GOF STKP5
SUPPLEMENT DATED JANUARY 1, 1998
TO THE PROSPECTUSES OF
FRANKLIN BLUE CHIP FUND
FRANKLIN MIDCAP GROWTH FUND
DATED SEPTEMBER 1, 1997
The prospectus is amended to replace the section "The Rule 12b-1 Plan," found
under "Who Manages the Fund?", with the following:
THE RULE 12B-1 PLAN
The Fund has a distribution plan or "Rule 12b-1 Plan" under which it may
reimburse Distributors or others for the expenses of activities that are
primarily intended to sell shares of the Fund. These expenses may include, among
others, distribution or service fees paid to Securities Dealers or others who
have executed a servicing agreement with the Fund, Distributors or its
affiliates; a prorated portion of Distributors' overhead expenses; and the
expenses of printing prospectuses and reports used for sales purposes, and
preparing and distributing sales literature and advertisements.
Payments by the Fund under the plan may not exceed 0.35% per year of the Fund's
average daily net assets. Of this amount, the Fund may reimburse up to 0.35% to
Distributors or others, out of which 0.10% will generally be retained by
Distributors for its distribution expenses. All distribution expenses over this
amount will be borne by those who have incurred them. During the first year
after certain purchases made without a sales charge, Securities Dealers may not
be eligible to receive the Rule 12b-1 fee associated with the purchase. For more
information, please see "The Fund's Underwriter" in the SAI.
