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EVERGREEN GROUP OF FUNDS January 22, 1996
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Supplement to Prospectuses Offering Class A, Class B and Class C Shares
The following should be substituted for the Paragraph entitled "Class A
Shares-Front-End Sales Charge Alternative" in each Prospectus under the heading
"Purchase and Redemption of Shares - How to Buy Shares". Each Initial Sales
Charge schedule relates only to the funds named above it.
Class A Shares-Front-End Sales Charge Alternative. You can purchase Class A
shares at net asset value plus an initial sales charge on purchases under
$1,000,000. On purchases of $1,000,000 or more, a contingent deferred sales
charge ("CDSC") equal to 1% of the lesser of the purchase price or redemption
value will be imposed on shares redeemed during the first year after purchase.
The schedule of charges for Class A Shares is as follows:
Initial Sales Charge
Evergreen Fund Evergreen Foundation Fund
Evergreen Global Real Estate Equity Fund Evergreen Aggressive Growth Fund
Evergreen U.S. Real Estate Equity Fund Evergreen Balanced Fund
Evergreen Limited Market Fund, Inc. Evergreen Utility Fund
Evergreen Growth and Income Fund Evergreen Value Fund
Evergreen Total Return Fund Evergreen Emerging Markets Growth Fund
Evergreen American Retirement Fund Evergreen International Equity Fund
Evergreen Small Cap Equity Income Fund Evergreen High Grade Tax Free Fund
Evergreen Tax Strategic Foundation Fund
Commission to
as a % of the Net as a % of the Dealer/Agent as a
Amount of Purchase Amount Invested Offering Price % of Offering Price
Less than $50,000 4.99% 4.75% 4.25%
$50,000-$ 99,999 4.71% 4.50% 4.25%
$100,000-$249,999 3.90% 3.75% 3.25%
$250,000-$499,999 2.56% 2.50% 2.00%
$500,000-$999,999 2.04% 2.00% 1.75%
Over $1,000,000 None None 1.00% on the first
$2,999,999; plus .50
of 1% on amounts over
$3,000,000 up to
$4,999,999; plus .25
of 1% on amounts over
$5,000,000
* * * * * * *
Evergreen Short-Intermediate Municipal Fund Evergreen Short-Intermediate
Municipal Fund-California
Commission to
as a % of the Net as a % of the Dealer/Agent as a
Amount of Purchase Amount Invested Offering Price % of Offering Price
Less than $50,000 3.36% 3.25% 2.75%
$50,000-$ 99,999 3.09% 3.00% 2.75%
$100,000-$249,999 2.56% 2.50% 2.25%
$250,000-$499,999 2.04% 2.00% 1.75%
$500,000-$999,999 1.52% 1.50% 1.25%
Over $1,000,000 None None 1.00% on the first
$2,999,999; plus .50
of 1% on amounts over
$3,000,000 up to
$4,999,999; plus .25
of 1% on amounts over
$5,000,000
* * * * * * *
The following should be substituted for the second to last Paragraph in
each Prospectus under the heading "Purchase and Redemption of Shares - How to
Buy Shares":
In addition to the discount or commission paid to dealers, EFD will from
time to time pay to dealers additional cash or other incentives that are
conditioned upon the sale of a specified minimum dollar amount of shares of a
Fund and/or other Evergreen Mutual Funds. Such incentives will take the form of
payment for attendance at seminars, lunches, dinners, sporting events or theater
performances, or payment for travel, lodging and entertainment incurred in
connection with travel by persons associated with a dealer and their immediate
family members to urban or resort locations within or outside the United States.
Such a dealer may elect to receive cash incentives of equivalent amount in lieu
of such payments. EFD may also limit the availability of such incentives to
certain specified dealers. EFD from time to time sponsors promotions involving
First Union Brokerage Services, Inc. ("FUBS"), an affiliate of each Fund's
investment adviser, and other selected dealers, pursuant to which incentives are
paid, including gift certificates and payments in amounts up to 1% of the dollar
amount of shares of a Fund sold. Awards may also be made based on the opening of
a minimum number of accounts. Such promotions are not being made available to
all dealers.
* * * * * * *
The following sentence should be added to the Paragraph entitled "Class C
Shares-Level Load Alternative" in each Prospectus that offers Class C Shares
under the heading "Purchase and Redemption of Shares - How to Buy Shares":
The maximum amount of Class C Shares that may be purchased is $500,000.
* * * * * * *
The following should be substituted for the Paragraph entitled "Systematic
Investment Plan" in each Prospectus under the heading "Purchase and Redemption
of Shares - Shareholder Services":
Systematic Investment Plan. You may make monthly or quarterly investments
into an existing account automatically in amounts of not less than $25 per month
or $75 per quarter. Each Fund reserves the right to close an account that
through liquidation or termination of the systematic investment plan has not
reached a minimum balance of $1,000 ($250 for retirement accounts) within 24
months of the initial investment. You can open a systematic investment plan in
the Evergreen Fund, Evergreen Growth and Income Fund, Evergreen Foundation Fund,
Evergreen Balanced Fund, Evergreen Utility Fund, Evergreen Value Fund, Evergreen
High Grade Tax Free Fund, Evergreen Aggressive Growth Fund and Evergreen
International Equity Fund for a minimum of only $50 per month with no initial
investment required.
* * * * * * *
The minimum dollar amount for systematic withdrawals set forth in the
Paragraph entitled "Systematic Cash Withdrawal Plan" in each Prospectus under
the heading "Purchase and Redemption of Shares - Shareholder Services" has been
reduced from $100 to $75.
* * * * * * *
The following should be inserted after the last Paragraph in each
Prospectus under the heading "Other Information - Performance Information":
In marketing a Fund's shares, information may be provided that is designed
to help individuals understand their investment goals and explore various
financial strategies. Such information may include publications describing
general principles of investing, such as asset allocation, diversification, risk
tolerance, and goal setting; a questionnaire designed to help create a personal
financial profile; and an action plan offering investment alternatives. The
information provided to investors may also include discussions of other
Evergreen mutual funds, products, and services, which may include: retirement
investing; brokerage products and services; the effects of periodic investment
plans and dollar cost averaging; saving for college; and charitable giving. In
addition, the information provided to investors may quote financial or business
publications and periodicals, including model portfolios or allocations, as they
relate to fund management, investment philosophy, and investment techniques. The
materials may also reprint, and use as advertising and sales literature,
articles from Evergreen Events, a quarterly magazine provided free of charge to
Evergreen Mutual fund shareholders.
* * * * * * *
EVERGREEN TOTAL RETURN FUND
The following sentence should be added to the beginning of the Paragraph
entitled "Investments Related to Real Estate" in the Prospectus of Evergreen
Total Return Fund under the heading "Description of the Funds - Investment
Practices and Restrictions - Special Risk Considerations":
Investments Related to Real Estate. Evergreen Total Return Fund may invest
up to 15% of its assets in investments related to real estate, including real
estate investment trusts ("REITS").
