Equity

FBDIX Franklin Biotechnology Discovery Fund

Participate in trends moving markets. Invest in innovative sectors—technology, medicine, global communications—we believe are poised for long-term growth.
Diversification. By adding investments from different sectors to your portfolio, you may take advantage of expanding and contracting economic cycles.
Experienced management. Same lead portfolio manager since the fund's inception in 1997.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks capital appreciation by investing at least 80% of its net assets in securities of biotechnology companies and discovery research firms including those involved in fields such as genomics, genetic engineering, and gene therapy, as well as health care, pharmaceuticals and agriculture.

Benchmark: NASDAQ Biotechnology Index
Additional Benchmark: S&P 500 Index
Fund Inception Date: 09/15/1997
Dividend Frequency, if any: Annually
Portfolio Turnover: 22%

Sales Charges, Expenses & Fees

As of 09/01/2025

Gross Expense Ratio⁴: 1.03%
Net Expense Ratio^4,5: 1.02%
Maximum Initial Charge: 5.50%
CDSC⁶: 1.00%
12b-1 Fee: 0.25%

Identifiers

Ticker: FBDIX
Fund Number: 402
CUSIP Code: 354713844

Average Annual Total Returns As of 03/31/2026

View performance section for additional info As of 03/31/2026

Class A

With Sales Charge (POP)

Without Sales Charge (NAV)

54.34%1 Year
21.61%3 Years
6.64%5 Years
9.64%10 Years
10.61%Since Inception
09/15/1997

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

View portfolio section for additional info

As of 04/30/2026 % of Total (Updated Monthly)

Top Sectors
Biotechnology77.62%
Pharmaceuticals16.98%
Health Care Services2.09%
Life Sciences Tools & Services0.80%
Managed Health Care0.52%

Additional Fund Info

Share Class Inception Date: 09/15/1997
Investment Style: Sector
Lipper Classification: Health/Biotechnology Funds
Morningstar Category⁷: Health

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: Global equity markets generally declined during the first quarter of 2026 (1Q26) amid heightened volatility, as geopolitical tensions and shifting macroeconomic dynamics weighed on investor sentiment. The conflict in the Middle East emerged as a key destabilizing factor, disrupting energy markets and amplifying inflationary pressures globally. As measured by a MSCI global index in USD terms, while six out of 11 equity sectors advanced (led by energy, utilities and materials), health care was in seventh place and saw significant disparity across all six related industries. While pharmaceuticals served as the sole outlier to the upside in 1Q26, all other industries traded lower, with steep losses for health care technology, health care equipment and supplies, and life sciences tools and services; a comparatively milder decline for health care providers and services; and a nearly breakeven result for biotechnology.
Contributors: Effective stock selection in the pharmaceuticals industry and, to a lesser extent, an underweight in life sciences tools and services industry stocks.
Detractors: Unfavorablestock selection and underweighting in the biotech industry, and a small but overweighted stake in poor-performing health care services companies.
Outlook: Our positive outlook is based on what we consider to be generally strong fundamentals and appealing valuations, backed in part by innovation in new drug modalities and a potentially strong merger-and-acquisition (M&A) cycle gathering momentum. Sticking points related to tariffs and “Most Favored Nation” (MFN) pricing policies are now mostly resolved, and US Medicare drug reimbursement appears to be relatively stable. We view these as important “clearing events” that can help quell investor uncertainty and expand biotech M&A activity now that they’re clarified.

For complete information, please see the full commentary:

Franklin Equity

Managed Fund Since 1997

Managed Fund Since 2020

Latest Insights

April 16, 2026

Innovation Insights Quarterly: Q2 2026

April 2, 2026

Power, conflict and complacency: Why energy markets may be structurally underpricing geopolitical risk

March 2, 2026

Five catalysts for international value stocks in 2026 and beyond

February 18, 2026

Quick Thoughts: At the knee of the curve of disruption

Performance

Average Annual Total Returns

^9,10

As of 03/31/2026

Month End

Quarter End

As of

Class A - With Sales Charge (POP) (%)

Month End

As of 03/31/2026

Class A - Without Sales Charge (NAV) (%)

Month End

As of 03/31/2026

NASDAQ Biotechnology Index (%)

Month End

As of 03/31/2026

S&P 500 Index (%)

Month End

As of 03/31/2026

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.

