FEDERATED SMALL CAP STRATEGIES FUND
(A Portfolio of Federated Equity Funds)
SUPPLEMENT TO PROSPECTUSES DATED NOVEMBER 1, 1995
A. Effective January 1, 1996, the special offering of full dealer
reallowance plus additional bonus payments on sales of Class A Shares
will no longer be offered. Accordingly, please delete the last paragraph
under the section entitled "Dealer Concession."
B. Please insert the following disclosure as a new section following the
section entitled "Equity Investment and Risk Considerations":
PORTFOLIO TURNOVER. Although the Fund does not intend to invest for the
purpose of seeking short-term profits, securities in its portfolio will
be sold whenever the Adviser believes it is appropriate to do so in light
of the Fund's investment objective, without regard to the length of time
a particular security may have been held. A higher rate of portfolio
turnover involves correspondingly greater transaction expenses which must
be borne directly by the Fund and, thus, indirectly by its shareholders.
In addition, a high rate of portfolio turnover may result in the
realization of larger amounts of capital gains which, when distributed to
the Fund's shareholders, are taxable to them. Nevertheless, transactions
for the Fund's portfolio will be based only upon investment
considerations and will not be limited by any other considerations when
the Adviser deems it appropriate to make changes in the Fund's portfolio.
December 28, 1995
PA
FEDERATED SMALL CAP STRATEGIES FUND
(A Portfolio of Federated Equity Funds)
SUPPLEMENT TO COMBINED STATEMENT OF ADDITIONAL INFORMATION DATED NOVEMBER 1,
1995
Please replace the last sentence in the section entitled "Portfolio
Turnover" on page 4 with the following:
"It is not anticipated that the portfolio trading engaged in by the Fund
will result in its annual rate of portfolio turnover exceeding 200%."
December 28, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTPAS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP# 314172404
CUSIP# 314172503
CUSIP# 314172602
