DG INTERNATIONAL EQUITY FUND
(A Portfolio of DG Investor Series)

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Supplement to Prospectus dated March 31, 1997


     1. The following is to be inserted as the third  sentence under the section
        entitled "Acceptable Investments," on page 2:

        "In  addition,  the Fund may  invest  up to 40% of its  total  assets in
        equity  securities of established  companies located in countries having
        emerging markets."


     2. The following is to be inserted after the section  entitled  "Investment
        Company Securities," on page 7:

        "Emerging Market Securities.  The Fund may invest up to 40% of its total
        assets  in  equity  securities  of  established   companies  located  in
        countries  having emerging  markets.  The Fund's  sub-adviser  considers
        countries having emerging markets to be all countries that are generally
        considered  to  have  developing  or  emerging   markets  or  economies.
        Furthermore,  the sub-adviser  considers emerging market countries to be
        all countries  considered by the International  Bank for  Reconstruction
        and  Development  (more  commonly  known  as the  World  Bank)  and  the
        International  Finance  Corporation,  as  well  as  countries  that  are
        classified  by  the  United  Nations  or  otherwise  regarded  by  their
        authorities, as developing.

        "Generally  included in emerging  markets are all countries in the world
        except Australia,  Canada,  Japan, New Zealand,  the United States,  and
        most western European countries.  The Fund will focus on countries which
        the  sub-adviser  believes to have  strongly  developing  economies  and
        markets  including,  among others, the following  countries:  Argentina,
        Bolivia,   Botswana,  Brazil,  Chile,  China,  Colombia,  Cyprus,  Czech
        Republic,  Ecuador,  Egypt, Ghana,  Greece,  Hong Kong, Hungary,  India,
        Indonesia,  Jamaica, Jordan, Kenya, Korea, Malaysia,  Mauritius, Mexico,
        Morocco,  Nigeria, Oman, Pakistan,  Peru,  Philippines,  Poland, Russia,
        Singapore,   Slovakia,  South  Africa,  Sri  Lanka,  Swaziland,  Taiwan,
        Thailand,  Tunisia,  Turkey, Uruguay,  Venezuela, and Zimbabwe. The Fund
        may invest in  countries  other than those  defined  above,  if , in the
        opinion of the sub-adviser,  they are considered to be emerging markets.
        While the sub-adviser  considers the above-mentioned  countries eligible
        for investment, the Fund will not be invested in all such markets at all
        times. Furthermore, the Fund may not pursue investment in such countries
        due to lack of adequate custody of the Fund's assets,  overly burdensome
        restrictions and  repatriation,  lack of an organized and liquid market,
        or unacceptable political or other risks.

        "Emerging  markets  companies  are  defined  as (i)  those for which the
        principal  securities  trading market is an emerging market country,  as
        described  above;  (ii) those which are organized  under the laws of, or
        with a principal office in, an emerging market country;  or (iii) those,
        wherever organized or traded, who derive (directly or indirectly through
        subsidiaries) at least 50% of their total assets, capitalization,  gross
        revenue  or  profit  from its most  current  year from  goods  produced,
        services performed, or sales made in such emerging market countries."


3.   The first  paragraph  under the section  entitled  "Risks  Associated  with
     Investing in Foreign  Companies,"  on page 7, is hereby  amended to read in
     its entirety as follows:

     "Investing in non-U.S.  securities carries substantial risks in addition to
      those associated with domestic investments. In an attempt to reduce these
      risks, the Fund diversifies its investments  broadly among foreign
      countries.  At least three different countries will always be
      represented."


4.   The second  paragraph  under the section  entitled  "Risks  Associated With
     Investing in Foreign Companies," on page 7, is hereby deleted.


5.   The  following  is  to  be  inserted  after  the  section  entitled  "Risks
     Associated With Investing in Foreign Companies," on page 8:

        "Additional Risks Associated With Investing in Emerging Markets

        "Investing  in  securities  of  issuers  in  emerging  market  countries
        involves  exposure  to  significantly  higher  risk  than  investing  in
        countries with developed  markets.  Emerging  market  countries may have
        economic  structures  that are  generally  less  diverse  and mature and
        political  systems  that can be expected to be less stable than those of
        developed countries.

        "Securities  prices in emerging  market  countries can be  significantly
        more  volatile  than in  developed  countries,  reflecting  the  greater
        uncertainties of investing in lesser developed markets and economies. In
        particular,  emerging  market  countries  may have  relatively  unstable
        governments,  and may  present  a  greater  risk of  nationalization  of
        businesses,   expropriation,   confiscatory   taxation  or,  in  certain
        instances, reversion to closed market, centrally planned economies. Such
        countries  may also have greater  restrictions  on foreign  ownership or
        prohibitions on the repatriation of assets, and may have less protection
        of property rights, than developed countries.

