NEUBERGER & BERMAN EQUITY TRUST
                        Neuberger & Berman Guardian Trust
                        Supplement dated April 1, 1997 to
           Statement of Additional Information dated December 6, 1996

                             INVESTMENT INFORMATION

The section  regarding  the  investment  program and  managers of the  Portfolio
(pages 5-6) is revised to read as follows:

THE PORTFOLIO

               The  Portfolio  subscribes to the same  stock-picking  philosophy
followed since 1950, when Roy R. Neuberger  founded the predecessor of Neuberger
& Berman GUARDIAN Fund, which, like the Fund,  invests all of its net investable
assets in the Portfolio.

               It's no great  trick  for a mutual  fund to make  money  when the
market is rising.  The tide that lifts stock values will carry most funds along.
The true test of management is its ability to make money even when the market is
flat or declining.  By that measure,  the Fund, Neuberger & Berman GUARDIAN Fund
and its predecessor have served shareholders well and have paid a dividend every
quarter and a capital gain distribution  EVERY YEAR since 1950. Of course,  this
past record does not necessarily predict the Fund's future practices.

               The  portfolio   co-managers   place  a  high  premium  on  being
knowledgeable  about the  companies  whose  stocks they buy.  That  knowledge is
important, because sometimes it takes courage to buy stocks that the rest of the
market  has  forsaken.  The  Portfolio  is usually  early in and early out.  The
managers would rather buy an undervalued  stock because they expect it to become
fairly  valued than buy one fairly  valued and hope it becomes  overvalued.  The
managers  like a stock  "under a rock" or with a cloud over it; they  believe an
investor is not going to get great companies at great valuations when the market
perception is great.

               Investors  who switch  around a lot are not going to benefit from
the  Portfolio's  approach.  They're  following  the market -- the  Portfolio is
looking at fundamentals.