<PAGE>
NEUBERGER & BERMAN EQUITY TRUST
Supplement to the Prospectus dated December 15, 1995
The table on page 4 is amended to read as follows:
GENESIS TRUST
Portfolio Characteristics: Invests in stocks of
companies with small market capitalizations (usually up
to $1.5 billion). Portfolio manager seeks to buy the
stocks of strong companies with a history of solid
performance and a proven management team, which are
selling at attractive prices.
The second paragraph under the heading "Neuberger & Berman Genesis
Portfolio" on page 19 is amended to read as follows:
Neuberger & Berman GENESIS Portfolio invests
primarily in common stocks of companies with small market
capitalizations ("small-cap companies"). Market
capitalization means the total market value of a
company's outstanding common stock. The Portfolio
regards companies with market capitalizations of up to
$1.5 billion at the time of the Portfolio's investment as
small-cap companies. Companies whose market
capitalizations exceed $1.5 billion after purchase
continue to be considered small-cap companies for
purposes of the Portfolio's investment policies. There
is no necessary correlation between market capitalization
and the financial attributes--such as levels of assets,
revenues or income--commonly used to measure the size of
a company.
The last paragraph under the heading "Neuberger & Berman Genesis
Portfolio" on page 20 is deleted.
The third paragraph under the heading "Management and Administration -
Investment Manager, Administrator, Distributor, and Sub-Adviser" on pages
33-34 is amended to read as follows:
Neuberger & Berman FOCUS Portfolio and Neuberger & Berman
GUARDIAN Portfolio - Kent C. Simons, Lawrence Marx III, and Kevin L.
Risen. Mr. Simons and Mr. Marx are Vice Presidents of N&B Management and
general partners of Neuberger & Berman. Mr. Simons has had responsibility
for Neuberger & Berman FOCUS Portfolio and Neuberger & Berman FOCUS
Trust's Sister Fund's predecessor since 1988, and for Neuberger & Berman
GUARDIAN Portfolio and Neuberger & Berman Guardian Trust's Sister Fund's
predecessor since 1983. Mr. Marx has had those responsibilities since
1988 and Mr. Risen has had those responsibilities since 1996. Mr. Risen
has been an Assistant Vice President of N&B Management since May 1996 and
<PAGE>
has been a portfolio manager for Neuberger & Berman since 1995. He was
previously a research analyst at Neuberger & Berman from 1992 to 1995;
from 1990 to 1992, he was a research analyst at another prominent
financial services firm.
The date of this supplement is August 15, 1996.
<PAGE>
NEUBERGER & BERMAN EQUITY TRUST
Supplement to the Statement of Additional Information
dated December 15, 1995
The first and second paragraphs under the heading "JUDITH M. VALE,
PORTFOLIO MANAGER OF NEUBERGER & BERMAN GENESIS PORTFOLIO" are amended to
read as follows:
The predecessor of Neuberger & Berman GENESIS Fund (which, like
Neuberger & Berman GENESIS Trust, invests all its net investable assets in
Neuberger & Berman GENESIS Portfolio) was established in 1988. A long-
term growth fund dedicated to small capitalization stocks (companies with
total market value of outstanding capital stock of up to $1.5 billion),
Neuberger & Berman GENESIS Portfolio is devoted to the same value
principles as the other equity funds managed by N&B Management. "I buy
small cap stocks with solid earnings today, not just promises for
tomorrow," says its portfolio manager Judith Vale.
"Many people think that small capitalization stock funds are
predominantly invested in high-risk, volatile companies. Not Neuberger &
Berman GENESIS Portfolio. We look for the same fundamentals in small
capitalization stocks as our other funds look for in stocks of larger
companies. We stick to the areas we understand. I'm looking for the most
persistent earnings growth at the lowest multiple." Ms. Vale looks for
well-established companies with entrepreneurial management and some
finances. She also looks for catalysts to exposing value, such as
management changes and new product lines. Often, these are firms that
have suffered temporary setbacks or undergone a restructuring.
The following is added as a final paragraph under the heading "Investment
Management and Administration Services - Investment Companies Managed":
The Portfolios are subject to certain limitations imposed on all
advisory clients of Neuberger & Berman (including the Portfolios, Other
N&B Funds, and other accounts) and personnel of Neuberger & Berman and its
affiliates. These include, for example, limits that may be imposed in
certain industries or by certain companies, and policies of Neuberger &
Berman that limit the aggregate purchases, by all accounts under
management, of the outstanding shares of public companies.
The date of this supplement is August 15, 1996.
<PAGE>
