The Gabelli Westwood Funds 497(e)
One Corporate Center Registration Statement No. 33-6790
Rye, New York 10580
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Supplement dated May 1, 1998 to Service Class Prospectus dated January 28, 1998
The portfolio investment policies of the Equity Fund appearing on page
6 of the Prospectus are hereby supplemented to reflect that: "The Equity Fund
will not invest in below investment grade securities which are rated below 'C'
by S&P or Moody's."
The "Foreign Securities" risk disclosure appearing on page 12 of the
Prospectus is hereby supplemented by adding the following paragraph as the
second paragraph of that section:
Thus, investment in shares of the Funds should be made with an
understanding of the risks inherent in an investment in foreign
securities either directly or in the form of ADRs or EDRs, including
risks associated with government, economic, monetary and fiscal
policies, possible foreign withholding taxes, inflation and interest
rates, economic expansion or contraction, and global or regional
political, economic or banking crises. Investment in obligations of
foreign issuers and in direct obligations of foreign nations involves
somewhat different investment risks from those affecting obligations of
United States domestic issuers. Foreign issuers are not necessarily
subject to uniform accounting, auditing and financial reporting
standards, practices and requirements comparable to those applicable to
domestic issuers. In addition, for the foreign issuers that are not
subject to the reporting requirements of the Securities Exchange Act of
1934, there may be less publicly available information than is
available from a domestic issuer. Dividends and interest paid by
foreign issuers may be subject to withholding and other foreign taxes,
which may decrease the net return on foreign investments as compared to
dividends and interest paid to the Funds by domestic companies.
Additional risks include future political and economic developments,
the possibility that a foreign jurisdiction might impose or change
withholding taxes on income payable with respect to foreign securities,
the possible seizure, nationalization or expropriation of the foreign
issuer or foreign deposits and the possible adoption of foreign
governmental restrictions such as exchange controls.
The "General Information" section appearing on page 30 of the
Prospectus is hereby supplemented by adding the following sentence at the end of
the second paragraph of that section: "Investors may inquire about classes of
shares not offered by this prospectus by calling 1-800-GABELLI."
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