August 1, 1996
DREYFUS HIGH YIELD
SECURITIES FUND
SUPPLEMENT TO PROSPECTUS
DATED JANUARY 2, 1996
AS REVISED MARCH 26, 1996
THE FOLLOWING INFORMATION SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE SECTION OF THE FUND'S PROSPECTUS ENTITLED "MANAGEMENT OF THE
FUND--TRANSFER AND DIVIDEND DISBURSING AGENT AND CUSTODIAN."
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, Pennsylvania
15258, serves as the Fund's Custodian.
THE FOLLOWING INFORMATION SUPPLEMENTS AND SHOULD BE READ IN
CONJUNCTION WITH THE INFORMATION CONTAINED IN THE SECTION OF THE FUND'S
PROSPECTUS ENTITLED "APPENDIX -- CERTAIN PORTFOLIO SECURITIES --
MORTGAGE-RELATED SECURITIES."
The mortgage-related securities in which the Fund may invest also
include multi-class pass- through certificates secured principally by
mortgage loans on commercial properties. These mortgage-related securities
are structured similarly to mortgage-related securities secured by pools of
residential mortgages. Commercial lending, however, generally is viewed as
exposing the lender to a greater risk of loss than one- to four-family
residential lending. Commercial lending, for example, typically involves large
r loans to single borrowers or groups of related borrowers than residential
one- to four-family mortgage loans. In addition, the repayment of loans
secured by income producing properties typically is dependent upon the
successful operation of the related real estate project and the cash flow
generated therefrom. Consequently, adverse changes in economic conditions and
circumstances are more likely to have an adverse impact on mortgage-related
securities secured by loans on commercial properties than on those secured by
loans on residential properties.
(CONTINUED ON REVERSE SIDE)
THE FOLLOWING INFORMATION SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE SECTION OF THE FUND'S PROSPECTUS ENTITLED
"APPENDIX -- INVESTMENT TECHNIQUES -- BORROWING MONEY."
LEVERAGE -- Leveraging will exaggerate the effect on net asset value of any
increase or decrease in the market value of the Fund's portfolio. Money
borrowed for leveraging will be limited to 331/3% of the value of the Fund's
total assets. These borrowings will be subject to interest costs which may or
may not be recovered by appreciation of the securities purchased; in certain
cases, interest costs may exceed the return received on the securities
purchased.
The Fund may enter into reverse repurchase agreements with banks,
brokers or dealers. This form of borrowing involves the transfer by the Fund
of an underlying debt instrument in return for cash proceeds based on a
percentage of the value of the security. The Fund retains the right to
receive interest and principal payments on the security. At an agreed upon
future date, the Fund repurchases the security at principal plus accrued
interest. Except for these transactions, the Fund's borrowings generally will
be unsecured.
043s080196
