JANUS INVESTMENT FUND, 497K1, 1998-06-12

JANUS INVESTMENT FUND
497K1, 1998-06-12

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[JANUS LOGO]
JANUS EQUITY FUNDS
PROFILE

JANUS FUND
JANUS ENTERPRISE FUND
JANUS MERCURY FUND
JANUS OLYMPUS FUND
JANUS SPECIAL SITUATIONS FUND
JANUS TWENTY FUND
JANUS WORLDWIDE FUND
JANUS BALANCED FUND
JANUS EQUITY INCOME FUND
JANUS GROWTH AND INCOME FUND
June 30, 1998
This Profile summarizes key information about the Funds that is
included in the Funds' prospectus. The Funds' prospectus includes
additional information about the Funds, including a more detailed
description of the risks associated with investing in the Funds that
you may want to consider before you invest. You may obtain the
prospectus and other information about the Funds at no cost by calling
1-800-525-3713, or by visiting our web site at www.janus.com. You
should read the prospectus carefully and promptly upon receipt.
<PAGE>

This Profile has been prepared pursuant to Rule 498 under the Securities Act of
1933. It is purposefully limited in scope in good faith reliance upon the
Securities and Exchange Commission's stated purposes in adopting Rule 498.
<PAGE>

1
TABLE OF CONTENTS

GROWTH FUNDS
JANUS FUND..........................................................page 2
JANUS ENTERPRISE FUND...............................................page 4
JANUS MERCURY FUND..................................................page 6
JANUS OLYMPUS FUND..................................................page 8
JANUS SPECIAL SITUATIONS FUND......................................page 10
JANUS TWENTY FUND..................................................page 12
JANUS WORLDWIDE FUND...............................................page 14

COMBINATION FUNDS
JANUS BALANCED FUND................................................page 16
JANUS EQUITY INCOME FUND...........................................page 18
JANUS GROWTH and INCOME FUND.......................................page 20

INFORMATION COMMON TO ALL FUNDS....................................page 22
<PAGE>

2
JANUS FUND

1. WHAT IS THE GOAL OF JANUS FUND?
Janus Fund's objective is long-term growth of capital in a manner consistent
with preservation of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS FUND?
Janus Fund invests primarily in common stocks selected for their growth
potential. The portfolio manager follows a "bottom up" strategy, looking at
potential investments one at a time, regardless of industry, country of
organization or any other similarly defined selection criteria. Although this
Fund can invest in issuers of any size, it generally invests in larger, more
established issuers. The Fund may invest without limit in foreign issuers. There
are no restrictions on the Fund's holdings of cash or similar investments, and
when the portfolio manager is unable to locate favorable investment
opportunities these may make up a significant portion of the portfolio.

Additional information about the Fund's investments is available in its annual
and semi-annual reports to shareholders. These financial reports discuss
relevant market conditions and investment strategies that significantly affected
the performance of the Fund during the last fiscal period. You may obtain these
reports at no cost by calling 1-800-525-3713.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS FUND?
Since Janus Fund usually invests most of its assets in common stocks, the
fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or general market and/or
economic conditions. If this occurs, the Fund's net asset value may also
decrease. When the Fund has foreign holdings, its returns and net asset value
may be affected by fluctuations in currency exchange rates or political and
economic conditions in foreign markets.

Janus Fund is designed for long-term investors who can accept the risks of
investing in a portfolio with significant common stock holdings. Perhaps the
biggest risk is that the Fund's returns may vary, and you could lose money. The
information below provides an illustration of how the Fund's performance has
varied over time. The bar chart depicts the change in Janus Fund's performance
from year-to-year during the period indicated. The table compares the Fund's
average annual returns for the periods indicated to a broad-based securities
market index.

JANUS FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Fund from 1988 through 1997:

16.58% 46.32% -0.74% 42.80% 6.87% 10.92% -1.10% 29.43% 19.61% 22.72%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31,1998) 1 YEAR 5 YEARS 10 YEARS
<S> <C> <C> <C>
Janus Fund 40.85% 17.79% 19.47%
S&P 500 Index* 47.96% 22.28% 18.92%
- ----------------------------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUNDS'S YEAR-TO-DATE RETURN WAS 14.50%.

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 19.07% (QUARTER ENDED 3/31/91) AND THE
LOWEST RETURN FOR A QUARTER WAS (13.91%) (QUARTER ENDED 9/30/90).
* THE S&P 500 --REGISTERED TRADEMARK-- IS THE STANDARD & POOR'S COMPOSITE INDEX OF 500 STOCKS, A WIDELY RECOGNIZED,
UNMANAGED INDEX OF COMMON STOCK PRICES.
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

ANNUAL FUND OPERATING EXPENSES are paid out of a Fund's assets and include fees
for portfolio management, maintenance of shareholder accounts, shareholder
servicing, accounting and other services. You do not pay these fees directly
but, as the example below shows, these costs are borne indirectly by
shareholders.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE(1) EXPENSES OPERATING EXPENSES

(1) The expenses shown in this table are based upon the Fund's last
fiscal year except that the management fee reflects a reduced fee
schedule effective July 1, 1997 applied to net assets as of October
31, 1997.
- ------------------------------------------------------------------------------

EXAMPLE:

This example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year,
and that the Fund's operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions your
costs would be:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 89 $278 $482 $1,073
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

JAMES P. CRAIG, III is Chief Investment Officer of Janus Capital. He is
Executive Vice President and portfolio manager of Janus Fund, which he has
managed since 1986. He is also a co-manager of Janus Venture Fund, which he has
managed since February 1997. Mr. Craig previously managed Janus Venture Fund
from its inception to December 1993 and Janus Balanced Fund from December 1993
to December 1995. He holds a Bachelor of Arts in Business from the University of
Alabama and a Master of Arts in Finance from the Wharton School of the
University of Pennsylvania.
<PAGE>

