Dreyfus Appreciation Fund, Inc.
1 Investment Objective
The goal of Dreyfus Appreciation Fund, Inc. is to provide you with
long-term capital growth
consistent with capital preservation by investing primarily in
domestic and foreign equity securities. Current income is a secondary
goal.
2 Investment Strategy
The Fund invests primarily in the common stocks of domestic and
foreign issuers and debt securities of foreign governments. The Fund
seeks investment opportunities in generally larger capitalization
companies (over $500 million) which Fund management believes have the
potential to experience above average and predictable earnings growth.
The Fund also will be alert to those foreign and domestic issuers which
it considers undervalued by the stock market in terms of current
earnings, assets or growth prospects, including those with new or
innovative products, services or processes.
3 Investment Risks
n All mutual funds of this type involve certain investment risks,
including the possible loss of money.
n Equity securities fluctuate in value, often based on factors
unrelated to the value of the issuer or the securities, and these
fluctuations can be pronounced. These variances will affect the value
of a Fund share and thus the Fund's total return to investors.
n Investments in foreign securities can involve greater risk and
may be less liquid and more volatile than more conventional
investments.
4 Appropriate for Investors Who:
n Are seeking capital growth through a portfolio consisting
primarily of domestic and foreign equity securities.
n Are purchasing as a supplement to an overall investment program
and are willing to undertake the risks involved.
n Have an investment horizon of at least five years.
5 Fees and Expenses
Shareholder Transaction Expenses - The Fund has no shareholder transaction
expenses, although certain agents may charge their clients direct fees for
effecting transactions in Fund shares.
Annual Fund Operating Expenses are fees paid by the Fund and are reflected in
the Fund's share price. The following expenses are expressed as a percentage
of average daily net assets.
Management Fees .55%
Other Expenses .36%
Total Fund Operating Expenses .91%
Example:
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and
(2) redemption at the end of each time period:
1 Year 3 Years 5 Years 10 Years
$9 $29 $50 $112
The purpose of this section is to assist you in understanding the costs and
expenses borne by the Fund, the payment of which will
reduce investors' annual return. The example is an illustration only; actual
expenses and returns will vary.
6 Past Performance
Calendar Year Total Return
[Exhibit A]
Average Annual Total Returns
for periods ended 6/30/97
1 Year 5 Years 10 Years
Dreyfus
Appreciation Fund 35.36% 18.74% 14.28%
S&P 500 Composite
Stock Index 34.68% 19.76% 14.63%
Past performance is no guarantee of future results; net asset value and
investment return fluctuate, so that when you sell your shares you may
receive more or less than the amount you paid for them.
7 Investment Adviser/Portfolio Manager
The Dreyfus Corporation is the Fund's investment adviser. The Fund
has engaged Fayez Sarofim & Co. to serve as the Fund's sub-investment
adviser. Fayez Sarofim has been the Fund's primary portfolio manager
since 1990. Mr. Sarofim founded Fayez Sarofim & Co. in 1958. The
Houston-based investment firm currently manages approximately $33.4
billion. Prior to establishing his own company, Mr. Sarofim was
assistant to the president of Anderson, Clayton & Co.
8 Purchases
The minimum initial investment is $2,500. The initial investment
must be accompanied by the Fund's Account Application. Subsequent
investments must be at least $100. You may purchase Fund shares by check
or wire, the Dreyfus TeleTransfer Privilege, or through the Dreyfus Step
Program.
9 Redemptions
You can sell Fund shares by written request, telephone, Dreyfus Tele
Transfer ($500 minimum, $150,000 maximum) or wire redemption ($1,000 minimum,
$250,000 maximum).
When a redemption request is received in
proper form, the Fund will redeem the shares at the next determined
net asset value.
10 Distributions
Dividends and capital gains, if any, are declared and paid
annually. Dividends and capital gains can be mailed to you, sent
directly to your bank, swept into another Dreyfus account or reinvested
back into your Fund to purchase shares at net asset value.
Distributions of net investment income and any net realized
short-term capital gains will be taxable as ordinary income.
Distributions from net realized long-term capital gains will be taxable
as long-term capital gains, regardless of how long investors have held
their shares.
11 Other Services
n Telephone Exchange Privilege
n Dreyfus-AUTOMATIC Asset BuilderRegistration Mark
n Dreyfus Dividend Options
n Dreyfus Payroll Savings Plan
n Dreyfus Step Program
This Profile contains key information about the Fund. If you would like more
information before you invest, please consult the Fund's Prospectus. For
details about the Fund's holdings or recent investment strategies, please
review the Fund's most recent annual or semi-annual report. The Prospectus
and reports may be obtained at no cost by calling:
1-800-782-6620
Copy Rights 1997, Dreyfus Service Corporation, Broker-Dealer
Premier Mutual Fund Services, Distributor 141retpro8-977
Registration Mark
Fund Profile
Dreyfus
Appreciation Fund, Inc.
An equity
mutual fund
July 1, 1997
