<PAGE> PAGE 1
000 B000000 06/30/1999
000 C000000 0000083297
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
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 PRICEWATERHOUSECOOPERS LLP
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
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 BANKBOSTON, N.A.
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 E040002 X
015 A000003 NATIONAL AUSTRALIA BANK LTD.
015 B000003 S
015 C010003 MELBOURNE
015 D010003 AUSTRALIA
015 E040003 X
015 A000004 BANK AUSTRIA AG
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 E040004 X
015 A000005 BANQUE BRUXELLES LAMBERT
015 B000005 S
015 C010005 BRUSSELS
015 D010005 BELGIUM
015 E040005 X
015 A000006 ROYAL BANK OF CANADA
015 B000006 S
015 C010006 MONTREAL
015 D010006 CANADA
015 E040006 X
015 A000007 THE STANDARD CHARTERED BANK
015 B000007 S
015 C010007 SHANGHAI
015 D010007 CHINA
015 E040007 X
015 A000008 THE STANDARD CHARTERED BANK
015 B000008 S
<PAGE> PAGE 3
015 C010008 SHENZHEN
015 D010008 CHINA
015 E040008 X
015 A000009 DEN DANSKE BANK
015 B000009 S
015 C010009 COPENHAGEN
015 D010009 DENMARK
015 E040009 X
015 A000010 FIRST CHICAGO CLEARING CENTRE
015 B000010 S
015 C010010 LONDON
015 D010010 EUROMARKET
015 E040010 X
015 A000011 CEDEL
015 B000011 S
015 C010011 LUXEMBOURG CITY
015 D010011 EUROMARKET
015 E040011 X
015 A000012 EUROCLEAR
015 B000012 S
015 C010012 BRUSSELS
015 D010012 EASDAQ
015 E040012 X
015 A000013 MERITA BANK PLC
015 B000013 S
015 C010013 HELSINKI
015 D010013 FINLAND
015 E040013 X
015 A000014 BANQUE PARIBAS, S.A.
015 B000014 S
015 C010014 PARIS
015 D010014 FRANCE
015 E040014 X
015 A000015 DRESDNER BANK AG
015 B000015 S
015 C010015 FRANKFURT/MAIN
015 D010015 GERMANY
015 E040015 X
015 A000016 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000016 S
015 C010016 HONG KONG
015 D010016 HONG KONG
015 E040016 X
015 A000017 THE HONGKONG & SHANGHAI BANKING CORP., LTD.
015 B000017 S
015 C010017 JAKARTA
015 D010017 INDONESIA
015 E040017 X
015 A000018 ALLIED IRISH BANKS, PLC
015 B000018 S
015 C010018 DUBLIN
<PAGE> PAGE 4
015 D010018 IRELAND
015 E040018 X
015 A000019 BANK OF TOKYO MITSUBISHI
015 B000019 S
015 C010019 TOKYO
015 D010019 JAPAN
015 E040019 X
015 A000020 BANQUE ET CAISSE D'EPARGNE DE L'ETAT LUXEM
015 B000020 S
015 C010020 LUXEMBOURG CITY
015 D010020 LUXEMBOURG
015 E040020 X
015 A000021 HSBC BANK MALAYSIA BERHAD
015 B000021 S
015 C010021 KUALA LUMPUR
015 D010021 MALAYSIA
015 E040021 X
015 A000022 BANCO NACIONAL DE MEXICO
015 B000022 S
015 C010022 MEXICO CITY
015 D010022 MEXICO
015 E040022 X
015 A000023 MEESPIERSON
015 B000023 S
015 C010023 AMSTERDAM
015 D010023 NETHERLANDS
015 E040023 X
015 A000024 AUSTRALIA AND NEW ZEALAND BANKING GROUP, LTD.
015 B000024 S
015 C010024 WELLINGTON
015 D010024 NEW ZEALAND
015 E040024 X
015 A000025 STANDARD CHARTERED BANK
015 B000025 S
015 C010025 KARACHI
015 D010025 PAKISTAN
015 E040025 X
015 A000026 THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
015 B000026 S
015 C010026 PASIG CITY MANILA
015 D010026 PHILIPPINES
015 E040026 X
015 A000027 BANCO COMERCIAL PORTUGUES, S.A.
015 B000027 S
015 C010027 LISBON
015 D010027 PORTUGAL
015 E040027 X
015 A000028 UNITED OVERSEAS BANK LTD.
015 B000028 S
015 C010028 SINGAPORE
015 D010028 SINGAPORE
<PAGE> PAGE 5
015 E040028 X
015 A000029 STANDARD CORPORATE AND MERCHANT BANK
015 B000029 S
015 C010029 JOHANNESBURG
015 D010029 SOUTH AFRICA
015 E040029 X
015 A000030 BANCO BILBAO VIZCAYA
015 B000030 S
015 C010030 MADRID
015 D010030 SPAIN
015 E040030 X
015 A000031 STANDARD CHARTERED BANK
015 B000031 S
015 C010031 COLOMBO
015 D010031 SRI LANKA
015 E040031 X