JANUS ENTERPRISE FUND

1. WHAT IS THE GOAL OF JANUS ENTERPRISE FUND?
Janus Enterprise Fund pursues long-term growth of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS ENTERPRISE FUND?
Janus Enterprise Fund invests primarily in common stocks selected for their
growth potential, and normally invests at least 50% of its equity assets in
securities issued by medium-size companies. Medium-sized companies are those
whose market capitalizations fall within the range of companies in the S&P
MidCap 400 Index. Market capitalization is a commonly used measure of the size
and value of a company. In choosing investments, the portfolio manager applies a
"bottom up" approach. In other words, he looks at potential investments one at a
time, regardless of industry, country of organization or any other similarly
defined selection criteria. The Fund may invest without limit in foreign
issuers. There are no restrictions on the Fund's holdings of cash or similar
investments, and when the portfolio manager is unable to find favorable
investment opportunities, these may make up a significant portion of the
portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS ENTERPRISE FUND?
Since Janus Enterprise Fund usually invests most of its assets in common stocks,
the fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or general market and/or
economic conditions. If this occurs, the Fund's net asset value may also
decrease. When the Fund is invested in foreign companies, its returns and net
asset value may be affected by fluctuations in currency exchange rates or
political or economic conditions in foreign markets.

Janus Enterprise Fund is a nondiversified fund, which may hold larger positions
in a smaller number of securities than a diversified fund. As a result, a single
security's increase or decrease in value may have a greater impact on the share
price of the Fund.

Janus Enterprise Fund is designed for long-term investors who can accept the
risks of investing in a portfolio with significant common stock holdings,
particularly those of medium-sized companies. Perhaps the biggest risk is that
the Fund's returns may vary, and you could lose money. The information below
provides an illustration of how the Fund's performance has varied over time. The
bar chart depicts the change in Janus Enterprise Fund's performance from
year-to-year during the period indicated. The table compares the Fund's average
annual returns for the periods indicated to a broad-based securities market
index.

JANUS ENTERPRISE FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Enterprise Fund from 1993
through 1997:

15.64% 8.92% 27.25% 11.65% 10.82%
1993 1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------
(PERIODS ENDED MARCH 31, 1998) 1 YEAR 5 YEARS SINCE INCEPTION (9/1/92)

<S> <C> <C> <C>
JANUS ENTERPRISE FUND 42.61% 16.42% 20.74%
S&P 400 MID CAP INDEX* 49.04% 19.51% 20.71%
- ------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUND'S YEAR-TO-DATE RETURN WAS 11.32%.

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 16.63% (QUARTER ENDED
6/30/97) AND THE LOWEST RETURN FOR A QUARTER WAS (13.50%) (QUARTER ENDED 3/31/97).

* THE S%P 400 MID CAP INDEX IS AN UNMANAGED GROUP OF 400 DOMESTIC STOCKS CHOSEN FOR THEIR MARKET SIZE,
LIQUIDITY AND INDUSTRY GROUP REPRESENTATION.
- ------------------------------------------------------------------------------------------------------
</TABLE>
The Fund's past performance does not necessarily indicate how it will perform
in the future.
<PAGE>

4. WHAT ARE JANUS ENTERPRISE FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE(1) EXPENSES OPERATING EXPENSE
<S> <C> <C>
0.72% 0.35% 1.07%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 109 $340 $590 $1,306
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS ENTERPRISE
FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

JAMES P. GOFF is Executive Vice President and portfolio manager of Janus
Enterprise Fund. Mr. Goff joined Janus Capital in 1988 and has managed Janus
Enterprise Fund since its inception. Mr. Goff managed or co-managed Janus
Venture Fund from December 1993 to February 1997. He holds a Bachelor of Arts in
Economics from Yale University and is a Chartered Financial Analyst.
<PAGE>

JANUS MERCURY FUND

1. WHAT IS THE GOAL OF JANUS MERCURY FUND?
Janus Mercury Fund seeks long-term growth of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS MERCURY FUND?
Janus Mercury Fund invests primarily in common stocks selected for their growth
potential. This Fund may invest in securities of issuers of any size, from
larger well-established issuers to smaller emerging growth companies. In
selecting investments, the portfolio manager applies a "bottom up" approach. In
other words, he looks at potential investments one at a time, regardless of
industry, country of organization or any other similarly defined selection
criteria. The Fund may invest without limit in foreign issuers. There are no
restrictions on the Fund's holdings of cash or similar investments, and when the
portfolio manager cannot find favorable investment opportunities these may make
up a significant portion of the portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS MERCURY FUND?
Since Janus Mercury Fund usually invests most of its assets in common stocks,
the fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or general market and/or
economic conditions. If this occurs, the Fund's net asset value may also
decrease. To the extent the Fund invests in the securities of smaller or newer
companies, they may be more volatile and more speculative than the securities of
larger, more established issuers. When the Fund is invested in foreign
companies, its returns and net asset value may be affected by fluctuations in
currency exchange rates or political or economic conditions in foreign markets.

Janus Mercury Fund is designed for long-term investors who can accept the risks
of investing in a portfolio with significant common stock holdings. Perhaps the
biggest risk is that the Fund's returns may vary, and you could lose money. The
information below provides an illustration of how the Fund's performance has
varied over time. The bar chart depicts the change in Janus Mercury Fund's
performance from year-to-year during the period indicated. The table compares
the Fund's average annual returns for the periods indicated to a broad-based
securities market index.

