PRUDENTIAL TAX MANAGED EQUITY FUND
N-18F1, 1999-03-24
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                          SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20549

           -------------------------------------------------------------
                                          
                  NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1
                      UNDER THE INVESTMENT COMPANY ACT OF 1940
                                          
                      ----------------------------------------


                         PRUDENTIAL TAX-MANAGED EQUITY  FUND
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                               NOTIFICATION OF ELECTION


     The undersigned registered open-end investment company hereby notifies the
Securities and Exchange Commission that it elects to commit itself to pay in
cash all redemptions by a shareholder of record as provided by Rule 18f-1 under
the Investment Company Act of 1940.  It is understood that this election is
irrevocable while such Rule is in effect unless the Commission by order upon
application permits withdrawal of the Notification of Election.


                                      SIGNATURE

     Pursuant to the requirements of Rule 18f-1 under the Investment Company Act
of 1940, the registrant has caused this Notification of Election to be duly
executed on its behalf in the City of Newark and the State of New Jersey on the
1st day of 
March, 1999.

                                   Signature

                                   PRUDENTIAL TAX-MANAGED EQUITY FUND 
                                   -----------------------------------
                                   (Name of Registrant)


                                   By:  /s/ Robert F. Gunia
                                        ------------------------
                                          Robert F. Gunia   
                                          Vice President              


Attest:   /s/ Marguerite E. H. Morrison  
        -------------------------------
          Marguerite E.H. Morrison 
          Secretary


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