NEUBERGER&BERMAN
EQUITY TRUST
NEUBERGER&BERMAN GUARDIAN TRUST

 Supplement to the Prospectus dated December 15, 1997, as amended April 16, 1998

I. The section  "Investment  Program" on page 10 of the Prospectus is revised by
adding the following paragraph:

         For purposes of managing  cash flow,  the Portfolio at times may invest
in financial  instruments,  the return on which is intended to  approximate  the
performance of a recognized securities index, such as the S&P "500" Index. These
may include options and futures on securities indices,  options on such futures,
and instruments structured as investment companies.


II.  The  following   paragraphs  are  added  to  the  section  "Description  of
Investments" on page 24 of the Prospectus:

DESCRIPTION OF INVESTMENTS

         OTHER  INVESTMENT  COMPANIES.  The  Portfolio  at times  may  invest in
instruments   structured  as  investment  companies  to  gain  exposure  to  the
performance of a recognized  securities index, such as the S&P "500" Index. As a
shareholder  in an investment  company,  the  Portfolio  would bear its pro rata
share of that  investment  company's  expenses.  Investment  in other  funds may
involve the payment of  substantial  premiums  above the value of such  issuer's
portfolio  securities.  The  Portfolio  does not  intend to invest in such funds
unless,  in the  judgment  of N&B  Management,  the  potential  benefits of such
investment justify the payment of any applicable premium or sales charge.

         The  Portfolio's  investment in such securities is limited to (i) 3% of
the total voting stock of any one investment company, (ii) 5% of the Portfolio's
total  assets with  respect to any one  investment  company and (iii) 10% of the
Portfolio's total assets in the aggregate.

         GENERAL RISKS OF OPTIONS, FUTURES, AND FORWARD CONTRACTS. The Portfolio
may use options and futures on securities indices,  and options on such futures,
to increase its exposure to the broad equity  markets.  Such contracts are often
closed out prior to the delivery  date.  The primary risks in using put and call
options,  futures  contracts,  and  options  on  futures  contracts  ("Financial
Instruments") are (1) imperfect correlation or no correlation between changes in
market  value  of  the  securities   index  and  the  prices  of  the  Financial
Instruments;  (2)  possible  lack of a liquid  secondary  market  for  Financial
Instruments and the resulting inability to close them out when desired;  and (3)
the fact that the use of Financial  Instruments is a highly specialized activity
that involves  skills,  techniques,  and risks (including price volatility and a
high degree of  leverage)  different  from those  associated  with  selection of
portfolio  securities.  When the Portfolio uses Financial  Instruments,  it will
place cash or  appropriate  liquid  securities  in a segregated  account or will
"cover" its position,  to the extent required by SEC staff policy.  Another risk
of Financial Instruments is the possible inability of a Portfolio to purchase or
sell a security at a time that would  otherwise be favorable for it to do so, or
the possible need for a Portfolio to sell a security at a disadvantageous  time,
due to its need to maintain cover or to segregate  securities in connection with
its use of Financial  Instruments.  Losses that may arise from  certain  futures
transactions are potentially unlimited.




The date of this Supplement is October 1, 1998.







NEUBERGER&BERMAN
EQUITY TRUST
GUARDIAN TRUST


 Supplement to the Statement of Additional Information dated December 15, 1997


I. The  final  paragraph  in  the section  "Investment  Information - Investment
Policies and Limitations" (page 4) is
revised to read as follows:

         Although the Portfolio  does not have a policy  limiting its investment
in  warrants,  the  Portfolio  does not  currently  intend to invest in warrants
unless acquired in units or attached to securities.

II. The  following  sections  are added to the  section  "Additional  Investment
Information" (beginning on page 5):

Futures Contracts and Options Thereon.

         The Portfolio may purchase and sell stock index futures contracts,  and
may purchase and sell options  thereon.  For purposes of managing cash flow, the
managers may use such futures and options to increase the  Portfolio's  exposure
to the  performance  of a  recognized  securities  index,  such as the S&P "500"
Index.

