002 13-3224016
020 C000002 16
020 A000003 LIPPER ANALYTICAL SECURITIES CORP
020 B000003 13-2792478
020 C000003 15
020 A000004 SALOMON BROTHERS INC
020 B000004 13-3082694
020 C000004 14
020 A000005 BANK OF AMERICA NT & SA
020 B000005 94-1687665
<PAGE> PAGE 10
020 C000005 14
020 A000006 PRINCIPAL FINANCIAL SECURITIES, INC
020 B000006 75-0839696
020 C000006 13
020 A000007 MONTGOMERY SECURITIES
020 B000007 94-1701676
020 C000007 13
020 A000008 PRUDENTIAL BACHE SECURITIES
020 B000008 22-2347336
020 C000008 11
020 A000009 FIRST ALBANY CORP.
020 B000009 14-1391446
020 C000009 10
020 A000010 PAINEWEBBER INC
020 B000010 13-2638166
020 C000010 8
021 000000 232
022 A000001 FUJI SECURITIES INC
022 B000001 13-3038090
022 C000001 330449
022 D000001 0
022 A000002 BANKERS TRUST CO.
022 B000002 13-4941247
022 C000002 291465
022 D000002 0
022 A000003 SBCI SWISS BANK CORP.
022 B000003 13-2639550
022 C000003 282743
022 D000003 0
022 A000004 DAIWA SECURITIES AMERICA, INC.
022 B000004 13-5680329
022 C000004 277966
022 D000004 0
022 A000005 BEAR STERNS & CO., INC
022 B000005 13-3299429
022 C000005 266061
022 D000005 0
022 A000006 UBS SECURITIES L.L.C.
022 B000006 13-2932996
022 C000006 260850
022 D000006 300
022 A000007 DONALDSON LUFTKIN & JENRETTE
022 B000007 13-2741729
022 C000007 254517
022 D000007 0
022 A000008 AUBREY LANSTON & CO
022 B000008 13-5552129
022 C000008 221568
022 D000008 0
022 A000009 BANK OF AMERICA NT & SA
022 B000009 94-1687665
<PAGE> PAGE 11
022 C000009 221452
022 D000009 0
022 A000010 NIKKO SECURITIES INTERNATIONAL, INC.
022 B000010 94-1302123
022 C000010 203263
022 D000010 0
023 C000000 3078083
023 D000000 20830
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 5797
028 A020000 0
028 A030000 0
028 A040000 15469
028 B010000 8107
028 B020000 0
028 B030000 0
028 B040000 4212
028 C010000 6678
028 C020000 0
028 C030000 0
028 C040000 4916
028 D010000 5901
028 D020000 0
028 D030000 0
028 D040000 8327
028 E010000 17566
028 E020000 0
028 E030000 0
028 E040000 4490
028 F010000 8929
028 F020000 19298
028 F030000 0
028 F040000 7287
<PAGE> PAGE 12
028 G010000 52978
028 G020000 19298
028 G030000 0
028 G040000 44701
028 H000000 52978
029 000000 Y
030 A000000 279
030 B000000 4.50
030 C000000 0.00
031 A000000 22
031 B000000 0
032 000000 257
033 000000 0
034 000000 Y
035 000000 2
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 Y
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
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042 F000000 0
042 G000000 0
042 H000000 0
043 000000 358
044 000000 5
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100000
048 A020000 0.625
048 B010000 150000
048 B020000 0.500
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
<PAGE> PAGE 13
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 250000
048 K020000 0.450
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 100
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
<PAGE> PAGE 14
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
<PAGE> PAGE 15
070 R020000 N
071 A000000 100622
071 B000000 81573
071 C000000 359898
071 D000000 23
072 A000000 6
072 B000000 752
072 C000000 2404
072 D000000 0
072 E000000 0
072 F000000 989
072 G000000 0
072 H000000 0
072 I000000 224
072 J000000 1
072 K000000 105
072 L000000 32
072 M000000 12
072 N000000 24
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 19
072 S000000 1
072 T000000 374
072 U000000 0
072 V000000 0
072 W000000 12
072 X000000 1793
072 Y000000 0
072 Z000000 1363
072AA000000 18045
072BB000000 8422
072CC010000 29167
072CC020000 0
072DD010000 1287
072DD020000 1
072EE000000 19629
073 A010000 0.0287
073 A020000 0.0000
073 B000000 0.4310
073 C000000 0.0000
074 A000000 192
074 B000000 20377
074 C000000 0
074 D000000 8077
074 E000000 0
074 F000000 391580
074 G000000 0
074 H000000 0
074 I000000 0
<PAGE> PAGE 16
074 J000000 0
074 K000000 0
074 L000000 728
074 M000000 0
074 N000000 420954
074 O000000 2810
074 P000000 371
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 154