        "The economies of emerging market countries may be  predominantly  based
        on only a few  industries  or  dependent  on  revenues  from  particular
        commodities or on international  aid or development  assistance,  may be
        highly  vulnerable to changes in local or global trade  conditions,  and
        may suffer from extreme and volatile debt burdens or inflation rates. In
        addition,  securities  markets in emerging market  countries may trade a
        small number of securities  and may be unable to respond  effectively to
        increases  in  trading  volume,  potentially  resulting  in  a  lack  of
        liquidity and in  volatility in the price of securities  traded on those
        markets. Also, securities markets in emerging market countries typically
        offer less regulatory protection for investors."

                                                                   June 24, 1997

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        Cusip 23321N806
        G01258-09 (6/97)
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DG INTERNATIONAL EQUITY FUND
(A Portfolio of DG Investor Series)

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Supplement to Statement of Additional Information dated March 31, 1997


The following is to be inserted after the section  entitled  "Warrants," on page
4:


                  "Special Considerations Affecting Emerging Markets

                  "Investing  in equity  securities  of  companies  in  emerging
                  markets  may entail  greater  risks than  investing  in equity
                  securities  in developed  countries.  These risks  include (i)
                  less social, political and economic stability;  (ii) the small
                  current  size  of the  markets  for  such  securities  and the
                  currently low or nonexistent  volume of trading,  which result
                  in a lack of liquidity and in greater price volatility;  (iii)
                  certain  national  policies  which  may  restrict  the  Fund's
                  investment opportunities, including restrictions on investment
                  in  issuers  or  industries   deemed   sensitive  to  national
                  interest;  (iv)  foreign  taxation;  and  (v) the  absence  of
                  developed  structures  governing private or foreign investment
                  or  allowing  for  judicial  redress  for  injury  to  private
                  property. Investing in the securities of companies in emerging
                  markets,  may entail  special risks  relating to the potential
                  political   and   economic   instability   and  the  risks  of
                  expropriation, nationalization, confiscation or the imposition
                  of  restrictions  on  foreign  investment,  convertibility  of
                  currencies  into U.S.  dollars and on  repatriation of capital
                  invested. In the event of such expropriation,  nationalization
                  or other confiscation by any country,  the Fund could lose its
                  entire investment in any such country.

                  "Settlement   mechanisms  in  emerging  markets  may  be  less
                  efficient and reliable than in more developed markets. In such
                  emerging  securities  markets there may be share  registration
                  and delivery delays or failures.

                  "Most Latin American  countries have experienced  substantial,
                  and in some periods  extremely  high,  rates of inflation  for
                  many years.  Inflation  and rapid  fluctuations  in  inflation
                  rates and corresponding currency devaluations have had and may
                  continue  to  have  negative  effects  on  the  economies  and
                  securities markets of certain Latin American countries.

                  "Political,   Social   and   Economic   Risks.   Even   though
                  opportunities  for investment  may exist in emerging  markets,
                  any change in the leadership or policies of the governments of
                  those  countries or in the leadership or policies of any other
                  government which exercises a significant  influence over these
                  countries,   may  halt  the   expansion   of  or  reverse  the
                  liberalization  of foreign  investment  policies now occurring
                  and thereby eliminate any investment  opportunities  which may
                  currently exist.

                  "Investors  should  note that upon the  accession  to power of
                  authoritarian  regimes,  the  governments of a number of Latin
                  American countries previously expropriated large quantities of
                  real and personal  property similar to the property which will
                  be represented  by the  securities  purchased by the Fund. The
                  claims of property owners against those governments were never
                  finally  settled.  There can be no assurance that any property
                  represented by securities  purchased by the Fund will not also
                  be expropriated,  nationalized,  or otherwise confiscated.  If
                  such  confiscation  were to  occur,  the Fund  could  lose its
                  entire  investment in such  countries.  The Fund's  investment
                  would  similarly  be  adversely  affected by exchange  control
                  regulation in any of those countries.

                  "Certain  countries  in which  the Fund  may  invest  may have
                  groups  that  advocate  radical   religious  or  revolutionary
                  philosophies or support ethnic  independence.  Any disturbance
                  on the part of such individuals  could carry the potential for
                  widespread  destruction or  confiscation  of property owned by
                  individuals  and  entities  foreign to such  country and could
                  cause the loss of the Fund's  investment  in those  countries.
                  Instability  may also result  from,  among other  things:  (i)
                  authoritarian governments or military involvement in political
                  and economic decision-making,  including changes in government
                  though   extraconstitutional   means;   (ii)  popular   unrest
                  associated with demands for improved  political,  economic and
                  social   conditions;   and  (iii)   hostile   relations   with
                  neighboring or other  countries.  Such  political,  social and
                  economic  instability  could disrupt the  principal  financial
                  markets in which the Fund  invests  and  adversely  affect the
                  value of the Fund's assets."



                                                                   June 24, 1997



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        Cusip 23321N806
        G01258-09 (6/97)