JANUS MERCURY FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Mercury Fund from 1994
through 1997:

15.86% 33.01% 17.67% 11.88%
1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31,1998) 1 YEAR SINCE INCEPTION (5/3/93)
<S> <C> <C>
Janus Mercury Fund 40.96% 24.04%
S&P 500 Index* 47.96% 23.14%
- ----------------------------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUNDS'S YEAR-TO-DATE RETURN WAS 18.67%

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 18.67% (QUARTER ENDED 3/31/98) AND THE
LOWEST RETURN FOR A QUARTER WAS (6.56%) (QUARTER ENDED 6/30/94).
* THE S&P 500 --REGISTERED TRADEMARK-- IS THE STANDARD & POOR'S COMPOSITE INDEX OF 500 STOCKS, A WIDELY RECOGNIZED,
UNMANAGED INDEX OF COMMON STOCK PRICES.
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS MERCURY FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE(1) EXPENSES OPERATING EXPENSES

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 100 $312 $542 $1,201
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS MERCURY FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

WARREN B. LAMMERT is Executive Vice President and portfolio manager of Janus
Mercury Fund. Mr. Lammert joined Janus Capital in 1987 and has managed Janus
Mercury Fund since its inception and Janus Balanced Fund from its inception to
December 1993. He also co-managed Janus Venture Fund from December 1993 to
December 1996. He holds a Bachelor of Arts in Economics from Yale University and
a Master of Science in Economic History from the London School of Economics and
is a Chartered Financial Analyst.
<PAGE>

JANUS OLYMPUS FUND

1. WHAT IS THE GOAL OF JANUS OLYMPUS FUND?
Janus Olympus Fund's objective is long-term growth of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS OLYMPUS FUND?
Janus Olympus Fund invests primarily in common stocks of domestic and foreign
companies selected for their growth potential. This Fund may invest in issuers
of any size, which may include larger well-established issuers and/or smaller
emerging growth companies. In making investment selections, the portfolio
manager applies a "bottom up" approach. In other words, she looks at potential
investments one at a time, regardless of industry, country of origin or any
other similarly defined selection criteria. The Fund may invest without limit in
foreign issuers. There are no restrictions on the Fund's holdings of cash and
similar investments, and if the portfolio manager cannot find favorable
investment opportunities, these may make up a significant portion of the
portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS OLYMPUS FUND?
Since Janus Olympus Fund usually invests most of its assets in common stocks,
the fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or general market and/or
economic conditions. If this occurs, the Fund's net asset value may also
decrease. To the extent the Fund invests in the securities of smaller or newer
companies, they may be more volatile and more speculative than investments in
the securities of larger, more established issuers. When the Fund is invested in
foreign companies, its returns and net asset value may be affected by
fluctuations in currency exchange rates or political or economic conditions in
foreign markets.

Janus Olympus Fund is a nondiversified fund, which may hold larger positions in
a smaller number of securities than a diversified fund. As a result, a single
security's increase or decrease in value may have a greater impact on the share
price of the Fund.

Janus Olympus Fund is designed for long-term investors who can accept the risks
of investing in a portfolio with significant common stock holdings. Perhaps the
biggest risk is that the Fund's returns may vary, and you could lose money. The
information below provides an illustration of how the Fund's performance has
varied over time. The bar chart depicts the change in Janus Olympus Fund's
performance from year-to-year during the period indicated. The table compares
the Fund's average annual returns for the periods indicated to a broad-based
securities market index.

JANUS OLYMPUS FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Olympus Fund from 1996
through 1997:

21.73% 26.73%
1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31,1998) 1 YEAR SINCE INCEPTION (12/29/95)
<S> <C> <C>
Janus Olympus Fund 54.57% 29.68%
S&P 500 Index 47.96% 32.01%
- ----------------------------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUNDS'S YEAR-TO-DATE RETURN WAS 16.33%

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 22.45% (QUARTER ENDED 6/30/97) AND THE
LOWEST RETURN FOR A QUARTER WAS (4.63%)(QUARTER ENDED 3/31/97).
* THE S&P 500 --REGISTERED TRADEMARK-- IS THE STANDARD & POOR'S COMPOSITE INDEX OF 500 STOCKS, A WIDELY RECOGNIZED,
UNMANAGED INDEX OF COMMON STOCK PRICES.
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS OLYMPUS FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT TOTAL FUND
FEE(1) OTHER OPERATING EXPENSES
EXPENSES
<S> <C> <C>
0.71% 0.33% 1.04%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 106 $331 $574 $1,271
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS OLYMPUS FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

CLAIRE YOUNG is Executive Vice President and portfolio manager of Janus Olympus
Fund which she has managed since August 1997. She previously served as an
assistant portfolio manager of Janus Growth and Income Fund and Janus Twenty
Fund. Ms. Young joined Janus Capital in 1992 as a research analyst. She holds a
Bachelor of Science in Electrical Engineering from Yale University and is a
Chartered Financial Analyst.
<PAGE>

JANUS SPECIAL SITUATIONS FUND

1. WHAT IS THE GOAL OF JANUS SPECIAL SITUATIONS FUND?
Janus Special Situations Fund seeks capital appreciation.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS SPECIAL SITUATIONS FUND?
Janus Special Situations Fund invests primarily in common stocks selected for
their capital appreciation potential. The portfolio manager follows a "bottom
up" strategy, looking at potential investments one at a time, regardless of
industry, country of organization or any other similarly defined selection
criteria. The Fund emphasizes stocks of "special situation" companies that the
portfolio manager believes have been overlooked or undervalued by other
investors. A "special situation" arises when, in the portfolio manager's
opinion, securities of a particular company will appreciate in value due to a
specific development. The portfolio manager pays particular attention to
companies that he thinks have high free cash flows. The Fund may invest without
limit in foreign issuers. There are no restrictions on the Fund's holdings of
cash and similar investments, and when the portfolio manager cannot locate
favorable investment opportunities, these may make up a significant portion of
the portfolio.

