Federated Large Cap Growth Fund
Class A Shares
Class B Shares
Class C Shares
(A Portfolio of Federated Equity Funds)
Supplement to Statement of Additional Information dated December 23, 1998
In the section of the Statement of Additional Information entitled "Securities
in Which the Fund Invests" on page 1, please add the following revisions to the
indicated sections:
Please insert the following sentence after the section entitled "Futures
Contracts."
"The Fund may buy and sell stock indexes and futures on portfolio
securities."
Please replace the second paragraph under the section entitled "Options" with
the following paragraph.
"The Fund may:
(beta) Buy call options on portfolio securities and securities indexes in
anticipation of an increase in the value of the underlying asset.
(beta) Buy put options on portfolio securities and securities indexes in
anticipation of a decrease in the value of the underlying asset.
(beta) Write call options on portfolio securities and securities indexes to
generate income from premiums, and in anticipation of a decrease or only
limited increase in the value of the underlying asset. If a call written by
the Fund is exercised, the Fund foregoes any possible profit from an
increase in the market price of the underlying asset over the exercise
price plus the premium received.
(beta) Write put options on portfolio securities and securities indexes to
generate income from premiums, and in anticipation of an increase or only
limited decrease in the value of the underlying asset. In writing puts,
there is a risk that the Fund may be required to take delivery of the
underlying asset when its current market price is lower than the exercise
price."
May 31, 1999
Cusip 314172842
Cusip 314172834
Cusip 314172826
G02666-01 (5/99)
