SUPPLEMENT TO PROSPECTUS OF
EVERGREEN EQUITY AND FIXED INCOME FUNDS
I. Evergreen Capital Income and Growth Fund, Evergreen Municipal Income
Fund, and Evergreen Short-Duration Income Fund (the "Funds")
Effective March 10, 2000, the Funds will be reorganized into existing
Evergreen Funds and will no longer be available for sale.
On October 15, 1999, shareholders of each of the Funds ("Acquired
Fund") approved the reorganization of their Fund into an existing Evergreen Fund
("Acquiring Fund") to be effective March 10, 2000. In the reorganization, all of
the assets of an Acquired Fund will be transferred to an Acquiring Fund (as
noted below) and shareholders of the Acquired Fund will receive shares of the
appropriate Acquiring Fund in exchange for their shares.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund
- ------------- --------------
<S> <C>
Evergreen Capital Income and Growth Fund Evergreen Capital Balanced Fund
(formerly Mentor Income and Growth Portfolio) (formerly Mentor Balanced Portfolio)
Evergreen Municipal Income Fund Evergreen Municipal Bond Fund
(formerly Mentor Municipal Income Portfolio)
Evergreen Short-Duration Income Fund Evergreen Short-Intermediate Bond Fund
(formerly Mentor Short-Duration Income Portfolio)
</TABLE>
Immediately after the reorganization is complete, Evergreen
Short-Intermediate Bond Fund will change its name to "Evergreen Short-Duration
Income Fund."
For more information on the Acquiring Funds, call the Evergreen Service
Company at 1-800-343-2898.
February 1, 2000 XXXXXX 2/00
