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T. ROWE PRICE
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INDEX TRUST, INC.
Equity Index Fund
Supplement to prospectus dated May 1, 1993, revised to October 29, 1993
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Effective immediately:
o Fund Open to All Investors. The following sentence of the first
paragraph under the section "Investment Summary" on page 1 of the
Prospectus will be deleted:
The Fund is available to institutional
investors, individuals investing through
employer-sponsored defined contribution plans
and institutions investing on behalf of defined
benefit plans.
Also, the following paragraph under the section "Investment Objective"
on page 2 of the Prospectus will be deleted:
The Fund is available to institutional
investors, individuals investing through
employer-sponsored, defined contribution plans
and institutions investing on behalf of defined
benefit plans. Such plans include: 401(k),
457, 403(b), profit sharing, money purchase
pension, regular pension plans and IRA rollovers
from such plans.
o Minimum Investment. The first sentence under "Opening a New Account"
on page 12 of the Prospectus -- "Minimum Initial Investment: $5,000"
will be replaced with "Minimum Initial Investment: $2,500".
o Redemption Fee. The T. Rowe Price Equity Index Fund is designed for
long-term investors. The Fund is not designed for short-term traders,
whose frequent purchases, redemptions, and exchanges result in excessive
transaction costs that are ultimately borne by all shareholders. To
help offset such costs, beginning on March 7, 1994, the Fund will apply
a .50% fee to all redemptions of shares purchased on or after that date
held less than six months.
o Specific Guidelines. Commencing on March 7, 1994, the
Fund will begin to apply a .50% redemption fee to all
redemptions (including exchanges) of shares held in the Fund
for less than six months. Only shares purchased on or after
March 7, 1994, and held for less than six months, will be
assessed the .50% fee. Redemption fees will be retained by
the Fund to offset the effect of transaction costs.
o Shares purchased prior to March 7, 1994 will not be subject to the
redemption fee.
o Shares purchased through reinvested distributions (dividends and
capital gains) will not be subject to the redemption fee.
o Accounts in retirement plans (e.g. 401(k), 403(b), 457, Keogh,
Profit Sharing Plans, and Money Purchase Pension Plans) are not
subject to the redemption fee.
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o IRAs and SEP-IRAs are considered to be individual
retirement accounts, not retirement plans.
Redemptions of shares held for less than six months in
these accounts are subject to the .50% redemption fee.
o Shares purchased through systematic investing (i.e. automatic
asset builder -- shares purchased through payroll, social security
checks, or checking accounts -- or automatic exchange) are subject
to the redemption fee.
o The Fund will use the "first-in, first-out" (FIFO) method to
determine the six month holding period. Under this method, the
date of the redemption or exchange will be compared to the
earliest purchase date of shares held in the account. If this
holding period is less than six months, the redemption fee will be
assessed.
Effective January 1, 1994, the fifth paragraph under the section "Summary of
Fund Fees and Expenses" on pages 4 and 5 of the prospectus will be replaced by
the following paragraph:
Effective January 1, 1992, T. Rowe Price agreed to
bear any expenses through December 31, 1993, which
would cause the Fund's ratio of expenses to average
net assets to exceed 0.45%. Effective January 1, 1994,
T. Rowe Price agreed to extend the Fund's 0.45%
expense limitation for a period of two years through
December 31, 1995. Expenses paid or assumed under
each agreement are subject to reimbursement to T. Rowe
Price by the Fund whenever the Fund's expense ratio is
below 0.45%; however, no reimbursement will be made
after December 31, 1995 (for the first agreement) or
December 31, 1997 (for the second agreement), or if it
would result in the expense ratio exceeding 0.45%.
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The date of this Supplement is February 25, 1994.
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