FEDERATED AGGRESSIVE GROWTH FUND
FEDERATED CAPITAL APPRECIATION FUND
FEDERATED GROWTH STRATEGIES FUND
FEDERATED SMALL CAP STRATEGIES FUND
(Portfolios of Federated Equity Funds)
Class A Shares
Supplement to Prospectuses dated December 31, 1997
1. Effective August 3, 1998, please delete the following disclosure in the
prospectus section entitled "Dealer Concession":
"On purchases of $1 million or more, the investor pays no sales charge;
however, the distributor will make twelve monthly payments to the dealer
totaling 0.25% of the public offering price over the first year following the
purchase. Such payments are based on the original purchase price of Shares
outstanding at each month end."
and insert the following language in its place:
"Financial intermediaries purchasing Class A Shares for their customers in
amounts of $1 million or more are eligible to receive an advance commission
from the distributor based on the following breakpoints:
Advance Commission
as a Percentage of
Transaction Amount Public Offering Price
First $1 - $5 million 0.75%
Next $5 - $20 million 0.50%
Over $20 million 0.25%
For accounts with assets over $1 million, the dealer commission resets
annually to the first breakpoint on the anniversary of the first purchase.
Class A Share purchases under this program may be made by Letter of Intent or
by combining concurrent purchases. The above commission will be paid only on
those purchases that were not previously subject to a front-end sales charge
and dealer commission. Certain retirement accounts may not be eligible for
this program. Financial intermediaries must notify the Fund once an account
reaches $1 million in order to qualify for advance commissions.
A contingent deferred sales charge of 0.75% of the redemption amount applies
to Class A Shares redeemed up to 24 months after purchase if a financial
intermediary received an advance commission on the transaction."
<PAGE>
2. The "Summary of Fund Expenses" table on page 1 of each Fund's prospectus is
amended.
a.Under "Shareholder Transaction Expenses," for Class A Shares, the line item
on the contingent deferred sales charge is deleted and replaced with:
"Contingent Deferred Sales Charge (as a percentage of original 0.00% (1)
purchase price or redemption proceeds, as applicable)"
b. Footnote (1) is amended by adding the following as the first sentence:
"(1)Shareholders who purchased $1 million or more of Class A Shares through
a financial intermediary on or after August 3, 1998, may be charged a
contingent deferred sales charge of 0.75% for redemptions made within 24
months of purchase if the financial intermediary received an advance
commission."
July 31, 1998
[GRAPHIC OMITTED]
Cusip 314172875
Cusip 314172701
Cusip 314172107
Cusip 314172404
019414 (7/98)
[GRAPHIC OMITTED]
