Pursuant to Rule 497(e)
                                                       Registration No. 33-74470

ADVANTAGE PRIMARY LIQUIDITY FUND
ADVANTAGE GOVERNMENT LIQUIDITY FUND
ADVANTAGE MUNICIPAL LIQUIDITY FUND
-------------------------------------------------------------------------------

SHARES OF DAILY INCOME FUND (THE "FUND")- MONEY MARKET PORTFOLIO, U.S.
GOVERNMENT PORTFOLIO AND MUNICIPAL PORTFOLIO (EACH, A "PORTFOLIO"
COLLECTIVELY, THE "PORTFOLIOS")

     PROSPECTUS


     JULY 29, 2008


     Daily Income Fund (the "Fund") is an open-end, diversified money market
     fund designed as a cash management service for institutional customers and
     individuals.


     The investment objective of the Money Market Portfolio and the U.S.
     Government Portfolio is to seek as high a level of current income to the
     extent consistent with the preservation of capital and the maintenance of
     liquidity.


     The investment objective of the Municipal Portfolio is to seek as high a
     level of tax-exempt current income to the extent consistent with the
     preservation of capital and the maintenance of liquidity.

     This Prospectus relates exclusively to the Advantage Class of shares (the
     "Advantage Shares") of the Daily Income Fund - Money Market Portfolio, U.S.
     Government Portfolio and Municipal Portfolio.

     THE  SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED
     THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY
     REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

     The Notice of the Reich & Tang Privacy Policy is included with this
     Prospectus but is not part of the Prospectus.

AVAILABLE THROUGH
[GRAPHIC OMITTED] BUYANDHOLD
A Division of Freedom Investments, Inc.
a wholly owned subsidiary of
Oppenheimer & Co. Inc.

375 Raritan Center Parkway
Edison, NJ  08837

<PAGE>
<TABLE>
<CAPTION>

     TABLE OF CONTENTS
    <S>                                               <C>       <C>                                   <C>
    Risk/Return Summary: Investments,
    Risks and Performance                              3        Shareholder Information               19
    Fee Table                                          9        Dividends and Distributions           22
    Investment Objective, Principal Investment
       Strategies and Related Risks                    12       Tax Consequences                      24
    Management, Organization and
    Capital Structure                                  18       Distributions Arrangements            26
                                                                Financial Highlights                  28
</TABLE>

                                       2
<PAGE>
ADVANTAGE SHARES OF DAILY INCOME FUND - MONEY MARKET PORTFOLIO, U.S.
GOVERNMENT PORTFOLIO AND MUNICIPAL PORTFOLIO

RISK/RETURN SUMMARY: INVESTMENTS, RISKS AND PERFORMANCE

INVESTMENT OBJECTIVE
-------------------------------------------------------------------------------

The investment objective of the Money Market and the U.S. Government Portfolio
is to seek as high a level of current income to the extent consistent with the
preservation of capital and the maintenance of liquidity.


The investment objective of the Municipal Portfolio is to seek as high a level
of tax-exempt current income to the extent consistent with the preservation of
capital and the maintenance of liquidity.

There is no assurance that the Portfolios will achieve their investment
objectives.

PRINCIPAL INVESTMENT STRATEGIES
-------------------------------------------------------------------------------

Each Portfolio is a money market portfolio that invests in high quality,
short-term debt instruments. The Fund seeks to maintain investment portfolios
with a dollar-weighted average maturity of 90 days or less, to value its
investment portfolios at amortized cost and maintain a net asset value of $1.00
per share.

Each Portfolio's strategy is as follows:

THE MONEY MARKET PORTFOLIO


The Money Market Portfolio seeks to achieve its objective by investing
principally in short-term money market obligations with maturities of 397 days
or less, including bank certificates of deposit, time deposits, bankers'
acceptances, high quality commercial paper, loan participation interests
securities issued or guaranteed by the United States Government, state agencies
or instrumentalities, and repurchase agreements calling for resale in 397 days
or less backed by the foregoing securities. The maturities of variable rate
demand instruments held in the Portfolio will be deemed to be the longer of the
period required before the Portfolio is entitled to receive payment of the
principal amount of the instrument through demand, or the period remaining until
the next interest rate adjustment, although the stated maturities may be in
excess of 397 days.


