PRUDENTIAL SERIES FUND INC, 497, 1999-05-07

PRUDENTIAL SERIES FUND INC
497, 1999-05-07

Previous: PRUDENTIAL SERIES FUND INC, 497J, 1999-05-07

Next: PRUDENTIAL SERIES FUND INC, 497, 1999-05-07

THE PRUDENTIAL
SERIES FUND, INC.
- --------------------------------------------------------------------------------

CONSERVATIVE BALANCED PORTFOLIO

DIVERSIFIED BOND PORTFOLIO

EQUITY PORTFOLIO

FLEXIBLE MANAGED PORTFOLIO [PRUDENTIAL LOGO]

GLOBAL PORTFOLIO

GOVERNMENT INCOME PORTFOLIO

STOCK INDEX PORTFOLIO

PROSPECTUS: MAY 1, 1999

As with all mutual funds, filing this prospectus with the SEC does not mean that
the SEC has judged this Fund a good investment, nor has the SEC determined that
this prospectus is complete or accurate. It is a criminal offense to state
otherwise.

[GRAPHIC]

[PRUDENTIAL INVESTMENTS LOGO]

THE PRUDENTIAL SERIES FUND, INC. 1

<PAGE>

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

RISK/RETURN SUMMARY
CONSERVATIVE BALANCED PORTFOLIO................. 3
Investment Objective and Principal Strategies... 3
Principal Risks................................. 3
Evaluating Performance.......................... 4
DIVERSIFIED BOND PORTFOLIO...................... 5
Investment Objective and Principal Strategies... 5
Principal Risks................................. 5
Evaluating Performance.......................... 5
EQUITY PORTFOLIO................................ 6
Investment Objective and Principal Strategies... 6
Principal Risks................................. 6
Evaluating Performance.......................... 7
FLEXIBLE MANAGED PORTFOLIO...................... 8
Investment Objective and Principal Strategies... 8
Principal Risks................................. 8
Evaluating Performance.......................... 8
GLOBAL PORTFOLIO................................ 9
Investment Objective and Principal Strategies... 9
Principal Risks................................. 9
Evaluating Performance.......................... 10
GOVERNMENT INCOME PORTFOLIO..................... 11
Investment Objective and Principal Strategies... 11
Principal Risks................................. 11
Evaluating Performance.......................... 11
STOCK INDEX PORTFOLIO........................... 12
Investment Objective and Principal Strategies... 12
Principal Risks................................. 12
Evaluating Performance.......................... 12

HOW THE PORTFOLIOS INVEST
Conservative Balanced Portfolio................. 14
Diversified Bond Portfolio...................... 17
Equity Portfolio................................ 19
Flexible Managed Portfolio...................... 21
Global Portfolio................................ 23
Government Income Portfolio..................... 25
Stock Index Portfolio........................... 27

HOW THE PORTFOLIOS ARE MANAGED
Investment Adviser.............................. 33
Investment Sub-Advisers......................... 33
Portfolio Managers.............................. 33

HOW TO BUY AND SELL SHARES OF THE FUND
How to Buy and Sell Shares...................... 35
Net Asset Value................................. 35
Distributor..................................... 36

OTHER INFORMATION
Federal Income Taxes............................ 37
Year 2000....................................... 37
Monitoring for Possible Conflicts............... 37

FINANCIAL HIGHLIGHTS............................ 38
FOR MORE INFORMATION...................(Back Cover)

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 2

<PAGE>

RISK/RETURN SUMMARY
- --------------------------------------------------------------------------------

THIS PROSPECTUS IS FOR USE WITH THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT-24
CONTRACT (THE VCA-24 CONTRACT) AND ONLY DESCRIBES THOSE PORTFOLIOS OF THE
PRUDENTIAL SERIES FUND, INC. (THE FUND) THAT ARE AVAILABLE FOR INVESTMENT
THROUGH THE CONTRACT. THIS PROSPECTUS SHOULD BE READ TOGETHER WITH THE CURRENT
PROSPECTUS FOR THE VCA-24 CONTRACT.

The Fund is a diversified, open-end investment management company - commonly
known as a mutual fund. Seven of the Fund's seventeen portfolios (the
Portfolios) are available under the VCA-24 Contract:

CONSERVATIVE BALANCED PORTFOLIO GLOBAL PORTFOLIO

DIVERSIFIED BOND PORTFOLIO GOVERNMENT INCOME PORTFOLIO

EQUITY PORTFOLIO STOCK INDEX PORTFOLIO

FLEXIBLE MANAGED PORTFOLIO

The following section highlights key information about each Portfolio.
Additional information follows this summary and is provided in the Fund's
Statement of Additional Information (SAI).

CONSERVATIVE BALANCED PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is A TOTAL INVESTMENT RETURN CONSISTENT WITH A
CONSERVATIVELY MANAGED DIVERSIFIED PORTFOLIO. This Portfolio may be appropriate
for an investor who wants diversification with a relatively lower risk of loss
than that associated with the Flexible Managed Portfolio (see below). To achieve
our objective, we invest in a mix of equity securities, debt obligations and
money market instruments. Up to 30% of the Portfolio's total assets may be
invested in foreign securities. In addition, we may invest a portion of the
Portfolio's assets in high yield/high risk debt securities. While we make every
effort to achieve our objective, we can't guarantee success.

PRINCIPAL RISKS

Although we try to invest wisely, all investments involve risk. Equity
securities - such as common stocks - are subject to COMPANY RISK. The price of
the stock of a particular company can vary based on a variety of factors, such
as the company's financial performance, changes in management and product
trends, and the potential for takeover and acquisition. Common stocks are also
subject to MARKET RISK stemming from factors independent of any particular
security. Investment markets fluctuate. All markets go through cycles and market
risk involves being on the wrong side of a cycle. Factors affecting market risk
include political events, broad economic and social changes, and the mood of the
investing public. You can see market risk in action during large drops in the
stock market. If investor sentiment turns gloomy, the price of all stocks may
decline. It may not matter that a particular company has great profits and its
stock is selling at a relatively low price. If the overall market is dropping,
the values of all stocks are likely to drop.

Since the Portfolio also invests in debt obligations, there is the risk that
the value of a particular obligation could decrease. Debt obligations may
involve CREDIT RISK - the risk that the borrower will not repay an obligation,
and MARKET RISK - the risk that interest rates may change and affect the value
of the obligation. High-yield debt securities - also known as "junk bonds" -
have a higher risk of default and tend to be less liquid.
- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 3

<PAGE>

RISK/RETURN SUMMARY CONTINUED
- --------------------------------------------------------------------------------

The Portfolio's investment in foreign securities involves additional risks. For
example, foreign banks and companies generally are not subject to the same
types of regulatory requirements that U.S. banks and companies are. Foreign
political developments and changes in currency rates may adversely affect the
value of foreign securities.

There is also risk involved in the investment strategies we may use. Some of
our strategies require us to try to predict whether the price or value of an
underlying investment will go up or down over a certain period of time. There
is always the risk that investments will not perform as we thought they would.
Like any mutual fund, an investment in the Portfolio could lose value, and you
could lose money. For more information about risk, see "Investment Risks."

EVALUATING PERFORMANCE

A number of factors - including risk - affect how the Portfolio performs. The
following bar chart and table show the Portfolio's performance for each full
calendar year of operation for the last 10 years. They demonstrate the risk of
investing in the Portfolio and how returns can change from year to year. Past
performance does not mean that the Portfolio will achieve similar results in the
future.

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1989 16.99%
1990 5.27%
1991 19.07%
1992 6.95%
1993 12.20%
1994 -0.97%
1995 17.27%
1996 12.63%
1997 13.45%
1998 11.74%

BEST QUARTER: 7.62% (2nd quarter of 1997)
WORST QUARTER: (3.17)% (3rd quarter of 1998)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- ----------------------------------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (5/13/83)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I shares 11.74% 10.65% 11.31% 10.86%
- ----------------------------------------------------------------------------------
S&P 500** 28.60% 24.05% 19.19% 17.29%
- ----------------------------------------------------------------------------------
Lipper Average*** 14.79% 13.73% 12.21% 8.94%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE STANDARD & POOR'S 500 STOCK INDEX (S&P 500 ) - AN UNMANAGED INDEX OF
500 STOCKS OF LARGE U.S. COMPANIES - GIVES A BROAD LOOK AT HOW STOCK
PRICES HAVE PERFORMED. THESE RETURNS DO NOT INCLUDE THE EFFECT OF ANY
INVESTMENT MANAGEMENT EXPENSES. THESE RETURNS WOULD BE LOWER IF THEY
INCLUDED THE EFFECT OF THESE EXPENSES. THE "SINCE INCEPTION" RETURN
REFLECTS THE CLOSEST CALENDAR MONTH-END RETURN (4/30/83). SOURCE: LIPPER,
INC.

*** THE LIPPER/VARIABLE INSURANCE PRODUCTS (VIP) BALANCED AVERAGE IS
CALCULATED BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE INVESTMENT
RETURN OF CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND ANNUITY
PRODUCTS. THE RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES BUT NOT
PRODUCT CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST
CALENDAR MONTH-END RETURN (4/30/83). SOURCE: LIPPER, INC.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 4

<PAGE>

- -------------------------------------------------------------------------------

DIVERSIFIED BOND PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is A HIGH LEVEL OF INCOME OVER A LONGER TERM WHILE
PROVIDING REASONABLE SAFETY OF CAPITAL. This means we look for investments that
we think will provide a high level of current income, but which are not expected
to involve a substantial risk of loss of capital through default. To achieve our
objective, we invest primarily in higher-grade debt obligations and high-quality
money market investments. We may also purchase U.S. dollar denominated
securities that are issued outside the U.S. by foreign or U.S. issuers. In
addition, we may invest a portion of the Portfolio's assets in high yield/high
risk debt securities. While we make every effort to achieve our objective, we
can't guarantee success.

PRINCIPAL RISKS

Although we try to invest wisely, all investments involve risk. Since the
Portfolio invests primarily in debt obligations, there is the risk that the
value of a particular obligation could go down. Debt obligations may involve
CREDIT RISK - the risk that the borrower will not repay an obligation, and
MARKET RISK - the risk that interest rates may change and affect the value of
the obligation. High-yield debt securities - also known as "junk bonds" - have a
higher risk of default and tend to be less liquid.

The Portfolio's investment in U.S. dollar denominated foreign securities
involves additional risks. For example, foreign banks and companies generally
are not subject to the same types of regulatory requirements that U.S. banks and
companies are. Foreign political developments may adversely affect the value of
foreign securities. The Portfolio's foreign securities may also be affected by
changes in currency rates, though to a lesser extent than if the Portfolio
invested in securities denominated in a foreign currency.

EVALUATING PERFORMANCE

THE PRUDENTIAL SERIES FUND, INC. 5

<PAGE>

RISK/RETURN SUMMARY CONTINUED
- --------------------------------------------------------------------------------

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1989 13.49%
1990 8.32%
1991 16.44%
1992 7.19%
1993 10.13%
1994 -3.23%
1995 20.73%
1996 4.40%
1997 8.57%
1998 7.15%

BEST QUARTER: 7.94% (2nd quarter of 1989)
WORST QUARTER: (2.83)% (1st quarter of 1994)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.

<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- ----------------------------------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (5/13/83)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I shares 7.15% 7.25% 9.14% 9.25%
- ----------------------------------------------------------------------------------
Lehman Aggregate Index** 8.69% 7.27% 9.26% 9.99%
- ----------------------------------------------------------------------------------
Lipper Average*** 7.44% 7.13% 8.97% 8.94%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE LEHMAN AGGREGATE INDEX (LAI) IS COMPRISED OF MORE THAN 5,000 GOVERNMENT
AND CORPORATE BONDS. THESE RETURNS DO NOT INCLUDE THE EFFECT OF ANY SALES
CHARGES. THESE RETURNS WOULD BE LOWER IF THEY INCLUDED THE EFFECT OF SALES
CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST CALENDAR
MONTH-END RETURN (4/30/83). SOURCE: LIPPER, INC.

*** THE LIPPER VARIABLE INSURANCE PRODUCTS (VIP) CORPORATE DEBT AVERAGE IS
CALCULATED BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE INVESTMENT
RETURN OF CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND ANNUITY PRODUCTS.
THE RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES BUT NOT PRODUCT
CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST CALENDAR
MONTH-END RETURN (4/30/83). SOURCE: LIPPER, INC.

EQUITY PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is CAPITAL APPRECIATION. To achieve our objective, we
invest primarily in common stocks of major established corporations as well as
smaller companies that we believe offer attractive prospects of appreciation.
In addition, the Portfolio may invest up to 30% of its total assets in foreign
securities. While we make every effort to achieve our objective, we can't
guarantee success.

PRINCIPAL RISKS

Although we try to invest wisely, all investments involve risk. Equity
securities - such as common stocks - are subject to COMPANY RISK. The price of
the stock of a particular company can vary based on a variety of factors, such
as the company's financial performance, changes in management and product
trends, and the potential for takeover and acquisition. Common stocks are also
subject to MARKET RISK stemming from factors independent of any particular
security. Investment markets fluctuate. All markets go through cycles and market
risk involves being on the wrong side of a cycle. Factors affecting market risk
include political events, broad economic and social changes, and the mood of the
investing public. You can see market risk in action during large drops in the
stock market. If investor sentiments turn gloomy, the price of all stocks may
decline. It may not matter that a particular company has great profits and its
stock is selling at a relatively low price. If the

- -------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 6

<PAGE>

- --------------------------------------------------------------------------------

overall market is dropping, the values of all stocks are likely to drop.
Generally, the stock prices of small-sized companies vary more than the prices
of large company stocks and may present above average risks.

