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Prudential Utility Fund, Inc.
Supplement dated November 14, 1996 to
Prospectus dated March 1, 1996
The following information supplements ``How the Fund Invests--Investment
Objective and Policies'' in the Prospectus:
The Fund's investment objective is to seek total return through a
combination of current income and capital appreciation. The Fund seeks to
achieve its objective through investment in equity and debt securities of
utility companies, which include electric, gas, gas pipeline, telephone,
telecommunications, water, cable, airport, seaport and toll road companies.
The following information supplements ``How the Fund Invests--Hedging and
Return Enhancement Strategies--Options Transactions'' and ``How the Fund
Invests--Other Investments and Policies--When-Issued and Delayed Delivery
Securities'' in the Prospectus:
In circumstances where the Fund's custodian maintains a segregated account
of the Fund for covered call options transactions or the purchase of when-issued
or delayed delivery securities, the funds to be maintained in a segregated
account include cash, U.S. Government securities, equity securities or other
liquid, unencumbered assets, marked-to-market daily, having a value equal to or
greater than the Fund's commitments.
MF 105C-2 (11/14/96)
