March 12, 1997
DREYFUS BASIC GNMA FUND
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1996
THE FOLLOWING INFORMATION SUPPLEMENTS THE SECTIONS OF THE FUND'S
PROSPECTUS ENTITLED "FEE TABLE," "FUND EXCHANGES," AND "HOW TO REDEEM
SHARES:"
Effective April 4, 1997, for accounts of $50,000 or more the Fund
will waive the fees for (i) writing redemption checks, (ii) exchanges out of
the Fund made pursuant to the Fund's Exchange Privilege, (iii) redemptions by
wire or pursuant to the Dreyfus TELETRANSFER Privilege, and (iv) otherwise
closing out an account.
THE FOLLOWING INFORMATION SUPERSEDES AND REPLACES ANY CONTRARY
INFORMATION CONTAINED IN THE FUND'S PROSPECTUS IN THE SECTION ENTITLED
"MANAGEMENT OF THE FUND:"
Effective immediately, the Fund's primary portfolio manager is
Michael Hoeh. Mr. Hoeh joined Dreyfus in October 1996. From June 1994 through
September 1996, Mr. Hoeh was Vice President, Portfolio Management for ARM
Capital Advisors, Inc. From January 1992 through May 1994, he was Vice
President, Risk Management for Blackrock Financial Management.
080s031297