The Portfolio's investment in foreign securities involves additional risks. For
example, foreign banks and companies generally are not subject to the same types
of regulatory requirements that U.S. banks and companies are. Foreign political
developments and changes in currency rates may adversely affect the value of
foreign securities.

There is also risk involved in the investment strategies we may use. Some of our
strategies require us to try to predict whether the price or value of an
underlying investment will go up or down over a certain period of time. There is
always the risk that investments will not perform as we thought they would. Like
any mutual fund, an investment in the Portfolio could lose value, and you could
lose money. For more information about risk, see "Investment Risks."

EVALUATING PERFORMANCE

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1989 29.73%
1990 -5.21%
1991 26.01%
1992 14.17%
1993 21.87%
1994 2.78%
1995 31.29%
1996 18.52%
1997 24.66%
1998 9.34%

BEST QUARTER: 19.13% (1st quarter of 1991)
WORST QUARTER: (15.59)% (3rd quarter of 1990)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.

<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- ----------------------------------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (5/13/83)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I shares 9.34% 16.88% 16.74% 15.14%
- ----------------------------------------------------------------------------------
S&P 500** 28.60% 24.05% 19.19% 17.29%
- ----------------------------------------------------------------------------------
Lipper Average*** 24.94% 20.25% 17.83% 16.01%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE STANDARD & POOR'S 500 STOCK INDEX (S&P 500) - AN UNMANAGED INDEX OF
500 STOCKS OF LARGE U.S. COMPANIES - GIVES A BROAD LOOK AT HOW STOCK
PRICES HAVE PERFORMED. THESE RETURNS DO NOT INCLUDE THE EFFECT OF ANY
INVESTMENT MANAGEMENT EXPENSES. THESE RETURNS WOULD BE LOWER IF THEY
INCLUDED THE EFFECT OF THESE EXPENSES. THE "SINCE INCEPTION" RETURN
REFLECTS THE CLOSEST CALENDAR MONTH-END RETURN (4/30/83). SOURCE: LIPPER,
INC.

*** THE LIPPER VARIABLE INSURANCE PRODUCTS (VIP) GROWTH FUND AVERAGE IS
CALCULATED BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE INVESTMENT
RETURN OF CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND ANNUITY
PRODUCTS. THE RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES BUT NOT
PRODUCT CHARGES. THESE RETURNS WOULD BE LOWER IF THEY INCLUDED THE EFFECT
OF THESE EXPENSES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST
CALENDAR MONTH-END RETURN (4/30/83). SOURCE: LIPPER, INC.
- -------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 7

<PAGE>

RISK/RETURN SUMMARY CONTINUED
- --------------------------------------------------------------------------------

FLEXIBLE MANAGED PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is A HIGH TOTAL RETURN CONSISTENT WITH AN AGGRESSIVELY
MANAGED DIVERSIFIED PORTFOLIO. This Portfolio may be appropriate for an investor
who wants diversification and is willing to accept a relatively high level of
loss in an effort to achieve greater appreciation. To achieve our objective, we
invest in a mix of equity securities, debt obligations and money market
instruments. The Portfolio may also invest in foreign securities. A portion of
the debt portion of the Portfolio may be invested in high-yield/high-risk debt
securities which have speculative characteristics and generally are riskier than
higher-rated securities. While we make every effort to achieve our objective, we
can't guarantee success.

PRINCIPAL RISKS

Although we try to invest wisely, all investments involve risk. Since the
Portfolio invests in debt obligations, there is the risk that the value of a
particular obligation could decrease. Debt obligations may involve CREDIT RISK
the risk that the borrower will not repay an obligation, and MARKET RISK - the
risk that interest rates may change and affect the value of the obligation.

A substantial portion of the Portfolio's assets may also be invested in equity
securities. Equity securities - such as common stocks - are subject to COMPANY
RISK. The price of the stock of a particular company can vary based on a variety
of factors, such as the company's financial performance, changes in management
and product trends, and the potential for takeover and acquisition. Common
stocks are also subject to MARKET RISK stemming from factors independent of any
particular security. Investment markets fluctuate. All markets go through cycles
and market risk involves being on the wrong side of a cycle. Factors affecting
market risk include political events, broad economic and social changes and the
mood of the investing public. If investor sentiments turn gloomy, the price of
all stocks may decline. It may not matter that a particular company has great
profits and its stock is selling at a relatively low price. If the overall
market is dropping, the value of all stocks are likely to drop.

The Portfolio's investment in foreign securities involves additional risks. For
example, foreign banks and companies generally are not subject to the same types
of regulatory requirements that U.S. banks and companies are. Foreign political
developments and changes in currency rates may adversely affect the value of
foreign securities.

There is also risk involved in the investment strategies we may use. Some of our
strategies require us to try to predict whether the price or value of an
underlying investment will go up or down over a certain period of time. There is
always the risk that investments will not perform as we thought they would. Like
any mutual fund, an investment in the Portfolio could lose value, and you could
lose money. For more information about risk, see "Investment Risks."

EVALUATING PERFORMANCE

THE PRUDENTIAL SERIES FUND, INC. 8

<PAGE>

- --------------------------------------------------------------------------------

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1989 21.77%
1990 1.91%
1991 25.43%
1992 7.61%
1993 15.58%
1994 -3.16%
1995 24.13%
1996 13.64%
1997 17.96%
1998 10.24%

BEST QUARTER: 10.89% (2nd quarter of 1997)
WORST QUARTER: (8.50)% (3rd quarter of 1998)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.

<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- ----------------------------------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (5/13/83)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I shares 10.24% 12.19% 13.15% 12.06%
- ----------------------------------------------------------------------------------
S&P 500** 28.60% 24.05% 19.19% 17.29%
- ----------------------------------------------------------------------------------
Lipper Average*** 13.50% 13.64% 14.00% 12.84%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE STANDARD & POOR'S 500 STOCK INDEX (S&P 500) - AN UNMANAGED INDEX OF 500
STOCKS OF LARGE U.S. COMPANIES - GIVES A BROAD LOOK AT HOW STOCK PRICES
HAVE PERFORMED. THESE RETURNS DO NOT INCLUDE THE EFFECT OF ANY INVESTMENT
MANAGEMENT EXPENSES. THESE RETURNS WOULD BE LOWER IF THEY INCLUDED THE
EFFECT OF THESE EXPENSES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST
CALENDAR MONTH-END RETURN (4/30/83). SOURCE: LIPPER, INC.

*** THE LIPPER VARIABLE INSURANCE PRODUCTS (VIP) FLEXIBLE AVERAGE IS CALCULATED
BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE INVESTMENT RETURN OF
CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND ANNUITY PRODUCTS. THE
RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES BUT NOT PRODUCT
CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST CALENDAR
MONTH-END RETURN (4/30/83). SOURCE: LIPPER, INC.

GLOBAL PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is LONG-TERM GROWTH OF CAPITAL. To achieve this
objective, we invest primarily in common stocks (and their equivalents) of
foreign and U.S. companies. Generally, we invest in at least three countries,
including the U.S., but we may invest up to 35% of the Portfolio's assets in
companies located in any one country other than the U.S. While we make every
effort to achieve our objective, we can't guarantee success.

PRINCIPAL RISKS

Although we try to invest wisely, all investments involve risk. Equity
securities - such as common stocks - are subject to COMPANY RISK. The price of
the stock of a particular company can vary based on a variety of factors, such
as the company's financial performance, changes in management and product
trends, and the potential for takeover and acquisition. Common stocks are also
subject to MARKET RISK stemming from factors independent of any particular
security. Investment markets fluctuate. All markets go through cycles and
market risk involves being on the wrong side of a cycle. Factors affecting
market risk include political events, broad economic and social changes, and
the mood of the investing public. You can see market risk in action during
large drops in the stock market. If investor sentiments turn gloomy, the price
of all stocks may decline. It may
- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 9

<PAGE>

RISK/RETURN SUMMARY CONTINUED
- --------------------------------------------------------------------------------

not matter that a particular company has great profits and its stock is selling
at a relatively low price. If the overall market is dropping, the values of all
stocks are likely to drop.

Depending on market conditions, the Portfolio may be invested primarily in
foreign securities, which involve additional risks. For example, foreign banks
and companies generally are not subject to the same types of regulatory
requirements that U.S. banks and companies are. Foreign political developments
and changes in currency rates may adversely affect the value of foreign
securities.

There is also risk involved in the investment strategies we may use. Some of our
strategies require us to try to predict whether the price or value of an
underlying investment will go up or down over a certain period of time. There is
always the risk that investments will not perform as we thought they would. Like
any mutual fund, an investment in the Portfolio could lose value, and you could
lose money. For more information about risk, see "Investment Risks."

EVALUATING PERFORMANCE

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1989 18.82%
1990 -12.91%
1991 11.39%
1992 -3.42%
1993 43.14%
1994 -4.89%
1995 15.88%
1996 19.97%
1997 6.98%
1998 25.08%

BEST QUARTER: 22.17% (4th quarter of 1998)
WORST QUARTER: (14.21)% (3rd quarter of 1998)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.

<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- ----------------------------------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (9/19/88)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I shares 25.08% 12.04% 10.90% 11.47%
- ----------------------------------------------------------------------------------
Morgan Stanley World Index** 24.80% 16.19% 11.21% 12.10%
- ----------------------------------------------------------------------------------
Lipper Average*** 16.19% 12.31% 11.04% 11.10%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE MORGAN STANLEY WORLD INDEX (MSWI) IS A WEIGHTED INDEX COMPRISED OF
APPROXIMATELY 1,500 COMPANIES LISTED ON THE STOCK EXCHANGES OF THE U.S.A.,
EUROPE, CANADA, AUSTRALIA, NEW ZEALAND AND THE FAR EAST. THE "SINCE
INCEPTION" RETURN REFLECTS THE CLOSEST CALENDAR MONTH-END RETURN
(9/30/88). SOURCE: LIPPER, INC.

*** THE LIPPER VARIABLE INSURANCE PRODUCTS (VIP) GLOBAL AVERAGE IS CALCULATED
BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE INVESTMENT RETURN OF
CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND ANNUITY PRODUCTS. THE
RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES BUT NOT PRODUCT
CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST CALENDAR
MONTH-END RETURN (9/30/88). SOURCE: LIPPER, INC.
- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 10

<PAGE>
- --------------------------------------------------------------------------------

GOVERNMENT INCOME PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is A HIGH LEVEL OF INCOME OVER THE LONG TERM CONSISTENT
WITH THE PRESERVATION OF CAPITAL. To achieve our objective, we invest primarily
in U.S. government securities, including intermediate and long term U.S.
Treasury securities and debt obligations issued by agencies or instrumentalities
established by the U.S. government. The Portfolio may also invest in
mortgage-related securities, collateralized mortgage obligations and corporate
debt securities. While we make every effort to achieve our objective, we can't
guarantee success.

AN INVESTMENT IN THE PORTFOLIO IS NOT A BANK DEPOSIT AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY.

PRINCIPAL RISKS

The Portfolio invests primarily in U.S. government securities which are
considered among the most creditworthy of debt securities. Nevertheless, all
investments involve risk. All debt securities have the risk that the value of a
particular obligation could decrease. Debt obligations may involve CREDIT RISK -
the risk that the borrower will not repay an obligation, and MARKET RISK - the
risk that interest rates may change and affect the value of the obligation.

There is also risk involved in the investment strategies we may use. Some of our
strategies require us to try to predict whether the price or value of an
underlying investment will go up or down over a certain period of time. There is
always the risk that investments will not perform as we thought they would. Like
any mutual fund, an investment in the Portfolio could lose value, and you could
lose money. For more information about risk, see "Investment Risks."

EVALUATING PERFORMANCE

A number of factors - including risk - affect how the Portfolio performs. The
following bar chart and table show the Portfolio's performance for each full
calendar year of operation for the last 9 years. They demonstrate the risk of
investing in the Portfolio and how returns can change from year to year. Past
performance does not mean that the Portfolio will achieve similar results in the
future.

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1990 6.34%
1991 16.11%
1992 5.85%
1993 12.56%
1994 -5.16%
1995 19.48%
1996 2.22%
1997 9.67%
1998 9.09%

BEST QUARTER: 6.95% (3rd quarter of 1991)
WORST QUARTER: (3.93)% (1st quarter of 1994)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.
- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 11

<PAGE>

RISK/RETURN SUMMARY CONTINUED
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- ----------------------------------------------------------------------------------
1 YEAR 5 YEARS SINCE INCEPTION (5/1/89)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Class I shares 9.09% 6.74% 8.87%
- ----------------------------------------------------------------------------------
Lehman Govt. Index** 9.85% 7.18% 9.14%
- ----------------------------------------------------------------------------------
Lipper Average*** 8.14% 6.36% 8.66%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE LEHMAN GOVERNMENT INDEX IS A WEIGHTED INDEX COMPRISED OF SECURITIES
ISSUED OR BACKED BY THE U.S. GOVERNMENT, ITS AGENCIES AND INSTRUMENTALITIES
WITH A REMAINING MATURITY OF ONE TO 30 YEARS. THE "SINCE INCEPTION" RETURN
REFLECTS THE CLOSEST CALENDAR MONTH-END RETURN (4/30/89). SOURCE: LIPPER,
INC.