015 A000032 SKANDINAVISKA ENSKILDA BANKEN
015 B000032 S
015 C010032 STOCKHOLM
015 D010032 SWEDEN
015 E040032 X
015 A000033 UBS AG
015 B000033 S
015 C010033 ZURICH
015 D010033 SWITZERLAND
015 E040033 X
015 A000034 STANDARD CHARTERED BANK
015 B000034 S
015 C010034 BANGKOK
015 D010034 THAILAND
015 E040034 X
015 A000035 OSMANLI BANKASI A.S.
015 B000035 S
015 C010035 ISTANBUL
015 D010035 TURKEY
015 E040035 X
015 A000036 THE BANK OF NEW YORK
015 B000036 S
015 C010036 LONDON
015 D010036 UNITED KINGDOM
015 E040036 X
015 A000037 STANBIC BANK ZAMBIA LTD.
015 B000037 S
015 C010037 LUSAKA
015 D010037 ZAMBIA
015 E040037 X
015 A000038 STANBIC BANK ZIMBABWE LTD.
015 B000038 S
015 C010038 HARARE
015 D010038 ZIMBABWE
015 E040038 X
<PAGE> PAGE 6
018 000000 Y
019 A000000 Y
019 B000000 234
019 C000000 FRNKTEMGRP
020 A000001 EDWARDS (AG) & SONS, INC.
020 B000001 43-0895447
020 C000001 110
020 A000002 MORGAN (JP) SECURITIES, INC.
020 B000002 13-3224016
020 C000002 62
020 A000003 MERRILL LYNCH PIERCE FENNER
020 B000003 13-5674085
020 C000003 43
020 A000004 HSBC SECURITIES, INC.
020 B000004 13-2650272
020 C000004 34
020 A000005 LIPPER ANALYTICAL SECS CORP.
020 B000005 13-2792478
020 C000005 31
020 A000006 LEHMAN BROTHERS, INC.
020 B000006 13-2518466
020 C000006 30
020 A000007 BEAR, STEARNS & SECURITIES CORP.
020 B000007 13-3299429
020 C000007 26
020 A000008 SANFORD BERNSTEIN
020 B000008 13-2625874
020 C000008 23
020 A000009 DAIN RAUSCHER INCORPORATED
020 B000009 41-0212020
020 C000009 22
020 A000010 DONALDSON LUFKIN & JENRETTE
020 B000010 13-2741729
020 C000010 19
021 000000 561
022 A000001 DONALDSON LUFKIN & JENRETTE INC.
022 B000001 13-2741729
022 C000001 1618975
022 D000001 2949
022 A000002 BARCLAYS CAPITAL INC.
022 B000002 13-3551367
022 C000002 1578828
022 D000002 0
022 A000003 CIBC WOOD GUNDY SEC CORP.
022 B000003 13-3639028
022 C000003 1545153
022 D000003 0
022 A000004 PARIBAS CORP./CAPITAL MARKETS
022 B000004 13-3235334
022 C000004 1516067
022 D000004 0
<PAGE> PAGE 7
022 A000005 WARBURG DILLON READ LLC
022 B000005 13-2932996
022 C000005 1344340
022 D000005 0
022 A000006 DRESDNER KLEINWORT BENSON
022 B000006 04-2442748
022 C000006 1253810
022 D000006 0
022 A000007 GREENWICH CAPITAL MKTS INC.
022 B000007 13-3122275
022 C000007 1147990
022 D000007 0
022 A000008 BANCAMERICA ROBERTSON STE
022 B000008 94-1687665
022 C000008 1106777
022 D000008 0
022 A000009 LEHMAN BROTHERS, INC.
022 B000009 13-2518466
022 C000009 970660
022 D000009 372
022 A000010 PAINEWEBBER, INC.
022 B000010 13-2638166
022 C000010 933044
022 D000010 0
023 C000000 16117614
023 D000000 133750
024 000000 Y
025 A000001 MORGAN STANLEY DEAN WITTER
025 B000001 13-2655998
025 C000001 E
025 D000001 2219
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 33314
028 A020000 0
028 A030000 0
<PAGE> PAGE 8
028 A040000 36397
028 B010000 43462
028 B020000 0
028 B030000 0
028 B040000 52723
028 C010000 47988
028 C020000 0
028 C030000 0
028 C040000 52636
028 D010000 66981
028 D020000 0
028 D030000 0
028 D040000 30427
028 E010000 39030
028 E020000 0
028 E030000 0
028 E040000 45618
028 F010000 53718
028 F020000 2914
028 F030000 0
028 F040000 57809
028 G010000 284493
028 G020000 2914
028 G030000 0
028 G040000 275610
028 H000000 14636
029 000000 Y
030 A000000 1079
030 B000000 5.75
030 C000000 0.00
031 A000000 9
031 B000000 0
032 000000 1070
033 000000 0
034 000000 Y
035 000000 53
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
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
<PAGE> PAGE 9
043 000000 1826
044 000000 87
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