Additional information about the Fund's investments is available in its annual
and semi-annual reports to shareholders. These financial reports discuss the
relevant market conditions and investment strategies that significantly affected
the performance of the Fund during the last fiscal period. You may obtain these
reports at no cost by calling 1-800-525-3713.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS SPECIAL SITUATIONS FUND?
Since Janus Special Situations Fund usually invests most of its assets in common
stocks, the fundamental risk is that the value of the stocks it holds might
decrease in response to the activities of an individual company or general
market and/or economic conditions. The Fund emphasizes investments in special
situations companies which may not appreciate if an anticipated development does
not occur or attract the anticipated attention. When the Fund is invested in
foreign companies its returns and net asset values may be affected by
fluctuations in currency exchange rates or political or economic conditions in
foreign markets.

Janus Special Situations Fund is a nondiversified fund which may hold larger
positions in a smaller number of securities than a diversified fund. As a
result, a single security's increase or decrease in value may have a greater
impact on the share price of the Fund.

Janus Special Situations Fund is designed for long-term investors who can accept
the risks of investing in a portfolio of "special situations" common stocks.
Perhaps the biggest risk is that the Fund's returns may vary, and you could lose
money. The information below shows some limited information (because the Fund is
relatively new) about the Fund's performance and how it may vary over time. The
bar chart shows the Fund's performance for its first full calendar year. The
table shows the Fund's average annual returns for the periods indicated compared
to a broad-based securities market index.

JANUS SPECIAL SITUATIONS FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Special Situations Fund for
1997:

46.04%
1997

The percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31,1998) 1 YEAR SINCE INCEPTION (12/31/96)
<S> <C> <C>
JANUS SPECIAL SITUATIONS FUND 62.32% 53.90%
S&P 500 INDEX* 47.96% 39.74%
- ----------------------------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUNDS'S YEAR-TO-DATE RETURN WAS 17.37%

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 17.52% (QUARTER ENDED 6/30/97) AND THE
LOWEST RETURN FOR A QUARTER WAS 0.23% (QUARTER ENDED 12/31/97).
* THE S&P 500* IS THE STANDARD & POOR'S COMPOSITE INDEX OF STOCKS, A WIDELY RECOGNIZED, UNMANAGED INDEX OF COMMON
STOCK PRICES.
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS SPECIAL SITUATIONS FUND'S FEES AND EXPENSES?

SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE(1) EXPENSES OPERATING EXPENSES
<S> <C> <C>
0.74% 0.43%(2) 1.17%
------------------------------------------
</TABLE>

(1) The expenses shown in this table are based upon the Fund's initial
fiscal period except that the management fee reflects a reduced fee
schedule effective July 1, 1997, applied to net assets as of October
31, 1997.

(2) Based on expenses incurred during initial fiscal period.
- ------------------------------------------------------------------------------

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 119 $372 $644 $1,420
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS SPECIAL
SITUATIONS FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

DAVID C. DECKER is Executive Vice President and portfolio manager of Janus
Special Situations Fund, which he has managed since inception, and an assistant
portfolio manager of Janus Fund. He joined Janus Capital in 1992 as a research
analyst. Mr. Decker received a Masters of Business Administration from the Fugua
School of Business at Duke University and a Bachelor's Degree in Economics and
Political Science from Tufts University. He is a Chartered Financial Analyst.
<PAGE>

JANUS TWENTY FUND

1. WHAT IS THE GOAL OF JANUS TWENTY FUND?
Janus Twenty Fund seeks long-term growth of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS TWENTY FUND?
Janus Twenty Fund invests primarily in common stocks selected for their growth
potential. This Fund normally concentrates its investments in a core group of
20-30 common stocks. The portfolio manager is not restricted as to the size of
companies the Fund invests in and will apply a "bottom up" approach in choosing
investments. In other words, he looks at potential investments one at a time,
regardless of industry, country of organization or any other similarly defined
selection criteria. The Fund may invest without limit in foreign issuers. There
are no restrictions on the Fund's holdings of cash or similar investments and
when the portfolio manager cannot find favorable investment opportunities, these
may make up a significant portion of the portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS TWENTY FUND?
Since Janus Twenty Fund usually invests most of its assets in common stocks, the
fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or in response to general
market and/or economic conditions. If this occurs, the Fund's net asset value
may also decrease. When the Fund is invested in foreign companies its returns
and net asset value may be affected by fluctuations in currency exchange rates
or political or economic conditions in foreign markets.

Janus Twenty Fund is a nondiversified fund, which may hold larger positions in a
smaller number of securities than a diversified fund. As a result, a single
security's increase or decrease in value may have a greater impact on the share
price of the Fund. Since the Fund normally concentrates in a core portfolio of
20-30 stocks, this risk may be increased.

Janus Twenty Fund is designed for long-term investors who can accept the risks
of investing in a relatively concentrated portfolio of common stocks. Perhaps
the biggest risk is that the Fund's returns may vary, and you could lose money.
The information below provides an illustration of how the Fund's performance has
varied over time. The bar chart depicts the change in Janus Twenty Fund's
performance from year-to-year during the period indicated. The table compares
the Fund's average annual returns for the periods indicated to a broad-based
securities market index.