*** THE LIPPER VARIABLE INSURANCE PRODUCTS (VIP) GENERAL U.S. GOVERNMENT
AVERAGE IS CALCULATED BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE
INVESTMENT RETURN OF CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND
ANNUITY PRODUCTS. THE RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES
BUT NOT PRODUCT CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST
CALENDAR MONTH-END RETURN (4/30/89). SOURCE: LIPPER, INC.

STOCK INDEX PORTFOLIO

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

Our investment objective is INVESTMENT RESULTS THAT GENERALLY CORRESPOND TO THE
PERFORMANCE OF PUBLICLY-TRADED COMMON STOCKS. To achieve our objective, we
attempt to duplicate the price and yield of the Standard & Poor's 500 Stock
Index (S&P 500 Index). The S&P 500 Index represents more than 70% of the total
market value of all publicly-traded common stocks and is widely viewed as
representative of publicly-traded common stocks as a whole.

The Portfolio is not "managed" in the traditional sense of using market and
economic analyses to select stocks. Rather, the portfolio manager purchases
stocks in proportion to their weighting in the S&P 500 Index. While we make
every effort to achieve our objective, we can't guarantee success.

PRINCIPAL RISKS

Although we try to invest wisely, all investments involve risk. Equity
securities - such as common stocks - are subject to COMPANY RISK. The price of
the stock of a particular company can vary based on a variety of factors, such
as the company's financial performance, changes in management and product
trends, and the potential for takeover and acquisition. Common stocks are also
subject to MARKET RISK stemming from factors independent of any particular
security. Investment markets fluctuate. All markets go through cycles and market
risk involves being on the wrong side of a cycle. Factors affecting market risk
include political events, broad economic and social changes, and the mood of the
investing public. You can see market risk in action during large drops in the
stock market. If investor sentiments turn gloomy, the price of all stocks may
decline. It may not matter that a particular company has great profits and its
stock is selling at a relatively low price. If the overall market is dropping,
the values of all stocks are likely to drop.

Like any mutual fund, an investment in the Portfolio could lose value, and you
could lose money. For more information about risk, see "Investment Risks."

EVALUATING PERFORMANCE

A number of factors - including risk - affect how the Portfolio performs. The
following bar chart and table show the Portfolio's performance for each full
calendar year of operation for the last 10 years. They demonstrate the risk of
investing in the Portfolio and how returns can change. Past performance does not
mean that the Portfolio will achieve similar results in the future.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 12

<PAGE>

- --------------------------------------------------------------------------------

ANNUAL RETURNS* (CLASS I SHARES)
- ----------------------------------

1989 30.93%
1990 -3.63%
1991 29.72%
1992 7.13%
1993 9.66%
1994 1.01%
1995 37.06%
1996 22.57%
1997 32.83%
1998 28.42%

BEST QUARTER: 21.44% (4th quarter of 1998)
WORST QUARTER: (13.72%) (3rd quarter of 1990)

* THESE ANNUAL RETURNS DO NOT INCLUDE CONTRACT CHARGES. IF CONTRACT CHARGES
WERE INCLUDED, THE ANNUAL RETURNS WOULD BE LOWER THAN THOSE SHOWN. SEE THE
ACCOMPANYING CONTRACT PROSPECTUS.

<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS* (AS OF 12/31/98)
- -----------------------------------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (10/19/87)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I shares 28.42% 23.70% 18.74% 18.82%
- ----------------------------------------------------------------------------------
S&P 500** 28.60% 24.05% 19.19% 18.50%
- ----------------------------------------------------------------------------------
Lipper Average*** 28.25% 23.58% 18.62% 18.04%
- ----------------------------------------------------------------------------------
</TABLE>

* THE PORTFOLIO'S RETURNS ARE AFTER DEDUCTION OF EXPENSES AND DO NOT INCLUDE
CONTRACT CHARGES.

** THE STANDARD & POOR'S 500 STOCK INDEX (S&P 500) - AN UNMANAGED INDEX OF 500
STOCKS OF LARGE U.S. COMPANIES - GIVES A BROAD LOOK AT HOW STOCK PRICES
HAVE PERFORMED. THESE RETURNS DO NOT INCLUDE THE EFFECT OF ANY INVESTMENT
MANAGEMENT EXPENSES. THESE RETURNS WOULD BE LOWER IF THEY INCLUDED THE
EFFECT OF THESE EXPENSES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST
CALENDAR MONTH-END RETURN (10/31/87). SOURCE: LIPPER, INC.

*** THE LIPPER VARIABLE INSURANCE PRODUCTS (VIP) S&P 500 INDEX AVERAGE IS
CALCULATED BY LIPPER ANALYTICAL SERVICES, INC. AND REFLECTS THE INVESTMENT
RETURN OF CERTAIN PORTFOLIOS UNDERLYING VARIABLE LIFE AND ANNUITY PRODUCTS.
THE RETURNS ARE NET OF INVESTMENT FEES AND FUND EXPENSES BUT NOT PRODUCT
CHARGES. THE "SINCE INCEPTION" RETURN REFLECTS THE CLOSEST CALENDAR
MONTH-END RETURN (10/31/87). SOURCE: LIPPER, INC.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 13

<PAGE>

HOW THE PORTFOLIOS INVEST
- --------------------------------------------------------------------------------

WHILE THE PORTFOLIOS HAVE SOME COMMON ATTRIBUTES, EACH ONE HAS ITS OWN
PORTFOLIO MANAGERS, INVESTMENT OBJECTIVE AND POLICIES, PERFORMANCE INFORMATION,
AND RISKS.

Therefore, some sections of this prospectus deal with each Portfolio separately,
while other sections address two or more Portfolios at the same time. In
sections that concern one particular Portfolio as identified in the section
heading, "the Portfolio" refers to that particular Portfolio.

CONSERVATIVE BALANCED PORTFOLIO

INVESTMENT OBJECTIVE AND POLICIES

The investment objective of this Portfolio is to seek A TOTAL INVESTMENT RETURN
CONSISTENT WITH A CONSERVATIVELY MANAGED DIVERSIFIED PORTFOLIO.

- --------------------------------------------------------------------------------
BALANCED PORTFOLIO

We invest in all three types of securities - equity, debt and money market - in
order to achieve diversification in a single portfolio. We seek to maintain a
conservative blend of investments that will have strong performance in a down
market and solid, but not necessarily outstanding, performance in up markets.
This Portfolio may be appropriate for an investor looking for diversification
with less risk than that of the Flexible Managed Portfolio, while recognizing
that this reduces the chances of greater appreciation.

- ------------------------------------------------------------------------------
To achieve our objective, we invest in a mix of equity and equity-related
securities, debt obligations and money market instruments. We adjust the
percentage of Portfolio assets in each category depending on our expectations
regarding the different markets. While we make every effort to achieve our
objective, we can't guarantee success.

We will vary how much of the Portfolio's assets are invested in a particular
type of security depending how we think the different markets will perform.
Under normal conditions, we intend to keep at least 25% of the Portfolio's
total assets invested in debt securities.

In general, we will invest within the ranges shown below:

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
ASSET TYPE MINIMUM NORMAL MAXIMUM
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Stocks 15% 35% 75%
- ------------------------------------------------------------------------------
Debt obligations and money
market securities 25% 65% 85%
- ------------------------------------------------------------------------------
</TABLE>

DEBT SECURITIES in general are basically written promises to repay a debt.
There are numerous types of debt securities which vary as to the terms of
repayment and the commitment of other parties to honor the obligations of the
issuer. Most of the securities in the debt portion of this Portfolio will be
rated "investment grade." This means major rating services, like Standard &
Poor's Ratings Group (S&P) or Moody's Investors Service, Inc. (Moody's), have
rated the securities within one of their four highest rating categories.

The Portfolio may also invest in lower-rated securities, which are riskier and
are considered speculative. These securities are sometimes referred to as "junk
bonds." We may also invest in instruments that are not rated, but which we
believe are of comparable quality to the instruments described above.

The Portfolio may also invest up to 30% of its total assets in FOREIGN EQUITY
and DEBT SECURITIES that are not denominated in the U.S. dollar. In addition,
up to 20% of the Portfolio's total assets may be invested in debt securities
that are issued outside the U.S. by foreign or U.S. issuers, but are
denominated in U.S. dollars. For these purposes, we do not consider American
Depositary Receipts (ADRs) as foreign securities. (ADRs are

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 14

<PAGE>

- --------------------------------------------------------------------------------

certificates representing the right to receive foreign securities that have been
deposited with a U.S. bank or a foreign branch of a U.S. bank.)

The stock portion of the Portfolio will be invested mainly in EQUITY and
EQUITY-RELATED securities of major, established corporations which we believe
are in sound financial condition and offer better total returns than broad based
market indexes.

The money market portion of the Portfolio will be invested in high-quality money
market instruments. We manage this portion of the Portfolio to comply with
specific rules designed for money market mutual funds. We will not acquire any
security with a remaining maturity exceeding thirteen months, and we will
maintain a dollar-weighted average portfolio of 90 days or less. (Weighted
average maturity is calculated by adding the maturities of all the bonds in a
portfolio and dividing by the number of bonds on a weighted basis.)

In response to adverse market conditions or when restructuring the Portfolio, we
may temporarily invest up to 100% of the Portfolio's total assets in money
market instruments. Investing heavily in these securities limits our ability to
achieve our investment objective, but can help to preserve the value of the
Portfolio's assets when the markets are unstable.

We may also invest in loans arranged through private negotiations between a
corporation which is the borrower and one or more financial institutions that
are the lenders. Generally, these types of investments are in the form of LOAN
PARTICIPATIONS. In loan participations, the Portfolio will have a contractual
relationship with the lender but not with the borrower. This means the Portfolio
will only have rights to principal and interest received by the lender. It will
not be able to enforce compliance by the borrower with the terms of the loan and
may not have a right to any collateral securing the loan. If the lender becomes
insolvent, the Portfolio may be treated as a general creditor and not benefit
from any set-off between the lender and the borrower.

DERIVATIVES AND OTHER STRATEGIES

We may also use alternative investment strategies - including DERIVATIVES - to
try to improve the Portfolio's returns, protect its assets or for short-term
cash management. There is no guarantee that these strategies will work, that the
instruments necessary to implement these strategies will be available or that
the Portfolio will not lose money. With derivatives, we try to predict whether
the underlying investment - a security, market index, currency, interest rate or
some other benchmark - will go up or down at some future date. We may use
derivatives to try to reduce risk or to increase return consistent with the
Portfolio's overall investment objective.

We may: purchase and sell OPTIONS on equity securities, debt securities, stock
indexes and foreign currencies; purchase and sell stock index, interest rate
and foreign currency FUTURES CONTRACTS and options on those contracts; enter
into FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS; and purchase securities on a
WHEN-ISSUED or DELAYED DELIVERY basis.

The Portfolio may also enter into SHORT SALES. In a short sale we sell a
security we do not own to take advantage of an anticipated decline in the
stock's price. The Portfolio borrows the stock for delivery and if it can buy
the stock later at a lower price, a profit results. No more than 25% of the
Portfolio's net assets may be used as collateral or segregated for purposes of
securing a short sale obligation. The Portfolio may also enter into SHORT SALES
AGAINST-THE-BOX which means it owns securities identical to those sold short.
- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 15

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED
- --------------------------------------------------------------------------------
We may also use INTEREST RATE SWAPS in the management of the fixed-income
portion of the Portfolio. In an interest rate swap the Portfolio and another
party agree to exchange interest payments. For example, the Portfolio may wish
to exchange a floating rate of interest for a fixed rate. We would enter into
this type of a swap if we think interest rates are going down.

The Portfolio may also enter into REPURCHASE AGREEMENTS. In a repurchase
transaction, the Portfolio agrees to purchase certain securities and the seller
agrees to repurchase the same securities at an agreed upon price on a specified
date. This creates a fixed return for the Portfolio. The Portfolio may
participate with certain other Portfolios of the Fund in a JOINT REPURCHASE
ACCOUNT under an order obtained from the SEC. In a joint repurchase transaction,
uninvested cash balances of various Portfolios are added together and invested
in one or more repurchase agreements. Each of the participating Portfolios
receives a portion of the income earned in the joint account based on the
percentage of its investment.

We may also invest in REVERSE REPURCHASE AGREEMENTS and DOLLAR ROLLS in the
management of the fixed-income portion of the portfolio. In a reverse repurchase
transaction, the Portfolio sells a security it owns and agrees to buy it back at
a set price and date. During the period the security is held by the other party,
the Portfolio may continue to receive principal and interest payments on the
security. Dollar rolls involve the sale by the Portfolio of a security for
delivery in the current month with a promise to repurchase from the buyer a
substantially similar but not necessarily the same - security at a set price and
date in the future. During the "roll period," the Portfolio does not receive any
principal or interest on the security. Instead it is compensated by the
difference between the current sales price and the price of the future purchase,
as well as any interest earned on the cash proceeds from the original sale. The
Portfolio will not use more than 30% of its net assets in connection with
reverse repurchase transactions and dollar rolls.