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 Y
055 A000000 N
055 B000000 N
056 000000 N
<PAGE> PAGE 10
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
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
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
<PAGE> PAGE 11
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 Y
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 290632
071 B000000 286621
071 C000000 623197
071 D000000 46
072 A000000 12
072 B000000 3568
072 C000000 6528
072 D000000 0
072 E000000 0
072 F000000 3351
072 G000000 0
072 H000000 0
072 I000000 1056
072 J000000 38
072 K000000 97
072 L000000 40
072 M000000 23
072 N000000 91
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 40
072 S000000 6
072 T000000 1826
072 U000000 0
072 V000000 0
072 W000000 19
072 X000000 6587
072 Y000000 0
<PAGE> PAGE 12
072 Z000000 3509
072AA000000 65826
072BB000000 69845
072CC010000 91630
072CC020000 0
072DD010000 3028
072DD020000 231
072EE000000 36687
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 41539
074 C000000 0
074 D000000 13537
074 E000000 884
074 F000000 747912
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 2815
074 K000000 0
074 L000000 1004
074 M000000 0
074 N000000 807691
074 O000000 0
074 P000000 801
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 2623
074 S000000 0
074 T000000 804267
074 U010000 60723
074 U020000 8294
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 76796
074 Y000000 12848
075 A000000 0
075 B000000 682211
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 I000000 Y
077 M000000 Y
077 Q010000 Y
080 A000000 ICI MUTUAL INSURANCE COMPANY
<PAGE> PAGE 13
080 C000000 175000
081 A000000 Y
081 B000000 233
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
SIGNATURE LAURA FERGERSON
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FRANKLIN
EQUITY FUND JUNE 30, 1999 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REF
ERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN EQUITY FUND - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 462,620,472
<INVESTMENTS-AT-VALUE> 762,333,734
<RECEIVABLES> 45,357,154
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 807,690,888
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,423,738
<TOTAL-LIABILITIES> 3,423,738
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 508,581,196
<SHARES-COMMON-STOCK> 60,722,505
<SHARES-COMMON-PRIOR> 55,832,059
<ACCUMULATED-NII-CURRENT> 185,821
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (4,213,129)
<ACCUM-APPREC-OR-DEPREC> 299,713,262
<NET-ASSETS> 804,267,150
<DIVIDEND-INCOME> 6,527,664
<INTEREST-INCOME> 3,568,086
<OTHER-INCOME> 0
<EXPENSES-NET> (6,586,495)
<NET-INVESTMENT-INCOME> 3,509,255
<REALIZED-GAINS-CURRENT> (4,018,896)
<APPREC-INCREASE-CURRENT> 91,630,130
<NET-CHANGE-FROM-OPS> 91,120,489
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,027,697)
<DISTRIBUTIONS-OF-GAINS> (33,108,989)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 39,467,242<F1>
<NUMBER-OF-SHARES-REDEEMED> (37,961,690)
<SHARES-REINVESTED> 3,384,894
<NET-CHANGE-IN-ASSETS> 137,804,124
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 36,407,655
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,351,597)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (6,586,495)
<AVERAGE-NET-ASSETS> 682,211,348
<PER-SHARE-NAV-BEGIN> 10.990
<PER-SHARE-NII> .060
<PER-SHARE-GAIN-APPREC> 1.250
<PER-SHARE-DIVIDEND> (.050)
<PER-SHARE-DISTRIBUTIONS> (.580)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 11.670
<EXPENSE-RATIO> .920
<FN><F1>ON APRIL 1999, THE FUND
ACQUIRED THE NET ASSETS OF
TEMPLETON AMERICAN TRUST, INC.
