Equity

FRVFX Franklin Small Cap Value Fund

Small-Cap Exposure. We aim to take advantage of the prospects particular to small-cap companies, which may not exist among larger companies.
Broad Market Exposure. We invest in a variety of companies across multiple sectors and industries.
Value Expertise. Investors can benefit from our veteran management team with extensive value investing experience.

Overview

Fund Facts

Fund description

The fund seeks long-term total return by investing at least 80% of its net assets in investments of small-capitalization companies, which are those with market capitalizations not exceeding either the highest market capitalization of the Russell 2000 Index or the 12-month average of the highest market capitalization in the Russell 2000 Index, whichever is greater at the time of purchase.

Benchmark: Russell 2000 Value Index
Fund Inception Date: 03/11/1996
Dividend Frequency, if any: Annually
Portfolio Turnover: 53%

Sales Charges, Expenses & Fees

As of 03/01/2026

Gross Expense Ratio: 1.73%
Net Expense Ratio: 1.72%
Maximum Initial Charge: —
CDSC: 1.00%
12b-1 Fee: 1.00%

Identifiers

Ticker: FRVFX
Fund Number: 582
CUSIP Code: 355148404

Average Annual Total Returns As of 05/31/2026

View performance section for additional info As of 05/31/2026

Class C

With Sales Charge (POP)

Without Sales Charge (NAV)

30.23%1 Year
16.67%3 Years
6.12%5 Years
9.64%10 Years
8.53%Since Inception
09/03/1996

Top Sectors

View portfolio section for additional info

As of 05/31/2026 % of Total (Updated Monthly)

Top Sectors
Capital Goods21.24%
Banks17.39%
Materials9.87%
Energy8.84%
Semiconductors & Semiconductor Equipment6.23%

Additional Fund Info

Share Class Inception Date: 09/03/1996
Investment Style: Value
Lipper Classification: Small-Cap Value Funds
Morningstar Category: Small Value

Manager and Commentary

About the Team

Franklin Equity

Franklin Equity understands innovation from every angle—our decades of experience investing in complex change fuels a differentiated perspective on how public and private companies accelerate growth and unlock value. Leveraging fundamental depth and quantitative precision, we identify catalysts for transformation that reshape companies and industries. Our expertise, spanning from growth to value, brings together diverse perspectives that help us spot opportunities ahead of the market.

Commentary Highlights

March 31, 2026

Markets: US equities, as measured by the Russell 1000 Index, fell during the quarter, on both fears about the impact spiking energy prices would have on the global economy following the closure of the Strait of Hormuz and on concerns about potential artificial intelligence disruption in a range of businesses. However, small-cap companies and more value-oriented parts of the market which are less exposed to potential AI disruption outperformed the broader large-cap market.
Contributors: Stock selection in industrials, stock selection and an overweight in information technology and stock selection in financials bolstered relative results. Individual contributors included semiconductor manufacturing products supplier MKS, industrial company Regal Rexnord and UK-based aerospace firm Senior.
Detractors: Security selection in consumer discretionary, an underweight in energy and stock selection in materials curbed relative returns. Among the detractors were toymaker Mattel, payments firm ACI Worldwide and life science tools company Bruker.
Outlook: We remain focused on identifying opportunities to improve the quality of our positions at relatively attractive valuations. We will continue to follow our process of targeting historically successful companies, with understandable business models, good corporate governance and low debt, that we view as temporarily trading at depressed levels, relative to future earnings power. This investment approach constitutes our competitive advantage and may provide meaningful upside potential and possible downside risk management during turbulent periods.

For complete information, please see the full commentary:

Franklin Equity

Managed Fund Since 2012

Managed Fund Since 2015

Managed Fund Since 2019

Latest Insights

June 4, 2026

The IPO market reset

June 1, 2026

How innovation is transforming biotechnology

May 18, 2026

Software in the “Age of Intelligence”

April 16, 2026

Innovation Insights Quarterly: Q2 2026

Performance

Portfolio

Distributions & Tax

Pricing

Documents

Important Information

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

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Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

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

Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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