         A "sale" of a futures contract (or a "short" futures  position) entails
the assumption of a contractual obligation to deliver the securities or currency
underlying  the  contract at a specified  price at a specified  future  time.  A
"purchase"  of a futures  contract (or a "long"  futures  position)  entails the
assumption  of a contractual  obligation  to acquire the  securities or currency
underlying the contract at a specified price at a specified future time. Certain
futures,  including  stock and bond  index  futures,  are  settled on a net cash
payment basis rather than by the sale and delivery of the securities  underlying
the futures.

         U.S. futures  contracts (except certain currency futures) are traded on
exchanges that have been designated as "contract  markets" by the CFTC;  futures
transactions  must be executed through a futures  commission  merchant that is a
member of the relevant  contract market.  In both U.S. and foreign  markets,  an
exchange's  affiliated  clearing  organization  guarantees  performance  of  the
contracts between the clearing members of the exchange.

         Although  futures  contracts  by their  terms may  require  the  actual
delivery or acquisition of the underlying  securities or currency, in most cases
the contractual obligation is extinguished by being offset before the expiration
of the  contract.  A futures  position is offset by buying (to offset an earlier
sale) or selling (to offset an earlier  purchase) an identical  futures contract
calling for  delivery  in the same  month.  This may result in a profit or loss.
While futures contracts entered into by the Portfolio will usually be liquidated
in this manner,  the  Portfolio  may instead make or take delivery of underlying
securities whenever it appears economically advantageous for it to do so.




         "Margin"  with  respect to a futures  contract  is the amount of assets
that must be deposited by the  Portfolio  with, or for the benefit of, a futures
commission  merchant in order to initiate and maintain the  Portfolio's  futures
positions.  The  margin  deposit  made by the  Portfolio  when it enters  into a
futures contract ("initial margin") is intended to assure its performance of the
contract.  If the price of the futures contract changes -- increases in the case
of a short  (sale)  position  or  decreases  in the  case  of a long  (purchase)
position  -- so that the  unrealized  loss on the  contract  causes  the  margin
deposit not to satisfy  margin  requirements,  the Portfolio will be required to
make an additional margin deposit  ("variation  margin").  However, if favorable
price  changes in the futures  contract  cause the margin  deposit to exceed the
required margin, the excess will be paid to the Portfolio. In computing its NAV,
the  Portfolio  marks to market  the value of its open  futures  positions.  The
Portfolio also must make margin deposits with respect to options on futures that
it has  written  (but  not  with  respect  to  options  on  futures  that it has
purchased).  If the futures commission  merchant holding the margin deposit goes
bankrupt,  the Portfolio  could suffer a delay in recovering its funds and could
ultimately suffer a loss.

         An option on a futures  contract  gives the  purchaser  the  right,  in
return for the  premium  paid,  to assume a  position  in the  contract  (a long
position if the option is a call and a short position if the option is a put) at
a specified  exercise price at any time during the option exercise  period.  The
writer of the  option  is  required  upon  exercise  to  assume a short  futures
position (if the option is a call) or a long futures  position (if the option is
a put).  Upon  exercise  of the  option,  the  accumulated  cash  balance in the
writer's  futures margin account is delivered to the holder of the option.  That
balance  represents the amount by which the market price of the futures contract
at exercise  exceeds,  in the case of a call,  or is less than, in the case of a
put, the exercise price of the option.  Options on futures have  characteristics
and risks similar to those of securities options, as discussed herein.