THE U.S. GOVERNMENT PORTFOLIO


The U.S. Government Portfolio seeks to achieve its objective by investing at
least 80% of its net assets in short-term, marketable securities and instruments
issued or guaranteed by the U.S. Government or by its agencies or
instrumentalities, ("Government Securities") with maturities of 397 days or
less, and repurchase agreements which are collateralized by the foregoing
securities. For purposes of this test only, net assets include borrowings for
investment purposes. The Fund will provide shareholders with at least 60 days'
prior notice of any change in this policy.


THE MUNICIPAL PORTFOLIO


The Municipal Portfolio seeks to achieve its objective by investing at least 80%
of its net assets in obligations issued by states, territories and possessions
of the United States and its political subdivisions, public authorities and
other entities authorized to issue debt, including Participation Certificates
therein the interest on which is exempt from regular federal income tax.

                                       3
<PAGE>

For purposes of this test only, net assets include borrowings for
investment purposes. The Fund will provide shareholders with at least 60 days'
prior notice of any change in this policy. The maturities of variable rate
demand instruments held in the Portfolio will be deemed to be the longer of the
period required before the Portfolio is entitled to receive payment of the
principal amount of the instrument through demand, or the period remaining until
the next interest rate adjustment, although the stated maturities may be in
excess of 397 days.


RISKS
-------------------------------------------------------------------------------
RISKS COMMON TO ALL PORTFOLIOS:

o    Although the Fund seeks to preserve the value of your investment at $1.00
     per share, it is possible to lose money by investing in the Fund.

o    The value of the Fund's shares and the securities held by the Fund can each
     decline in value.

o    The amount of income the Fund generates will vary with changes in
     prevailing interest rates.

o    An investment in the Fund is not a bank deposit and is not insured or
     guaranteed by the Federal Deposit Insurance Corporation (the "FDIC") or any
     other governmental agency.

RISKS OF INVESTING IN THE MONEY MARKET PORTFOLIO:

o    The Money Market Portfolio may contain securities issued by foreign
     governments, or any of their political subdivisions, agencies or
     instrumentalities, and by foreign branches of domestic banks, foreign
     subsidiaries of domestic banks, domestic and foreign branches of foreign
     banks, and commercial paper issued by foreign issuers. Foreign securities
     may be subject to investment risks which may include adverse economic and
     political developments as well as lack of uniform accounting and financial
     reporting standards.

o    The payment of interest and preservation of capital are dependent upon the
     continuing ability of issuers to meet payment obligations.

RISKS OF INVESTING IN THE U.S GOVERNMENT PORTFOLIO:


o    The U.S. Government Portfolio is exposed to the credit risk of the
     institutions that issue Government Securities. Changes in the credit
     quality of the issuers could affect their ability to meet their payment
     obligations of interest or principal. Any failure to make such payments
     could adversely affect the value of the security and your investment in the
     Fund


RISKS OF INVESTING IN THE MUNICIPAL PORTFOLIO:


o    The Municipal Portfolio invests in municipal debt obligations. The value of
     these municipal obligations may be affected by uncertainties in the
     municipal debt market related to taxation. In addition, the payment of
     interest and preservation of capital are dependent upon the continuing
     ability of issuers and/or obligors of state, municipal and public authority
     debt obligations to meet these payment obligations.

                                       4
<PAGE>
RISK/RETURN BAR CHART AND TABLE
-------------------------------------------------------------------------------


The following bar charts and tables may assist you in deciding whether to invest
in the Advantage Shares of the Money Market, U.S. Government and Municipal
Portfolios. The bar chart shows the average annual total returns of the
Advantage Shares of the Money Market, U.S. Government and Municipal Portfolios
for the last calendar year. The table for the Money Market, U.S. Government and
Municipal Portfolios shows the Advantage Shares' average annual total returns
for the last one year and since inception periods. While analyzing this
information, please note that the Advantage Shares' past performance is not an
indication of how the Advantage Shares will perform in the future. The current
7-day yield for the Money Market Portfolio, the U.S. Government Portfolio and
the Municipal Portfolio may be obtained by calling the Fund at (212) 830-5345 or
toll free at (800) 433-1918.


