<PAGE> PAGE 1
000 A000000 12/31/97
000 C000000 0000083297
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 FRANKLIN EQUITY FUND
001 B000000 811-334
001 C000000 6503122000
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 94404
008 D040001 1585
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
010 C010001 SAN MATEO
010 C020001 CA
010 C030001 94404
010 C040001 1585
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94404
011 C040001 1585
<PAGE> PAGE 2
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94404
012 C040001 1585
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
015 A000001 BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
015 A000002 BANCO DE CHILE
015 B000002 S
015 C010002 SANTIAGO
015 D010002 CHILE
015 E040002 X
015 A000003 THE BANK OF BOSTON
015 B000003 S
015 C010003 BUENOS AIRES
015 D010003 ARGENTINA
015 E040003 X
015 A000004 NATIONAL AUSTRALIA BANK LIMITED
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
015 D010007 BELGIUM
015 E040007 X
015 A000008 STANBIC BANK BOTSWANA LIMITED
015 B000008 S
<PAGE> PAGE 3
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 THE STANDARD CHARTERED BANK, HONG KONG
015 B000011 S
015 C010011 HONG KONG
015 D010011 CHINA
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 CITIBANK NA, VIA CTTRST CLMBIA SA SOC FIDU.
015 B000013 S
015 C010013 BOGOTA
015 D010013 COLOMBIA
015 E040013 X
015 A000014 DEN DANSKE BANK
015 B000014 S
015 C010014 COPENHAGEN
015 D010014 DENMARK
015 E040014 X
015 A000015 MERITA BANK
015 B000015 S
015 C010015 HELSINKI
015 D010015 FINLAND
015 E040015 X
015 A000016 BANQUE PARIBAS
015 B000016 S
015 C010016 PARIS
015 D010016 FRANCE
015 E040016 X
015 A000017 DRESDNER BANK AG
015 B000017 S
015 C010017 FRANKFURT
015 D010017 GERMANY
015 E040017 X
015 A000018 FIRST CHICAGO CLEARING CENTRE
015 B000018 S
015 C010018 LONDON
<PAGE> PAGE 4
015 D010018 UNITED KINGDOM
015 E040018 X
015 A000019 NATIONAL BANK OF GREECE SA
015 B000019 S
015 C010019 ATHENS
015 D010019 GREECE
015 E040019 X
015 A000020 THE HONGKONG AND SHANGHAI BANKING CORP.,LTD.
015 B000020 S
015 C010020 HONG KONG
015 D010020 HONG KONG
015 E040020 X
015 A000021 CITIBANK BUDAPEST RT.
015 B000021 S
015 C010021 BUDAPEST
015 D010021 HUNGARY
015 E040021 X
015 A000022 THE HONGKONG AND SHANGHAI BANKING CORP.,LTD.
015 B000022 S
015 C010022 MUMBAI
015 D010022 INDIA
015 E040022 X
015 A000023 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000023 S
015 C010023 JAKARTA
015 D010023 INDONESIA
015 E040023 X
015 A000024 ALLIED IRISH BANKS, PLC
015 B000024 S
015 C010024 DUBLIN
015 D010024 IRELAND
015 E040024 X
015 A000025 BANK LEUMI LE-ISRAEL B.M.
015 B000025 S
015 C010025 TEL AVIV
015 D010025 ISRAEL
015 E040025 X
015 A000026 BANCA COMMERCIALE ITALIANA
015 B000026 S
015 C010026 MILAN
015 D010026 ITALY
015 E040026 X
015 A000027 BANK OF TOKYO MITSUBISHI
015 B000027 S
015 C010027 TOKYO
015 D010027 JAPAN
015 E040027 X
015 A000028 CEDEL
015 B000028 S
015 C010028 LUXEMBOURG CITY
015 D010028 LUXEMBOURG
<PAGE> PAGE 5
015 E040028 X
015 A000029 THE HONGKONG BANK MALAYSIA BERHAD
015 B000029 S
015 C010029 KUALA LUMPUR
015 D010029 MALAYSIA
015 E040029 X
015 A000030 BANCO NACIONAL DE MEXICO
015 B000030 S
015 C010030 MEXICO CITY
015 D010030 MEXICO
015 E040030 X
015 A000031 MEESPIERSON
015 B000031 S
015 C010031 AMSTERDAM
015 D010031 NETHERLANDS
015 E040031 X
015 A000032 AUSTRALIA AND NEW ZEALAND BANKING GROUP, LTD.
015 B000032 S
015 C010032 WELLINGTON
015 D010032 NEW ZEALAND
015 E040032 X
015 A000033 DEN NORSKE BANK ASA
015 B000033 S
015 C010033 OSLO
015 D010033 NORWAY
015 E040033 X
015 A000034 STANDARD CHARTERED BANK
015 B000034 S
015 C010034 KARACHI
015 D010034 PAKISTAN
015 E040034 X
015 A000035 CITIBANK NA
015 B000035 S
015 C010035 LIMA
015 D010035 PERU
015 E040035 X
015 A000036 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000036 S