         Although the Portfolio  believes that the use of futures contracts will
benefit it, if N&B  Management's  judgment  about the general  direction  of the
markets or about  interest  rate or currency  exchange rate trends is incorrect,
the  Portfolio's  overall  return would be lower than if it had not entered into
any such  contracts.  The  prices of  futures  contracts  are  volatile  and are
influenced by, among other things, actual and anticipated changes in interest or
currency  exchange  rates,  which in turn are  affected  by fiscal and  monetary
policies and by national and  international  political and economic  events.  At
best,  the  correlation  between  changes in prices of futures  contracts and of
securities being hedged can be only  approximate due to differences  between the
futures  and  securities  markets  or  differences  between  the  securities  or
currencies  underlying a Portfolio's futures position and the securities held by
or to be  purchased  for the  Portfolio.  The  currency  futures  market  may be
dominated  by  short-term  traders  seeking to profit  from  changes in exchange
rates.  This would reduce the value of such contracts used for hedging  purposes
over a  short-term  period.  Such  distortions  are  generally  minor  and would
diminish as the contract approaches maturity.

         Because of the low margin deposits  required,  futures trading involves
an extremely  high degree of  leverage;  as a result,  a relatively  small price
movement in a futures contract may result in immediate and substantial  loss, or
gain, to the investor.  Losses that may arise from certain futures  transactions
are potentially unlimited.

         Most U.S.  futures  exchanges  limit the amount of  fluctuation  in the
price of a futures  contract or option thereon during a single trading day; once
the daily limit has been  reached,  no trades may be made on that day at a price
beyond  that  limit.  The daily  limit  governs  only price  movements  during a
particular  trading day,  however;  it thus does not limit potential  losses. In
fact,  it may  increase the risk of loss,  because  prices can move to the daily
limit for several  consecutive  trading days with little or no trading,  thereby
preventing   liquidation  of  unfavorable  futures  and  options  positions  and
subjecting traders to substantial losses. If this were to happen with respect to
a  position  held by the  Portfolio,  it  could  (depending  on the  size of the
position) have an adverse impact on the NAV of the Portfolio.




Put and Call Options on Securities Indices.

For  purposes of managing  cash flow,  the  Portfolio  may purchase put and call
options on  securities  indices to  increase  the  Portfolio's  exposure  to the
performance of a recognize  securities  index, such as the S&P "500" Index . All
securities index options purchased by the Portfolio will be listed and traded on
an exchange.

         The Portfolio may write securities index options to close out positions
in such options that it has purchased.  The Portfolio  currently does not expect
to invest a substantial portion of its assets in securities index options.

         Unlike a  securities  option,  which  gives  the  holder  the  right to
purchase or sell a  specified  security  at a  specified  price,  an option on a
securities  index  gives  the  holder  the  right to  receive  a cash  "exercise
settlement amount" equal to (1) the difference between the exercise price of the
option and the value of the underlying securities index on the exercise date (2)
multiplied by a fixed "index  multiplier." A securities  index  fluctuates  with
changes in the market values of the securities included in the index. Options on
stock indices are currently  traded on the Chicago Board Options  Exchange,  the
New York Stock Exchange  ("NYSE"),  the American Stock Exchange,  and other U.S.
and foreign exchanges.

         The  effectiveness  of hedging through the purchase of securities index
options will depend upon the extent to which price  movements in the  securities
being hedged  correlate with price movements in the selected  securities  index.
Perfect  correlation  is not  possible  because  the  securities  held  or to be
acquired  by the  Portfolio  will  not  exactly  match  the  composition  of the
securities indices on which options are available.

                  Securities  index  options  have   characteristics  and  risks
similar to those of securities options, as discussed herein.


The date of this Supplement is October 1, 1998.


NEUBERGER&BERMAN
EQUITY TRUST
NEUBERGER&BERMAN GUARDIAN TRUST

 Supplement to the Prospectus dated December 15, 1997, as amended April 16, 1998

I. The section  "Investment  Program" on page 10 of the Prospectus is revised by
adding the following paragraph:

         For purposes of managing  cash flow,  the Portfolio at times may invest
in financial  instruments,  the return on which is intended to  approximate  the
performance of a recognized securities index, such as the S&P "500" Index. These
may include options and futures on securities indices,  options on such futures,
and instruments structured as investment companies.