(406,853 CLASS A SHARES).
THE ACQUIRED SHARES ARE INCLUDED
IN THE NUMBER OF SHARES
SOLD.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FRANKLIN
EQUITY FUND JUNE 30, 1999 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REF
ERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN EQUITY FUND - CLASS B
<S> <C>
<PERIOD-TYPE> YEAR <F1>
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 462,620,472
<INVESTMENTS-AT-VALUE> 762,333,734
<RECEIVABLES> 45,357,154
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 807,690,888
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,423,738
<TOTAL-LIABILITIES> 3,423,738
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 508,581,196
<SHARES-COMMON-STOCK> 109,908
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 185,821
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (4,213,129)
<ACCUM-APPREC-OR-DEPREC> 299,713,262
<NET-ASSETS> 804,267,150
<DIVIDEND-INCOME> 6,527,664
<INTEREST-INCOME> 3,568,086
<OTHER-INCOME> 0
<EXPENSES-NET> (6,586,495)
<NET-INVESTMENT-INCOME> 3,509,255
<REALIZED-GAINS-CURRENT> (4,018,896)
<APPREC-INCREASE-CURRENT> 91,630,130
<NET-CHANGE-FROM-OPS> 91,120,489
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,288)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 113,713
<NUMBER-OF-SHARES-REDEEMED> (4,178)
<SHARES-REINVESTED> 373
<NET-CHANGE-IN-ASSETS> 137,804,124
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 36,407,655
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,351,597)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (6,586,495)
<AVERAGE-NET-ASSETS> 682,211,348
<PER-SHARE-NAV-BEGIN> 10.390
<PER-SHARE-NII> (.010)
<PER-SHARE-GAIN-APPREC> 1.280
<PER-SHARE-DIVIDEND> (.050)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 11.610
<EXPENSE-RATIO> .560<F2>
<FN>
<F1>FOR THE PERIOD JANUARY 1,
1999 (EFFECTIVE DATE) TO JUNE 30, 1999.
<F2>ANNUALIZED
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FRANKLIN
EQUITY FUND JUNE 30, 1999 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REF
ERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 013
<NAME> FRANKLIN EQUITY FUND - CLASS C
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 462,620,472
<INVESTMENTS-AT-VALUE> 762,333,734
<RECEIVABLES> 45,357,154
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 807,690,888
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,423,738
<TOTAL-LIABILITIES> 3,423,738
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 508,581,196
<SHARES-COMMON-STOCK> 7,556,443
<SHARES-COMMON-PRIOR> 3,273,565
<ACCUMULATED-NII-CURRENT> 185,821
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (4,213,129)
<ACCUM-APPREC-OR-DEPREC> 299,713,262
<NET-ASSETS> 804,267,150
<DIVIDEND-INCOME> 6,527,664
<INTEREST-INCOME> 3,568,086
<OTHER-INCOME> 0
<EXPENSES-NET> (6,586,495)
<NET-INVESTMENT-INCOME> 3,509,255
<REALIZED-GAINS-CURRENT> (4,018,896)
<APPREC-INCREASE-CURRENT> 91,630,130
<NET-CHANGE-FROM-OPS> 91,120,489
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (128,642)
<DISTRIBUTIONS-OF-GAINS> (2,429,861)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,753,223<F1>
<NUMBER-OF-SHARES-REDEEMED> (2,715,651)
<SHARES-REINVESTED> 245,306
<NET-CHANGE-IN-ASSETS> 137,804,124
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 36,407,655
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,351,597)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (6,586,495)
<AVERAGE-NET-ASSETS> 682,211,348
<PER-SHARE-NAV-BEGIN> 10.910
<PER-SHARE-NII> (.020)
<PER-SHARE-GAIN-APPREC> 1.230
<PER-SHARE-DIVIDEND> (.020)
<PER-SHARE-DISTRIBUTIONS> (.580)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 11.520
<EXPENSE-RATIO> 1.680
<FN>
<F1>ON APRIL 15, 1999 THE FUND ACQUIRED
THE NET ASSETS OF
TEMPLETON AMERICAN TRUST, INC. (2,972,866
CLASS C SHARES).