We will consider other factors (such as cost) in deciding whether to employ any
particular strategy or use any particular instrument. Any derivatives we use may
not match the Portfolio's underlying holdings. For more information about these
strategies, see the SAI, "Investment Objectives and Policies of the Portfolios."

ADDITIONAL STRATEGIES

The Portfolio also follows certain policies when it BORROWS MONEY (the Portfolio
may borrow up to 5% of the value of its total assets); LENDS ITS SECURITIES; and
holds ILLIQUID SECURITIES (the Portfolio may hold up to 15% of its net assets in
illiquid securities, including securities with legal or contractual restrictions
on resale, those without a readily available market and repurchase agreements
with maturities longer than seven days). The Portfolio is subject to certain
investment restrictions that are fundamental policies, which means they cannot
be changed without shareholder approval. For more information about these
restrictions, see the SAI.

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 16

<PAGE>

- -------------------------------------------------------------------------------

DIVERSIFIED BOND PORTFOLIO

INVESTMENT OBJECTIVE AND POLICIES

Our investment objective is a HIGH LEVEL OF INCOME OVER A LONGER TERM WHILE
PROVIDING REASONABLE SAFETY OF CAPITAL. This means we look for investments that
we think will provide a high level of current income, but which are not expected
to involve a substantial risk of loss of capital through default. To achieve our
objective, we invest primarily in intermediate and long term debt obligations
that are rated investment grade and high quality money market investments. While
we make every effort to achieve our objective, we can't guarantee success.

- --------------------------------------------------------------------------------
OUR STRATEGY

In general, the value of debt obligations moves in the opposite direction as
interest rates - if a bond is purchased and then interest rates go up, newer
bonds will be worth more because they will have a higher rate of interest. We
will adjust the mix of the Portfolio's short-term, intermediate and long term
debt obligations in an attempt to benefit from price appreciation when interest
rates go down and to incur smaller declines when rates go up.
- ------------------------------------------------------------------------------

Debt obligations, in general, are basically written promises to repay a debt.
The terms of repayment vary among the different types of debt obligations, as do
the commitments of other parties to honor the obligations of the issuer of the
security. The types of debt obligations in which we can invest include U.S.
government securities, mortgage-related securities and corporate bonds.

Usually at least 80% of the Portfolio's total assets will be invested in debt
securities that are investment grade. The Portfolio may continue to hold a debt
obligation if it is downgraded below investment grade after it is purchased or
if it is no longer rated by a major rating service. We may also invest in lower
rated securities which are riskier and considered speculative. These securities
are sometimes referred to as "junk bonds." We may also invest in instruments
that are not rated, but which we believe are of comparable quality to the
instruments described above.

The Portfolio may invest without limit in DEBT OBLIGATIONS ISSUED OR GUARANTEED
BY THE U.S. GOVERNMENT AND GOVERNMENT-RELATED ENTITIES. An example of a debt
security that is backed by the full faith and credit of the U.S. government is
an obligation of the Government National Mortgage Association (Ginnie Mae). In
addition, we may invest in U.S. government securities issued by other government
entities, like the Federal National Mortgage Association (Fannie Mae) and the
Student Loan Marketing Association (Sallie Mae) which are not backed by the full
faith and credit of the U.S. government. Instead, these issuers have the right
to borrow from the U.S. Treasury to meet their obligations. The Portfolio may
also invest in the debt securities of other government-related entities, like
the Farm Credit System, which depend entirely upon their own resources to repay
their debt.

We may also invest up to 20% of Portfolio's total assets in debt securities
issued outside the U.S. by U.S. or foreign issuers provided the securities are
denominated in U.S. dollars.

The Portfolio may also invest in CONVERTIBLE DEBT SECURITIES and CONVERTIBLE AND
NON-CONVERTIBLE PREFERRED STOCKS of any rating. The Portfolio will not acquire
any common stock except by converting a convertible debt security or exercising
a warrant. No more than 10% of the Portfolio's total assets will be held in
common stocks, and those will usually be sold as soon as a favorable opportunity
arises.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 17

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED
- --------------------------------------------------------------------------------

We may also invest in loans arranged through private negotiations between a
corporation which is the borrower and one or more financial institutions that
are the lenders. Generally, these types of investments are in the form of LOAN
PARTICIPATIONS. In loan participations, the Portfolio will have a contractual
relationship with the lender but not with the borrower. This means the Portfolio
will only have rights to principal and interest received by the lender. It will
not be able to enforce compliance by the borrower with the terms of the loan and
may not have a right to any collateral securing the loan. If the lender becomes
insolvent, the Portfolio may be treated as a general creditor and will not
benefit from any set-off between the lender and the borrower.

Under normal conditions, the Portfolio may invest a portion of its assets in
high-quality MONEY MARKET INSTRUMENTS. In response to adverse market conditions
or when restructuring the Portfolio, we may temporarily invest up to 100% of the
Portfolio's assets in money market instruments. Investing heavily in these
securities limits our ability to achieve our investment objective, but can help
to preserve the value of the Portfolio's assets when the markets are unstable.

DERIVATIVES AND OTHER STRATEGIES

We may: purchase and sell OPTIONS on debt securities; purchase and sell interest
rate FUTURES CONTRACTS and options on those contracts; and purchase securities
on a WHEN-ISSUED or DELAYED DELIVERY basis.

We may also use INTEREST RATE SWAPS in the management of the Portfolio. In an
interest rate swap the Portfolio and another party agree to exchange interest
payments. For example, the Portfolio may wish to exchange a floating rate of
interest for a fixed rate. We would enter into this type of a swap if we think
interest rates are going down.

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 18

<PAGE>

- --------------------------------------------------------------------------------

The Portfolio may also invest up to 30% of its net assets in REVERSE REPURCHASE
AGREEMENTS and DOLLAR ROLLS. In a reverse repurchase transaction, the Portfolio
sells a security it owns and agrees to buy it back at a set price and date.
During the period the security is held by the other party, the Portfolio may
continue to receive principal and interest payments on the security. Dollar
rolls involve the sale by the Portfolio of a security for delivery in the
current month with a promise to repurchase from the buyer a substantially
similar - but not necessarily the same - security at a set price and date in the
future. During the "roll period," the Portfolio does not receive any principal
or interest on the security. Instead it is compensated by the difference between
the current sales price and the price of the future purchase, as well as any
interest earned on the cash proceeds from the original sale. The Portfolio will
not use more than 30% of its net assets in connection with reverse repurchase
transactions and dollar rolls.

We will consider other factors (such as cost) in deciding whether to employ any
particular strategy or use any particular instrument. Any derivatives we use
may not match the Portfolio's underlying holdings. For more information about
these strategies, see the SAI, "Investment Objectives and Policies of the
Portfolios."

ADDITIONAL STRATEGIES

EQUITY PORTFOLIO
INVESTMENT OBJECTIVE AND POLICIES

The investment objective of this Portfolio is CAPITAL APPRECIATION. This means
we seek investments that we believe will provide investment returns above
broadly based market indexes. While we make every effort to achieve this
objective, we can't guarantee success.

- --------------------------------------------------------------------------------
VALUE APPROACH

We use a value approach to investing which means we look for companies whose
stock is selling below the price that we believe reflects its true worth based
on earnings, book value and other financial measures.

To achieve our value investment strategy, we usually buy securities that are out
of favor and that many other investors are selling. We attempt to invest in
companies and industries before other investors recognize their true value.
- --------------------------------------------------------------------------------

To achieve our investment objective, we invest primarily in common stocks of
major established corporations as well as smaller companies.

A portion of the Portfolio's assets may be invested in short, intermediate or
long term DEBT OBLIGATIONS, including convertible and nonconvertible PREFERRED
STOCK and OTHER EQUITY-RELATED SECURITIES. Up to 5% of these holdings may be
rated below investment grade. These securities are considered speculative and
are sometimes referred to as "junk bonds."

Up to 30% of the Portfolio's total assets may be invested in FOREIGN SECURITIES,
including money market instruments, equity securities and debt obligations. For
these purposes, we do not consider American Depositary Receipts (ADRs) as
foreign securities. (ADRs are certificates representing the right to receive
foreign securities that have been deposited with a U.S. bank or a foreign branch
of a U.S. bank.)

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 19

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED
- --------------------------------------------------------------------------------

Under normal circumstances, the Portfolio may invest a portion of its assets in
MONEY MARKET INSTRUMENTS. In addition, we may temporarily invest up to 100% of
the Portfolio's assets in money market instruments in response to adverse market
conditions or when we are restructuring the Portfolio. Investing heavily in
these securities limits our ability to achieve our investment objective, but can
help to preserve the Portfolio's assets when the markets are unstable.

DERIVATIVES AND OTHER STRATEGIES

We may also use alternative investment strategies - including DERIVATIVES - to
try to improve the Portfolio's returns, protect its assets or for short-term
cash management. There is no guarantee that these strategies will work, that the
instruments necessary to implement these strategies will be available or that
the Portfolio will not lose money. With derivatives, we try to predict whether
the underlying investment - a security, market index, currency or some other
benchmark - will go up or down at some future date. We may use derivatives to
try to reduce risk or to increase return consistent with the Portfolio's overall
investment objective.

We may: purchase and sell OPTIONS on equity securities, stock indexes and
foreign currencies; purchase and sell stock index and foreign currency FUTURES
CONTRACTS and options on these futures contracts; enter into FORWARD FOREIGN
CURRENCY EXCHANGE CONTRACTS; and purchase securities on a WHEN-ISSUED or DELAYED
DELIVERY basis.

The Portfolio may also enter into SHORT SALES AGAINST-THE-BOX. In a short sale
we sell a security we do not own to take advantage of an anticipated decline in
the stock's price. The Portfolio borrows the stock for delivery and if it can
buy the stock later at a lower price, a profit results. A short sale is
"against-the-box" when the Portfolio owns an equal amount of the securities
sold short or owns securities that can be converted into the securities sold.

The Portfolio may also enter into REPURCHASE AGREEMENTS. In a repurchase
transaction, the Portfolio agrees to purchase certain securities and the seller
agrees to repurchase the same securities at a set price on a specified date.
This creates a fixed return for the Portfolio. The Portfolio may participate
with certain other Portfolios of the Fund in a JOINT REPURCHASE ACCOUNT under an
order obtained from the SEC. In a joint repurchase transaction, uninvested cash
balances of various Portfolios are added together and invested in one or more
repurchase agreements. Each of the participating Portfolios receives a portion
of the income earned in the joint account based on the percentage of its
investment.

We will consider factors such as cost and volatility in deciding whether to
employ any particular strategy or use any particular instrument. Any derivatives
we use may not match the Portfolio's underlying holdings. For more information
about these strategies, see the SAI, "Investment Objectives and Policies of the
Portfolios."

ADDITIONAL STRATEGIES

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 20

<PAGE>

- --------------------------------------------------------------------------------

FLEXIBLE MANAGED PORTFOLIO
INVESTMENT OBJECTIVE AND POLICIES

The investment objective of this Portfolio is to seek a HIGH TOTAL RETURN
CONSISTENT WITH AN AGGRESSIVELY MANAGED DIVERSIFIED PORTFOLIO.

- ------------------------------------------------------------------------------
BALANCED PORTFOLIO

We invest in all three types of securities - equity, debt and money market - in
order to achieve diversification in a single portfolio. We seek to maintain a
more aggressive mix of investments than the Conservative Balanced Portfolio.
This Portfolio may be appropriate for an investor looking for diversification
who is willing to accept a relatively high level of loss in an effort to achieve
greater appreciation.
- ------------------------------------------------------------------------------

To achieve our objective, we invest in a mix of equity and equity-related
securities, debt obligations and money market instruments. We adjust the
percentage of Portfolio assets in each category depending on our expectations
regarding the different markets. While we make every effort to achieve our
objective, we can't guarantee success.

Generally, we will invest within the ranges shown below:

- ------------------------------------------------------------------------------
ASSET TYPE MINIMUM NORMAL MAXIMUM
- ------------------------------------------------------------------------------

Stocks 25% 60% 100%
- ------------------------------------------------------------------------------
Fixed income securities 0% 40% 75%
- ------------------------------------------------------------------------------
Money market securities 0% 0% 75%
- ------------------------------------------------------------------------------

The stock portion of the Portfolio will be invested in a broadly diversified
portfolio of stocks generally consisting of large and mid-size companies,
although it may also hold stocks of smaller companies. We will invest in
companies and industries that, in our judgment, will provide either attractive
long-term returns, or are desirable to hold in the Portfolio to manage risk.

Most of the securities in the fixed income portion of this Portfolio will be
investment grade, however, we may also invest up to 25% of this portion of the
Portfolio in debt securities rated as low as BB, Ba or lower by a major rating
service at the time they are purchased. These high-yield or "junk bonds" are
riskier than higher rated bonds and are considered speculative. We may also
invest in instruments that are not rated, but which we believe are of comparable
quality to the instruments described above.

