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Supplement Dated November 1, 1997
To the Statement of Additional Information dated August 3, 1997
For
SCHWAB CAPITAL TRUST
On page 24 in the section titled "Investment in Underlying Schwab Funds,"
paragraph one is revised to read:
"The Asset Director Funds may invest in underlying SchwabFunds(R). The
investment objectives and investment policies, limitations, techniques and
associated risks of certain SchwabFunds are described in the Asset Director
Funds' Prospectus or in this SAI. The investment policies, limitations,
techniques and associated risks of each SchwabFund is fully described in its
prospectus and SAI. These are available by contacting Schwab at 1-800-NO-LOAD,
24 hours a day, or by writing to a fund at 101 Montgomery Street, San Francisco,
CA 94104 or electronically at Schwab's World Wide Website at
http://www.schwab.com/funds. TDD users please contact Schwab at 1-800-345-2550."
Paragraph 3 of this page and section is replaced with the following:
"Each Fund reserves the right to invest all of the assets allocated to a
particular class in one or more newly created SchwabFund, that would expose the
Fund and its shareholders to the risks described below. Some of the SchwabFunds
in which the Asset Director Funds may invest are noted below.
Schwab Total Bond Market Index Fund seeks current income by tracking the
performance of the Lehman Brothers Aggregate Bond Index, a broad-based index
covering bonds with maturities over 1 year. Investments in this SchwabFund
expose a Fund to bond market risks that are described in this SAI and in the
prospectus."
