Federated CAPITAL APPRECIATION FUND
Class A Shares
Class B Shares
Class C Shares
(A Portfolio of Federated Equity Funds)
Supplement to Prospectus dated December 31, 1999
Please add the following as the second paragraph on page 15 of the prospectus
under the section entitled The Fund's Portfolio Managers Are:
"Arthur J. Barry has been the Fund's Portfolio Manager since March of 1997.
Mr. Barry joined Federated in 1994 as an Investment Analyst and became a
Portfolio Manager in 1997. He served as an Assistant Vice President of the
Fund's Adviser from April 1997 through July 1998 and has been a Vice President
of the Adviser since July 1998. Mr. Barry is a Chartered Financial Analyst. He
earned his M.S.I.A. with concentrations in Finance and Accounting from Carnegie
Mellon University."
Bernard Picchi, James E. Grefenstette, and J. Thomas Madden remain as
Portfolio Managers to the Fund.
January 31, 2000
Cusip 314172701
Cusip 314172800
Cusip 314172883
25071 (1/00)
