-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000950123-98-010577.txt : 19981211
<SEC-HEADER>0000950123-98-010577.hdr.sgml : 19981211
ACCESSION NUMBER:		0000950123-98-010577
CONFORMED SUBMISSION TYPE:	N-18F1
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		19981210

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRUDENTIAL DIVERSIFIED FUNDS
		CENTRAL INDEX KEY:			0001067442
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		N-18F1
		SEC ACT:		
		SEC FILE NUMBER:	811-08915
		FILM NUMBER:		98767415

	BUSINESS ADDRESS:	
		STREET 1:		GATEWAY CENTER THREE
		STREET 2:		100 MULBERRY STREET
		CITY:			NEWARK
		STATE:			NJ
		ZIP:			07102
		BUSINESS PHONE:		9733671495

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRUDENTIAL DIVERSIFIED SERIES
		DATE OF NAME CHANGE:	19980803
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-18F1
<SEQUENCE>1
<DESCRIPTION>PRUDENTIAL DIVERSIFIED FUNDS
<TEXT>

<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


            --------------------------------------------------------
                NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1
                    UNDER THE INVESTMENT COMPANY ACT OF 1940
                    ----------------------------------------

                          PRUDENTIAL DIVERSIFIED FUNDS

<PAGE>   2
                            NOTIFICATION OF ELECTION

     The undersigned registered open-end investment company hereby notifies the 
Securities and Exchange Commission that it elects to commit itself to pay in 
cash all redemptions by a shareholder of record as provided by Rule 18f-1 under 
the Investment Company Act of 1940. It is understood that this election is 
irrevocable while such Rule is in effect unless the Commission by order upon 
application permits withdrawal of the Notification of Election.


                                   SIGNATURE

     Pursuant to the requirements of Rule 18f-1 under the Investment Company 
Act of 1940, the registrant has caused this Notification of Election to be duly 
executed on its behalf in the City of Newark and the State of New Jersey on the 
10th day of December, 1998.

                                   Signature

                                   PRUDENTIAL DIVERSIFIED FUNDS
                                   ----------------------------
                                   (Name of Registrant)


                                   By: /s/ Brian M. Storms
                                       -------------------
                                           Brian M. Storms
                                           President


Attest: /s/ David F. Connor
        -------------------
            David F. Connor
            Secretary


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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