August 11, 1999
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS --
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1, 1998
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 the equivalent of 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, Dreyfus 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 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.
--------------------------------------
SMALL ACCOUNT FEE
To offset the relatively higher costs of servicing smaller accounts, the Fund
will charge regular accounts with balances below $2,000 an annual fee of $12.
The valuation of accounts and the deductions are expected to take place during
the fourth quarter of each calendar year. The fee will be waived for any
investor whose aggregate Dreyfus mutual fund investments total at least $25,000,
and will not apply to IRA accounts or to accounts participating in automatic
investment programs or opened through a securities dealer, bank or other
financial institution, or to other fiduciary accounts.
307s0899
August 11, 1999
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS --
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1, 1998
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 the equivalent of 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, Dreyfus 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 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.
--------------------------------------
SMALL ACCOUNT FEE
To offset the relatively higher costs of servicing smaller accounts, the Fund
will charge regular accounts with balances below $2,000 an annual fee of $12.
The valuation of accounts and the deductions are expected to take place during
the fourth quarter of each calendar year. The fee will be waived for any
investor whose aggregate Dreyfus mutual fund investments total at least $25,000,
and will not apply to IRA accounts or to accounts participating in automatic
investment programs or opened through a securities dealer, bank or other
financial institution, or to other fiduciary accounts.
316s0899
August 11, 1999
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS -
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
Supplement to Statement of Additional Information
Dated November 1, 1998
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.
August 11, 1999
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS -
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
Supplement to Statement of Additional Information
Dated November 1, 1998
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.