                                       5
<PAGE>
                    MONEY MARKET PORTFOLIO - ADVANTAGE SHARES (1)(2)
<TABLE>
<CAPTION>
[GRAPHIC OMITTED]


<S>                             <C>
Calender Year End               %Total Return
2007                            4.37%
<FN>
(1)  As of June 30, 2008, the Money Market Portfolio's Advantage Shares had a
     year-to-date return of 1.29%.

(2)  The Money Market Portfolio Advantage Shares' highest quarterly return was
     1.11% for the quarter ended September 30, 2007; the lowest quarterly return
     was 0.51% for the quarter ended June 30, 2008.
</FN>
</TABLE>

<TABLE>
<CAPTION>
 AVERAGE ANNUAL TOTAL RETURNS - MONEY MARKET PORTFOLIO ADVANTAGE SHARES
 FOR THE PERIODS ENDED DECEMBER 31, 2007

       <S>                                <C>
       One Year                           4.37%
       Since Inception*                   4.38%
<FN>
*    The inception date for the Money Market Portfolio's Advantage shares was
     November 1, 2006.

</FN>
</TABLE>

                                       6
<PAGE>
                 U.S. GOVERNMENT - PORTFOLIO ADVANTAGE SHARES (1)(2)
<TABLE>
<CAPTION>

[OBJECT OMITTED]

<S>                             <C>
Calendar Year End               %Total Return
2007                            4.17%
<FN>
(1)  As of June 30, 2008, the U.S. Government Portfolio's Advantage Shares had a
     year-to-date return of 0.92%.

(2)  The U.S. Government Portfolio Advantage Shares' highest quarterly return
     was 1.07% for the quarter ended June 30, 2007; the lowest quarterly return
     was 0.31% for the quarter ended June 30, 2008.
</FN>
</TABLE>

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS - U.S. GOVERNMENT PORTFOLIO ADVANTAGE SHARES
FOR THE PERIODS ENDED DECEMBER 31, 2007

      <S>                               <C>
       One Year                         4.17%
       Since Inception*                 4.20%
<FN>
*    The inception date for the U.S. Government Portfolio's Advantage Shares was
     November 2, 2006.

</FN>
</TABLE>

                                      7
<PAGE>
                 MUNICIPAL PORTFOLIO - ADVANTAGE SHARES (1)(2)

<TABLE>
<CAPTION>

[OBJECT OMITTED]

<S>                             <C>
Calender Year End               % Total Return
2007                            2.72%
<FN>
(1)  As of June 30, 2008, the Municipal Portfolio's Advantage shares had a
     year-to-date return of 0.77%

(2)  The Municipal Portfolio Advantage Shares' highest quarterly return was
     0.70% for the quarter ended June 30, 2007; the lowest quarterly return was
     0.31% for the quarter ended June 30, 2008.
</FN>

</TABLE>

<TABLE>
<CAPTION>

AVERAGE ANNUAL TOTAL RETURNS - MUNICIPAL PORTFOLIO ADVANTAGE SHARES FOR THE
PERIODS ENDED DECEMBER 31, 2007

      <S>                                                     <C>
       One Year                                                2.72%
       Since Inception*                                        2.71%
<FN>
*    The inception date for the Advantage shares was November 2, 2006.
</FN>
</TABLE>


                                       8
<PAGE>
                                    FEE TABLE
-------------------------------------------------------------------------------

This table describes the fees and expenses that you may pay if you buy and hold
Advantage Shares of the Money Market Portfolio.
<TABLE>
<CAPTION>
     SHAREHOLDER FEES
     (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
    <S>                                                               <C>
     Sales Charge (Load) Imposed on Purchases                          None
</TABLE>

<TABLE>
<CAPTION>
   ANNUAL FUND OPERATING EXPENSES
   (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

                                            MONEY MARKET PORTFOLIO
                                               ADVANTAGE SHARES
   <S>                                      <C>   <C>
    Management Fees.....................          0.12%
    Distribution and Service (12b-1) Fees         1.00%
    Other Expenses....................            0.19%
       ADMINISTRATION FEES..............    0.05%
                                                 ---------
      Total Annual Fund Operating Expenses*      1.31%
<FN>
*  The Fund's investment manager voluntarily waived a portion of the
   Administration Fees. After such waivers, the Administration Fees were 0.03%.
   The Fund's distributor voluntarily waived a portion of the Distribution and
   Service (12b-1) Fees. After such waiver, the Distribution and Service (12b-1)
   Fees were 0.83%. The Fund's transfer agent voluntarily waived certain fees
   included in Other Expenses. After such waiver and the Fund's investment
   manager's waiver of a portion of the Administration Fees, Other Expenses were
   0.07%. As a result, the actual Total Annual Fund Operating Expenses were
   1.02%. These fee waiver arrangements may be modified or discontinued from
   time to time by the Fund's investment manager, distributor and /or transfer
   agent without prior notice.
</FN>

