o 198 *SA
198 *SAA
SUPPLEMENT DATED OCTOBER 1, 1998
TO THE STATEMENTS OF ADDITIONAL INFORMATION OF
FRANKLIN SMALL CAP GROWTH FUND
FRANKLIN SMALL CAP GROWTH FUND - ADVISOR CLASS
dated September 1, 1998
The Statement of Additional Information is amended as follows:
The section "Small Companies," found under "How Does the Fund Invest Its Assets?
More Information About the Kinds of Securities the Fund Buys," is replaced in
its entirety with the following:
Small Companies. Small companies are often overlooked by investors or
undervalued in relation to their earnings power. Because small companies
generally are not as well known to the investing public and have less of an
investor following than larger companies, they may provide greater
opportunities for long-term capital growth as a result of relative
inefficiencies in the marketplace. These companies may be undervalued because
they are part of an industry that is out of favor with investors, although the
individual companies may have high rates of earnings growth and be financially
sound.
Please keep this supplement for future reference.