II.  The  following   paragraphs  are  added  to  the  section  "Description  of
Investments" on page 24 of the Prospectus:

DESCRIPTION OF INVESTMENTS

         OTHER  INVESTMENT  COMPANIES.  The  Portfolio  at times  may  invest in
instruments   structured  as  investment  companies  to  gain  exposure  to  the
performance of a recognized  securities index, such as the S&P "500" Index. As a
shareholder  in an investment  company,  the  Portfolio  would bear its pro rata
share of that  investment  company's  expenses.  Investment  in other  funds may
involve the payment of  substantial  premiums  above the value of such  issuer's
portfolio  securities.  The  Portfolio  does not  intend to invest in such funds
unless,  in the  judgment  of N&B  Management,  the  potential  benefits of such
investment justify the payment of any applicable premium or sales charge.

         The  Portfolio's  investment in such securities is limited to (i) 3% of
the total voting stock of any one investment company, (ii) 5% of the Portfolio's
total  assets with  respect to any one  investment  company and (iii) 10% of the
Portfolio's total assets in the aggregate.

         GENERAL RISKS OF OPTIONS, FUTURES, AND FORWARD CONTRACTS. The Portfolio
may use options and futures on securities indices,  and options on such futures,
to increase its exposure to the broad equity  markets.  Such contracts are often
closed out prior to the delivery  date.  The primary risks in using put and call
options,  futures  contracts,  and  options  on  futures  contracts  ("Financial
Instruments") are (1) imperfect correlation or no correlation between changes in
market  value  of  the  securities   index  and  the  prices  of  the  Financial
Instruments;  (2)  possible  lack of a liquid  secondary  market  for  Financial
Instruments and the resulting inability to close them out when desired;  and (3)
the fact that the use of Financial  Instruments is a highly specialized activity
that involves  skills,  techniques,  and risks (including price volatility and a
high degree of  leverage)  different  from those  associated  with  selection of
portfolio  securities.  When the Portfolio uses Financial  Instruments,  it will
place cash or  appropriate  liquid  securities  in a segregated  account or will
"cover" its position,  to the extent required by SEC staff policy.  Another risk
of Financial Instruments is the possible inability of a Portfolio to purchase or
sell a security at a time that would  otherwise be favorable for it to do so, or
the possible need for a Portfolio to sell a security at a disadvantageous  time,
due to its need to maintain cover or to segregate  securities in connection with
its use of Financial  Instruments.  Losses that may arise from  certain  futures
transactions are potentially unlimited.




III. The  paragraph  regarding  the  portfolio  management  of  Neuberger&Berman
Guardian  Portfolio in the section  "Management and  Administration - Investment
Manager,  Administrator,  Distributor,  and Sub-Adviser" (page 18) is revised to
read as follows:

MANAGEMENT AND ADMINISTRATION

Investment Manager, Administrator, Distributor and Sub-Adviser

     Kevin L. Risen and Rick White are  co-managers of the Portfolio.  Mr. Risen
is a Vice President of N&B Management and a principal of  Neuberger&Berman.  Mr.
Risen has had responsibility for Neuberger&Berman Guardian Portfolio since 1996,
and during the prior year, he was a portfolio manager for  Neuberger&Berman.  He
was a research  analyst at  Neuberger&Berman  from 1992 to 1995.  Mr. White is a
Vice President of N&B Management. He has had responsibility for Neuberger&Berman
Guardian  Portfolio  since September 1998. From 1989 to September 1998, he was a
portfolio manager for a mutual fund managed by a prominent investment adviser.




The date of this Supplement is October 1, 1998.







NEUBERGER&BERMAN
EQUITY TRUST
GUARDIAN TRUST


Supplement to the Statement of Additional Information dated December 15, 1997


     I. The final paragraph in the section "Investment  Information - Investment
Policies and Limitations" (page 4) is revised to read as follows:

         Although the Portfolio  does not have a policy  limiting its investment
in  warrants,  the  Portfolio  does not  currently  intend to invest in warrants
unless acquired in units or attached to securities.

