<PAGE>
Prudential Tax-Free Money Fund
Supplement dated December 30, 1994
Prospectus dated May 2, 1994
Manager
Effective January 1, 1995, Prudential Mutual Fund Management, Inc., the
Manager of the Fund, has voluntarily agreed to waive .05 of 1% of its management
fee. The Management Agreement between the Fund and the Manager provides for a
fee at the annual rate of .50 of 1% of the Fund's average daily net assets up to
$750 million, .425 of 1% of the Fund's average daily net assets between $750
million and $1.5 billion and .375 of 1% in excess of $1.5 billion. After the
waiver, the management fee will be .45 of 1% of the Fund's average daily net
assets up to $750 million, .375 of 1% of the Fund's average daily net assets
between $750 million and $1.5 billion and.325 of 1% in excess of $1.5 billion.
Annual fund operating expenses for the Fund are set forth under ``Fund
Expenses'' in the Prospectus. The Manager may hereafter agree, from time to
time, to further waive or modify any waiver of its management fee and subsidize
certain operating expenses of the Fund. The Fund is not required to reimburse
the Manager for such management fee waiver or expense subsidy.
MF103 C-1
<PAGE>