015 C010036 PASIG CITY MANILA
015 D010036 PHILIPPINES
015 E040036 X
015 A000037 BANK HANDLOWY W WARSZAWIE S.A.
015 B000037 S
015 C010037 WARSAW
015 D010037 POLAND
015 E040037 X
015 A000038 BANCO COMERCIAL PORTUGUES, S.A.
015 B000038 S
015 C010038 LISBON
015 D010038 PORTUGAL
015 E040038 X
<PAGE> PAGE 6
015 A000039 UNITED OVERSEAS BANK LIMITED
015 B000039 S
015 C010039 SINGAPORE
015 D010039 SINGAPORE
015 E040039 X
015 A000040 STANDARD CORPORATE AND MERCHANT BANK
015 B000040 S
015 C010040 JOHANNESBURG
015 D010040 SOUTH AFRICA
015 E040040 X
015 A000041 SEOULBANK
015 B000041 S
015 C010041 SEOUL
015 D010041 SOUTH KOREA
015 E040041 X
015 A000042 BANCO BILBAO VIZCAYA
015 B000042 S
015 C010042 MADRID
015 D010042 SPAIN
015 E040042 X
015 A000043 STANDARD CHARTERED BANK
015 B000043 S
015 C010043 COLOMBO
015 D010043 SRI LANKA
015 E040043 X
015 A000044 SKANDINAVISKA ENSKILDA BANKEN
015 B000044 S
015 C010044 STOCKHOLM
015 D010044 SWEDEN
015 E040044 X
015 A000045 UNION BANK OF SWITZERLAND
015 B000045 S
015 C010045 ZURICH
015 D010045 SWITZERLAND
015 E040045 X
015 A000046 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000046 S
015 C010046 TAIPEI
015 D010046 TAIWAN
015 E040046 X
015 A000047 THE SIAM COMMERCIAL BANK PUBLIC CO., LTD.
015 B000047 S
015 C010047 BANGKOK
015 D010047 THAILAND
015 E040047 X
015 A000048 OSMANLI BANKASI A.S.
015 B000048 S
015 C010048 ISTANBUL
015 D010048 TURKEY
015 E040048 X
015 A000049 THE BANK OF NEW YORK
<PAGE> PAGE 7
015 B000049 S
015 C010049 LONDON
015 D010049 UNITED KINGDOM
015 E040049 X
015 A000050 CITIBANK NA
015 B000050 S
015 C010050 CARACAS
015 D010050 VENEZUELA
015 E040050 X
015 A000051 CITIBANK NA
015 B000051 S
015 C010051 CAIRO
015 D010051 EGYPT
015 E040051 X
015 A000052 CITIBANK NA
015 B000052 S
015 C010052 QUITO
015 D010052 ECUADOR
015 E040052 X
015 A000053 CESKOSLOVENSKA OBCHODNI BANKA A.S.
015 B000053 S
015 C010053 PRAHA
015 D010053 CZECH REPUBLIC
015 E040053 X
015 A000054 BANQUE COMMERCIALE DU MAROC
015 B000054 S
015 C010054 CASABLANCA
015 D010054 MOROCCO
015 E040054 X
015 A000055 THE FIRST NATIONAL BANK OF BOSTON
015 B000055 S
015 C010055 MONTEVIDEO
015 D010055 URUGUAY
015 E040055 X
015 A000056 MERCHANT BANK LIMITED
015 B000056 S
015 C010056 ACCRA
015 D010056 GHANA
015 E040056 X
015 A000057 THE BRITISH BANK OF THE MIDDLE EAST
015 B000057 S
015 C010057 AMMAN
015 D010057 JORDAN
015 E040057 X
015 A000058 STANBIC BANK KENYA LIMITED
015 B000058 S
015 C010058 NAIROBI
015 D010058 KENYA
015 E040058 X
015 A000059 BANQUE INTERNATIONALE A LUXEMBOURG
015 B000059 S
<PAGE> PAGE 8
015 C010059 LUXEMBOURG CITY
015 D010059 LUXEMBOURG
015 E040059 X
015 A000060 STANBIC BANK NAMIBIA LIMITED
015 B000060 S
015 C010060 WINDHOEK
015 D010060 NAMIBIA
015 E040060 X
015 A000061 STANBIC MERCHANT BANK NIGERIA LIMITED
015 B000061 S
015 C010061 LAGOS
015 D010061 NIGERIA
015 E040061 X
015 A000062 DEVELOPMENT BANK OF SINGAPORE
015 B000062 S
015 C010062 SINGAPORE
015 D010062 SINGAPORE
015 E040062 X
015 A000063 CESKOSLOVENSKA OBCHODNA BANKA AS
015 B000063 S
015 C010063 BRATISLAVA
015 D010063 SLOVAK REPUBLIC
015 E040063 X
015 A000064 STANBIC BANK SWAZILAND LIMITED
015 B000064 S
015 C010064 MBABANE
015 D010064 SWAZILAND
015 E040064 X
015 A000065 CREDIT COMMERCIAL DE FRANCE
015 B000065 S
015 C010065 PARIS
015 D010065 FRANCE
015 E040065 X
015 A000066 BANQUE PARIBAS SA
015 B000066 S
015 C010066 MILAN
015 D010066 ITALY
015 E040066 X
015 A000067 JASDEC
015 B000067 S
015 C010067 TOKYO
015 D010067 JAPAN
015 E040067 X
015 A000068 KAS-ASSOCIATIE NV
015 B000068 S
015 C010068 AMSTERDAM
015 D010068 NETHERLANDS
015 E040068 X
015 A000069 THE PHILLIPINE CENTRAL DEPOSITORY, INC.
015 B000069 S
015 C010069 MAKATI CITY
<PAGE> PAGE 9
015 D010069 PHILIPPINES
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 STANBIC BANK ZAMBIA LIMITED