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 4 out of 5 stars
As of 04/30/2026

3 Years: 3 Years: 5 out of 5 stars
164 Funds in category

5 Years: 5 Years: 4 out of 5 stars
151 Funds in category

10 Years: 10 Years: 3 out of 5 stars
119 Funds in category

Rating Category: Health

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

The number of funds in the category for the Overall Morningstar Rating are listed in the funds in category for the 3-year rating.

Morningstar Style Box

As of 04/30/2026

Current Historical
			Large
			Medium
			Small
Value	Blend	Growth
Style

Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2026 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 of04/30/2026 (Updated Monthly)

Total Net Assets: $1.04 Billion

Positions

As of 04/30/2026 (Updated Monthly)

Number of Issuers

Fund: 94

Portfolio Statistics

As of 04/30/2026 (Updated Monthly)

Price to Earnings (12-Month Forward)

Fund: 17.14x
Benchmark: 16.40x

Weighted Average Market Capitalization (USD)

Fund: $52.86 Billion
Benchmark: $48.82 Billion

Price to Cash Flow

Fund: 18.17x
Benchmark: 14.84x

Price to Book

Fund: 4.84x
Benchmark: 5.24x

Asset Allocation

As of 04/30/2026 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Equity	98.17%
Cash & Cash Equivalents	1.83%

Holdings
As of 03/31/2026 (Updated Monthly)

Jazz Pharmaceuticals PLC ORD USD.0001

Gilead Sciences Inc COM USD0.001

Amgen Inc COM USD.0001

Regeneron Pharmaceuticals Inc COM USD.001

Vertex Pharmaceuticals Inc COM USD.01

Argenx SE SPONSORED ADR

Terns Pharmaceuticals Inc COM USD 0.0001 *DO NOT USE*

Insmed Inc COM USD.01

Ascendis Pharma A/S ADR

Praxis Precision Medicines Inc COM USD 0.0001

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
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: AnnuallyThis fund is an ex-Dividend fund
Capital Gain Distributions: December

Proposed 2026 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

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
Distributions with future dates are estimates and those figures are not final

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

Pricing History

As of 05/08/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices and Breakpoints

As of 05/08/2026

Share Prices

As of 05/08/2026

NAV ¹(Net Asset Value): $177.27
NAV Change ¹: $1.01
NAV Change (%) ¹: 0.57%
POP ⁸(Public Offering Price): $187.59

POP and Sales Charge at Breakpoints

Less than $25,000

$25,000 - $49,999

$50,000 - $99,999

$100,000 - $249,999

$250,000 - $499,999

$500,000 - $749,999

$750,000 - $999,999

52-Week Range

Highest NAV As of 11/28/2025: $186.39
Lowest NAV As of 05/09/2025: $104.58

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Franklin Biotechnology Discovery Fund	Download Document
Checkbox	Product Commentary - Franklin Biotechnology Discovery Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Biotechnology Discovery Fund Class A	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Strategic Series	Download Document
Checkbox	Semi-Annual Report - Franklin Biotechnology Discovery Fund - Class A	Download Document
Checkbox	Semiannual Financial Statements And Other Information - Franklin Strategic Series	Download Document
Checkbox	Prospectus - Franklin Strategic Series 2	Download Document
Checkbox	Summary Prospectus - Franklin Biotechnology Discovery Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Strategic Series 2	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Strategic Series	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Strategic Series	Download Document

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the fund's performance and result in greater fluctuation in the value of the fund's shares. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. 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

Click here for funds sales charge and breakpoint 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.

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.

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

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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 NASDAQ Biotechnology Index is a modified capitalization-weighted index designed to measure performance of all NASDAQ stocks in the biotechnology sector.
Source: Nasdaq OMX.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
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.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
For net asset value (NAV) purchases, a 1% contingent deferred sales charge (CDSC) may apply to shares redeemed within 18 months.
©2026 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.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Prior to 9/10/18, these shares were offered at a higher initial sales charge of 5.75%; thus actual returns would have differed. Total returns with sales charges have been restated to reflect the current maximum initial sales charge of 5.50%.
Prior to 9/10/18, these shares were offered at a higher initial sales charge of 5.75%; thus actual returns would have differed. Total returns with sales charges have been restated to reflect the current maximum initial sales charge of 5.50%.
Capitalization Rate is calculated without the deduction of fees and expenses.

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FBDIX Franklin Biotechnology Discovery Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class A

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

Asset Allocation

Distributions & Tax

Pricing

Chart

Daily Fund Prices and Breakpoints

Documents

Risks

Important Information

Footnotes

Ratings ³