The fixed income portion of the Portfolio may also include LOAN PARTICIPATIONS.
In loan participations, the Portfolio will have a contractual relationship with
the lender but not with the borrower. This means the Portfolio will only have
rights to principal and interest received by the lender. It will not be able to
enforce compliance by the borrower with the terms of the loan and may not have a
right to any collateral securing the loan. If the lender becomes insolvent, the
Portfolio may be treated as a general creditor and will not benefit from any
set-off between the lender and the borrower.

The Portfolio may also invest up to 30% of its total assets in FOREIGN EQUITY
and DEBT SECURITIES that are not denominated in the U.S. dollar. In addition, up
to 20% of the Portfolio's total assets may be invested in debt securities that
are issued outside of the U.S. by foreign or U.S. issuers provided the
securities are denominated in U.S. dollars. For these purposes, we do not
consider American Depositary Receipts (ADRs) as foreign securities. (ADRs are
certificates representing the right to receive foreign securities that have been
deposited with a U.S. bank or a foreign branch of a U.S. bank.)

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 21

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED

- --------------------------------------------------------------------------------

The money market portion of the Portfolio will be invested in high-quality money
market instruments. In response to adverse market conditions or when we are
restructuring the Portfolio, we may temporarily invest up to 100% of the
Portfolio's assets in money market instruments. Investing heavily in these
securities limits our ability to achieve our investment objective, but can help
to preserve the Portfolio's assets when the markets are unstable.

The Portfolio may also invest in REAL ESTATE INVESTMENT TRUSTS (REITs). A REIT
is a company that manages a portfolio of real estate to earn profits for its
shareholders. Some REITs acquire equity interests in real estate and then
receive income from rents and capital gains when the buildings are sold. Other
REITs lend money to real estate developers and receive interest income from the
mortgages. Some REITs invest in both types of interests.

DERIVATIVES AND OTHER STRATEGIES

We may: purchase and sell OPTIONS on equity securities, debt securities, stock
indexes and foreign currencies; purchase and sell stock index, interest rate and
foreign currency FUTURES CONTRACTS and options on those contracts; enter into
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS; and purchase securities on a
WHEN-ISSUED or DELAYED DELIVERY basis.

We may also use INTEREST RATE SWAPS in the management of the fixed income
portion of the Portfolio. In an interest rate swap the Portfolio and another
party agree to exchange interest payments. For example, the Portfolio may wish
to exchange a floating rate of interest for a fixed rate. We would enter into
this type of a swap if we think interest rates are going down.

The Portfolio may also enter into REPURCHASE AGREEMENTS. In a repurchase
transaction, the Portfolio agrees to purchase certain securities and the seller
agrees to repurchase the same securities at a set price on a specified date.
This creates a fixed return for the Portfolio. The Portfolio may participate
with certain other Portfolios of the Fund in a JOINT REPURCHASE ACCOUNT under an
order obtained from the SEC. In a joint repurchase transaction, uninvested cash
balances of various Portfolios are added together and invested in one or more
repurchase agreements. Each of the participating Portfolios receives a portion
of the income earned in the joint account based on the percentage of its
investment.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 22

<PAGE>

- --------------------------------------------------------------------------------

We may also invest in REVERSE REPURCHASE AGREEMENTS and DOLLAR ROLLS in the
management of the fixed-income portion of the Portfolio. In a reverse repurchase
transaction, the Portfolio sells a security it owns and agrees to buy it back at
set price and date. During the period the security is held by the other party,
the Portfolio may continue to receive principal and interest payments on the
security. Dollar rolls involve the sale by the Portfolio of a security for
delivery in the current month with a promise to repurchase from the buyer a
substantially similar but not necessarily the same - security at a set price and
date in the future. During the "roll period," the Portfolio does not receive any
principal or interest on the security. Instead it is compensated by the
difference between the current sales price and the price of the future purchase,
as well as any interest earned on the cash proceeds from the original sale. The
Portfolio will not use more than 30% of its net assets in connection with
reverse repurchase transactions and dollar rolls.

ADDITIONAL STRATEGIES

GLOBAL PORTFOLIO
INVESTMENT OBJECTIVE AND POLICIES

The investment objective of this Portfolio is LONG TERM GROWTH OF CAPITAL. To
achieve this objective, we invest primarily in equity and equity-related
securities of foreign and U.S. companies. While we make every effort to achieve
this objective, we can't guarantee success.

- --------------------------------------------------------------------------------
GLOBAL INVESTING

This Portfolio is intended to provide investors with the opportunity to invest
in companies located throughout the world. Although we are not required to
invest in a minimum number of countries, we intend generally to invest in at
least three countries, including the U.S. However, in response to market
conditions, we can invest up to 35% of the Portfolio's total assets in any one
country other than the U.S.

- --------------------------------------------------------------------------------

When selecting stocks, we use a growth approach which means we look for
companies that have above-average growth prospects. In making our stock picks,
we look for companies that have had growth in earnings and sales, high returns
on equity and assets or other strong financial characteristics. Often, the
companies we chose have superior management, a unique market niche or a strong
new product.

The Portfolio may invest up to 100% of its assets in MONEY MARKET INSTRUMENTS in
response to adverse market conditions or when we are restructuring the
Portfolio. Investing heavily in these securities limits our ability to achieve
our investment objective, but can help to preserve the Portfolio's assets when
the markets are unstable.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 23

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED

- --------------------------------------------------------------------------------

DERIVATIVES AND OTHER STRATEGIES

We may: purchase and sell OPTIONS on equity securities, stock indexes and
foreign currencies; purchase and sell FUTURES CONTRACTS on stock indexes, debt
securities, interest rate indexes and foreign currencies and options on these
futures contracts; enter into FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS; and
purchase securities on a WHEN-ISSUED or DELAYED DELIVERY basis.

The Portfolio may also enter into SHORT SALES AGAINST-THE-BOX. In a short sale
we sell a security we do not own to take advantage of an anticipated decline in
the stock's price. The Portfolio borrows the stock for delivery and if it can
buy the stock later at a lower price, a profit results. A short sale is
"against-the-box" when the Portfolio owns an equal amount of the securities sold
short or owns securities that can be converted into the securities sold.

The Portfolio may also enter into REPURCHASE AGREEMENTS. In a repurchase
transaction, the Portfolio agrees to purchase certain securities and the seller
agrees to repurchase the same securities at a set price on a specified date.
This creates a fixed return for the Portfolio. The Portfolio may participate
with certain other Portfolios of the Fund in a JOINT REPURCHASE ACCOUNT under an
order obtained from the SEC. In a joint repurchase transaction, uninvested cash
balances of various Portfolios are added together and invested in one or more
repurchase agreements. Each of the participating Portfolios receives a portion
of the income earned in the joint account based on the percentage of its
investment.

ADDITIONAL STRATEGIES

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 24

<PAGE>

- --------------------------------------------------------------------------------

GOVERNMENT INCOME PORTFOLIO
INVESTMENT OBJECTIVE AND POLICIES

The investment objective of this Portfolio is A HIGH LEVEL OF INCOME OVER THE
LONGER TERM CONSISTENT WITH THE PRESERVATION OF CAPITAL. In pursuing our
objective, we invest primarily in intermediate and long-term U.S. Treasury
securities and debt obligations issued by agencies or instrumentalities
established, sponsored or guaranteed by the U.S. government. While we make every
effort to achieve this objective, we can't guarantee success.

- --------------------------------------------------------------------------------

U.S. GOVERNMENT SECURITIES

U.S. government securities are considered among the most creditworthy of debt
securities. Because they are generally considered less risky, their yields tend
to be lower than the yields from corporate debt. Like all debt securities, the
values of U.S. government securities will change as interest rates change.

- --------------------------------------------------------------------------------

Normally, we will invest at least 65% of the Portfolio's total assets in U.S.
GOVERNMENT SECURITIES, which include TREASURY SECURITIES, OBLIGATIONS ISSUED OR
GUARANTEED BY U.S. GOVERNMENT AGENCIES AND INSTRUMENTALITIES and
MORTGAGE-RELATED SECURITIES issued by U.S. government instrumentalities or
non-governmental corporations.

MORTGAGE-RELATED SECURITIES are usually pass-through instruments that pay
investors a share of all interest and principal payments from an underlying pool
of fixed or adjustable rate mortgages. We may invest in mortgage-related
securities issued and guaranteed by the U.S. government or its agencies like the
Federal National Mortgage Association (Fannie Maes) and the Government National
Mortgage Association (Ginnie Maes) and debt securities issued (but not
guaranteed) by the Federal Home Loan Mortgage Company (Freddie Macs). Private
mortgage-related securities that are not guaranteed by U.S. governmental
entities generally have one or more types of credit enhancement to ensure timely
receipt of payments and to protect against default.

Mortgage-related securities include COLLATERALIZED MORTGAGE OBLIGATIONS,
MULTI-CLASS PASS THROUGH SECURITIES AND STRIPPED MORTGAGE-BACKED SECURITIES. A
collateralized mortgage backed obligation (CMO) is a security backed by an
underlying portfolio of mortgages or mortgage-backed securities that may be
issued or guaranteed by entities such as banks, U.S. governmental entities or
broker-dealers. A multi-class pass-through security is an equity interest in a
trust composed of underlying mortgage assets. Payments of principal and interest
on the mortgage assets and any reinvestment income provide the money to pay debt
service on the CMO or to make scheduled distributions on the multi-class
pass-through security. A stripped mortgage-backed security (MBS strip) may be
issued by U.S. governmental entities or by private institutions. MBS strips take
the pieces of a debt security (principal and interest) and break them apart. The
resulting securities may be sold separately and may perform differently. MBS
strips are highly sensitive to changes in prepayment and interest rates.

The Portfolio may invest up to 35% of its total assets in MONEY MARKET
INSTRUMENTS, FOREIGN GOVERNMENT SECURITIES (including those issued by
supranational organizations) denominated in U.S. dollars, ASSET-BACKED
SECURITIES rated in one of the top two ratings categories by Moody's or S&P (or
if unrated, of comparable quality in our judgment) and SECURITIES OF ISSUERS
(INCLUDING FOREIGN GOVERNMENTS) OTHER THAN THE U.S. GOVERNMENT AND RELATED
ENTITIES, where the principal and interest are substantially guaranteed by U.S.
government agencies whose guarantee is backed by the full faith and credit of
the U.S. and where an assurance of payment on the unguaranteed portion is
provided for in a comparable way.

The Portfolio may invest up to 100% of its assets in MONEY MARKET INSTRUMENTS in
response to adverse market conditions or when restructuring the Portfolio.
Investing heavily in these securities limits our ability to achieve capital
appreciation, but can help to preserve the Portfolio's assets when the markets
are unstable.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 25

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED

- --------------------------------------------------------------------------------

DERIVATIVES AND OTHER STRATEGIES

We may also use alternative investment strategies - including DERIVATIVES - to
try to improve the Portfolio's returns, protect its assets or for short-term
cash management. There is no guarantee that these strategies will work, that the
instruments necessary to implement these strategies will be available or that
the Portfolio will not lose money. With derivatives, we try to predict whether
the underlying investment - a security, interest rate or some other benchmark -
will go up or down at some future date. We may use derivatives to try to reduce
risk or to increase return consistent with the Portfolio's overall investment
objective.

We may: purchase and sell OPTIONS on debt securities; purchase and sell interest
rate FUTURES CONTRACTS and options on these futures contracts; and purchase
securities on a WHEN-ISSUED or DELAYED DELIVERY basis.

The Portfolio may also enter into REPURCHASE AGREEMENTS. In a repurchase
transaction, the Portfolio agrees to purchase certain securities and the seller
agrees to repurchase the same securities at a set price on a specified date.
This creates a fixed return for the Portfolio. The Portfolio may participate
with certain other Portfolios of the Fund in a JOINT REPURCHASE ACCOUNT under an
order obtained from the SEC. In a joint repurchase transaction, uninvested cash
balances of various Portfolios are added together and invested in one or more
repurchase agreements. Each of the participating Portfolios receives a portion
of the income earned in the joint account based on the percentage of its
investment.

The Portfolio may use up to 30% of its net assets in connection with REVERSE
REPURCHASE AGREEMENTS and DOLLAR ROLLS. In a reverse repurchase transaction, the
Portfolio sells a security it owns and agrees to buy it back at an agreed price
and date. During the period the security is held by the other party, the
Portfolio may continue to receive principal and interest payments on the
security. Dollar rolls involve the sale by the Portfolio of a security for
delivery in the current month with a promise to repurchase from the buyer a
substantially similar - but not necessarily the same - security at a set price
and date in the future. During the "roll period," the Portfolio does not receive
any principal or interest on the security. Instead it is compensated by the
difference between the current sales price and the price of the future purchase,
as well as any interest earned on the cash proceeds from the original sale.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 26

<PAGE>

- --------------------------------------------------------------------------------

ADDITIONAL STRATEGIES

STOCK INDEX PORTFOLIO
INVESTMENT OBJECTIVE AND POLICIES

The investment objective of this Portfolio is to achieve INVESTMENT RESULTS THAT
GENERALLY CORRESPOND TO THE PERFORMANCE OF PUBLICLY-TRADED COMMON STOCKS. To
achieve this goal, we attempt to duplicate the performance of the S&P 500 Index.
While we make every effort to achieve this objective, we can't guarantee
success.

