MFS CAPITAL GROWTH FUND
Supplement to the Prospectus dated April 1, 1995
The section of the Prospectus entitled, "Expense Summary" is hereby
revised as follows:
1. EXPENSE SUMMARY
Shareholder Transaction Expenses: Class A Class B
Maximum Initial Sales Charge Imposed
on Purchases of Fund Shares (as a
percentage of offering price)............. 5.75% 0.00%
Maximum Contingent Deferred Sales Charge
(as a percentage of original purchase
price or redemption proceeds, as
applicable)............................... See Below1 4.00%
Annual Operating Expenses of the Fund (as a percentage of average daily net
assets):
Management Fees............................ 0.75% 0.75%
Rule 12b-1 Fees (after applicable fee
reduction)................................ 0.25%2 1.00%3
Other Expenses............................. 0.32% 0.39%
Total Operating Expenses (after
applicable fee reduction)................. 1.32%4 2.14%
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1. Purchases of $1 million or more are not subject to an initial sales charge;
however, a contingent deferred sales charge ("CDSC") of 1% will be imposed
on such purchases in the event of certain redemption transactions within 12
months following such purchases (see "Purchases").
2. The Fund has adopted a Distribution Plan for its Class A shares in
accordance with Rule 12b-1 under the Investment Company Act of 1940, as
amended (the "1940 Act"), which provides that it will pay
distribution/service fees aggregating up to (but not necessarily all of)
0.35% per annum of the average daily net assets attributable to Class A
shares (see "Distribution Plans"). Distribution fees under this Plan, equal
to 0.10% per annum of the average daily net assets attributable to Class A
shares, are currently being waived. Distribution expenses paid under this
Plan, together with the initial sales charge, may cause long-term
shareholders to pay more than the maximum sales charge that would have been
permissible if imposed entirely as an initial sales charge.
3. The Fund has adopted a Distribution Plan for its Class B shares in
accordance with Rule 12b-1 under the 1940 Act, which provides that it will
pay distribution/service fees aggregating up to 1.00% per annum of the
average daily net assets attributable to Class B shares (see "Distribution
Plans"). Distribution expenses paid under this Plan, together with any
CDSC, may cause long-term shareholders to pay more than the maximum sales
charge that would have been permissible if imposed entirely as an initial
sales charge.
4. Absent any expense waivers, Class A "Total Operating Expenses" would be
1.42%.
Example of Expenses
An investor would pay the following dollar amounts of expenses on a $1,000
investment in the Fund, assuming (a) a 5% annual return and (b) redemption at
the end of each of the time periods indicated (unless otherwise noted):
Period Class A Class B
(1)
1 year................................ $ 70 $ 62 $ 22
3 years............................... 97 97 67
5 years............................... 126 135 115
10 years............................... 207 226(2) 226(2)
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1. Assumes no redemption.
2. Class B shares convert to Class A shares approximately eight years after
purchase; therefore, years nine and ten reflect Class A expenses.
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The purpose of the expense table above is to assist investors in
understanding the various costs and expenses that a shareholder of the Fund will
bear directly or indirectly. More complete descriptions of the following Fund
expenses are set forth in the following sections: (i) varying sales charges on
share purchases - "Purchases"; (ii) varying CDSCs - "Purchases"; (iii)
management fees - "Investment Adviser"; and (iv) Rule 12b-1 (i.e., distribution
plan) fees - "Distribution Plans".
The "Example" set forth above should not be considered a representation
of past or future expenses of the Fund; actual expenses may be greater or less
than those shown.
* * *
Page 21 of the Prospectus is revised to delete the sentence stating
that payments under the Class A Distribution Plan will commence on the date that
the Fund's assets attributable to Class A shares first equals or exceeds $40
million because such assets have now exceeded this amount. This sentence is
replaced in its entirety as follows: "MFD is currently waiving the 0.10% per
annum distribution fee provided for under the Plan until such time as the
payment of this fee is approved by the Trust's Board of Trustees."
The date of this Supplement is October 27, 1995.
