FEDERATED AGGRESSIVE GROWTH FUND
(A Portfolio of Federated Equity Funds)
Class B Shares
SUPPLEMENT TO PROSPECTUS DATED NOVEMBER 15, 1996
Please delete in its entirety the section entitled `ELIMINATION OF
CONTINGENT DEFERRED SALES CHARGE''which begins on page 21 and replace
with the following:
`ELIMINATION OF CONTINGENT DEFERRED SALES CHARGE
The contingent deferred sales charge will be eliminated with respect
to the following redemptions: (1) redemptions following the death or
disability, as defined in Section 72(m)(7) of the Internal Revenue
Code of 1986, of the last surviving shareholder; (2) redemptions
representing minimum required distributions from an Individual
Retirement Account or other retirement plan to a shareholder who has
attained the age of 70 1/2; (3) involuntary redemptions by the Fund of
Shares in shareholder accounts that do not comply with the minimum
balance requirements; and (4) qualifying redemptions of Class B Shares
under a Systematic Withdrawal Program. To qualify for elimination of
the contingent deferred sales charge through a Systematic Withdrawal
Program, the redemptions of Class B Shares must be from an account:
that is at least 12 months old, has all Fund distributions reinvested
in Fund Shares, and has a value of at least $10,000 when the
Systematic Withdrawal Program is established. Qualifying redemptions
may not exceed 1.00% monthly of the account value as periodically
determined by the Fund. For more information regarding the
elimination of the contingent deferred sales charge through a
Systematic Withdrawal Program contact your financial intermediary or
the Fund. No contingent deferred sales charge will be imposed on
redemptions of Shares held by Trustees, employees and sales
representatives of the Fund, the distributor, or affiliates of the
Fund or distributor, and their immediate family members; employees of
any financial institution that sells Shares of the Fund pursuant to a
sales agreement with the distributor; and spouses and children under
the age of 21 of the aforementioned persons. Finally, no contingent
deferred sales charge will be imposed on the redemption of Shares
originally purchased through a bank trust department, an investment
adviser registered under the Investment Advisers Act of 1940 or
retirement plans where the third party administrator has entered into
certain arrangements with Federated Securities Corp. or its
affiliates, or any other financial institution, to the extent that no
payments were advanced for purchases made through such entities. The
Fund reserves the right to discontinue or modify the elimination of
the contingent deferred sales charge. Shareholders will be notified
of a discontinuation. Any Shares purchased prior to the termination
of such waiver would have the contingent deferred sales charge
eliminated as provided in the Fund's prospectus at the time of the
purchase of the Shares. If a shareholder making a redemption
qualifies for an elimination of the contingent deferred sales charge,
the shareholder must notify Federated Securities Corp. or the transfer
agent in writing that the shareholder is entitled to such
elimination.''
December 20, 1996
Federated Securities Corp. is the distributor of the Fund
and is a subsidiary of Federated Investors.
Cusip 314172867