- --------------------------------------------------------------------------------
S&P 500 INDEX

We attempt to duplicate the performance of the Standard & Poor's 500 Stock
Index, a market-weighted index which represents more than 70% of the market
value of all publicly-traded common stocks.

- --------------------------------------------------------------------------------

Under normal conditions, we attempt to invest in all 500 stocks represented in
the S&P 500 Index in proportion to their weighting in the Index. We will attempt
to remain as fully invested in the S&P 500 stocks as possible in light of cash
flow into and out of the Portfolio.

To manage investments and redemptions in the Portfolio, we may temporarily hold
cash or invest in high-quality MONEY MARKET INSTRUMENTS. To the extent we do so,
the Portfolio's performance will differ from that of the Index. We attempt to
minimize differences in the performance of the Portfolio and the Index by using
stock index FUTURES CONTRACTS, OPTIONS on stock indexes and options on stock
index futures contracts. The Portfolio will not use these derivative securities
for speculative purposes or to hedge against a decline in the value of the
Portfolio's holdings.

ALTERNATIVE STRATEGIES

We may also use alternative investment strategies to try to improve the
Portfolio's returns or for short-term cash management. There is no guarantee
that these strategies will work, that the instruments necessary to implement
these strategies will be available or that the Portfolio will not lose money.

We may purchase and sell OPTIONS on stock indexes and purchase and sell stock
index futures contracts and options on those FUTURES CONTRACTS.

The Portfolio may also enter into SHORT SALES AGAINST-THE-BOX. In a short sale
we sell a security we do not own to take advantage of an anticipated decline in
the stock's price. The Portfolio borrows the stock for delivery and if it can
buy the stock later at a lower price, a profit results. A short sale is
"against-the-box" when the Portfolio owns an equal amount of the securities sold
short or owns securities that can be converted into the securities sold.

- --------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 27

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED

- --------------------------------------------------------------------------------

The Portfolio may also enter into REPURCHASE AGREEMENTS. In a repurchase
transaction, the Portfolio agrees to purchase certain securities and the seller
agrees to repurchase the same securities at a set price on a specified date.
This creates a fixed return for the Portfolio. The Portfolio may participate
with certain other Portfolios of the Fund in a JOINT REPURCHASE ACCOUNT under an
order obtained from the SEC. In a joint repurchase transaction, uninvested cash
balances of various Portfolios are added together and invested in one or more
repurchase agreements. Each of the participating Portfolios receives a portion
of the income earned in the joint account based on the percentage of its
investment.

We will consider factors such as cost and volatility in deciding whether to
employ any particular strategy or use any particular instrument. For more
information about these strategies, see the SAI, "Investment Objectives and
Policies of the Portfolios."

ADDITIONAL STRATEGIES

A STOCK'S INCLUSION IN THE S&P 500 INDEX IN NO WAY IMPLIES S&P'S OPINION AS TO
THE STOCK'S ATTRACTIVENESS AS AN INVESTMENT. THE PORTFOLIO IS NOT SPONSORED,
ENDORSED, SOLD OR PROMOTED BY S&P. S&P MAKES NO REPRESENTATIONS REGARDING THE
ADVISABILITY OF INVESTING IN THE PORTFOLIO. "STANDARD & POOR'S," "STANDARD &
POOR'S 500" AND "500" ARE TRADEMARKS OF MCGRAW HILL.

- -------------------------------------------------------------------------------

THE PRUDENTIAL SERIES FUND, INC. 28

<PAGE>

- -------------------------------------------------------------------------------

INVESTMENT RISKS

As noted, all investments involve risk, and investing in the Portfolios is no
exception. This chart outlines the key risks and potential rewards of the
principal investments and certain other investments each Portfolio may make. See
also, "Investment Objectives and Policies of the Portfolios" in the SAI.

INVESTMENT TYPE PORTFOLIO & % OF ASSETS RISKS POTENTIAL REWARDS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HIGH-QUALITY MONEY MARKET ALL PORTFOLIOS - Credit risk - the risk that the - Regular interest income
OBLIGATIONS OF ALL TYPES (% VARIES) borrower can't pay back the money
borrowed - Generally more secure than stocks
since companies must pay their
- Market risk - the risk that the debts before they pay dividends
obligations may lose value because
interest rates change or there is
a lack of confidence in the borrower

- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY AND EQUITY-RELATED EQUITY SECURITIES: - Individual stocks could lose - Historically, stocks have out
SECURITIES ALL PORTFOLIOS EXCEPT value performed other investments
GOVERNMENT INCOME over the long term
(% VARIES) - The equity markets could go
down, resulting in a decline - Generally, economic growth
EQUITY-RELATED in value of a Portfolio's means higher corporate profits,
SECURITIES: investments which leads to an increase in
CONSERVATIVE BALANCED, stock prices, known as capital
DIVERSIFIED BOND, EQUITY, - Companies that pay dividends appreciation
FLEXIBLE MANAGED, GLOBAL may not do so if they don't
(% VARIES) have profits or adequate - May be a source of dividend
cash flow income

- Changes in economic or political - Highly successful small-cap
conditions, both U.S. and companies can outperform larger
international, may result in a ones
decline in the value of a
Portfolio's investments

- Small-cap companies are more
likely to reinvest earnings
and not pay dividends

- Changes in interest rates may
affect the securities of
small- and medium-sized companies
more than the securities of larger
companies
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

THIS CHART CONTINUES ON THE NEXT PAGE

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 29

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED

- -------------------------------------------------------------------------------

INVESTMENT TYPE PORTFOLIO AND % OF ASSETS RISKS POTENTIAL REWARDS
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT GRADE ALL PORTFOLIOS EXCEPT - A Portfolio's holdings, share - Bonds have generally outperformed
DEBT SECURITIES STOCK INDEX price, yield, and total return money market instruments over the long
(% VARIES) may fluctuate in response to term with less risk than stocks
bond market movements
- Most bonds will rise in value
- Credit risk - the default of an when interest rates fall
issuer would leave a Portfolio
with unpaid interest or principal. - Regular interest income
The lower a bond's quality, the
higher its potential volatility - Investment grade bonds have a lower
risk of default
- Market risk - the risk that the
market value of an investment may - Generally more secure than stocks
move up or down, sometimes rapidly since companies must pay their debts
or unpredictably. Market risk may before they pay dividends
affect an industry, sector, or the
market as a whole

- Interest rate risk - the value of
most bonds will fall when interest
rates rise; the longer a bond's
maturity and the lower its credit
quality, the more its value typically
falls. It can lead to price volatility

- ---------------------------------------------------------------------------------------------------------------------------------
HIGH-YIELD DEBT CONSERVATIVE BALANCED, - Higher market risk - May offer higher interest income
SECURITIES DIVERSIFIED BOND, than higher quality debt securities
(JUNK BONDS) FLEXIBLE MANAGED - Higher credit risk
(% VARIES)
- May be more illiquid (harder
to value and sell), in which
case valuation would depend
more on the investment adviser's
judgment than is generally the
case with higher rated securities

- ---------------------------------------------------------------------------------------------------------------------------------
FOREIGN SECURITIES CONSERVATIVE BALANCED, - Foreign markets, economies - Investors can participate in
DIVERSIFIED BOND, EQUITY, and political systems may the growth of foreign markets
FLEXIBLE MANAGED, GLOBAL, not be as stable as and companies operating in
GOVERNMENT INCOME in the U.S. those markets
(% VARIES)
- Currency risk - changing values - Changing value of foreign
OPTIONS ON FOREIGN of foreign currencies currencies
CURRENCIES:
CONSERVATIVE BALANCED, - May be less liquid than U.S. - Opportunities for
EQUITY, FLEXIBLE MANAGED, stocks and bonds diversification
GLOBAL
(% VARIES) - Differences in foreign laws,
accounting standards, public
FUTURES ON FOREIGN information, custody and
CURRENCIES: settlement practices
CONSERVATIVE BALANCED,
EQUITY, FLEXIBLE MANAGED, - Year 2000 conversion may be
GLOBAL more of a problem for some
(% VARIES) foreign issuers

- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

THIS CHART CONTINUES ON THE NEXT PAGE

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 30

<PAGE>

INVESTMENT TYPE PORTFOLIO AND % OF ASSETS RISKS POTENTIAL REWARDS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DERIVATIVES OPTIONS ON EQUITY - Derivatives, such as futures, - A Portfolio could make money
SECURITIES: options and foreign currency and protect against losses
CONSERVATIVE BALANCED, forward contracts, may not if the investment
EQUITY, FLEXIBLE MANAGED, fully offset the underlying analysis proves correct
GLOBAL, STOCK INDEX positions and this could result
(% VARIES) in losses to a Portfolio that - Derivatives that involve
would not have otherwise occurred leverage could generate
substantial gains at low
OPTIONS ON DEBT - Derivatives used for risk management cost
SECURITIES: may not have the intended effects and
CONSERVATIVE BALANCED, may result in losses or missed - One way to manage a Portfolio's
DIVERSIFIED BOND, opportunities risk/return balance is to lock
FLEXIBLE MANAGED, in the value of an investment
GOVERNMENT INCOME - The other party to a derivatives ahead of time
(% VARIES) contract could default

- Derivatives that involve leverage
OPTIONS ON STOCK INDEXES: could magnify losses
CONSERVATIVE BALANCED,
EQUITY, FLEXIBLE MANAGED, - Certain types of derivatives
GLOBAL, STOCK INDEX involve costs to a Portfolio
(% VARIES) that can reduce returns

FUTURES CONTRACTS ON
STOCK INDEXES:
CONSERVATIVE BALANCED,
EQUITY, FLEXIBLE MANAGED,
GLOBAL, STOCK INDEX
(% VARIES)

FUTURES ON DEBT
SECURITIES AND INTEREST
RATE INDEXES:
CONSERVATIVE BALANCED,
DIVERSIFIED BOND, FLEXIBLE
MANAGED, GLOBAL, GOVERNMENT
INCOME (% VARIES)

INTEREST RATE SWAPS:
CONSERVATIVE BALANCED,
DIVERSIFIED BOND, FLEXIBLE
MANAGED, GOVERNMENT INCOME
(% VARIES)

- ----------------------------------------------------------------------------------------------------------------------------------
MORTGAGE BACKED & GOVERNMENT INCOME - Prepayment risk - the risk that - Regular interest income
ASSET BACKED the underlying mortgage or other
SECURITIES debt may be prepaid partially or - Pass-through instruments provide
completely, generally during greater diversification than
periods of falling interest direct ownership of loans
rates, which could adversely
affect yield to maturity and could - Certain mortgage-backed
require a Portfolio to reinvest in securities may benefit from
lower-yielding securities security interest in
real estate collateral
- Credit risk - the risk that the
underlying mortgages or receivables
will not be paid by debtors or by
credit insurers or guarantors of
such instruments and thus may involve
greater risk

- Market risk
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

THIS CHART CONTINUES ON THE NEXT PAGE

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 31

<PAGE>

HOW THE PORTFOLIOS INVEST CONTINUED
- --------------------------------------------------------------------------------

INVESTMENT TYPE PORTFOLIO AND % OF ASSETS RISKS POTENTIAL REWARDS
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REAL ESTATE INVESTMENT CONSERVATIVE BALANCED, - Performance depends on the - Real estate holdings can
TRUSTS (REITS) FLEXIBLE MANAGED strength of real estate generate good returns from
(% VARIES) markets, REIT management rents, rising market
and property management values, etc.
which can be affected by
many factors, including - Greater diversification
national and regional than direct ownership
economic conditions

- ----------------------------------------------------------------------------------------------------------------------------------
ILLIQUID SECURITIES ALL PORTFOLIOS - May be difficult to value - May offer a more attractive
(15% OF NET ASSETS) precisely yield than more widely traded
securities
- May be difficult to sell
at the time or price desired

- ----------------------------------------------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS CONSERVATIVE BALANCED, - Credit risk - May offer right to receive
DIVERSIFIED BOND, principal, interest and
FLEXIBLE MANAGED - Market risk fees without as much risk
(% VARIES) as lender
- A Portfolio has no rights
against the borrower in
the event the borrower
does not repay the loan

- ----------------------------------------------------------------------------------------------------------------------------------
WHEN-ISSUED AND DELAYED WHEN-ISSUES AND DELAYED- - Use of such instruments - Use instruments may magnify
DELIVERY SECURITIES, DELIVERY SECURITIES: and strategies may magnify underlying investment
REVERSE REPURCHASE CONSERVATIVE BALANCED, underlying investment gains
AGREEMENTS, DOLLAR DIVERSIFIED BOND, EQUITY, losses
ROLLS AND SHORT SALES FLEXIBLE MANAGED, GLOBAL,
GOVERNMENT INCOME - Investment costs may exceed
(% VARIES) potential underlying investment
gains
REVERSE REPURCHASE AGREEMENTS:
CONSERVATIVE BALANCED,
DIVERSIFIED BOND, FLEXIBLE
MANAGED, GOVERNMENT INCOME
AND THE MONEY MARKET PORTION
OF ANY PORTFOLIO (% VARIES)

DOLLAR ROLLS:
CONSERVATIVE BALANCED,
DIVERSIFIED BOND,
FLEXIBLE MANAGED,
GOVERNMENT INCOME
(% VARIES)

SHORT SALES:
CONSERVATIVE BALANCED,
DIVERSIFIED BOND,
FLEXIBLE MANAGED,
GOVERNMENT INCOME
(% VARIES)

SHORT SALES AGAINST THE
BOX:
ALL PORTFOLIOS
(% VARIES)

- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 32

<PAGE>

HOW THE PORTFOLIOS ARE MANAGED
- --------------------------------------------------------------------------------

INVESTMENT ADVISER

The Prudential Insurance Company of America (Prudential) serves as the overall
investment adviser for the Fund. Founded in 1875, it is responsible for the
management of the Fund and provides investment advice and related services to
each Portfolio. As of December 31, 1998, Prudential had total assets under
management of approximately $334 billion. Prudential is located at 751 Broad
Street, Newark, New Jersey 07102-3777.