015 B000072 S
015 C010072 LUSAKA
015 D010072 ZAMBIA
015 E040072 X
015 A000073 STANBIC BANK ZIMBABWE LIMITED
015 B000073 S
015 C010073 HARARE
015 D010073 ZIMBABWE
015 E040073 X
018 000000 Y
019 A000000 Y
019 B000000 214
019 C000000 FRNKTEMGRP
020 A000001 EDWARDS (AG) & SONS INC
020 B000001 43-0895447
020 C000001 48
020 A000002 BEAR STEARNS & CO INC.
020 B000002 13-3299429
020 C000002 18
020 A000003 MORGAN (JP) SECURITIES INC.
020 B000003 13-3224016
020 C000003 12
020 A000004 LIPPER ANALYTICAL SECS CORP.
020 B000004 13-2792478
020 C000004 11
020 A000005 MERRILL LYNCH PIERCE FENNER
020 B000005 13-5674085
020 C000005 10
020 A000006 MORGAN STANLEY & CO INC.
020 B000006 13-2655998
020 C000006 9
020 A000007 DONALDSON LUFKIN & JENRETTE
020 B000007 13-2741729
020 C000007 8
020 A000008 PAINEWEBBER INC.
020 B000008 13-2638166
020 C000008 8
020 A000009 GOLDMAN SACHS & CO
<PAGE> PAGE 10
020 B000009 13-5108880
020 C000009 7
020 A000010 EVEREN SEC., INC.
020 B000010 36-2693816
020 C000010 6
021 000000 171
022 A000001 DONALDSON LUFKIN & JENRETTE
022 B000001 13-2741729
022 C000001 423016
022 D000001 0
022 A000002 UBS SECURITIES L.L.C.
022 B000002 13-2932996
022 C000002 418390
022 D000002 1536
022 A000003 CIBC WOOD GUNDY SECURITY
022 B000003 13-3639028
022 C000003 400997
022 D000003 0
022 A000004 LEHMAN BROTHERS, INC
022 B000004 13-2518466
022 C000004 400509
022 D000004 0
022 A000005 SBCI SWISS BANK CORP. INV. BANK
022 B000005 13-2639550
022 C000005 392242
022 D000005 0
022 A000006 BEAR, STEARNS & CO., INC.
022 B000006 13-3299429
022 C000006 325460
022 D000006 2474
022 A000007 FUJI SECURITIES, INC.
022 B000007 13-3038090
022 C000007 307265
022 D000007 0
022 A000008 DRESDNER U.S. FINANCE, INC.
022 B000008 04-2442748
022 C000008 288022
022 D000008 0
022 A000009 BANK OF AMERICA NT & SA
022 B000009 94-1687665
022 C000009 272372
022 D000009 1818
022 A000010 AUBREY LANSTON & CO.
022 B000010 13-5552129
022 C000010 265062
022 D000010 0
023 C000000 4810048
023 D000000 43461
024 000000 N
025 D000001 0
025 D000002 0
<PAGE> PAGE 11
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
025 D000009 0
025 D000010 0
025 D000011 0
025 D000012 0
025 D000013 0
025 D000014 0
025 D000015 0
025 D000016 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 26728
028 A020000 0
028 A030000 0
028 A040000 10017
028 B010000 16755
028 B020000 0
028 B030000 0
028 B040000 11914
028 C010000 23120
028 C020000 0
028 C030000 0
028 C040000 14367
028 D010000 19090
028 D020000 0
028 D030000 0
028 D040000 19110
028 E010000 20875
028 E020000 0
028 E030000 0
028 E040000 15444
028 F010000 24614
028 F020000 59644
028 F030000 0
028 F040000 21922
028 G010000 131182
028 G020000 59644
028 G030000 0
<PAGE> PAGE 12
028 G040000 92774
028 H000000 131182
029 000000 Y
030 A000000 589
030 B000000 4.50
030 C000000 0.00
031 A000000 12
031 B000000 0
032 000000 577
033 000000 0
034 000000 Y
035 000000 3
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
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 532
044 000000 0
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
048 H020000 0.000
048 I010000 0
048 I020000 0.000
<PAGE> PAGE 13
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
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
<PAGE> PAGE 14
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 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 142482