II. The  following  sections  are added to the  section  "Additional  Investment
Information" (beginning on page 5):

Futures Contracts and Options Thereon.

         The Portfolio may purchase and sell stock index futures contracts,  and
may purchase and sell options  thereon.  For purposes of managing cash flow, the
managers may use such futures and options to increase the  Portfolio's  exposure
to the  performance  of a  recognized  securities  index,  such as the S&P "500"
Index.

         A "sale" of a futures contract (or a "short" futures  position) entails
the assumption of a contractual obligation to deliver the securities or currency
underlying  the  contract at a specified  price at a specified  future  time.  A
"purchase"  of a futures  contract (or a "long"  futures  position)  entails the
assumption  of a contractual  obligation  to acquire the  securities or currency
underlying the contract at a specified price at a specified future time. Certain
futures,  including  stock and bond  index  futures,  are  settled on a net cash
payment basis rather than by the sale and delivery of the securities  underlying
the futures.

         U.S. futures  contracts (except certain currency futures) are traded on
exchanges that have been designated as "contract  markets" by the CFTC;  futures
transactions  must be executed through a futures  commission  merchant that is a
member of the relevant  contract market.  In both U.S. and foreign  markets,  an
exchange's  affiliated  clearing  organization  guarantees  performance  of  the
contracts between the clearing members of the exchange.

         Although  futures  contracts  by their  terms may  require  the  actual
delivery or acquisition of the underlying  securities or currency, in most cases
the contractual obligation is extinguished by being offset before the expiration
of the  contract.  A futures  position is offset by buying (to offset an earlier
sale) or selling (to offset an earlier  purchase) an identical  futures contract
calling for  delivery  in the same  month.  This may result in a profit or loss.
While futures contracts entered into by the Portfolio will usually be liquidated
in this manner,  the  Portfolio  may instead make or take delivery of underlying
securities whenever it appears economically advantageous for it to do so.




         "Margin"  with  respect to a futures  contract  is the amount of assets
that must be deposited by the  Portfolio  with, or for the benefit of, a futures
commission  merchant in order to initiate and maintain the  Portfolio's  futures
positions.  The  margin  deposit  made by the  Portfolio  when it enters  into a
futures contract ("initial margin") is intended to assure its performance of the
contract.  If the price of the futures contract changes -- increases in the case
of a short  (sale)  position  or  decreases  in the  case  of a long  (purchase)
position  -- so that the  unrealized  loss on the  contract  causes  the  margin
deposit not to satisfy  margin  requirements,  the Portfolio will be required to
make an additional margin deposit  ("variation  margin").  However, if favorable
price  changes in the futures  contract  cause the margin  deposit to exceed the
required margin, the excess will be paid to the Portfolio. In computing its NAV,
the  Portfolio  marks to market  the value of its open  futures  positions.  The
Portfolio also must make margin deposits with respect to options on futures that
it has  written  (but  not  with  respect  to  options  on  futures  that it has
purchased).  If the futures commission  merchant holding the margin deposit goes
bankrupt,  the Portfolio  could suffer a delay in recovering its funds and could
ultimately suffer a loss.

         An option on a futures  contract  gives the  purchaser  the  right,  in
return for the  premium  paid,  to assume a  position  in the  contract  (a long
position if the option is a call and a short position if the option is a put) at
a specified  exercise price at any time during the option exercise  period.  The
writer of the  option  is  required  upon  exercise  to  assume a short  futures
position (if the option is a call) or a long futures  position (if the option is
a put).  Upon  exercise  of the  option,  the  accumulated  cash  balance in the
writer's  futures margin account is delivered to the holder of the option.  That
balance  represents the amount by which the market price of the futures contract
at exercise  exceeds,  in the case of a call,  or is less than, in the case of a
put, the exercise price of the option.  Options on futures have  characteristics
and risks similar to those of securities options, as discussed herein.