Prudential is currently considering reorganizing itself into a publicly traded
stock company through a process known as "demutualization." On February 10,
1998, the Company's Board of Directors authorized management to take the
preliminary steps necessary to allow the Company to demutualize. On July 1,
1998, legislation was enacted in New Jersey that would permit this conversion to
occur and that specified the process for conversion. Demutualization is a
complex process involving development of a plan of reorganization, adoption of a
plan by the Company's Board of Directors, a public hearing, voting by qualified
policyholders and regulatory approval, all of which could take two or more years
to complete. Prudential's management and Board of Directors have not yet
determined to demutualize and it is possible that, after careful review,
Prudential could decide not to go public.

The following chart lists the total investment advisory fees paid in 1998 as a
percentage of the Portfolio's average net assets.

FEE ARRANGEMENT (1988)
- -------------------------------------------------------------------------------
PORTFOLIO TOTAL ADVISORY FEES AS % OF AVERAGE NET ASSETS
- -------------------------------------------------------------------------------
Conservative Balanced 0.55
- -------------------------------------------------------------------------------
Diversified Bond 0.40
- -------------------------------------------------------------------------------
Equity 0.45
- -------------------------------------------------------------------------------
Flexible Managed 0.60
- -------------------------------------------------------------------------------
Global 0.75
- -------------------------------------------------------------------------------
Government Income 0.40
- -------------------------------------------------------------------------------
Stock Index 0.35
- -------------------------------------------------------------------------------

INVESTMENT SUB-ADVISERS

Prudential has appointed Prudential Investment Corporation (PIC), a wholly owned
subsidiary of Prudential, as the sub-adviser for each of the Portfolios.
Prudential pays PIC for these services out of the fee Prudential receives from
the Fund. PIC's address is 751 Broad Street, Newark, New Jersey 07102-3777.

PORTFOLIO MANAGERS

Prudential's fixed-income group is organized by teams that specialize in sector.
The Fixed Income Investment Policy Committee, which is comprised of senior
investment staff from each sector team, provides guidance to the teams regarding
duration risk, asset allocations and general risk parameters. Each of the
portfolio managers of the fixed-income Portfolios (or the fixed income portion
of a Portfolio) contributes bottom-up securities selection within those
guidelines and is responsible for the day-to-day management of the Portfolio.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 33

<PAGE>

HOW THE PORTFOLIOS ARE MANAGED CONTINUED
- -------------------------------------------------------------------------------

CONSERVATIVE BALANCED PORTFOLIO & FLEXIBLE MANAGED PORTFOLIO

These Portfolios are managed by a team of portfolio managers. Mark Stumpp,
Ph.D., Senior Managing Director of Prudential Investments, a division of
Prudential, has been the lead portfolio manager of the Portfolios since 1994 and
is responsible for the overall asset allocation decisions.

WARREN SPITZ, Managing Director of Prudential Investments, has been a portfolio
manager of the Portfolios since 1995 and manages a portion of each Portfolio's
equity holdings.

JOSE RODRIGUEZ, Managing Director of Prudential Investments, has been a
portfolio manager of the Portfolios since 1993 and is responsible for the debt
portion of the Portfolios. Mr. Rodriguez has been a portfolio manager for
Prudential Investments since 1988.

JOHN MOSCHBERGER, CFA, Vice President of Prudential Investments, manages the
portions of each Portfolio designed to duplicate the performance of the S&P 500
Index. Mr. Moschberger joined Prudential in 1980 and has been a portfolio
manager since 1986.

DIVERSIFIED BOND PORTFOLIO & GOVERNMENT INCOME PORTFOLIO

These Portfolios are managed by MS. BARBARA KENWORTHY who has been the manager
of each since 1995. Ms. Kenworthy is a Managing Director of Prudential
Investments. Before joining Prudential in 1994, she served as president and
portfolio manager for several Dreyfus fixed-income funds. Ms. Kenworthy has over
30 years of investment experience and is a member of the Treasury Borrowing
Advisory Committee of the Public Securities Association.

EQUITY PORTFOLIO

THOMAS JACKSON, Managing Director of Prudential Investments, has managed this
Portfolio since 1990. Mr. Jackson, a Managing Director of PIC, joined PIC in
1990 and has over 30 years of professional equity investment management
experience. He was formerly co-chief investment officer of Red Oak Advisers and
Century Capital Associates, each a private money management firm, where he
managed pension and other accounts for institutions and individuals. Mr. Jackson
was also with The Dreyfus Corporation where he managed and served as president
of the Dreyfus Fund. Mr. Jackson began managing at Chase Manhattan Bank. He is a
member of the New York Society of Security Analysts.

GLOBAL PORTFOLIO

DANIEL DUANE, CFA, Managing Director of Prudential Investments, INGRID HOLM,
CFA, Vice President of Prudential Investments and MICHELLE PICKER, CFA, Vice
President of Prudential Investments, have been co-managers of this Portfolio
since 1997. Mr. Duane has managed the Portfolio since 1990. Ms. Holm has
assisted in the management of Prudential mutual funds since 1994 and has managed
a portion of Prudential's general account. Prior to 1994, Ms. Holm headed the
high yield research group for Prudential's general account. Ms. Picker has been
an analyst in Prudential's global equity investments groups since 1992 and has
managed a portion of Prudential's general account.

STOCK INDEX PORTFOLIO

JOHN MOSCHBERGER, CFA, Vice President of Prudential Investments, has managed
this Portfolio since 1990. (See description under "Conservative Balanced
Portfolio & Flexible Managed Portfolio," above.)

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 34

<PAGE>

HOW TO BUY AND SELL SHARES OF THE FUND
- -------------------------------------------------------------------------------

THE FUND OFFERS TWO CLASSES OF SHARES IN EACH PORTFOLIO: CLASS I AND CLASS II.
CLASS I SHARES ARE SOLD ONLY TO SEPARATE ACCOUNTS OF THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA (PRUDENTIAL) AS INVESTMENT OPTIONS UNDER VARIABLE LIFE
INSURANCE AND VARIABLE ANNUITY CONTRACTS INCLUDING THE VCA-24 CONTRACT. (A
SEPARATE ACCOUNT IS SIMPLY AN ACCOUNTING DEVICE USED TO KEEP THE ASSETS INVESTED
IN CERTAIN INSURANCE CONTRACTS SEPARATE FROM THE GENERAL ASSETS AND LIABILITIES
OF THE INSURANCE COMPANY.) CLASS II SHARES ARE OFFERED ONLY TO SEPARATE ACCOUNTS
OF NON-PRUDENTIAL INSURANCE COMPANIES FOR THE SAME TYPES OF CONTRACTS.

HOW TO BUY AND SELL SHARES

The only way to invest in the Portfolios is through certain variable life
insurance and variable annuity contracts. Together with this prospectus, you
should have received a prospectus for the VCA-24 Contract. You should refer to
that prospectus for further information on investing in the Portfolios.

Class I shares of a Portfolio are sold without any sales charge at the net asset
value of the Portfolio. Class I shares do not have a distribution or
administration fee.

Shares are redeemed for cash within seven days of receipt of a proper notice of
redemption or sooner if required by law. There is no redemption charge. We may
suspend the right to redeem shares or receive payment when the New York Stock
Exchange is closed (other than weekends or holidays), when trading on the New
York Stock Exchange is restricted, or as permitted by the SEC.

NET ASSET VALUE

When you purchase or sell shares of a Portfolio the price you will pay or
receive, as the case may be, is based on the share's value. This is known as the
net asset value or NAV. The price at which a purchase or redemption is made is
based on the next calculation of the NAV after the order is placed. The NAV of
each share class of each of the Portfolios is determined once a day - at 4:15
p.m. New York Time - on each day the New York Stock Exchange is open for
business. If the New York Stock Exchange closes early on a day, the Portfolios'
NAVs will be calculated some time between the closing time and 4:15 p.m. on that
day.

The NAV for each of the Portfolios is determined by a simple calculation. It's
the total value of a Portfolio (assets minus liabilities) divided by the total
number of shares outstanding.

To determine a Portfolio's NAV, its holdings are valued as follows:

EQUITY SECURITIES are generally valued at the last sale price on an exchange or
NASDAQ, or if there is not sale, at the mean between the most recent bid and
asked prices on that day. If there is no asked price, the security will be
valued at the bid price. Equity securities that are not sold on an exchange or
NASDAQ are generally valued by an independent pricing agent or principal market
maker.

A Portfolio may own securities that are primarily listed on foreign exchanges
that trade on weekends or other days when the Portfolios do not price their
shares. Therefore, the value of a Portfolio's assets may change on days when
shareholders cannot purchase or redeem Portfolio shares.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 35

<PAGE>

HOW TO BUY AND SELL SHARES OF THE FUND CONTINUED
- -------------------------------------------------------------------------------

SHORT-TERM DEBT SECURITIES with remaining maturities of 12 month or less held by
the Conservative Balanced and Flexible Managed Portfolios are valued on an
amortized cost basis. For the other Portfolios, debt securities with remaining
maturities of 60 days or less are valued on an amortized cost basis. This
valuation method is widely used by mutual funds. It means that the security is
valued initially at its purchase price and then decreases in value by equal
amounts each day until the security matures. It almost always results in a value
that is extremely close to the actual market value. The Fund's Board of
Directors has established procedures to monitor whether any material deviation
between valuation and market value occurs and if so, will promptly consider what
action, if any, should be taken to prevent unfair results to Contractowners.

OTHER DEBT SECURITIES -- those that are not valued on an amortized cost basis --
are valued using an independent pricing service.

OPTIONS ON STOCK AND STOCK INDEXES that are traded on a national securities
exchange are valued at the average of the bid and asked prices as of the close
of that exchange.

FUTURES CONTRACTS and OPTIONS ON FUTURES CONTRACTS are valued at the last sale
price at the close of the commodities exchange or board of trade on which they
are traded. If there has been no sale that day, the securities will be valued at
the mean between the most recently quoted bid and asked prices on that exchange
or board of trade.

SECURITIES FOR WHICH NO MARKET QUOTATIONS ARE AVAILABLE will be valued at fair
value by Prudential under the direction of the Fund's Board of Directors.

DISTRIBUTOR

Prudential Investment Management Services LLC (PIMS) distributes the Fund's
shares under a Distribution Agreement with the Fund. PIMS' principle business
address is 751 Broad Street, Newark, New Jersey 07102-3777.

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 36

<PAGE>

OTHER INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAXES

If you own or are considering purchasing a variable contract, you should consult
the prospectus for the variable contract for tax information about that variable
contract. You should also consult with a qualified tax adviser for information
and advice.

The SAI provides information about certain tax laws applicable to the Fund.

YEAR 2000

The services provided to the Fund and the shareholders by the Fund's investment
adviser, sub-advisers, distributor, transfer agent and custodians depend on the
smooth functioning of their computer systems and those of outside service
providers. Many computer software systems in use today cannot distinguish the
year 2000 from the year 1900 because of the way dates are encoded and
calculated. Such event could have a negative impact on handling securities
trades, payments of interest and dividends, pricing and account services.
Although, at this time, there can be no assurance that there will be no adverse
impact on the Fund, the Fund's investment adviser, sub-advisers, distributor,
transfer agent and custodians have advised the Fund that they have been actively
working on necessary changes to their computer systems to prepare for the year
2000. The Fund and its Directors receive and have received since mid-1998
satisfactory quarterly reports from the principal service providers as to their
preparations for year 2000 readiness, although there can be no assurance that
the service providers (or other securities market participants) will
successfully complete the necessary changes in a timely manner or that there
will be no adverse impact on the Fund. Moreover, the Fund at this time has not
considered retaining alternative service providers or directly undertaken
efforts to achieve year 2000 readiness, the latter of which would involve
substantial expenses without an assurance of success.

Additionally, issuers of securities generally as well as those purchased by the
Fund may confront year 2000 compliance issues which, if material and not
resolved, could have an adverse impact on securities markets and/or a specific
issuer's performance and result in a decline in the value of the securities held
by the Fund.