</TABLE>

<TABLE>
<CAPTION>
EXAMPLE


This Example is intended to help you compare the cost of investing in the
Advantage Shares of the Money Market Portfolio with the cost of investing in
other money market funds.

The Example assumes that you invest $10,000 in the Advantage Shares of the Money
Market Portfolio for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Advantage Shares' operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:

  <S>                                                   <C>             <C>              <C>              <C>
                                                        1 YEAR           3 YEARS          5 YEARS          10 YEARS
   MONEY MARKET PORTFOLIO - ADVANTAGE SHARES            $133              $415            $718              $1,579
</TABLE>


                                       9
<PAGE>
<TABLE>
<CAPTION>
                                    FEE TABLE
-------------------------------------------------------------------------------

This table describes the fees and expenses that you may pay if you buy and
hold Advantage Shares of the U.S. Government Portfolio.


     SHAREHOLDER FEES
     (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
    <S>                                                               <C>
     Sales Charge (Load) Imposed on Purchases                          None
</TABLE>

<TABLE>
<CAPTION>

   ANNUAL FUND OPERATING EXPENSES
   (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

                                            U.S. GOVERNMENT PORTFOLIO
                                                  ADVANTAGE SHARES
     <S>                                         <C>    <C>
      Management Fees.........................           0.12%
      Distribution and Service (12b-1) Fees.             1.00%
      Other Expenses........................             0.25%
      ADMINISTRATION FEES..................       0.05%_____
      Total Annual Fund Operating Expenses*.             1.31%

<FN>
*    The Fund's investment manager voluntarily waived a portion of the
     Management and Administration Fees. After such waivers, the Management Fees
     were 0.08% and the Administration Fees were 0.00%. The Fund's distributor
     voluntarily waived a portion of the Distribution and Service (12b-1) Fees.
     After such waiver, the Distribution and Service (12b-1) Fees were 0.84%.
     The Fund's transfer agent voluntarily waived certain fees included in Other
     Expenses. After such waiver and the Fund's investment manager's waiver of a
     portion of the Administration Fees, Other Expenses were 0.14%. As a result,
     the actual Total Annual Fund Operating Expenses were 1.02%. These fee
     waiver arrangements may be modified or discontinued from time to time by
     the Fund's investment manager, distributor and/or transfer agent without
     prior notice.
</FN>
</TABLE>

<TABLE>
<CAPTION>

EXAMPLE

This Example is intended to help you compare the cost of investing in the
Advantage Shares of the U.S. Government Portfolio with the cost of investing in
other money market funds.

The Example assumes that you invest $10,000 in the Advantage Shares of the U.S.
Government Portfolio for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Advantage Shares' operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:

<S>                                                     <C>       <C>            <C>           <C>
                                                        1 YEAR     3 YEARS        5 YEARS      10 YEARS
U.S. GOVERNMENT PORTFOLIO - ADVANTAGE SHARES            $139        $434          $750         $1,646

</TABLE>

                                       10
<PAGE>

<TABLE>
<CAPTION>
                                    FEE TABLE
-------------------------------------------------------------------------------

This table describes the fees and expenses that you may pay if you buy and hold
Advantage Shares of the Municipal Portfolio.


     SHAREHOLDER FEES
     (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
    <S>                                                                <C>
     Sales Charge (Load) Imposed on Purchases                          None
</TABLE>

<TABLE>
<CAPTION>

   ANNUAL FUND OPERATING EXPENSES
   (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

                                              MUNICIPAL PORTFOLIO
                                               ADVANTAGE SHARES
     <S>                                      <C>    <C>
      Management Fees.....................          0.12%
      Distribution and Service (12b-1) Fees         1.00%
      Other Expenses......................          0.29%
       ADMINISTRATION FEES................    0.05% -------
      Total Annual Fund Operating Expenses*         1.41%
<FN>

