FILED PURSUANT TO RULE 497(e)
REGISTRATION FILE NO. 33-31809
August 11, 1995
PEOPLES INDEX FUND, INC.
Supplement to Prospectus Dated February 28, 1995
At a meeting held on August 9, 1995, the Fund's Board
approved, subject to shareholder approval: (i) the entry by the
Fund into a new management agreement with The Dreyfus
Corporation
("Dreyfus") and (ii) the entry by Dreyfus into a new index
management agreement with Mellon Equity Associates, an affiliate
of
Dreyfus ("Mellon Equity"). On the same day, Dreyfus agreed to
terminate its administration agreement with the Fund and Wells
Fargo Nikko Investment Advisors agreed to terminate its index
management agreement with the Fund, effective upon the
assumption
by Dreyfus and Mellon Equity of their respective duties under
the terms of the new agreements.
A special meeting of the Fund's shareholders to consider
the new management agreement with Dreyfus and the new index
management agreement with Mellon Equity is scheduled to be held
on November 3, 1995. A Proxy Statement with respect to the
proposed new agreements is expected to be mailed in early
September 1995 to
Fund shareholders of record as of September 8, 1995. The Proxy
Statement will describe the services to be provided and the fees
to be charged by Dreyfus and Mellon Equity. If shareholders
approve
the new agreements, Dreyfus will serve as the Fund's manager,
Mellon Equity will serve as the Fund's index manager and Boston
Safe Deposit and Trust Company, an affiliate of Dreyfus, will
serve as the Fund's custodian.
