o483 STK SAI 1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE STATEMENT OF ADDITIONAL INFORMATION OF
FRANKLIN BLUE CHIP FUND
DATED SEPTEMBER 1, 1997
The Statement of Additional Information is amended as follows:
I. The first paragraph in the section "The Rule 12b-1 Plan," found under "The
Fund's Underwriter," is replaced with the following:
The Fund has adopted a distribution plan or "Rule 12b-1 plan" pursuant to Rule
12b-1 of the 1940 Act. Under the plan, the Fund may pay up to a maximum of 0.35%
per year of its average daily net assets, payable quarterly, for expenses
incurred in the promotion and distribution of its shares. 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.
II. The following replaces the performance figure under "How does the Fund
Measure Performance? - Total Return." The figure below has been restated to
reflect the Fund's current, maximum 5.75% initial sales charge.
The Fund's cumulative total return for the period from inception (June 3, 1996)
through April 30, 1997, was 2.87%.
III. The following replaces the definition of "Offering Price" under the section
"Useful Terms and Definitions":
OFFERING PRICE - The public offering price is based on the Net Asset Value per
share and includes the front-end sales charge. The maximum front-end sales
charge is 5.75%.
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Please keep this supplement for future reference.
