The Fund invests at least 80% of its net assets in equity securities of small and medium-sized companies with market cap values of less than $8.5 billion.
Performance data quoted represents past performance, which does not guarantee
future results. Current performance may differ from figures shown. Investment
return and principal value will fluctuate with market conditions, and you may
have a gain or loss when you sell your shares.
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Important Legal Information
Investors should be comfortable with fluctuations in the value of their investment in Franklin Small-Mid Cap Growth Fund, as small and mid-sized company stocks can be volatile, especially over the short term. Smaller or relatively new or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. The fund includes investments in the technology sector, which has been highly volatile and involves special risks. These and other risks are detailed in the fund's prospectus.
For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
Footnotes
1.
Portfolio holdings are subject to change.
2.
All of the funds are subject to certain risks. Generally, investments offering potential for higher returns are accompanied by a higher degree of risk. Stocks and other equities representing an ownership interest in a corporation have historically outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Bond prices are affected by interest rate changes. Bond prices, and thus a bond fund's share price, generally move in the opposite direction of interest rates. As the price of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline. High-yield, lower-rated (junk) bonds generally have greater price swings and higher default risks. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. These and other risks pertaining to specific funds, such as those involving investments in specialized industry sectors, such as the technology sector, which has been among the most volatile sectors in the market, or use of complex securities, are discussed in each fund's prospectus.
3.
After-tax average annual total returns represent the average change in value of an investment on an annualized basis. Returns are calculated using the highest individual federal income tax rates; state and local taxes are not considered. Your actual after-tax returns depend on your particular tax situation and may differ from those shown. The before shares sold calculation assumes taxes are paid on fund distributions (dividends and capital gains) but does not reflect taxes that may be incurred upon sale or exchange of shares. The after shares sold calculation also adjusts for taxes due if the fund investment is sold at the end of the measurement period.
4.
For performance reporting purposes, the inception date for Classes A, R, Z and Advisor Class shares of all Franklin Templeton Funds is the date of effectiveness of the fund's registration statement or the first day the fund commenced operations. For Classes B and C shares of those funds, except Mutual Series, Class B of the Franklin Income Fund, and Class C of the Franklin International Small Cap Growth Fund and the Franklin Large Cap Equity Fund, inception date is the first day the fund commenced offering such shares. Franklin Income Fund Class B uses the inception date of the old Class B shares, renamed Class B1, for performance reporting purposes. For Mutual Series Funds and Franklin International Small Cap Growth and Franklin Large Cap Equity Funds, the inception date for Classes A, B, C and R shares is the funds' oldest class', Z or Advisor, inception date.
5.
Represents the maximum amount of Rule 12b-1 distribution and service fees the Fund may pay.
6.
A measure of the fund's volatility relative to the market, as represented by the Russell Midcap Growth Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3-years ended as of the date of the calculation.
7.
The value of one share of the fund on a given day.
8.
Purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