JANUS TWENTY FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Twenty Fund from 1988 through
1997:

19.05% 50.85% 0.59% 69.21% 1.97% 3.43% -6.73% 36.22% 27.85% 29.70%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------
(PERIODS ENDED MARCH 31, 1998) 1 YEAR 5 YEARS 10 YEARS

<S> <C> <C> <C>
JANUS TWENTY FUND 51.38% 20.83% 22.62%
S&P 500 INDEX* 47.96% 22.38% 18.92%
- ------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUND'S YEAR-TO-DATE RETURN WAS 18.59%.

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 27.10% (QUARTER ENDED
9/30/89) AND THE LOWEST RETURN FOR A QUARTER WAS (17.71%) (QUARTER ENDED 9/30/90).

* THE S%P 500 IS THE STANDARD & POOR'S COMPOSITE INDEX OF 500 STOCKS, A WIDELY RECOGNIZED, UNMANAGED
index of common stock prices.
- ------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS TWENTY FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees and exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
TOTAL FUND
MANAGEMENT OTHER OPERATING EXPENSES
FEE(1) EXPENSES
<S> <C> <C>
0.66% 0.27% 0.93%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 95 $296 $515 $1,143
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS TWENTY FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

SCOTT W. SCHOELZEL is Executive Vice President and portfolio manager of Janus
Twenty Fund, which he has managed since August 1997. He previously managed Janus
Olympus Fund from its inception to August 1997. Mr. Schoelzel joined Janus
Capital in January 1994. From 1991-1993, Mr. Schoelzel was a portfolio manager
at Founders Asset Management, Denver, Colorado. He holds a Bachelor of Arts in
Business from Colorado College.
<PAGE>

JANUS WORLDWIDE FUND

1. WHAT IS THE GOAL OF JANUS WORLDWIDE FUND?
Janus Worldwide Fund seeks long-term growth of capital in a manner consistent
with preservation of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS WORLDWIDE FUND?
Janus Worldwide Fund invests primarily in common stocks of companies and other
organizations of any size throughout the world. The Fund normally invests in
issuers from at least five different countries, including the United States. The
portfolio manager applies a "bottom up" strategy by looking at potential
investments one at a time, regardless of industry, country of organization or
any other similarly defined selection criteria. There are no restrictions on the
Fund's holdings of cash or similar investments, and when the portfolio manager
is unable to find favorable investment opportunities, these may make up a
significant portion of the portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS WORLDWIDE FUND?
Since Janus Worldwide Fund invests most of its assets in common stocks, the
fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or general market and/or
economic conditions. Janus Worldwide Fund may have significant exposure to
foreign markets. As a result, its returns and net asset value may be affected to
a large degree by fluctuations in currency exchange rates or political or
economic conditions in a particular country.

Janus Worldwide Fund is designed for long-term investors who can accept the
risks of investing in a portfolio with significant foreign and U.S. common stock
holdings. Perhaps the biggest risk is that the Fund's returns may vary, and you
could lose money. The information below provides an illustration of how the
Fund's performance has varied over time. The bar chart depicts the change in
Janus Worldwide Fund's performance from year-to-year, during the periods
indicated. The table compares the Fund's average annual returns for the periods
indicated to a broad-based securities market index.

JANUS WORLDWIDE FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Worldwide Fund from 1992
through 1997:

9.01% 28.41% 3.61% 21.90% 26.40% 20.48%
1992 1993 1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31,1998) 1 YEAR 5 YEARS SINCE INCEPTION (5/15/91)
<S> <C> <C> <C>
JANUS WORLDWIDE FUND 32.72% 22.03% 21.83%
MORGAN STANLEY INTERNATIONAL WORLDWIDE INDEX* 31.96% 16.54% 13.36%
- ----------------------------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUNDS'S YEAR-TO-DATE RETURN WAS 16.41%

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 16.41% (QUARTER ENDED 3/31/98) AND THE
LOWEST RETURN FOR A QUARTER WAS (4.23%)(QUARTER ENDED 12/31/97).
* THE MORGAN STANLEY INTERNATIONAL WORLDWIDE INDEX IS A MARKET CAPITALIZATION WEIGHTED INDEX COMPOSED OF COUNTRIES
REPRESENTATIVE OF THE MARKET STRUCTURE OF 47 DEVELOPED AND EMERGING MARKETS.

- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS WORLDWIDE FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT TOTAL FUND
FEE(1) OTHER OPERATING EXPENSES
EXPENSES
<S> <C> <C>
0.65% 0.31% 0.96%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 98 $306 $531 $1,178
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS WORLDWIDE FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

HELEN YOUNG HAYES is Executive Vice President and portfolio manager of Janus
Worldwide Fund which she has managed or co-managed since inception. She has also
served as manager or co-manager of Janus Overseas Fund since 1994. Ms. Hayes
joined Janus Capital in 1987. She holds a Bachelor of Arts in Economics from
Yale University and is a Chartered Financial Analyst.
<PAGE>

JANUS BALANCED FUND

1. WHAT ARE THE GOALS OF JANUS BALANCED FUND?
Janus Balanced Fund seeks long-term growth of capital in a manner consistent
with preservation of capital and balanced by current income.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS BALANCED FUND?
Janus Balanced Fund normally invests 40-60% of its assets in securities selected
primarily for their growth potential and 40-60% of its assets in securities
selected primarily for their income potential. The Fund will normally invest at
least 25% of its assets in fixed-income securities. The portfolio manager
applies a "bottom up" approach to choosing investments. In other words,
potential investments are evaluated one at a time, regardless of the industry,
country of organization or other similarly defined selection criteria. The Fund
may invest without limit in foreign issuers. There are no restrictions on the
Fund's holdings of cash or similar investments and when the portfolio manager
cannot find favorable investment opportunities these may make up, a significant
portion of the portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS BALANCED FUND?
The growth component of Janus Balanced Fund's portfolio is expected to consist
primarily of common stocks. The fundamental risk of common stock investing is
that the value of the stocks might decrease in response to the activities of an
individual company or general market and/or economic conditions. If this occurs,
the value of the Fund's growth component may also decrease, which means the
Fund's net asset value may likewise decrease.

