STATE BOND GROUP OF MUTUAL FUNDS
Dear Shareholder:
You recently received a proxy solicitation for the proposed transfer of the
net assets of your State Bond Fund into a corresponding mutual fund in the
Federated Investors Family of Funds. According to our records we have not
yet received your vote. We would appreciate your completing your proxy
card and returning it in the enclosed postage paid envelope as soon as
possible. The shareholder meeting is scheduled for December 9, 1996.
Please note that the Board of Directors of your State Bond Fund unanimously
recommends that shareholders vote FOR the proposed reorganization.
If you have any questions, please call us at 1-800-328-4735, ext. #4.
Sincerely,
/s/ Dale C. Bauman
DALE C. BAUMAN
President
State Bond Group of Funds
100 North Minnesota Street
New Ulm, Minnesota 56073
FEDERATED EQUITY FUNDS
Federated Investors
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(412) 288-1900
November 21, 1996
EDGAR Operations Branch
Securities and Exchange Commission
Division of Investment Management
450 Fifth Street, N.W.
Washington, DC 20549
RE: Federated Equity Funds (the ``Trust'')
1933 Act File No. 333-12587
1940 Act File No. 811-4017
Dear Sir or Madam:
Pursuant to Regulation 14a-6 of the Securities Exchange Act of 1934,
enclosed for filing electronically are additional proxy solicitation
materials for Federated Growth Strategies Fund (the `Fund''), a portfolio
of the above-referenced Trust.
The enclosed information is expected to be mailed to certain
shareholders of State Bond Common Stock Fund, a portfolio of State Bond
Equity Funds, Inc., on or about November 21, 1996 in connection with the
Special Meeting of Shareholders to be held on December 9, 1996. The
material is intended to supplement the definitive Prospectus/Proxy,
Statement of Additional Information, and form of proxy of the Fund, dated
November 2, 1996, as filed with the Commission on November 1, 1996.
Any questions or comments with respect to this filing may be directed
to the undersigned at (412) 288-4827.
Very truly yours,
/s/ Jody L. Petras
Jody L. Petras
Senior Compliance Analyst
cc: Byron F. Bowman
Kevin L. Howard
Matthew G. Maloney
Enclosures