THE ACQUIRED SHARES ARE INCLUDED IN THE
NUMBER OF SHARES
SOLD.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FRANKLIN
EQUITY FUND JUNE 30, 1999 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REF
ERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 014
<NAME> FRANKLIN EQUITY FUND - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 462,620,472
<INVESTMENTS-AT-VALUE> 762,333,734
<RECEIVABLES> 45,357,154
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 807,690,888
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,423,738
<TOTAL-LIABILITIES> 3,423,738
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 508,581,196
<SHARES-COMMON-STOCK> 627,197
<SHARES-COMMON-PRIOR> 1,537,562
<ACCUMULATED-NII-CURRENT> 185,821
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (4,213,129)
<ACCUM-APPREC-OR-DEPREC> 299,713,262
<NET-ASSETS> 804,267,150
<DIVIDEND-INCOME> 6,527,664
<INTEREST-INCOME> 3,568,086
<OTHER-INCOME> 0
<EXPENSES-NET> (6,586,495)
<NET-INVESTMENT-INCOME> 3,509,255
<REALIZED-GAINS-CURRENT> (4,018,896)
<APPREC-INCREASE-CURRENT> 91,630,130
<NET-CHANGE-FROM-OPS> 91,120,489
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (97,976)
<DISTRIBUTIONS-OF-GAINS> (1,147,869)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,069,848
<NUMBER-OF-SHARES-REDEEMED> (3,106,375)
<SHARES-REINVESTED> 126,162
<NET-CHANGE-IN-ASSETS> 137,804,124
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 36,407,655
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,351,597)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (6,586,495)
<AVERAGE-NET-ASSETS> 682,211,348
<PER-SHARE-NAV-BEGIN> 11.000
<PER-SHARE-NII> .080
<PER-SHARE-GAIN-APPREC> 1.250
<PER-SHARE-DIVIDEND> (.070)
<PER-SHARE-DISTRIBUTIONS> (.580)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 11.680
<EXPENSE-RATIO> .700
<FN>
</FN>
</TABLE>
NAME OF REGISTRANT:
Franklin Equity Fund
File No. 811-334
EXHIBIT ITEM No. 77I(b): Terms of new or amended
securities
The Registrant currently offers four classes
of shares,
Class A, Class B, Class C and Advisor Class.
Before January 1, 1999, Class A shares were
designated Class I and Class C shares were
designated Class II. The Registrant began
offering Class B shares on January 1, 1999.
The Registrant may offer
additional classes of shares in the
future. The full title
of each class is:
* Franklin Equity Fund, Franklin
* Equity Fund Series,
Franklin Equity Fund - Class A
* Franklin Equity Fund, Franklin
* Equity Fund Series,
Franklin Equity Fund - Class B
* Franklin Equity Fund, Franklin
* Equity Fund Series,
Franklin Equity Fund - Class C
* Franklin Equity Fund, Franklin
* Equity Fund Series,
Franklin Equity Fund - Advisor Class
Shares of each class represent
proportionate interests
in the Registrant's assets. On
matters that affect the
Registrnt as a whole, each class
has the same voting and
other rights and preferences as
any other class. On
matters that affect only one class,
only shareholders
of that class may vote. Each class
votes separately on
matters affecting only that class,
or expressly required
to be voted on separately by state
or federal law.
wpdoc2\nsar\1999\13477i.doc
7/12/99
NAME OF REGISTRANT:
Franklin Equity Fund
File No. 811-334
EXHIBIT - Item 77M: Mergers
Pursuant to an Agreement and Plan of
Reorganization between the Registrant
and Templeton American Trust, Inc.