074 S000000 0
074 T000000 417619
074 U010000 47143
074 U020000 745
074 V010000 8.72
074 V020000 8.68
074 W000000 0.0000
074 X000000 41800
074 Y000000 2106
075 A000000 0
075 B000000 381209
076 000000 0.00
077 A000000 N
078 000000 N
080 A000000 ICI MUTUAL
080 C000000 130000
081 A000000 Y
081 B000000 190
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
<PAGE> PAGE 17
SIGNATURE LAURA FERGERSON
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN EQUITY FUND DECEMBER 31, 1996 SEMI-ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN EQUITY FUND CLASS I
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 287,735,976
<INVESTMENTS-AT-VALUE> 399,656,592
<RECEIVABLES> 21,104,947
<ASSETS-OTHER> 192,292
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 420,953,831
<PAYABLE-FOR-SECURITIES> 2,809,522
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 524,832
<TOTAL-LIABILITIES> 3,334,354
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 295,989,730
<SHARES-COMMON-STOCK> 47,143,230
<SHARES-COMMON-PRIOR> 44,403,465
<ACCUMULATED-NII-CURRENT> 43,865
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,665,206
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 111,920,676
<NET-ASSETS> 417,619,477
<DIVIDEND-INCOME> 2,403,261
<INTEREST-INCOME> 752,478
<OTHER-INCOME> 0
<EXPENSES-NET> (1,793,199)
<NET-INVESTMENT-INCOME> 1,362,540
<REALIZED-GAINS-CURRENT> 9,622,279
<APPREC-INCREASE-CURRENT> 29,167,096
<NET-CHANGE-FROM-OPS> 40,151,915
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,287,453)
<DISTRIBUTIONS-OF-GAINS> (19,326,369)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,879,095
<NUMBER-OF-SHARES-REDEEMED> (5,270,283)
<SHARES-REINVESTED> 2,130,953
<NET-CHANGE-IN-ASSETS> 46,809,310
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 19,641,524
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 988,589
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,793,199
<AVERAGE-NET-ASSETS> 375,973,347
<PER-SHARE-NAV-BEGIN> 8.260
<PER-SHARE-NII> 0.030
<PER-SHARE-GAIN-APPREC> 0.890
<PER-SHARE-DIVIDEND> (0.029)
<PER-SHARE-DISTRIBUTIONS> (0.431)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 8.720
<EXPENSE-RATIO> 0.930
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN EQUITY FUND DECEMBER 31, 1996 SEMI-ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN EQUITY FUND CLASS II
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 287,735,976
<INVESTMENTS-AT-VALUE> 399,656,592
<RECEIVABLES> 21,104,947
<ASSETS-OTHER> 192,292
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 420,953,831
<PAYABLE-FOR-SECURITIES> 2,809,522
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 524,832
<TOTAL-LIABILITIES> 3,334,354
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 295,989,730
<SHARES-COMMON-STOCK> 744,945
<SHARES-COMMON-PRIOR> 511,272
<ACCUMULATED-NII-CURRENT> 43,865
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,665,206
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 111,920,676
<NET-ASSETS> 417,619,477
<DIVIDEND-INCOME> 2,403,261
<INTEREST-INCOME> 752,478
<OTHER-INCOME> 0
<EXPENSES-NET> (1,793,199)
<NET-INVESTMENT-INCOME> 1,362,540
<REALIZED-GAINS-CURRENT> 9,622,279
<APPREC-INCREASE-CURRENT> 29,167,096
<NET-CHANGE-FROM-OPS> 40,151,915
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (501)
<DISTRIBUTIONS-OF-GAINS> (302,949)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 327,139
<NUMBER-OF-SHARES-REDEEMED> (123,672)
<SHARES-REINVESTED> 30,206
<NET-CHANGE-IN-ASSETS> 46,809,310
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 19,641,524
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 988,589
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,793,199
<AVERAGE-NET-ASSETS> 5,235,199
<PER-SHARE-NAV-BEGIN> 8.230
<PER-SHARE-NII> 0.000
<PER-SHARE-GAIN-APPREC> 0.881
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> (0.431)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 8.680
<EXPENSE-RATIO> 1.840
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
