CAPITAL GROWTH FUND
(CLASS A SHARES AND CLASS C SHARES)
Supplement to Prospectuses dated December 31, 1994
1. Under the section entitled "Adviser's Background" on page 10, please
delete the first, second and third paragraphs and replace them with the
following information:
"Peter R. Anderson has been the Fund's senior portfolio manager
since August, 1994. Mr. Anderson
joined Federated Investors in 1972 as, and is presently, a
Senior Vice President of the Fund's investment adviser. Mr.
Anderson is a Chartered Financial Analyst and received his
M.B.A. in Finance from the University of Wisconsin.
James E. Grefenstette has been the Fund's co-portfolio
manager since December, 1994. Mr. Grefenstette joined
Federated Investors in 1992 and has been an Assistant Vice
President of the Fund's investment adviser since October,
1994. Mr. Grefenstette served as an investment analyst of
the Adviser from 1992 to 1994. Mr. Grefenstette served as a
credit analyst at Westinghouse Credit Corporation from 1990
until 1992, and served as a bond trader and an Investment
Officer at Pittsburgh National Bank from 1987 to 1990. Mr.
Grefenstette received his M.S.I.A. from Carnegie Mellon
University."
February 27, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
461444408
461444200
007717 (2/95)
