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Prudential Mutual Funds
Supplement dated October 8, 1998
to Statement of Additional Information
The following paragraph replaces the second paragraph under 'Investment
Objective and Policies--Limitations on Purchase and Sale of Stock Options,
Options on Stock Indices, Stock Index Futures and Options Thereon--Call Options
on Stock' in the Statement of Additional Information of Prudential Equity Fund,
Inc., the second paragraph under 'Investment Objective and Policies--Limitations
on Purchase and Sale of Stock Options, Options on Stock Indices and Stock Index
Futures--Call Options on Stock' in the Statements of Additional Information of
Prudential Mid-Cap Value Fund and Prudential Small Company Value Fund, Inc.
and the second paragraph under 'Investment Objective and Policies--Options on
Equity Securities--Call Options on Stock' in the Statement of Additional
Information of Prudential Utility Fund, Inc.
The Fund would not be able to effect a closing purchase transaction after it
had received notice of exercise. In order to write a call option on an
exchange, the Fund is required to comply with the rules of The Options
Clearing Corporation and the various exchanges with respect to collateral
requirements. It is possible that the cost of effecting a closing purchase
transaction may be greater than the premium received by the Fund for writing
the option.
Listed below are the names of the Prudential Mutual Funds and the dates of the
Statement of Additional Information to which this supplement relates:
Statement of
Additional Information
Name of Fund Date
- ------------------------------------------------ ---------------
Prudential Equity Fund, Inc. February 27, 1998
Prudential Mid-Cap Value Fund May 7, 1998
Prudential Small Company Value Fund, Inc. December 2, 1997
Prudential Utility Fund, Inc. March 3, 1998
