RREEF REAL ESTATE SECURITIES FUND (the "Fund")
SUPPLEMENT DATED MAY 23, 1996 TO
PROSPECTUS DATED AUGUST 1, 1995
Effective March 25, 1996, the section entitled "Fees and
Expenses" on page 3 of the Prospectus is deleted in its entirety
and replaced with the following:
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<S> <C>
SHAREHOLDER TRANSACTION EXPENSES:
Maximum Sales Load None
Redemption Fee 1.00%(1)
ANNUAL FUND OPERATING EXPENSES (AS A
PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees (2) 0.75%
12b-1 Fees None
Other Expenses (after expense reimbursement)(3) 0.25%
-----
Total Fund Operating Expenses (after expense
reimbursement)(3) 1.00%
-----
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(1) A redemption fee of 1.00% of the amount redeemed, payable to
the Fund, will be charged on all redemptions within one year of
purchase, except redemptions from Individual Account Retirement
Plans.
(2) Management Fees are reduced with respect to net assets of
the Fund in excess of $100 million. See "Management of the Fund".
(3) This information is based on estimated amounts for the
Fund's current fiscal year. RREEF Real Estate Securities
Advisers L.P. (the "Adviser") has voluntarily agreed to absorb
certain Fund operating expenses, or waive a portion of its
management fee, through at least the end of the fiscal year
ended October 31, 1996 to the extent the total Fund operating
expenses, as a percentage of net assets, exceed 1.00%. Absent
any expense reimbursement or fee waiver, it is estimated the
Other Expenses would be approximately 7.25% of average net
assets and that Total Fund Operating Expenses would be
approximately 8.00% of average net assets.
This table is intended to assist you in understanding the
various costs and expenses that an investor in the Fund will
bear directly or indirectly. THE 5% ANNUAL RATE OF RETURN USED
IN THE EXAMPLE BELOW IS ONLY FOR ILLUSTRATION AND IS NOT
INTENDED TO BE INDICATIVE OR THE FUTURE PERFORMANCE OF THE FUND,
WHICH MAY BE MORE OR LESS THAN THE ASSUMED RATE. FUTURE
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN. You can refer to
the section "How to Purchase Shares" and "Management of the
Fund" for more information on transaction and operating expenses
of the Fund.
<PAGE>
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<CAPTION>
EXAMPLE
You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of
each period:
<S> <C> <C> <C>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
$10 $32 $55 $122
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