![[Brad Carriss avatar]](https://franklintempletonprod.widen.net/content/3egzwvklhi/webp/Carris_Bradley_500x500.png){kind=avatar}
Managed Fund Since 2004
Equity
FSSRX Franklin Small Cap Growth Fund
- Higher growth rate potential of smaller companies compared to larger, more established companies.
- Tenured and experienced portfolio management team.
- Distinct research structure. Investment professionals organized into collaborative sector teams.
Popular Documents
Total Net Assets
$2.48B
As of 02/28/2026 (Updated Monthly)
Overview
Fund Facts
Fund description
The fund seeks long-term capital growth by investing at least 80% of its net assets in the equity securities of companies with market capitalizations of generally less than $1.5 billion, or the highest market capitalization in the Russell 2000 Index, whichever is greater, at the time of purchase.
- Benchmark
- Russell 2000 Growth Index
- Additional Benchmark
- S&P 500 Index
- Fund Inception Date
- 05/01/2000
- Dividend Frequency, if any
- Annually
- Portfolio Turnover
- 16%
Identifiers
- Ticker
- FSSRX
- Fund Number
- 865
- CUSIP Code
- 354713539
Average Annual Total Returns As of 02/28/2026
Class R
- 12.42%1 Year
- 12.25%3 Years
- 0.58%5 Years
- 11.61%10 Years
- 7.65%Since Inception
05/01/2000
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Top Sectors
As of 02/28/2026 % of Total (Updated Monthly)
Capital Goods19.53% | |
Pharmaceuticals, Biotechnology & Life Sciences16.03% | |
Semiconductors & Semiconductor Equipment8.52% | |
Health Care Equipment & Services8.49% | |
Software & Services8.47% |
Additional Fund Info
- Share Class Inception Date
- 01/02/2002
- Investment Style
- Growth
- Lipper Classification
- Small-Cap Growth Funds
- Morningstar Category
6 - Small Growth
Manager and Commentary
About the Team
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
December 31, 2025- Markets: US equities delivered solid gains over the fourth quarter of 2025, maintaining their upward trajectory against a backdrop of generally robust corporate earnings, despite some mixed economic signals and investor concerns about stretched valuations in technology-related stocks. Continued monetary easing by the US Federal Reserve (Fed), along with a constructive shift in US–China relations, also underpinned investor sentiment. The outperformance of the Magnificent Seven mega-capitalization technology stocks during the quarter boosted returns for the S&P 500 Index and the Nasdaq Composite Index, while the relatively strong performance of the Dow Jones Industrial Average reflected the enduring strength of blue-chip companies. By investment style, value investing surpassed growth in the large-, mid- and small-capitalization tiers, with large-cap stocks performing better than their mid- and small-cap counterparts.
- Contributors: For the quarter, stock selection decisions factored into the fund’s relative outperformance. Strong stock selection bolstered relative results in the information technology (IT) sector. Stock selection and an underweight in the industrials sector and stock selection in the energy sector also contributed to a lesser extent.
- Detractors: Stock selection and an overweight in the consumer staples sector detracted most from relative performance in the fourth quarter. An underweight in the health care sector and stock selection and an underweight in the real estate sector also proved adverse for relative returns.
- Outlook: The performance of small-cap stocks in general was positive for the fourth quarter and for 2025, supported by broadly favorable valuations, earnings growth and monetary policy. Future performance is likely to depend on the health of the US economy, Fed decisions and overall investor confidence. We believe small-cap growth stocks are attractively valued, both relative to large caps and in light of their own underlying growth potential.
Franklin Equity
JS
Managed Fund Since 2025
Latest Insights
February 18, 2026
February 16, 2026
February 9, 2026
Performance
Calendar Year Returns
As of 02/28/2026
Class R - With Sales Charge (POP) (%)
Class R - Without Sales Charge (NAV) (%)
Russell 2000 Growth Index (%)
S&P 500 Index (%)
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Ratings 3
©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.
Portfolio
Assets
As of02/28/2026 (Updated Monthly)
- Total Net Assets
- $2.48 Billion
Positions
As of 02/28/2026 (Updated Monthly)
Number of Issuers
- Fund
- 123
- Benchmark
- 1,099
Portfolio Statistics
As of 02/28/2026 (Updated Monthly)
Price to Earnings (12-Month Forward)
- Fund
- 23.39x
- Benchmark
- 20.69x
- Fund
- 14.41x
- Benchmark
- 14.42x
- Fund
- 3.38x
- Benchmark
- 4.86x
- Fund
- $8.32 Billion
- Benchmark
- $6.51 Billion
Market Capitalization Allocation 8
As of 02/28/2026 % of Equity (Updated Monthly)
| Market Capitalization | Fund |
|---|---|
| <1.0 Billion | 3.93% |
| 1.0-2.0 Billion | 7.72% |
| 2.0-5.0 Billion | 29.60% |
| 5.0-10.0 Billion | 26.40% |
| >10.0 Billion | 32.04% |
| N/A | 0.31% |
Holdings
As of 02/28/2026 (Updated Monthly)
AAR Corp COM USD 1
BWX Technologies Inc COM USD.01
Granite Construction Inc COM USD.01
Arcosa Inc COM USD 0.01
Lattice Semiconductor Corp COM USD NPV
Onto Innovation Inc COM USD NPV
RBC Bearings Inc COM USD.01
AAON Inc COM USD1
SiTime Corp COM USD 0.0001
New York Times Co/The COM A USD.1
Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.
Distributions & Tax
- Distribution Frequency
- AnnuallyThis fund is an ex-Dividend fund
- Capital Gain Distributions
- December
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
12/19/2025
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.
Pricing
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Franklin Small Cap Growth Fund | |||
| Product Commentary - Franklin Small Cap Growth Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Franklin Small Cap Growth Fund Class R | |||
| Annual Financial Statements and Other Information - Franklin Strategic Series | |||
| Semi-Annual Report - Franklin Small Cap Growth Fund - Class R | |||
| Semiannual Financial Statements And Other Information - Franklin Strategic Series | |||
| Prospectus - Franklin Strategic Series 1 | |||
| Summary Prospectus - Franklin Small Cap Growth Fund | |||
| Statement of Additional Information - Franklin Strategic Series 1 | |||
| Fiscal Q1 Holdings - Franklin Strategic Series | |||
| Fiscal Q3 Holdings - Franklin Strategic Series |
Risks
All investments involve risks, including possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. The investment style may become out of favor, which may have a negative impact on performance. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.
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.
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.
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.
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.
The S&P 500 Index features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization.
Source: © S&P Dow Jones Indices LLC. All rights reserved.
The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe.
Source: FTSE.