MONITORING FOR POSSIBLE CONFLICTS

The Fund sells its shares to fund variable life insurance contracts and variable
annuity contracts and may offer its shares to qualified retirement plans.
Because of differences in tax treatment and other considerations, it is possible
that the interest of variable life insurance contract owners, variable annuity
contract owners and participants in qualified retirement plans could conflict.
The Fund will monitor the situation and in the event that a material conflict
did develop, the Fund would determine what action, if any, to take in response.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 37

<PAGE>

FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

The TOTAL RETURN in each chart represents the rate that a shareholder earned on
an investment in the Portfolio, assuming reinvestment of all dividends and other
distributions. The charts do not reflect charges under any variable contract.
The information is for Class I for the periods indicated.

The information for the three years ended December 31, 1998, has been audited by
PricewaterhouseCoopers LLP, whose unqualified report, along with the financial
statements, appear in the SAI, which is available upon request. The information
for the two years ended December 31, 1995, was audited by other independent
auditors whose report was also unqualified.

<TABLE>
<CAPTION>
CONSERVATIVE BALANCED
------------------------------------------------------------------------
YEAR ENDED
DECEMBER 31,
------------------------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year.................... $ 14.97 $ 15.52 $ 15.31 $ 14.10 $ 14.91
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................................. 0.66 0.76 0.66 0.63 0.53
Net realized and unrealized gains
(losses) on investments....................... 1.05 1.26 1.24 1.78 (0.68)
-------- -------- -------- -------- --------
Total from investment operations...... 1.71 2.02 1.90 2.41 (0.15)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income.................. (0.66) (0.76) (0.66) (0.64) (0.51)
Distributions from net realized gains................. (0.94) (1.81) (1.03) (0.56) (0.15)
-------- -------- -------- -------- --------
Total distributions................... (1.60) (2.57) (1.69) (1.20) (0.66)
-------- -------- -------- -------- --------
Net Asset Value, end of year.......................... $ 15.08 $ 14.97 $ 15.52 $ 15.31 $ 14.10
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN:(b)........................... 11.74% 13.45% 12.63% 17.27% (0.97)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions)................. $4,796.0 $4,744.2 $4,478.8 $3,940.8 $3,501.1
Ratios to average net assets:
Expenses...................................... 0.57% 0.56% 0.59% 0.58% 0.61%
Net investment income......................... 4.19% 4.48% 4.13% 4.19% 3.61%
Portfolio turnover rate............................... 167% 295% 295% 201% 125%
</TABLE>

(a) Calculations are based on average month-end shares outstanding.

(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 38

<PAGE>

FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

<TABLE>
<CAPTION>
DIVERSIFIED BOND
-------------------------------------------------------------
YEAR ENDED
DECEMBER 31,
-------------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
-------- ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year................. $ 11.02 $11.07 $11.31 $10.04 $11.10
-------- ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.............................. 0.69 0.80 0.76 0.76 0.68
Net realized and unrealized gains
(losses) on investments.................... 0.08 0.11 (0.27) 1.29 (1.04)
-------- ------ ------ ------- -------
Total from investment operations... 0.77 0.91 0.49 2.05 (0.36)
-------- ------ ------ ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income............... (0.69) (0.83) (0.73) (0.75) (0.68)
Distributions from net realized gains.............. (0.04) (0.13) -- (0.03 (0.02)
-------- ------ ------ ------- -------
Total distributions................ (0.73) (0.96) (0.73) (0.78) (0.70)
-------- ------ ------ ------- -------
Net Asset Value, end of year....................... $ 11.06 $11.02 $11.07 $11.31 $10.04
======== ====== ====== ======= =======
TOTAL INVESTMENT RETURN:(b)........................ 7.15% 8.57% 4.40% 20.73% (3.23)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions).............. $1,122.6 $816.7 $720.2 $655.8 $541.6
Ratios to average net assets:
Expenses................................... 0.42% 0.43% 0.45% 0.44% 0.45%
Net investment income...................... 6.40% 7.18% 6.89% 7.00% 6.41%
Portfolio turnover rate 199% 224% 210% 199% 32%
FINANCIAL HIGHLIGHTS
</TABLE>

(a) Calculations are based on average month-end shares outstanding.

(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 39

<PAGE>

FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

<TABLE>
<CAPTION>
EQUITY
------------------------------------------------------------------
YEAR ENDED
DECEMBER 31,
------------------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year................. $ 31.07 $ 26.96 $ 25.64 $ 20.66 $ 21.49
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.............................. 0.60 0.69 0.71 0.55 0.51
Net realized and unrealized gains on
investments................................ 2.21 5.88 3.88 5.89 0.05
-------- -------- -------- -------- --------
Total from investment operations... 2.81 6.57 4.59 6.44 0.56
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income............... (0.60) (0.70) (0.67) (0.52) (0.49)
Distributions from net realized gains.............. (3.64) (1.76) (2.60) (0.94) (0.90)
-------- -------- -------- -------- --------
Total distributions................ (4.24) (2.46) (3.27) (1.46) (1.39)
-------- -------- -------- -------- --------
Net Asset Value, end of year....................... $ 29.64 $ 31.07 $ 26.96 $ 25.64 $ 20.66
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN:(b)........................ 9.34% 24.66% 18.52% 31.29% 2.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions).............. $6,247.0 $6,024.0 $4,814.0 $3,813.8 $2,617.8
Ratios to average net assets:
Expenses................................... 0.47% 0.46% 0.50% 0.48% 0.55%
Net investment income...................... 1.81% 2.27% 2.54% 2.28% 2.39%
Portfolio turnover rate............................ 25% 13% 20% 18% 7%
</TABLE>

(a) Calculations are based on average month-end shares outstanding.
(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 40

<PAGE>

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

<TABLE>
<CAPTION>
FLEXIBLE MANAGED
--------------------------------------------------------------------
YEAR ENDED
DECEMBER 31,
--------------------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year................. $ 17.28 $ 17.79 $ 17.86 $ 15.50 $ 16.96
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.............................. 0.58 0.59 0.57 0.56 0.47
Net realized and unrealized gains
(losses) on investments.................... 1.14 2.52 1.79 3.15 (1.02)
-------- -------- -------- -------- --------
Total from investment operations... 1.72 3.11 2.36 3.71 (0.55)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income............... (0.59) (0.58) (0.58) (0.56) (0.45)
Distributions from net realized gains.............. (1.85) (3.04) (1.85) (0.79) (0.46)
-------- -------- -------- -------- --------
Total distributions................ (2.44) (3.62) (2.43) (1.35) (0.91)
-------- -------- -------- -------- --------
Net Asset Value, end of year....................... $ 16.56 $ 17.28 $ 17.79 $ 17.86 $ 15.50
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN:(b)........................ 10.24% 17.96% 13.64% 24.13% (3.16)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions).............. $5,410.0 $5,490.1 $4,896.9 $4,261.2 $3,481.5
Ratios to average net assets:
Expenses................................... 0.61% 0.62% 0.64% 0.63% 0.66%
Net investment income...................... 3.21% 3.02% 3.07% 3.30% 2.90%
Portfolio turnover rate 138% 227% 233% 173% 124%
</TABLE>

(a) Calculations are based on average month-end shares outstanding.

(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 41

<PAGE>

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

<TABLE>
<CAPTION>
GLOBAL
----------------------------------------------------------
YEAR ENDED
DECEMBER 31,
----------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year.................. $17.92 $17.85 $15.53 $13.88 $14.64
------ ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............................... 0.07 0.09 0.11 0.06 0.02
Net realized and unrealized gains
(losses) on investments..................... 4.38 1.11 2.94 2.14 (0.74)
------ ------ ------ ------- -------
Total from investment operations... 4.45 1.20 3.05 2.20 (0.72)
------ ------ ------ ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income................ (0.16) (0.13) (0.11) (0.24) (0.02)
Dividends in excess of net investment
income...................................... (0.12) (0.10) -- -- --
Distributions from net realized gains............... (0.93) (0.90) (0.62) (0.31) (0.02)
------ ------ ------ ------- -------
Total distributions................ (1.21) (1.13) (0.73) (0.55) (0.04)
------ ------ ------ ------- -------
Net Asset Value, end of year........................ $21.16 $17.92 $17.85 $15.53 $13.88
====== ====== ====== ======= =======
TOTAL INVESTMENT RETURN:(b)......................... 25.08% 6.98% 19.97% 15.88% (4.89)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions)............... $844.5 $638.4 $580.6 $400.1 $345.7
Ratios to average net assets:
Expenses.................................... 0.86% 0.85% 0.92% 1.06% 1.23%
Net investment income....................... 0.29% 0.47% 0.64% 0.44% 0.20%
Portfolio turnover rate............................. 73% 70% 41% 59% 37%
</TABLE>

(a) Calculations are based on average month-end shares outstanding.

(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 42

<PAGE>

FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

<TABLE>
<CAPTION>
GOVERNMENT INCOME
-----------------------------------------------------------
YEAR ENDED
DECEMBER 31,
-----------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year................. $11.52 $11.22 $11.72 $10.46 $11.78
------ ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.............................. 0.67 0.75 0.75 0.74 0.70
Net realized and unrealized gains
(losses) on investments.................... 0.36 0.30 (0.51) 1.28 (1.31)
------ ------ ------ ------- -------
Total from investment operations... 1.03 1.05 0.24 2.02 (0.61)
------ ------ ------ ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income............... (0.68) (0.75) (0.74) (0.76) (0.71)
Dividends in excess of net investment
income..................................... --(c) -- -- -- --
------ ------ ------ ------- -------
Total distributions................ (0.68) (0.75) (0.74) (0.76) (0.71)
------ ------ ------ ------- -------
Net Asset Value, end of year....................... $11.87 $11.52 $11.22 $11.72 $10.46
====== ====== ====== ======= =======
TOTAL INVESTMENT RETURN:(b)........................ 9.09% 9.67% 2.22% 19.48% (5.16)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions).............. $443.2 $429.6 $482.0 $501.8 $487.6
Ratios to average net assets:
Expenses................................... 0.43% 0.44% 0.46% 0.45% 0.45%
Net investment income...................... 5.71% 6.40% 6.38% 6.55% 6.30%
Portfolio turnover rate............................ 109% 88% 95% 195% 34%
</TABLE>

(a) Calculations are based on average month-end shares outstanding.

(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 43

<PAGE>

FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------

THE FINANCIAL HIGHLIGHTS WILL HELP YOU EVALUATE THE FINANCIAL PERFORMANCE OF
EACH PORTFOLIO.

<TABLE>
<CAPTION>
STOCK INDEX
---------------------------------------------------------------------
YEAR ENDED
DECEMBER 31,
---------------------------------------------------------------------
1998 1997 1996 1995(a) 1994(a)
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning of year................. $ 30.22 $ 23.74 $ 19.96 $ 14.96 $15.20
-------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.............................. 0.42 0.43 0.40 0.40 0.38
Net realized and unrealized gains
(losses) on investments.................... 8.11 7.34 4.06 5.13 (0.23)
-------- -------- -------- -------- -------
Total from investment operations... 8.53 7.77 4.46 5.53 0.15
-------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income............... (0.42) (0.42) (0.40) (0.38) (0.37)
Distributions from net realized gains.............. (0.59) (0.87) (0.28) (0.15) (0.02)
-------- -------- -------- -------- -------
Total distributions................ (1.01) (1.29) (0.68) (0.53) (0.39)
-------- -------- -------- -------- -------
Net Asset Value, end of year....................... $ 37.74 $ 30.22 $ 23.74 $ 19.96 $14.96
======== ======== ======== ======== =======
TOTAL INVESTMENT RETURN:(b)........................ 28.42% 32.83% 22.57% 37.06% 1.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions).............. $3,548.1 $2,448.2 $1,581.4 $1,031.3 $664.5
Ratios to average net assets:
Expenses................................... 0.37% 0.37% 0.40% 0.38% 0.42%
Net investment income...................... 1.25% 1.55% 1.95% 2.27% 2.50%
Portfolio turnover rate............................ 3% 5% 1% 1% 2%
</TABLE>

(a) Calculations are based on average month-end shares outstanding.

(b) Total investment return is calculated assuming a purchase of shares on the
first day and a sale on the last day of each year reported and includes
reinvestment of dividends and distributions.

- -------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC. 44

<PAGE>

FOR MORE INFORMATION
- -------------------------------------------------------------------------------

Additional information about the Fund and each Portfolio can be obtained upon
request without charge and can be found in the following documents:

STATEMENT OF ADDITIONAL INFORMATION (SAI)
(incorporated by reference into this prospectus)

ANNUAL REPORT
(including a discussion of market conditions and strategies that significantly
affected the Portfolios' performance during the previous year)

SEMI-ANNUAL REPORT

- --------------------------------------------------------------------------------
To obtain these documents or to ask any questions about the Fund:

CALL TOLL-FREE
(800) 778-2255

WRITE TO:
Prudential Series Fund,
751 Broad Street,
Newark, NJ 07102-3777

- --------------------------------------------------------------------------------
You can also obtain copies of Fund documents from the Securities and Exchange
Commission as follows:

BY MAIL:
Securities and Exchange Commission
Public Reference Section
Washington, DC 20549-6009
(The SEC charges a fee to copy documents.)

IN PERSON:
Public Reference Room in Washington, DC
(For hours of operation, call 1(800) SEC-0330.)

VIA THE INTERNET:
http://www.sec.gov

- --------------------------------------------------------------------------------
SEC File No. 811-03623

- --------------------------------------------------------------------------------
THE PRUDENTIAL SERIES FUND, INC.