*    The Fund's investment manager voluntarily waived a portion of the
     Management and Administration Fees. After such waivers, the Management Fees
     were 0.04% and the Administration Fees were 0.00%. The Fund's distributor
     voluntarily waived a portion of the Distribution and Service (12b-1) Fees.
     After such waiver, the Distribution and Service (12b-1) Fees were 0.84%. he
     Fund's transfer agent voluntarily waived certain fees included in Other
     Expenses. After such waiver and the Fund's investment manager's waiver of a
     portion of the Administration Fees, Other Expenses were 0.14%. As a result,
     the actual Total Annual Fund Operating Fund's investment Expenses were
     1.02%. These fee waiver arrangements may be modified or discontinued from
     time to time by the Fund's investment manager, distributor and/or transfer
     agent without prior notice.
</FN>
</TABLE>

<TABLE>
<CAPTION>
EXAMPLE

This Example is intended to help you compare the cost of investing in the
Advantage Shares of the Municipal Portfolio with the cost of investing in other
money market funds.

The Example assumes that you invest $10,000 in the Advantage Shares of the
Municipal Portfolio for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Advantage Shares' operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:

<S>                                        <C>        <C>         <C>          <C>
                                            1 Year     3 Years     5 Years      10 Years
Municipal Portfolio - Advantage Shares      $144       $446        $771         $1,691

</TABLE>

                                       11
<PAGE>
INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT STRATEGIES AND RELATED RISKS

INVESTMENT OBJECTIVES
-------------------------------------------------------------------------------

The investment objective of the Money Market Portfolio and the U.S. Government
Portfolio is to seek as high a level of current income to the extent consistent
with the preservation of capital and the maintenance of liquidity.


The investment objective of the Municipal Portfolio is to seek as high a level
of tax-exempt current income to the extent consistent with the preservation of
capital and the maintenance of liquidity.

There can be no assurance that a Portfolio will achieve its investment
objective.

The investment objective of any Portfolio of the Fund described in this section
may only be changed upon the approval of the holders of a majority of the
outstanding shares of such Portfolio.

PRINCIPAL INVESTMENT STRATEGIES
-------------------------------------------------------------------------------
GENERALLY

In order to maintain a share price of $1.00, the Fund must comply with certain
industry regulations. The Fund will only invest in securities which are
denominated in United States dollars. Other regulations pertain to the maturity
and credit quality of the securities in which the Fund may invest. The Fund will
only invest in securities which have, or are deemed to have, a remaining
maturity of 397 days or less. Also, the average maturity for all securities
contained in each individual Portfolio of the Fund, on a dollar-weighted basis,
will be 90 days or less.

The Fund will only invest in either securities which have been rated (or whose
issuers have been rated) in the highest short-term rating category by nationally
recognized statistical rating organizations, or are unrated securities but which
have been determined by the Fund's investment manager to be of comparable
quality.

Each Portfolio of the Fund shall invest not more than 5% of its total assets in
securities issued by a single issuer, except for U.S. Government Obligations.

With respect to 75% of its total assets, each Portfolio shall invest not more
than 10% of its total assets in securities backed by a demand feature or
guarantee from the same institution, except for U.S. Government Obligations.

The Fund's investment manager considers the following factors when buying and
selling securities for each of the Fund's Portfolios: (i) the availability of
cash, (ii) redemption requests, (iii) yield management, and (iv) credit
management.

As a temporary defensive measure a Portfolio may, from time to time, invest in
securities that are inconsistent with its principal investment strategies or
remain uninvested in an attempt to respond to adverse market, economic,
political or other conditions as determined by the Fund's investment manager.
Such a temporary defensive position may cause the Portfolio to not achieve its
investment objective.

MONEY MARKET PORTFOLIO

The Money Market Portfolio intends to attain its investment objective through
investments in the following securities:

                                       12
<PAGE>


(I)  UNITED STATES GOVERNMENT SECURITIES: The Money Market Portfolio may
     purchase short-term obligations issued or guaranteed by the United States
     Government, its agencies or instrumentalities. These obligations include
     issues of the United States Treasury, such as bills, certificates of
     indebtedness, notes and bonds, and issues of certain agencies and
     instrumentalities established under the authority of an act of Congress.
     Some of these securities are supported by the full faith and credit of the
     United States, others are supported by the right of the issuer to borrow
     from the United States Treasury, and still others are supported only by the
     credit of the agency or instrumentality.


