FEDERATED GROWTH STRATEGIES FUND (A Portfolio of Federated Equity Funds) Class A
Shares, Class B Shares Class C Shares Supplement to Prospectuses dated December
31, 1996
Please delete the fourth paragraph under the subsection entitled "Adviser's
Background" which begins on page 15 of the Fund's Class A Shares Prospectus and
page 22 of the Fund's Class A Shares, Class B Shares and Class C Shares
Prospectus, and replace it with the following:
"Salvatore Esposito will be a portfolio manager of the Fund effective
November 1997. Mr. Esposito joined Federated Investors in 1995 as an
Investment Analyst of the Fund's investment adviser and has been an
Assistant Vice President of the Fund's adviser since October 1997. From
1987 to 1995, Mr. Esposito served in various positions at PNC Bank,
culminating in that of Vice President/Lead Reviewer. Mr. Esposito earned
his M.B.A., concentrating in Finance, from Duquesne University."
October 31, 1997
[GRAPHIC OMITTED]
Cusip 314172107
Cusip 314722206
Cusip 314172305
G02144 -02 (10/97)
[GRAPHIC OMITTED]
