DREYFUS ASSET ALLOCATION FUND INC
497, 1997-04-17
Previous: U S GLOBAL ACCOLADE FUNDS, 497, 1997-04-17
Next: INDUSTRIAL SCIENTIFIC CORP, PRE 14A, 1997-04-17




                                                                April 18, 1997
                     DREYFUS ASSET ALLOCATION FUND, INC.
                          SUPPLEMENT TO PROSPECTUS
                           DATED AUGUST 21, 1996
        THE FOLLOWING INFORMATION SUPERSEDES ANY CONTRARY INFORMATION 
CONTAINED IN THE SECTION OF THE FUND'S PROSPECTUS ENTITLED "FORWARD 
COMMITMENTS."
        FORWARD COMMITMENTS -- The Fund may purchase or sell securities on a 
forward commitment, when-issued or delayed delivery basis, which means that 
delivery and payment take place a number of days after the date of the 
commitment to purchase or sell the securities at a predetermined price and/or 
yield. Typically, no interest accrues to the purchaser until the security is 
delivered. When purchasing a security on a forward commitment basis, the Fund 
assumes the rights and risks of ownership of the security, including the risk 
of price and yield fluctuations, and takes such fluctuations into account 
when determining its net asset value. Because the Fund is not required to pay 
for these securities until the delivery date, these risks are in addition to 
the risks associated with the Fund's other investments. If the Fund is fully 
or almost fully invested when forward commitment purchases are outstanding, 
such purchases may result in a form of leverage. The Fund intends to engage 
in forward commitments to increase its portfolio's financial exposure to the 
types of securities in which it invests. Leveraging the portfolio in this 
manner will increase the Fund's exposure to changes in interest rates and 
will increase the volatility of its returns. A segregated account of the Fund 
consisting of permissible liquid assets at least equal at all times to the 
amount of the Fund's purchase commitments will be established and maintained 
at the Fund's custodian bank. At no time will the Fund have more than 331\3% 
of its assets committed to purchase securities on a forward commitment basis.
                                                                    550s051897



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission