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HUDSON CAPITAL 125 Broad Street
APPRECIATION FUND New York, New York 10004
(A Series of The Fahnestock Funds)
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DECEMBER 31, 1997
SUPPLEMENT TO PROSPECTUS FOR CLASS N SHARES
DATED APRIL 15, 1997
Effective November 1, 1997 the main office of the Fahnestock Funds and
Fahnestock & Co. Inc. is 125 Broad Street, New York, New York 10004. The new
direct telephone number for the Fund is 1-800-800-9141. The telephone number for
shareholder services at Investors Fiduciary Trust Company is 1-800-367-0068. All
other phone numbers remain the same.
(To replace the first five paragraphs under 'HOW TO BUY
SHARES' captioned 'General,' 'Retirement Plans' and 'Automatic
Investment' on pages 14 and 15.)
HOW TO BUY SHARES
GENERAL
Investors may buy Class N shares of the Fund through representatives of
Fahnestock or another broker who has signed a Selling Dealer agreement with
Fahnestock. Investors may be charged a fee if they purchase Class N shares
through a broker other than Fahnestock. Each initial order is reviewed when it
is received by Fahnestock or a Selling Dealer and, if it is accompanied by all
appropriate information or is made through an existing brokerage account, the
order is accepted by Fahnestock. The minimum initial investment is $1,000 and
all purchases must be made in U.S. dollars. Thereafter, additional investments
may be made in amounts of $50 or more as the shareholder elects. (These minimums
do not apply to retirement plans. See 'Retirement Plans' below.)
The offering price of Class N shares will be the net asset value per share
next determined after acceptance of the purchase order.
Retirement Plans. Investors may use the Fund as a funding medium for
various types of qualified retirement plans, such as Individual Retirement
Accounts, including ROTH IRAs and
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Education Individual Retirement Accounts, Keogh Plans (H.R. 10), Pension and
Profit Sharing Plans, Tax Sheltered Annuity Retirement Plans, and 401(k) Plans.
The initial investment minimum for these retirement plans is $1,000 except that
the initial investment minimum for Education Individual Retirement Accounts is
$500. Thereafter, additional investments for all of the above may be made in
amounts of $50 or more as the shareholder elects. Contributions to such plans
are subject to prevailing amount limits set by the Internal Revenue Code and may
be deducted within limits set by the Code.
Systematic Investment. The Fund offers a Systematic Investment Plan under
which the Fund's transfer agent, Investors Fiduciary Trust Company (IFTC), is
permitted through the Automated Clearing House to charge a shareholder's regular
bank account on a regular, predetermined basis to transfer systematic additions
to the shareholder's Fund account. The initial minimum investment for a
Systematic Investment Plan is $100 and each subsequent transfer must be at least
$50. While there is no charge to shareholders for this service, a charge of $10
will be deducted from a shareholder's Fund account if a systematic withdrawal is
rejected by the bank for insufficient funds. (This charge will be waived for
Retirement Plan accounts.) A shareholder's Systematic Investment Plan may be
terminated at any time without charge or penalty by the shareholder, the Fund,
IFTC or Fahnestock. Further information about the Systematic Investment Plan may
be obtained through any Fahnestock account representative or any other broker
who offers the Fund's shares.
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