(II) DOMESTIC AND FOREIGN BANK OBLIGATIONS: The Money Market Portfolio may
     purchase securities issued by foreign governments, or any of their
     political subdivisions or agencies or instrumentalities, certificates of
     deposit, time deposits and bankers' acceptances issued by domestic banks,
     foreign branches of domestic banks, foreign subsidiaries of domestic banks,
     and domestic and foreign branches of foreign banks. Certificates of deposit
     are certificates representing the obligation of a bank to repay funds
     deposited with it for a specified period of time. Time deposits are
     non-negotiable deposits maintained in a bank for a specified period of time
     (in no event longer than seven days) at a stated interest rate. Time
     deposits purchased by the Fund will not benefit from insurance from the
     FDIC. Bankers' acceptances are credit instruments evidencing the obligation
     of a bank to pay a draft drawn on it by a customer.

     The Money Market Portfolio limits its investments in obligations of
     domestic banks, foreign branches of domestic banks and foreign subsidiaries
     of domestic banks to banks having total assets in excess of one billion
     dollars or the equivalent in other currencies. The Money Market Portfolio
     limits its investments in obligations of domestic and foreign branches of
     foreign banks to dollar denominated obligations of such banks which at the
     time of investment have more than $5 billion, or the equivalent in other
     currencies, in total assets. These investments must also meet the quality
     criteria discussed above under "Principal Investment Strategies -
     Generally."

     The Money Market Portfolio generally limits investments in bank instruments
     to (a) those which are fully insured as to principal by the FDIC or (b)
     those issued by banks which at the date of their latest public reporting
     have total assets in excess of $1.5 billion. However, the total assets of a
     bank will not be the sole factor determining the Money Market Portfolio's
     investment decisions and the Money Market Portfolio may invest in bank
     instruments issued by institutions which the investment manager believes
     present minimal credit risks.

     The Money Market Portfolio may purchase U.S. dollar-denominated obligations
     issued by foreign branches of domestic banks or foreign branches of foreign
     banks ("Eurodollar" obligations) and domestic branches of foreign banks
     ("Yankee dollar" obligations). The Money Market Portfolio will limit its
     aggregate investments in foreign bank obligations, including Eurodollar
     obligations and Yankee

                                       13
<PAGE>

     dollar obligations, to 25% of its total assets at the time of purchase,
     provided that there is no limitation on the Money Market Portfolio's
     investments in (a) Eurodollar obligations, if the domestic parent of the
     foreign branch issuing the obligations is unconditionally liable in the
     event that the foreign branch fails to pay on the Eurodollar obligation for
     any reason; and (b) Yankee dollar obligations, if the U.S. branch of the
     foreign bank is subject to the same regulation as U.S. banks. Eurodollar,
     Yankee dollar and other foreign bank obligations include time deposits,
     which are non-negotiable deposits maintained in a bank for a specified
     period of time at a stated interest rate. The Money Market Portfolio will
     limit its purchases of time deposits to those which mature in seven days or
     less, and will limit its purchases of time deposits maturing in two to
     seven days to 10% of such Portfolio's total assets at the time of purchase.

     Eurodollar and other foreign obligations involve special investment risks,
     including the possibility that (i) liquidity could be impaired because of
     future political and economic developments, (ii) the obligations may be
     less marketable than comparable domestic obligations of domestic issuers,
     (iii) a foreign jurisdiction might impose withholding taxes on interest
     income payable on those obligations, (iv) deposits may be seized or
     nationalized, (v) foreign governmental restrictions such as exchange
     controls may be adopted which might adversely affect the payment of
     principal and interest on those obligations, (vi) the selection of foreign
     obligations may be more difficult because there may be less information
     publicly available concerning foreign issuers, (vii) there may be
     difficulties in enforcing a judgment against a foreign issuer or (viii) the
     accounting, auditing and financial reporting standards, practices and
     requirements applicable to foreign issuers may differ from those applicable
     to domestic issuers. In addition, foreign banks are not subject to
     examination by United States Government agencies or instrumentalities.