         Although the Portfolio  believes that the use of futures contracts will
benefit it, if N&B  Management's  judgment  about the general  direction  of the
markets or about  interest  rate or currency  exchange rate trends is incorrect,
the  Portfolio's  overall  return would be lower than if it had not entered into
any such  contracts.  The  prices of  futures  contracts  are  volatile  and are
influenced by, among other things, actual and anticipated changes in interest or
currency  exchange  rates,  which in turn are  affected  by fiscal and  monetary
policies and by national and  international  political and economic  events.  At
best,  the  correlation  between  changes in prices of futures  contracts and of
securities being hedged can be only  approximate due to differences  between the
futures  and  securities  markets  or  differences  between  the  securities  or
currencies  underlying a Portfolio's futures position and the securities held by
or to be  purchased  for the  Portfolio.  The  currency  futures  market  may be
dominated  by  short-term  traders  seeking to profit  from  changes in exchange
rates.  This would reduce the value of such contracts used for hedging  purposes
over a  short-term  period.  Such  distortions  are  generally  minor  and would
diminish as the contract approaches maturity.

         Because of the low margin deposits  required,  futures trading involves
an extremely  high degree of  leverage;  as a result,  a relatively  small price
movement in a futures contract may result in immediate and substantial  loss, or
gain, to the investor.  Losses that may arise from certain futures  transactions
are potentially unlimited.

         Most U.S.  futures  exchanges  limit the amount of  fluctuation  in the
price of a futures  contract or option thereon during a single trading day; once
the daily limit has been  reached,  no trades may be made on that day at a price
beyond  that  limit.  The daily  limit  governs  only price  movements  during a
particular  trading day,  however;  it thus does not limit potential  losses. In
fact,  it may  increase the risk of loss,  because  prices can move to the daily
limit for several  consecutive  trading days with little or no trading,  thereby
preventing   liquidation  of  unfavorable  futures  and  options  positions  and
subjecting traders to substantial losses. If this were to happen with respect to
a  position  held by the  Portfolio,  it  could  (depending  on the  size of the
position) have an adverse impact on the NAV of the Portfolio.




Put and Call Options on Securities Indices.

For  purposes of managing  cash flow,  the  Portfolio  may purchase put and call
options on  securities  indices to  increase  the  Portfolio's  exposure  to the
performance of a recognize  securities  index, such as the S&P "500" Index . All
securities index options purchased by the Portfolio will be listed and traded on
an exchange.

         The Portfolio may write securities index options to close out positions
in such options that it has purchased.  The Portfolio  currently does not expect
to invest a substantial portion of its assets in securities index options.

         Unlike a  securities  option,  which  gives  the  holder  the  right to
purchase or sell a  specified  security  at a  specified  price,  an option on a
securities  index  gives  the  holder  the  right to  receive  a cash  "exercise
settlement amount" equal to (1) the difference between the exercise price of the
option and the value of the underlying securities index on the exercise date (2)
multiplied by a fixed "index  multiplier." A securities  index  fluctuates  with
changes in the market values of the securities included in the index. Options on
stock indices are currently  traded on the Chicago Board Options  Exchange,  the
New York Stock Exchange  ("NYSE"),  the American Stock Exchange,  and other U.S.
and foreign exchanges.

         The  effectiveness  of hedging through the purchase of securities index
options will depend upon the extent to which price  movements in the  securities
being hedged  correlate with price movements in the selected  securities  index.
Perfect  correlation  is not  possible  because  the  securities  held  or to be
acquired  by the  Portfolio  will  not  exactly  match  the  composition  of the
securities indices on which options are available.

                  Securities  index  options  have   characteristics  and  risks
similar to those of securities options, as discussed herein.


The date of this Supplement is October 1, 1998.