OPPENHEIMER EQUITY INCOME FUND
Supplement dated July 16, 1997 to the
Prospectus dated November 1, 1996
The Prospectus is changed as follows:
1. The Supplement dated May 1, 1997 to the Prospectus is replaced by
this supplement.
2. The first footnote under the "Shareholder Transaction Expenses" table on page
3 is replaced with the following:
(1) If you invest $1 million or more ($500,000 or more for purchases by
"Retirement Plans", as defined in "Class A Contingent Deferred Sales
Charge" on page 32) in Class A shares, you may have to pay a sales charge
of up to 1% if you sell your shares within 12 calendar months (18 months
for shares purchased prior to May 1, 1997) from the end of the calendar
month during which you purchased those shares. See "How to Buy Shares
Buying Class A Shares", below.
3. The fundamental policy described on page 20 that, "The Fund cannot buy or
sell commodities or commodity contracts other than those hedging instruments
which are considered commodities" is replaced with the following fundamental
policy:
o The Fund cannot invest in physical commodities or physical commodity
contracts; however, the Fund may: (i) buy and sell hedging instruments
permitted by any of its other investment policies, and (ii) buy and sell
options, futures, securities or other instruments backed by, or the
investment return from which is linked to changes in the price of, physical
commodities.
4. The fundamental policy described on page 20 that "The Fund cannot engage in
short sales or purchase securities on margin; however, the Fund may make margin
deposits in connection with any of the hedging instruments it may use" is
replaced with the following fundamental policy:
o The Fund cannot engage in short sales or purchase securities on margin,
however, the Fund may make margin deposits in connection with any of its
investments.
5. The fundamental policy described on page 20 that "The Fund cannot mortgage,
pledge or hypothecate the Fund's assets; the escrow, collateral and margin
arrangements involved with hedging instruments are not considered to involve a
mortgage, hypothecation or pledge" is replaced with the following fundamental
policy:
(Continued)
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o The Fund cannot mortgage, pledge or hypothecate the Fund's assets; the
escrow, collateral and margin arrangements involved with any of its
investments are not considered to involve a mortgage, hypothecation or
pledge.
6. The fundamental policy described on page 20 that, "The Fund cannot borrow
money" is replaced with the following fundamental policy:
o The Fund cannot borrow money, except for temporary, emergency purposes or
under other unusual circumstances.
7. The second sentence in "Class A Shares" under "Classes of Shares" on page 27
is replaced by the following:
If you purchase Class A shares as part of an investment of at least $1
million ($500,000 for Retirement Plans) in shares of one or more
Oppenheimer funds, you will not pay an initial sales charge, but if you
sell any of those shares within 12 months of buying them (18 months if the
shares were purchased prior to May 1, 1997), you may pay a contingent
deferred sales charge.
8. The following sentence is added to the end of "Which Class of
Shares Should You Choose?
- - How Does It Affect Payments To My Broker?" on page 29:
The Distributor may pay additional periodic compensation from its own
resources to securities dealers or financial institutions based upon the
value of shares of the Fund owned by the dealer or financial institution
for its own account or for its customers.
9. The following fourth sub-paragraph is added to "Buying Class A
Shares - Class A
Contingent Deferred Sales Charge" on page 32:
o Purchases by a retirement plan qualified under section 401(a) if the
retirement plan has total plan assets of $500,000 or more.
10. The first sentence in the second paragraph of "Buying Class A Shares - Class
A Contingent Deferred Sales Charge" on page 32 is replaced by the following:
The Distributor pays dealers of record commission on those purchases in an
amount equal to (i) 1.0% for non-Retirement Plan accounts, and (ii) for
Retirement Plan accounts, 1.0% of the first $2.5 million, plus 0.50% of the
next $2.5 million, plus 0.25% of purchases over $5 million, calculated on a
calendar year basis.
(Continued)
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11. In the third paragraph of "Buying Class A Shares - Class A Contingent
Deferred Sales Charge" on page 32, the first sentence is replaced by the
following:
If you redeem any of those shares purchased prior to May 1, 1997, within 18
months of the end of the calendar month of their purchase, a contingent
deferred sales charge (called the "Class A contingent deferred sales
charge") may be deducted from the redemption proceeds. A Class A contingent
deferred sales charge may be deducted from the redemption proceeds of any
of those shares purchased on or after May 1, 1997 that are redeemed within
12 months of the end of the calendar month of their purchase.
