DAILY CASH ACCUMULATION FUND, INC.
Supplement dated August 14, 1997 to the
Prospectus dated April 25, 1997
This Supplement to the Prospectus replaces the Supplement dated May 1, 1997 and
changes the Prospectus as follows:
1. The following paragraphs are added on page 9 at the end of "How the Fund is
Managed":
The Board of Directors of the Fund has determined that it is in the best
interest of the Fund's shareholders that the Fund reorganize with and into
Centennial Money Market Trust. The Board of Directors unanimously approved
the terms of an Agreement and Plan of Reorganization to be entered into
between these funds (the "Reorganization Plan") and the transactions
contemplated (the transactions are referred to as the "Reorganization").
The Board of Directors further determined that the Reorganization should
be submitted to the Fund's shareholders for approval, and recommended that
shareholders approve the Reorganization.
Pursuant to the Reorganization Plan, (i) substantially all of the assets
of the Fund would be exchanged for shares of Centennial Money Market
Trust, (ii) these shares of Centennial Money Market Trust would be
distributed to the shareholders of the Fund, (iii) the Fund would be
liquidated, and (iv) the Fund would be dissolved and, in connection with
the dissolution, the outstanding shares of the Fund would be canceled. It
is expected that the Reorganization will be tax-free pursuant to Section
368(a)(1) of the Internal Revenue Code of 1986, as amended, and the Fund
will request an opinion from the Fund's independent auditors to that
effect.
A meeting of the shareholders has been scheduled for November 18, 1997 to
vote on the Reorganization. Approval of the Reorganization requires the
affirmative vote of the holders of a majority of the total number of
shares outstanding and entitled to vote thereon. There is no assurance
that the Fund's shareholders will approve the Reorganization. Details
about the Reorganization will be contained in a proxy statement and other
soliciting materials to be sent to the Fund's shareholders of record as of
September 19, 1997. Persons who become shareholders of the Fund after the
record date for the shareholder meeting will not be entitled to vote on
the Reorganization.
Continued
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2. In "Exchange Privilege" under "Exchanges of Shares" on page 15, the fourth
sentence of the third paragraph is replaced by the following:
The redemption proceeds of shares of the Fund acquired by exchange of Class A
shares of an Eligible Fund purchased subject to a CDSC, that are redeemed within
12 months of the end of the calendar month of the initial purchase of the
exchanged shares (18 months for shares purchased prior to May 1, 1997), will be
subject to the CDSC as described in the prospectus of that other Eligible Fund.
3. The section captioned "Exchanges of Shares" is revised by adding the
following after the sub-section captioned "Telephone Instructions" on page 16:
Shareholder Transactions by Fax. Beginning May 30, 1997, requests for certain
account transactions may be sent to the Transfer Agent by fax (telecopier).
Please call 1-800-525-7048 for information about which transactions are
included. Transaction requests submitted by fax are subject to the same rules
and restrictions as written and telephone requests described in this Prospectus.
August 14, 1997 PS0140.002
