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Prudential Mutual Funds
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National Municipals Fund, Inc.
SUPPLEMENT TO PROSPECTUS DATED MARCH 3, 1999
How to Buy, Sell and Exchange Shares of the Fund
The section entitled 'How to Buy, Sell and Exchange Shares of the Fund--How to
Buy Shares' is amended as follows:
The third paragraph under 'Reducing or Waiving Class A's Initial Sales
Charge--Increase the Amount of Your Investment' is amended to read in its
entirety as follows:
Mutual Fund Programs. The initial sales charge will be waived for investors in
certain programs sponsored by broker-dealers, investment advisers and
financial planners who have agreements with Prudential Investments Advisory
Group relating to:
- Mutual fund 'wrap' or asset allocation programs where the sponsor places
Fund trades and charges its clients a management, consulting or other
fee for its services; or
- Mutual fund 'supermarket' programs where the sponsor links its clients'
accounts to a master account in the sponsor's name and the sponsor
charges a fee for its services.
Broker-dealers, investment advisers or financial planners sponsoring
these mutual fund programs may offer their clients more than one class of
shares in the Fund in connection with different pricing options for their
programs. Investors should consider carefully any separate transaction and
other fees charged by these programs in connection with investing in each
available share class before selecting a share class.
The first paragraph under 'Qualifying for Class Z Shares' is amended to read
in its entirety as follows:
Mutual Fund Programs. Class Z shares can be purchased by participants in any
fee-based program or trust program sponsored by Prudential or an affiliate
that includes the Fund as an available option.
MF104C2
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Class Z shares can also be purchased by investors in certain programs
sponsored by broker-dealers, investment advisers and financial planners who
have agreements with Prudential Investments Advisory Group relating to:
- Mutual fund 'wrap' or asset allocation programs, where the sponsor
places Fund trades, links its clients' accounts to a master account in
the sponsor's name and charges its clients a management, consulting or
other fee for its services; or
- Mutual fund 'supermarket' programs, where the sponsor links its clients'
accounts to a master account in the sponsor's name and the sponsor
charges a fee for its services.
Broker-dealers, investment advisers or financial planners sponsoring
these mutual fund programs may offer their clients more than one class of
shares in the Fund in connection with different pricing options for their
programs. Investors should consider carefully any separate transaction and
other fees charged by these programs in connection with investing in each
available share class before selecting a share class.
Other Types of Investors. Class Z shares can also be purchased by any of the
following:
- Certain participants in the MEDLEY Program (group variable annuity
contracts) sponsored by Prudential for whom Class Z shares of the
Prudential mutual funds are an available option;
- Current and former Directors/Trustees of the Prudential mutual funds
(including the Fund); and
- Prudential, with an investment of $10 million or more.
The date of this Supplement is July 23, 1999.
