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VAN KAMPEN MERRITT GROWTH AND INCOME FUND
SUPPLEMENT DATED MAY 12, 1995 TO PROSPECTUS DATED APRIL 30, 1995
On April 7, 1994, the Trustees of Van Kampen Merritt Equity Trust (the
"Trust") approved an Agreement and Plan of Reorganization between the Van Kampen
Merritt Growth and Income Fund, a sub-trust of the Trust (the "Van Kampen
Fund"), and American Capital Growth and Income Fund, Inc. (the "American Capital
Fund"), a fund advised by Van Kampen American Capital Asset Management, Inc.,
providing for the transfer of assets and liabilities of the Van Kampen Fund to
the American Capital Fund in exchange for shares of the American Capital Fund at
its net asset value per share (the "Reorganization") subject to the approval of
the Directors of the American Capital Fund which was received on May 11, 1995.
Van Kampen American Capital Investment Advisory Corp., the investment adviser
to the Van Kampen Fund, and Van Kampen American Capital Asset Management, Inc.,
are wholly owned subsidiaries of Van Kampen American Capital, Inc., which is a
wholly owned subsidiary of VK/AC Holding, Inc.
The Reorganization is subject to approval by the holders of a majority of the
outstanding shares of the Van Kampen Fund. Further details of the proposed
Reorganization will be contained in the proxy statement/prospectus expected to
be mailed to shareholders in July, 1995.
The American Capital Fund had assets of $256.6 million on March 31, 1995. Its
objective is to seek to provide income and long-term growth of capital by
investing principally in income-producing equity securities including common
stocks and convertible securities. The American Capital Fund and the Van Kampen
Fund have similar investment objectives and follow generally similar investment
policies, although the Van Kampen Fund invests primarily in common stocks of
large established companies considered by the investment adviser to have
potential for both capital appreciation and dividend growth. The American
Capital Fund invests in common stocks and convertible securities. In addition,
the American Capital Fund may also invest in warrants, securities of newly
formed companies and shares of the American Capital Small Capitalization Fund,
Inc.
The Van Kampen Fund will continue its normal operations prior to the
Reorganization.