071 B000000 103745
<PAGE> PAGE 15
071 C000000 497498
071 D000000 21
072 A000000 6
072 B000000 1216
072 C000000 2308
072 D000000 0
072 E000000 0
072 F000000 1352
072 G000000 0
072 H000000 0
072 I000000 341
072 J000000 9
072 K000000 54
072 L000000 41
072 M000000 13
072 N000000 42
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 17
072 S000000 1
072 T000000 564
072 U000000 0
072 V000000 0
072 W000000 8
072 X000000 2442
072 Y000000 0
072 Z000000 1082
072AA000000 34163
072BB000000 6434
072CC010000 10772
072CC020000 0
072DD010000 1876
072DD020000 58
072EE000000 62818
073 A010000 0.0000
073 A020000 0.0000
073 B000000 1.2460
073 C000000 0.0000
074 A000000 628
074 B000000 39504
074 C000000 0
074 D000000 11154
074 E000000 0
074 F000000 499112
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 3715
074 K000000 0
074 L000000 932
<PAGE> PAGE 16
074 M000000 0
074 N000000 555045
074 O000000 96
074 P000000 468
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 2182
074 S000000 0
074 T000000 552299
074 U010000 53568
074 U020000 3159
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 46887
074 Y000000 7596
075 A000000 0
075 B000000 541873
076 000000 0.00
077 A000000 N
078 000000 N
080 C000000 0
081 B000000 0
082 B000000 0
083 B000000 0
084 B000000 0
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
SIGNATURE LAURA FERGERSON
TITLE ASST. TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN EQUITY FUND DECEMBER 31, 1997 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-30-1998
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 364,489,729
<INVESTMENTS-AT-VALUE> 510,266,093
<RECEIVABLES> 44,151,271
<ASSETS-OTHER> 627,750
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 555,045,114
<PAYABLE-FOR-SECURITIES> 95,894
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,649,733
<TOTAL-LIABILITIES> 2,745,627
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 388,916,615
<SHARES-COMMON-STOCK> 53,568,229
<SHARES-COMMON-PRIOR> 45,553,767
<ACCUMULATED-NII-CURRENT> 102,143
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 17,504,365
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 145,776,364
<NET-ASSETS> 552,299,487
<DIVIDEND-INCOME> 2,307,498
<INTEREST-INCOME> 1,216,420
<OTHER-INCOME> 0
<EXPENSES-NET> (2,441,842)
<NET-INVESTMENT-INCOME> 1,082,076
<REALIZED-GAINS-CURRENT> 27,728,996
<APPREC-INCREASE-CURRENT> 10,771,761
<NET-CHANGE-FROM-OPS> 39,582,833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,876,306)
<DISTRIBUTIONS-OF-GAINS> (59,596,634)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,478,512
<NUMBER-OF-SHARES-REDEEMED> (8,185,335)
<SHARES-REINVESTED> 5,721,285
<NET-CHANGE-IN-ASSETS> 72,883,073
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 53,546,968
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,351,623
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,441,842
<AVERAGE-NET-ASSETS> 541,872,807
<PER-SHARE-NAV-BEGIN> 10.160
<PER-SHARE-NII> .030
<PER-SHARE-GAIN-APPREC> .840
<PER-SHARE-DIVIDEND> (.040)
<PER-SHARE-DISTRIBUTIONS> (1.250)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.740
<EXPENSE-RATIO> .890
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN EQUITY FUND DECEMBER 31, 1997 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-30-1998
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 364,489,729
