DRESDNER RCM CAPITAL FUNDS, INC.
                   SUPPLEMENT DATED AUGUST 24, 1998
  TO THE COMBINED PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
                           DATED MAY 1, 1998

The  following  information replaces in its entirety the  fourth  full
paragraph in the Section entitled "The Investment Manager" at page  21
of the Combined Prospectus and Statement of Additional Information:

Dresdner manages, operates and makes all decisions regarding the  day-
to-day business and affairs of the Investment Manager, subject to  the
oversight of Dresdner RCM's Board of Managers.

The  following  information replaces the similar  information  in  the
Section  entitled "Directors and Officers" at page 20 of the  Combined
Prospectus and Statement of Additional Information:

                      Dresdner RCM Small Cap Fund
                                   
G. Nicholas Farwell. Mr. Farwell is a primary portfolio manager of the
Small  Cap  Fund since its inception. He was also a primary  portfolio
manager  of the Growth Equity Fund from 1984-1997. He is a  member  of
the  Investment  Manager's Portfolio Management Team  and  a  Managing
Director  of the Investment Manager, with which he has been associated
since 1980.

Matthew  L. Blazei. Mr. Blazei is a primary portfolio manager  of  the
Small  Cap  Fund  and has managed one or more of its portfolios  since
1996.  He  has research and management responsibilities for small  cap
securities and is a Director of the Investment Manager, with which  he
has been associated since 1988.

The   following  information  supplements  and  should  be   read   in
conjunction with the similar information on the Cover Page and in  the
Sections  entitled "Synopsis" and "Investment Objectives and Policies"
at  pages  1  and  7,  respectively, of the  Combined  Prospectus  and
Statement of Additional Information:

                      Dresdner RCM Small Cap Fund

The Fund's investment objective is to seek appreciation of capital  by
investing,  during  normal market conditions,  at  least  80%  of  its
investments  in  equity and equity-related securities  of  small-sized
concerns.  "Small-sized concerns" is defined as encompassing companies
whose  equity securities have a total market capitalization of  up  to
approximately  $1  billion at the time of acquisition.   Under  normal
market  conditions, the Fund will invest at least  65%  of  its  total
assets in equity and equity-related securities of such concerns.

Under  normal market conditions, the Fund will not purchase the equity
and  equity-related  securities of companies whose  equity  securities
have  a total market capitalization of greater than approximately $1.5
billion at the time of acquisition.  The Fund will not be required  to
sell  portfolio  securities solely on account of  the  fact  that  the
market  capitalization of the issuer's equity securities has  exceeded
$1.5  billion, or be prevented from purchasing or be required to  sell
other  portfolio securities as a result of such change.  However,  the
Fund  will  sell  portfolio  securities  of  an  issuer  whose  market
capitalization,  as  of the end of the most recent  calendar  quarter,
exceeded   $2.0  billion.   Although  the  market  capitalization   of
portfolio  securities at the time of purchase is used  for  compliance
purposes,  the Fund anticipates that the average market capitalization
of  the  portfolio  at  market value generally  will  approximate  the
average  market  capitalization of the securities  that  comprise  the
Russell  2000  Index.   As  of  the date hereof,  the  average  market
capitalization of the Russell 2000 Index is $1.016 billion.