("American Trust"), the Registrant
acquired all of the assets American
Trust on April 15, 1999, in exchange
solely for shares of common stock
of the Registrant and the distribution,
pursuant to the Agreement and Plan of
Reorganization, of the Registrant's
shares of common stock to the shareholders
of American Trust.
wpdoc2\nsar\1999\134-77m - 1999.doc 7/12/99
NAME OF REGISTRANT:
Franklin Equity Fund
File No. 811-334
EXHIBIT ITEM No. 77Q(a): Copies of any
material amendments to
the registrant's charter or by-laws
CERTIFICATE OF AMENDMENT
TO
ARTICLES OF INCORPORATION
OF
FRANKLIN EQUITY FUND
Deborah R. Gatzek certifies that:
1. She is the Vice President
and Secretary, of FRANKLIN EQUITY FUND, a
California corporation (the "Corporation").
2. The third paragraph of Article
3. IV of
the Articles of Incorporation of this
corporation
is hereby amended to read as follows:
The Franklin Equity Fund Series shall
be issued in
two or more series, and the initial two
series are
"Franklin Equity Fund - Class I"
("Class I") and
"Franklin Equity Fund - Class II"
("Class II").
Two Billion (2,000,000,000) shares
shall be allocated
to Class I and One Billion Nine Hundred
Million
(1,900,000,000) shares shall be allocated
to Class II.
Pursuant to Sections 202, 203.5, 400 and
401 of the
California General Corporation Law, the
Board of
Directors of the corporation shall have
the power
(subject to any applicable rule, regulation
or
0 order of the Securities and Exchange
Commission
or other applicable law or regulation)
to create
additional series of shares, to determine
or alter
the rights, preferences, privileges and
restrictions
granted to or imposed upon any wholly
unissued series,
to determine the designation of such series
and to
fix the number of shares of such series.
The
Board of Directors is also hereby expressly
granted
authority to increase or decrease the
number of
shares of any series provided that the
number of
shares in any series shall not be decreased
below
the number of shares thereof then issued
and outstanding.
4. The effect of the foregoing amendment
5. to the
third paragraph of Article IV of the
Articles of
Incorporation of the Corporation is to
decrease
the number of shares allocated to Franklin
Equity Fund
- - Class II from two billion (2,000,000,000)
- - to one
billion nine hundred million
(1,900,000,000).
Less than one billion nine hundred
million
(1,900,000,000) Franklin Equity Fund
- - Class
II shares are outstanding. One hundred
million
(100,000,000) shares of the Corporation
are therefore
authorized but unallocated to a series.
4. The foregoing Amendment to the Articles
of Incorporation has been duly approved by
the
Board of Directors of Franklin Equity Fund.
5. In accordance with Section 203.5 of the
California General Corporation Law, the
Articles
of Incorporation confer upon the Board of
Directors
the authority to adopt an amendment to the
Articles
of Incorporation by approval of the Board
alone in
order to increase or decrease the number
of shares of
a series. Accordingly, no shareholder vote
is required
for this decrease in the number of shares
allocated to
Franklin Equity Fund Class II series of
Franklin Equity
Fund Series class of shares of the
corporation.
/s/ D.R. Gatzek
Deborah R. Gatzek,
Vice President and Secretary
The undersigned declares under penalty
of perjury
that the matters set forth in the
foregoing Certificate
are true of her own knowledge.
Executed at San Mateo, California
on December 7, 1998
/s/ D.R. Gatzek
Deborah R. Gatzek,
Vice President and Secretary
wpdoc2\nsar\1999\134-77q(a).doc 2
7/12/99
NAME OF REGISTRANT:
Franklin Equity Fund
File No. 811-334
EXHIBIT ITEM No. 77Q(d): Copies of all
constituent
instruments defining the rights of the
holders of
any new class of securities
FRANKLIN EQUITY FUND
Certificate of Determination of Rights,
Preferences
Privileges and Restrictions of the
Franklin Equity Fund - Class B Series
of Franklin Equity Fund Series Class
BY RESOLUTION OF THE BOARD OF DIRECTORS
The undersigned, Vice President and
Secretary of
Franklin Equity Fund (the "Corporation"),
a corporation
organized and existing under the laws
of the State of
California, does hereby certify:
1. That she is the Vice President and
Secretary of the Corporation.