<INVESTMENTS-AT-VALUE> 510,266,093
<RECEIVABLES> 44,151,271
<ASSETS-OTHER> 627,750
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 555,045,114
<PAYABLE-FOR-SECURITIES> 95,894
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,649,733
<TOTAL-LIABILITIES> 2,745,627
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 388,916,615
<SHARES-COMMON-STOCK> 1,755,680
<SHARES-COMMON-PRIOR> 944,444
<ACCUMULATED-NII-CURRENT> 102,143
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 17,504,365
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 145,776,364
<NET-ASSETS> 552,299,487
<DIVIDEND-INCOME> 2,307,498
<INTEREST-INCOME> 1,216,420
<OTHER-INCOME> 0
<EXPENSES-NET> (2,441,842)
<NET-INVESTMENT-INCOME> 1,082,076
<REALIZED-GAINS-CURRENT> 27,728,996
<APPREC-INCREASE-CURRENT> 10,771,761
<NET-CHANGE-FROM-OPS> 39,582,833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (1,734,194)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 959,026
<NUMBER-OF-SHARES-REDEEMED> (307,805)
<SHARES-REINVESTED> 160,015
<NET-CHANGE-IN-ASSETS> 72,883,073
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 53,546,968
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,351,623
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,441,842
<AVERAGE-NET-ASSETS> 541,872,807
<PER-SHARE-NAV-BEGIN> 10.120
<PER-SHARE-NII> (.010)
<PER-SHARE-GAIN-APPREC> .830
<PER-SHARE-DIVIDEND> .000
<PER-SHARE-DISTRIBUTIONS> (1.250)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.690
<EXPENSE-RATIO> 1.700
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN EQUITY FUND DECEMBER 31, 1997 SEMI-ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 013
<NAME> FRANKLIN EQUITY FUND ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 364,489,729
<INVESTMENTS-AT-VALUE> 510,266,093
<RECEIVABLES> 44,151,271
<ASSETS-OTHER> 627,750
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 555,045,114
<PAYABLE-FOR-SECURITIES> 95,894
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,649,733
<TOTAL-LIABILITIES> 2,745,627
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 388,916,615
<SHARES-COMMON-STOCK> 1,403,474
<SHARES-COMMON-PRIOR> 677,536
<ACCUMULATED-NII-CURRENT> 102,143
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 17,504,365
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 145,776,364
<NET-ASSETS> 552,299,487
<DIVIDEND-INCOME> 2,307,498
<INTEREST-INCOME> 1,216,420
<OTHER-INCOME> 0
<EXPENSES-NET> (2,441,842)
<NET-INVESTMENT-INCOME> 1,082,076
<REALIZED-GAINS-CURRENT> 27,728,996
<APPREC-INCREASE-CURRENT> 10,771,761
<NET-CHANGE-FROM-OPS> 39,582,833
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (57,518)
<DISTRIBUTIONS-OF-GAINS> (1,486,880)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 812,239
<NUMBER-OF-SHARES-REDEEMED> (242,616)
<SHARES-REINVESTED> 156,315
<NET-CHANGE-IN-ASSETS> 72,883,073
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 53,546,968
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,351,623
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,441,842
<AVERAGE-NET-ASSETS> 541,872,807
<PER-SHARE-NAV-BEGIN> 10.170
<PER-SHARE-NII> .040
<PER-SHARE-GAIN-APPREC> .830
<PER-SHARE-DIVIDEND> (.050)
<PER-SHARE-DISTRIBUTIONS> (1.250)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.740
<EXPENSE-RATIO> .700
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
