SUPPLEMENT TO THE PROSPECTUS DATED JANUARY 1, 1997
Franklin Balance Sheet Investment Fund
Franklin Value Investors Trust
Dated March 1, 1996 as amended December 1, 1996
I. The discussion under "How Do I Buy Shares? - Cumulative Quantity Discounts"
is amended by replacing it with the following text:
To determine if you may pay a reduced sales charge, the amount of your current
purchase is added to the cost or current value, whichever is higher, of your
shares in other Franklin Templeton Funds, as well as those of your spouse,
children under the age of 21 and grandchildren under the age of 21. If you are
the sole owner of a company, you may also add any company accounts, including
retirement plan accounts. Companies with one or more retirement plans may add
together the total plan assets invested in the Franklin Templeton Funds to
determine the sales charge that applies.
II. The discussion under "How Do I Buy Shares? - Sales Charge Waivers" is
amended by adding the following new item as the last item in the list of waiver
categories:
17. Investors exchanging Advisor Class shares from any of the Franklin
Templeton Funds, or, beginning on or about May 1, 1997, Class Z shares of
Mutual Series
III. The discussion under "May I Exchange Shares for Shares of Another Fund? -
Exchange Restrictions" is amended by replacing the first restriction with the
following text:
You may only exchange shares within the same class.*
*Because the Fund does not offer Advisor Class shares, retirement plan accounts
Advisor Class shares of any Franklin Templeton Fund may be exchanged for shares
of the Fund at Net Asset Value. Beginning on or about May 1, 1997, Class Z
shares of Mutual Series may also be exchanged into shares of the Fund.
January 1, 1997