2. That, pursuant to authority conferred
upon the Board of Directors by the Articles
of Incorporation of the Corporation, as
amended
to date, under the provisions of Section
401 of
the Corporations Code of the State of
California,
the Board of Directors of the Corporation
adopted
the following resolutions fixing and
determining
the rights, preferences, privileges and
restrictions
of the "Franklin Equity Fund-Class B" series
of the
Franklin Equity Fund Series class of shares
of the Corporation:
FURTHER RESOLVED, that a fourth series of
shares
of the Franklin Equity Fund Series class
of shares
of the Corporation ("Equity Fund"), no par
value,
is hereby established and designated as
"Franklin
Equity Fund-Class B" (each referred to
herein as a
"Class B share" or the "Class B shares')
and one
hundred million (100,000,000) unissued
shares previously
authorized but not allocated to any series
are hereby
classified as and allocated to such new
series; and it is
FURTHER RESOLVED, that each Class B share
of the Equity
Fund shall represent proportionate interests
in the
same portfolio of investments as the shares
of the
existing series of the Common Stock of the
Equity Fund.
Each Class B share shall have the same
preferences,
conversion or other rights, voting powers,
restrictions,
limitations as to dividends, qualifications
or terms or
conditions of redemption of the existing
series of shares,
all as set forth in the Corporation's charter,
except for the differences hereinafter set forth:
(1)(a) Dividends and distributions paid to
holders
of the Class B shares of Common Stock of a
series
shall be in such amounts as may be declared
from
time to time by the Board of Directors, and
such
dividends and distributions may vary with
respect
to such series from the dividends and
distributions
with respect to the other series of Common
Stock of
that class to reflect differing allocations
of the
expenses of the Corporation among the series,
which shall include reductions for payments
of
fees under any 12b- I Plan adopted for or
relating
to such Class B shares, and any resultant
difference
among the net asset values per share of the
series,
to such extent and for such purposes as
the Board
of Directors may deem appropriate; (b)
Class B
shares of a class shall. have exclusive
voting
rights with respect to any matter submitted
to
a vote of shareholders that affects only
holders
of Class B shares of such class, including,
without limitation, the provisions of any
2b-1
Plan adopted for and relating to the Class B
shares;
and (c) Class B shares shall not have voting
rights
with respect to the provisions of any
distribution
plan adopted pursuant to Rule 12b-1 under
the
1940 Act applicable to any other series
of the
Equity Fund or with regard to any other
matter
submitted to a vote of shareholders
which does
not now or in the future affect the
holders of
the Class B shares.
(2)(a) Other than shares described in this
paragraph
(2)(a), each Class B share of the Equity
Fund shall
be converted automatically, and without any
action
or choice on the part of the holder thereof,
into
the series of the Equity Fund designated as
"Frankli
n Equity Fund-Class I" (a "Class I share" or
"Class
I shares") on the Conversion Date. The term
"Conversion
Date" means the date on which the eighth
anniversary
of the date of issuance of the share occurs;
provided
that, subject to the provisions of the next
sentence,
for any Class B shares -of the Equity Fund
acquired
through an exchange, or through a series of
exchanges,
as permitted by the Corporation and as
provided
in the prospectus relating to Class B shares,
as
such prospectus may be amended from time
to time
("Prospectus"), from another investment
company
or another class of the Corporation
(an "eligible
investment company"), the Conversion Date
shall be
the conversion date applicable to the
shares of t
he eligible investment company originally
subscribed
for in lieu of the Conversion Date of any
shares
acquired through exchange if such eligible
investment
company issuing the share originally
subscribed
for had a conversion feature, but not later
than
the Conversion Date determined as set forth
above.
For the purpose of calculating the holding
period
required for conversion, the date of
issuance
of a Class B share of the Equity Fund
shall
mean (i) in the case of a Class B share
of the
Equity Fund obtained by the holder thereof
t
hrough an original subscription to the Equity
Fund,
the date of the issuance of such Class B share
of the Equity Fund, or (ii) in the case of a
Class
B share of the Equity Fund obtained by the
holder
thereof through an exchange, or through a
series
of exchanges, from an eligible investment
company,
the date of issuance of the share of the
eligible
investment company to which the holder
originally subscribed.