The income component of Janus Balanced Fund will consist of securities the
portfolio manager believes have income potential, including fixed-income
securities. The main risk associated with fixed-income securities is the risk
that the value of the security will rise or fall as interest rates change.
Generally, as interest rates increase, the value of a fixed-income portfolio
will decrease, which means the Fund's net asset value may likewise decrease. The
Fund may also be subject to credit risk which is the risk that an issuer may not
be able to pay principal or interest when due.

Janus Balanced Fund is designed for long-term investors who can accept the risks
of investing in a portfolio with significant common stock holdings, and is not
designed to provide a consistent level of income. Perhaps the biggest risk is
that the Fund's returns may vary, and you could lose money. The information
below provides an illustration of how the Fund's performance has varied over
time. The bar chart depicts the change in Janus Balanced Fund's performance from
year-to-year during the period indicated. The table compares the Fund's average
annual returns for the period indicated to a broad-based securities market
index.

JANUS BALANCED FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Balanced Fund from 1993
through 1997:

10.56% 0.02% 27.31% 15.30% 21.81%
1993 1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------
(PERIODS ENDED MARCH 31, 1998) 1 YEAR 5 YEARS SINCE INCEPTION (9/1/92)

<S> <C> <C> <C>
JANUS BALANCED FUND 31.83% 15.45% 17.37%
S&P 500 INDEX* 47.96% 22.38% 18.92%
LEHMAN BROTHERS GOV'T/
CORP BOND INDEX** 12.39% 6.96% 7.35%
- ------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUND'S YEAR-TO-DATE RETURN WAS 9.92%.

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 10.59% (QUARTER ENDED
6/30/97) AND THE LOWEST RETURN FOR A QUARTER WAS (0.66%) (QUARTER ENDED 3/31/94).

* THE S%P 500 IS THE STANDARD % POOR'S COMPOSITE INDEX OF 500 STOCKS, A WIDELY RECOGNIZED, UNMANAGED
INDEX OF COMMON STOCK PRICES.
** LEHMAN BROTHERS GOV'T/CORP BOND INDEX IS COMPOSED OF ALL BONDS THAT ARE OF INVESTMENT GRADE WITH
AT LEAST ONE YEAR UNTIL MATURITY.
- ------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform
in the future.

<PAGE>

4. WHAT ARE JANUS BALANCED FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE(1) EXPENSES OPERATING EXPENSES
<S> <C> <C>
0.74% 0.36% 1.10%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 112 $350 $606 $1,340
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS BALANCED FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

BLAINE P. ROLLINS is Executive Vice President and portfolio manager of Janus
Balanced Fund, which he has managed since January 1996, and Janus Equity Income
Fund, which he has managed since inception. He is an assistant portfolio manager
of Janus Fund. Mr. Rollins joined Janus Capital in 1990 and gained experience as
a fixed-income trader and equity research analyst prior to managing Janus
Balanced Fund. He holds a Bachelor of Science in Finance from the University of
Colorado and is a Chartered Financial Analyst.
<PAGE>

JANUS EQUITY INCOME FUND

1. WHAT ARE THE GOALS OF JANUS EQUITY INCOME FUND?
Janus Equity Income Fund pursues current income and long-term growth of capital.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS EQUITY INCOME FUND?
Janus Equity Income Fund normally emphasizes investments in common stock, and
growth potential is a significant investment consideration. The Fund tries to
provide a lower level of volatility than the S&P 500 Index. Under normal
circumstances, it invests at least 65% of its assets in income-producing equity
securities including common and preferred stocks, warrants and securities that
are convertible to common or preferred stocks. In making investment decisions,
the portfolio manager follows a "bottom up" approach. In other words, he looks
at potential investments one at a time regardless of industry, country of
organization or similar investment criteria. The Fund may invest without limit
in foreign issuers. There are no restrictions on the Fund's investment in cash
or similar investments and, to the extent that the portfolio manager cannot find
favorable investment opportunities, these may make up a significant portion of
the portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS EQUITY INCOME FUND?
Since Janus Equity Income Fund invests most of its assets in common stocks, the
fundamental risk is that the value of the stocks it holds might decrease in
response to the activities of an individual company or general market and/or
economic conditions. If this occurs, the Fund's net asset value may also
decrease.

Janus Equity Income Fund may invest to a lesser degree in fixed-income
securities. The main risk associated with fixed-income securities is the risk
that the value of the security will rise or fall as interest rates change.
Generally, as interest rates increase, the value of a fixed-income portfolio
will decrease, which means the Fund's net asset value may likewise decrease. The
Fund may also be subject to credit risk, which is the risk that an issuer will
be unable to make principal and interest payments when due.

Janus Equity Income Fund is designed for long-term investors who can accept the
risks of investing in a portfolio with significant common stock holdings and are
not seeking consistent income. Perhaps the biggest risk is that the Fund's
returns may vary, and you could lose money. The information below shows some
limited information (because the Fund is relatively new) about the Fund's
performance and how it may vary over time. The bar chart shows the Fund's
performance for its first full calendar year. The table shows the Fund's average
annual returns for the periods indicated compared to a broad-based securities
market index.