12. The third sentence of the second paragraph of "Reduced Sales
Charges for Class A Share
Purchases - Right of Accumulation" on page 33 is replaced by the
following:
The Distributor will add the value, at current offering price, of the
shares you previously purchased and currently own to the value of current
purchases to determine the sales charge rate that applies.
13. The third sub-paragraph in "Waivers of the Class A Contingent Deferred Sales
Charge for Certain Redemptions" on page 36 is replaced by the following:
o if, at the time of purchase of shares (prior to May 1, 1997) the
dealer agreed in writing to accept the dealer's portion of the sales
commission in installments of 1/18th of the commission per month (and no
further commission will be payable if the shares are redeemed within 18
months of purchase);
o if, at the time of purchase of shares (on or after May 1, 1997) the
dealer agrees in writing to accept the dealer's portion of the sales
commission in installments of 1/12th of the commission per month (and no
further commission will be payable if the shares are redeemed within 12
months of purchase);
14. The following sub-paragraphs are added at the end of "Waivers of the Class A
Contingent Deferred Sales Charge for Certain Redemptions" on page 36:
o for distributions from Retirement Plans having 500 or more eligible
participants, except distributions due to termination of all of the
Oppenheimer funds as an investment option under the Plan; and
o for distributions from 401(k) plans sponsored by broker-dealers that
have entered into a special agreement with the Distributor allowing this
waiver.
(Continued)
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15. The following sentence is added to the end of the third paragraph in
"Distribution and Service Plans for Class B and Class C Shares" on page 39:
If a dealer has a special agreement with the Distributor, the Distributor
will pay the Class B service fee and the asset-based sales charge to the
dealer quarterly in lieu of paying the sales commission and service fee
advance at the time of purchase.
16. The following is added as a new penultimate sentence to the fourth paragraph
of "Distribution and Service Plans for Class B and Class C shares" on page 39:
If a dealer has a special agreement with the Distributor, the Distributor
shall pay the Class C service fee and asset-based sales charge to the
dealer quarterly in lieu of paying the sales commission and service fee
advance at the time of purchase.
17. The introductory phrase in the sixth sub-paragraph of "Waivers for
Redemptions of Shares in Certain Cases" in "Waivers of Class B and Class C Sales
Charges" on page 40 is replaced with the following and a new sub-section (6) is
added as follows:
o distributions from OppenheimerFunds prototype 401(k) plans
and from certain
Massachusetts Mutual Life Insurance Company prototype 401(k) plans
. . . (6) for loans to
participants or beneficiaries.
18. The following sub-paragraph is added at the end of "Waivers for
Redemptions of Shares
in Certain Cases" in "Waivers of Class B and Class C Sales Charges" on
page 40:
o Distributions from 401(k) plans sponsored by broker-dealers that have
entered into a special agreement with the Distributor allowing this waiver.
19. The section captioned "Special Investor Services" is revised by adding the
following after the sub-section captioned "PhoneLink" on page 41:
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.
July 16, 1997 PS0300.010
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OPPENHEIMER EQUITY INCOME FUND
Supplement dated July 16, 1997 to the
Statement of Additional Information dated November 1, 1996
The Statement of Additional Information is changed as follows:
1. The fundamental policy described on page 18 that, "The Fund cannot buy or
sell real estate or interests in real estate investment trusts" is replaced with
the following fundamental policy:
o The Fund cannot invest in real estate or in interests in real estate, but
may purchase securities of issuers holding real estate or interests
therein.
2. The fundamental policy described on page 18 that, "The Fund cannot buy
securities of other investment companies, except in connection with a merger or
consolidation" is eliminated.
3. The fundamental policy described on page 18 that, "The Fund cannot act as an
underwriter of securities of other issuers" is replaced with the following
fundamental policy:
o The Fund cannot act as an underwriter of securities of other issuers,
except in connection with sales of its portfolio securities.
July 16, 1997 PX0300.004
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