May 6, 1998
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS -
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1, 1997
THE FOLLOWING INFORMATION SUPPLEMENTS AND SHOULD BE READ IN
CONJUNCTION WITH THE INFORMATION CONTAINED IN THE SECTION OF THE FUND'S
PROSPECTUS ENTITLED "DESCRIPTION OF THE FUND - OTHER INVESTMENT POLICIES AND
RISK FACTORS:"
Custodial Receipts. The Fund may purchase securities, frequently referred to
as "custodial receipts," representing the right to receive future principal
and interest payments on municipal obligations underlying such receipts. A
number of different arrangements are possible. In a typical custodial receipt
arrangement, an issuer or a third party owner of a municipal obligation
deposits such obligation with a custodian in exchange for two or more classes
of receipts. The class of receipts that the Fund may purchase has the
characteristics of a typical tender option security backed by a conditional
"put," which provides the holder with a short-term variable rate note. At
specified intervals, the interest rate for such securities is reset by the
remarketing agent in order to cause the securities to be sold at par through a
remarketing mechanism. If the remarketing mechanism does not result in a
sale, the conditional put can be exercised. In either event, the holder is
entitled to full principal and accrued interest to the date of the tender or
exercise of the "put." The "put" may be terminable in the event of a default
in payment of principal or interest on the underlying municipal obligation
and for other reasons. Before purchasing such security, the Fund is required
to make certain determinations with respect to the likelihood of, and the
ability to monitor, the occurrence of the conditions that would result in the
put not being exercisable. The interest rate for these receipts generally is
expected to be below the coupon rate of the underlying municipal obligations
and generally is at a level comparable to that of a municipal obligation of
similar quality and having a maturity equal to the period between interest
rate readjustments. These custodial receipts are sold in private placements.
The Fund also may purchase directly from issuers, and not in a private
placement, municipal obligations having the characteristics similar to the
custodial receipts in which the Fund may invest.
The third sentence in the last paragraph contained in the section of
the Fund's Prospectus entitled "Description of the Fund - Limiting Investment
Risks and Certain Risk Considerations"is deleted.
May 6, 1998
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS -
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
Supplement to Statement of Additional Information
Dated November 1, 1997
Effective immediately, non-fundamental investment restriction number 2
contained in the section of the Fund's Statement of Additional Information
entitled "Investment Policies - Investment Restrictions," relating to
purchases of securities of issuers that have been in operation for less than
three years, is eliminated as an investment restriction of the Fund.
The following information supersedes and replaces the first sentence of
the first paragraph contained in the section of the Fund's Statement of
Additional Information entitled "Management of the Trust - Trustees and
Officers:"
The Trust has a Board composed of twelve Trustees which supervises the
Fund's investment activities and reviews contractual arrangements with
companies that provide the Fund with services.
The following information supplements and should be read in conjunction
with the section of the Fund's Statement of Additional Information entitled
"Management of the Trust - Trustees and Officers:"
BENAREE PRATT WILEY. Trustee of the Trust; President and CEO of The
Partnership, an organization dedicated to increasing the representation of
African Americans in positions of leadership, influence and decision-making
in Boston, MA; Trustee, Boston College; Trustee, WGBH Educational Foundation;
Trustee, Children's Hospital; Director, The Greater Boston Chamber of
Commerce; Director, The First Albany Companies, Inc.; from April 1995 to
March 1998, Director, TBC, an affiliate of Dreyfus. Age: 51 years old.
Address: 334 Boylston Street, Suite 400, Boston, MA.