JANUS EQUITY INCOME FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Equity Income Fund for 1997:

31.08%
1997

The percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31,1998) 1 YEAR SINCE INCEPTION (6/28/96)
<S> <C> <C>
JANUS EQUITY INCOME FUND 43.64% 35.87%
S&P 500 INDEX* 47.96% 36.28%
- ----------------------------------------------------------------------------------------------------------------------------
AS OF MARCH 31, 1998, THE FUNDS'S YEAR-TO-DATE RETURN WAS 12.85%

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER WAS 13.19% (QUARTER ENDED 6/30/97) AND THE
LOWEST RETURN FOR A QUARTER WAS 0.69% (QUARTER ENDED 12/31/96).
* THE S&P 500* IS THE STANDARD & POOR'S COMPOSITE INDEX OF 500 STOCKS, A WIDELY RECOGNIZED, UNMANAGED INDEX OF COMMON
STOCK PRICES.
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS EQUITY INCOME FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus Funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE(1) EXPENSES OPERATING EXPENSES
<S> <C> <C>
0.75% 0.62% 1.37%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 139 $434 $750 $1,646
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS EQUITY INCOME
FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

BLAINE P. ROLLINS is Executive Vice President and portfolio manager of Janus
Equity Income Fund, which he has managed since inception, and Janus Balanced
Fund, which he has managed since January 1996. He is an assistant portfolio
manager of Janus Fund. Mr. Rollins joined Janus Capital in 1990 and gained
experience as a fixed-income trader and equity research analyst prior to
managing Janus Balanced Fund. He holds a Bachelor of Science in Finance from the
University of Colorado and is a Chartered Financial Analyst.
<PAGE>

JANUS GROWTH AND INCOME FUND

1. WHAT ARE THE GOALS OF JANUS GROWTH AND INCOME FUND?
Janus Growth and Income Fund pursues long-term growth of capital and current
income.

2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS GROWTH AND INCOME FUND?
Janus Growth and Income Fund is expected to emphasize investments in common
stocks. It will normally invest up to 75% of its assets in equity securities
selected primarily for their growth potential, and at least 25% of its assets in
securities the portfolio manager believes have income potential. Equity
securities may make up part of this income component if they currently pay
dividends or the portfolio manager believes they have potential for increasing
or commencing dividend payments. The portfolio manager applies a "bottom up"
approach to choosing investments. In other words, potential investments are
evaluated one at a time, regardless of industry, country of organization or
other similarly defined investment criteria. The Fund may invest without limit
in foreign issuers. There are no restrictions on the Fund's holdings of cash or
similar investments and when the portfolio manager is unable to find favorable
investment opportunities these may make up a significant portion of the
portfolio.

3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS GROWTH AND INCOME FUND?
Since Janus Growth and Income Fund usually invests most of its assets in common
stocks, the fundamental risk is that the value of the stocks it holds might
decrease in response to the activities of an individual company or general
market and/or economic conditions. If this occurs, the Fund's net asset value
may also decrease. To the extent the Fund invests in foreign securities, its
returns may be affected by fluctuations in currency exchange rates, or political
or economic conditions in foreign markets.

Janus Growth and Income Fund is designed for long-term investors who can accept
the risks of investing in a portfolio with significant common stock holdings. It
is not designed for investors who need consistent income. Perhaps the biggest
risk is that the Fund's returns may vary, and you could lose money. The
information below provides an illustration of how the Fund's performance has
varied over time. The bar chart depicts the change in Janus Growth and Income
Fund's performance from year-to-year during the period indicated. The table
compares the Fund's average annual returns for the periods indicated to a
broad-based securities market index.

JANUS GROWTH AND INCOME FUND PERFORMANCE

A BAR CHART showing Annual Total Returns for Janus Growth and Income Fund from
1992 through 1997:

5.35% 6.70% -4.87% 36.35% 26.03% 34.66%
1992 1993 1994 1995 1996 1997

Each percentage is represented by a bar of proportionate size with the actual
total return printed above the bar.

<TABLE>
<CAPTION>
PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------------------------
(PERIODS ENDED MARCH 31, 1998) 1 YEAR 5 YEARS SINCE INCEPTION (5/15/91)
<S> <C> <C> <C>
JANUS GROWTH AND INCOME FUND 53.97% 21.82% 21.88%
S&P 500 INDEX 47.96% 22.38% 20.19%
-----------------------------------------------------------------------------------------------------------------
</TABLE>

AS OF MARCH 31, 1998, THE FUND'S YEAR-TO-DATE RETURN WAS 14.88%.

DURING THE PERIOD SHOWN IN THE BAR CHART, THE HIGHEST RETURN FOR A QUARTER
WAS 18.91% (QUARTER ENDED 6/30/97) AND THE LOWEST RETURN FOR A QUARTER WAS
(6.55%) (QUARTER ENDED 3/31/92).

* THE S&P 500(R) IS THE STANDARD & POOR'S COMPOSITE INDEX OF 500 STOCKS,
A WIDELY RECOGNIZED, UNMANAGED INDEX OF COMMON STOCK PRICES.

The Fund's past performance does not necessarily indicate how it will perform in
the future.
<PAGE>

4. WHAT ARE JANUS GROWTH AND INCOME FUND'S FEES AND EXPENSES?
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus Funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Fund.

THIS TABLE DESCRIBES THE ANNUAL FUND OPERATING EXPENSES THAT YOU MAY PAY
IF YOU BUY AND HOLD SHARES OF THE FUND.

