SUNAMERICA EQUITY FUNDS
Supplement to the Statement of Additional Information dated
January 27, 1995, as supplemented February 28, 1995
The following paragraph is being added as the first
full paragraph on page B-54 under the section entitled
"Additional Information Regarding Purchase of Shares":
WAIVER OF CONTINGENT DEFERRED SALES CHARGES. As discussed
under "Purchase of Shares" in the Prospectus, CDSCs may be
waived on redemptions of Class B shares under certain
circumstances. The conditions set forth below are
applicable with respect to the following situations with the
proper documentation:
Death. CDSCs may be waived on redemptions within one
year following the death (i) of the sole shareholder on an
individual account, (ii) of a joint tenant where the
surviving joint tenant is the deceased's spouse, or (iii) of
the beneficiary of a Uniform Gifts to Minors Act, Uniform
Transfers to Minors Act or other custodial account. The
CDSC waiver is also applicable in the case where the
shareholder account is registered as community property.
If, upon the occurrence of one of the foregoing, the account
is transferred to an account registered in the name of the
deceased's estate, the CDSC will be waived on any redemption
from the estate account occurring within one year of the
death. If the Class B shares are not redeemed within one
year of the death, they will remain Class B shares and be
subject to the applicable CDSC, when redeemed.
Disability. CDSCs may be waived on redemptions
occurring within one year after the sole shareholder on an
individual account or a joint tenant on a spousal joint
tenant account becomes disabled (as defined in Section
72(m)(7) of the Internal Revenue Code of 1986, as amended).
To be eligible for such waiver, (i) the disability must
arise AFTER the purchase of shares AND (ii) the disabled
shareholder must have been under age 65 at the time of the
initial determination of disability. If the account is
transferred to a new registration and then a redemption is
requested, the applicable CDSC will be charged.
The following paragraph is being restored and restated
as the first full paragraph on page B-55 under the section
entitled "Additional Information Regarding Purchase of Shares":
WAIVER OF SALES CHARGES WITH RESPECT TO CERTAIN PURCHASES OF
CLASS A SHARES. To the extent that sales are made for
personal investment purposes, the sales charge is waived as
to Class A shares purchased by current or retired officers,
directors, and other full-time employees of SunAmerica and
its affiliates, as well as members of the selling group and
family members of the foregoing. In addition, the sales
charge is waived with respect to shares purchased by certain
qualified retirement plans or employee benefit plans (other
than IRAs), which are sponsored or administered by
SunAmerica or an affiliate thereof. Further, the sales
charge is waived with respect to shares purchased by "wrap
accounts" for the benefit of clients of broker-dealers,
financial institutions or financial planners adhering to the
following standards established by the Distributor: (i) the
broker-dealer, financial institution or financial planner
charges its client(s) an advisory fee based on the assets
under management on an annual basis, and (ii) such broker-dealer,
financial institution or financial planner does not
advertise that shares of the Funds may be purchased by
clients at net asset value. Shares purchased under this
waiver may not be resold except to the Fund. Shares are
offered at net asset value to the foregoing persons because
of anticipated economies in sales effort and sales related
expenses. Reductions in sales charges apply to purchases or
shares by a "single person" including an individual; members
of a family unit comprising husband, wife and minor
children; or a trustee or other fiduciary purchasing for a
single fiduciary account. Complete details concerning how
an investor may purchase shares at reduced sales charges may
be obtained by contacting the Distributor.
May 8, 1995
