FEDERATED CAPITAL APPRECIATION FUND
(A Portfolio of Federated Equity Funds)
Class A Shares
Class B Shares
Class C Shares
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 21, 1995
Please delete the third, fourth, and fifth paragraphs under the section
entitled "Adviser's Background" and replace them with the following:
"Peter R. Anderson has been the Fund's portfolio manager since the
Fund's inception date. Mr. Anderson joined Federated Investors in 1972
as, and is presently, a Senior Vice President of the Fund's investment
adviser. Mr. Anderson is a Chartered Financial Analyst and received his
M.B.A in Finance from the University of Wisconsin.
J. Thomas Madden has been the Fund's portfolio manager since the Fund's
inception date. Mr. Madden joined Federated Investors in
1977 and has been an Executive Vice President of the Fund's investment
adviser since 1994. Mr. Madden served as a Senior Vice President of the
Fund's investment adviser from 1989 to 1993. Mr. Madden is a Chartered
Financial Analyst and received his M.B.A. with a concentration in
finance from the University of Virginia."
July 26, 1996
FEDERATED INVESTORS
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the Fund
and is a subsidiary of Federated Investors.
Cusip 3141172701
Cusip 314172800
Cusip 314172883
G01786-01 (7/96)