<TABLE>
<CAPTION>
MANAGEMENT TOTAL FUND
FEE(1) OTHER OPERATING EXPENSES
EXPENSES
<S> <C> <C>
0.67% 0.30% 0.97%
------------------------------------------
</TABLE>

EXAMPLE:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C>
-------------------------------------
$ 99 $309 $536 $1,190
</TABLE>

5. WHO ARE THE INVESTMENT ADVISER AND PORTFOLIO MANAGER OF JANUS GROWTH AND
INCOME FUND?
Janus Capital Corporation serves as the Fund's investment adviser. Janus Capital
has been in the investment advisory business for over 27 years and currently
manages over $85 billion in assets.

DAVID J. CORKINS is Executive Vice President and portfolio manager of Janus
Growth and Income Fund, which he has managed since August 1997. He previously
served as an assistant portfolio manager of Janus Mercury Fund. He joined Janus
in 1995 as a research analyst specializing in domestic financial services
companies and a variety of foreign industries. Prior to joining Janus he was the
Chief Financial Officer of Chase U.S. Consumer Services, Inc., a Chase Manhattan
mortgage business. He holds a Bachelor of Arts in English and Russian from
Dartmouth and received his Master of Business Administration from Columbia
University in 1993.
<PAGE>

INFORMATION COMMON TO ALL FUNDS

THE FOLLOWING QUESTIONS AND ANSWERS ARE COMMON TO ALL JANUS EQUITY FUNDS.

6. HOW DO I BUY SHARES?
The Funds are only available to U.S. citizens or residents. You may purchase
shares after reviewing the information in this profile or you may request and
review the prospectus (and other information) before making a decision to invest
in a Fund. If you choose to purchase shares after reviewing this Profile, you
will receive the prospectus with your confirmation of purchase. Please read it
carefully and promptly after receipt. To buy shares of a Fund, complete and sign
the appropriate application and send it, along with your check, payable to Janus
in the postage-paid envelope provided. Purchases will be processed at a Fund's
next net asset value calculated after your order is received and accepted. The
minimum initial investment for most types of accounts is $2,500 (IRA and
UGMA/UTMA accounts can be opened for $500). If you enroll in our low minimum
initial investment program, you can open your account for as little as $500 with
a $100 subsequent purchase each month. You may also want to consider one of
several automatic investment programs, including payroll deduction.

Please call a Janus Investor Service Representative at 1-800-523-3713 for more
information.

7. HOW DO I SELL OR EXCHANGE SHARES?
You may redeem all or a portion of your shares on any business day by written
request or telephone (unless you have declined the telephone redemption request
in writing). If you have not declined the telephone redemption option, you may
redeem shares by calling a Janus representative during our normal business
hours. Redemption proceeds can be paid by check or by electronic transfer
directly into your bank account, if you have established this option. Transfers
by wire (delivered the next business day) will incur an $8 service fee, and your
bank may charge you to receive the wire.

All accounts are automatically eligible for the telephone exchange option. To
exchange shares of one Janus fund for any other Janus fund, call an Investor
Service Representative during our normal business hours or call the Janus Xpress
Line, 1-888-979-7737, for access to this option 24 hours a day. You can also
send us a written request to exchange shares. Be sure to read the profile or
prospectus for the fund into which you are exchanging.
<PAGE>

8. HOW ARE DISTRIBUTIONS MADE AND TAXED?
DISTRIBUTION SCHEDULE
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<TABLE>
DIVIDENDS CAPITAL GAINS
- -------------------------------------------------------------------
<S> <C> <C>
GROWTH FUNDS DECLARED AND PAID DECLARED AND PAID
IN DECEMBER IN DECEMBER

COMBINATION DECLARED AND PAID DECLARED AND PAID
FUNDS IN MARCH, JUNE, IN DECEMBER
SEPTEMBER AND
DECEMBER
</TABLE>

You may elect to receive dividends and distributions in cash or reinvest in
additional shares. Distributions may be taxable to you as ordinary income or
capital gains whether reinvested in additional shares or received in cash.

Capital gains distributions may be taxable at different rates depending on
length of time a Fund held the assets.

9. WHAT SERVICES ARE AVAILABLE?

JANUS XPRESS LINE(TM).............................................1-888-979-7737
For 24-hour access to account and Fund information, redemptions, exchanges and
purchases, automated daily quotes on Fund share prices, yields and total
returns, and to request prospectuses, shareholder reports or marketing materials
for any Janus fund.

JANUS WEB SITE...............................................HTTP:/WWW.JANUS.COM
You can access investing information as well as your account balance. You may
also request and/or download a prospectus and application for any Janus fund.

JANUS INVESTOR SERVICES...........................................1-800-525-3713
To speak to an Investor Service Representative about the Funds and available
services (Monday - Friday 8:00 a.m. - 8:00 p.m., Saturday 10:00 a.m. - 4:00
p.m., EST).

JANUS ADDRESSES
MAILING ADDRESS
Janus
P.O. Box 173375
Denver, CO 80217-3375

FOR OVERNIGHT CARRIER
Janus
Suite 101
3773 Cherry Creek North Drive
Denver, CO 80209-3811

SYSTEMATIC PURCHASE, REDEMPTION OR EXCHANGE
Janus offers a variety of systematic purchase, redemption and exchange options
to help you automate your investing. These options allow you to determine the
amount of money you want redeemed or exchanged from a Fund or purchased into a
Fund on a predetermined date every month. Call an Investor Service
Representative for more information or to obtain the necessary forms to
establish these options.
<PAGE>

[JANUS LOGO]
1-800-525-3713

P.O. Box 173375
Denver, Colorado 80217-3375
www.janus.com