(b) Each Class B share of the Equity Fund
(i) purchased through the automatic
(ii) einvestment
of a dividend or distribution with respect
to that
Class B share or the corresponding series of any
other investment company or of any other
class of
the Corporation issuing such series of
shares,
or (ii) issued pursuant to an exchange
privilege
granted by the Corporation in an exchange
or series
of exchanges for shares originally purchased
through
the automatic reinvestment of a dividend or
distribution
with respect to shares of an eligible investment
company,
shall be segregated in a separate sub-account
on the
share records of the Corporation for each of
the holders
of record thereof. On any Conversion Date,
a number
of the shares held in the separate sub-account
of the
holder of record of the share or shares being
converted,
calculated in accordance with the next following
sentence,
shall be converted automatically, and without
any action
or choice on the part of the holder, into
shares of Class
I of the Equity Fund. The number of shares
in the
holder's separate sub-account so converted
shall (i)
bear the same ratio to the total number of
shares
maintained in the separate sub-account on
the
Conversion Date (immediately prior to
conversion)
as the number of shares of the holder
converted on
the Conversion Date pursuant to paragraph
(2)(a)
hereof bears to the total number of
Class B shares
of the holder on the Conversion Date
(immediately
prior to conversion) after subtracting
the shares
then maintained in the holder's separate
sub-account,
or (ii) be such other number as may be
calculated
in such other manner as may be determined
by the
Board of Directors and set forth in the
Prospectus.
(c) The number of Class I shares of the
(d) Equity
Fund into which a Class B share is converted
pursuant to paragraphs 2(a) and 2(b) hereof
shall equal the number (including for this
purpose fractions of a share) obtained by
dividing the net asset value per share of
such Class B share for purposes of sales
and redemption thereof on the Conversion
Date by the net asset value per share of
the Class I shares of the same class for
purposes of sales and redemption thereof
on the Conversion Date.
(d) On the Conversion Date, the Class
B shares of a class converted into shares
of Class I of the same class will no longer
be deemed outstanding and the rights of the
holders thereof (except the right to (i)
receive
the number of shares of Class I into which
Class
B shares have been converted and (ii)
receive
declared but unpaid dividends to the
Conversion Date or such other date set
forth in the Prospectus and (iii) vote
converting Class B shares held as of any
record date occurring on or before the
Conversion Date and theretofore set with
respect to any meeting held after the
Conversion Date) will cease. Certificates
representing Class I shares of the Equity
Fund resulting from the conversion need
not be issued until certificates representing
Class B shares converted, if issued, have
been received by the Corporation or its
agent duly endorsed for transfer.
(e) The automatic conversion of the Class
B shares of the Equity Fund into Class
I shares of the Equity Fund, as set
forth in paragraphs 2(a) and 2(b)
hereof, may also be suspended by
a
ction of the Board of Directors at any
time that the Board of Directors determines
such suspension to be appropriate; and in c
onnection with, or in lieu of, any such
suspension, the Board of Directors may
provide holders of the Class B shares
with alternative conversion or exchange r
ights into other series of stock of the
Corporation in a manner consistent with
applicable law; and it is
FURTHER RESOLVED, that the proper
officers of the Corporation are hereby
authorized and directed to execute and file
a Certificate of Amendment of the Articles
of Incorporation, and a Certificate of
Determination, with the Secretary of State
of California and to take such additional
actions as are hereby necessary to accomplish
the intent of the foregoing resolutions.
3. That the number of shares
allocated to the "Franklin Equity Fund-Class
B" series is one hundred million (100,000,000).
4. That none of the shares of such
series has been issued.
The undersigned declares under penalty
of perjury that the statements contained
in the foregoing certificate are true to her
own knowledge. Executed at San Mateo,
California on Dec. 7, 1998.
/s/ D.R. Gatzek
Deborah R. Gatzek,
Vice President and Secretary
wpdoc2\nsar\134-77q(d).doc5 7/12/99
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Franklin Equity Fund:
In planning and performing our audit of
the financial statements of Franklin
Equity Fund for the year ended
June 30, 1999, we considered its internal
control, including controls over
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 internal control.
The management of Franklin Equity Fund
is responsible for establishing
and maintaining internal control. In
fulfilling this responsibility, estimates
and judgments by management are required
to assess the expected benefits and related
costs of controls. Generally, controls
that are relevant to an audit pertain to
the entity's objective of preparing
financial statements for external purposes
that are fairly presented in conformity
with generally accepted accounting
principles. Those controls include the
safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal
control, errors or irregularities may occur
and not be detected. Also, projection of
any evaluation of internal control to
future periods is subject to the risk that
it may become inadequate because of changes
in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of internal control would
not necessarily disclose all matters in
internal control 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 any specific internal control component
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 internal control, including
controls over safeguarding securities
that we consider to be material weaknesses
as defined above as of June 30, 1999.
This report is intended solely for the
information and use of management and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
San Francisco,
California
August 5, 1999