(III) VARIABLE AMOUNT MASTER DEMAND NOTES: The Money Market Portfolio may
     purchase variable amount master demand notes. These instruments are
     unsecured demand notes that permit investment of fluctuating amounts of
     money at variable rates of interest pursuant to arrangements with issuers
     who meet the quality criteria discussed above under "Principal Investment
     Strategies - Generally." The interest rate on a variable amount master
     demand note is periodically adjusted according to a prescribed formula.
     Although there is no secondary market in master demand notes, the payee may
     demand payment of the principal and interest upon notice not exceeding five
     business or seven calendar days.

(IV) LOAN PARTICIPATION INTEREST: The Money Market Portfolio may purchase
     participation interest in loans extended by banks to companies, provided
     that both such banks and such companies meet the quality standards
     applicable to bank instruments as set forth above.

(V)  COMMERCIAL PAPER AND CERTAIN DEBT OBLIGATIONS: The Money Market Portfolio
     may purchase commercial paper or similar

                                       14
<PAGE>

     debt obligations. Commercial paper is generally considered to be short-term
     unsecured debt of corporations.

(VI) REPURCHASE AGREEMENTS: The Money Market Portfolio may enter into repurchase
     agreements provided that the instruments serving as collateral for the
     agreements are eligible for inclusion in the Money Market Portfolio. A
     repurchase agreement arises when a buyer purchases a security and
     simultaneously agrees with the vendor to resell the security to the vendor
     at an agreed upon time and price.

U.S. GOVERNMENT PORTFOLIO

Under normal market circumstances, the U.S. Government Portfolio will invest at
least 80% of its net assets in short-term Government Securities with maturities
of 397 days or less, and repurchase agreements which are collateralized by the
foregoing securities. For purposes of this test only, net assets include
borrowings for investment purposes. The Fund will provide shareholders with at
least 60 days' prior notice of any change in this policy.

The Portfolio's investments may include the following securities:

(I)  UNITED STATES TREASURY OBLIGATIONS: Obligations issued by the full faith
     and credit of the United States. U.S. Treasury obligations include bills,
     notes and bonds, which principally differ only in their interest rates,
     maturities and time of issuance.

(II) OTHER OBLIGATIONS OF U.S. GOVERNMENT AGENCIES AND INSTRUMENTALITIES:
     Marketable securities and instruments issued by government-sponsored
     agencies and enterprises acting under authority of Congress. Although
     obligations of federal agencies and instrumentalities are not debts of the
     U.S. Treasury, in some cases, payment of interest and principal on such
     obligations is guaranteed by the U.S. Government, E.G., obligations of the
     Federal Housing Administration, the Export-Import Bank of the United
     States, the Small Business Administration, the Government National Mortgage
     Association, the General Services Administration and the Maritime
     Administration; in other cases payment of interest and principal is not
     guaranteed, E.G., obligation of the Federal Home Loan Bank System and the
     Federal Farm Credit Bank. The Fund will invest in the securities of those
     agencies that are not guaranteed or backed by the full faith and credit of
     the U.S. Government only when the Manager, in its sole discretion, is
     satisfied that the credit risk with respect to a particular agency or
     instrumentality is minimal.

(III) REPURCHASE AGREEMENTS: The U.S. Government Portfolio may enter into
     repurchase agreements which are collateralized by obligations issued or
     guaranteed by the U.S. Government or its agencies or instrumentalities. A
     repurchase agreement arises when a buyer purchases a security and
     simultaneously agrees with the vendor to resell the security to the vendor
     at an agreed upon time and price.

MUNICIPAL PORTFOLIO

The Municipal Portfolio intends to attain its investment objective through
investments in the following securities:

                                       15
<PAGE>

(I)  MUNICIPAL SECURITIES: The Municipal Portfolio may purchase high quality
     tax-exempt money market instruments ("Municipal Securities"), including
     debt obligations issued to obtain funds for various public purposes (E.G.,
     the construction of a wide range of public facilities), the refunding of
     outstanding obligations, the obtaining of funds for general operating
     expenses and lending such funds to other public institutions and
     facilities. The Portfolio may also invest in certain types of private
     activity bonds or industrial development bonds, issued by or on behalf of
     public authorities to obtain funds to provide for the construction,
     equipment, repair or improvement of privately operated facilities. Such
     obligations are considered to be Municipal Securities provided that the
     interest paid thereon generally qualifies as exempt from regular federal
     income tax in the opinion of bond counsel. Interest on certain Municipal
     Securities may give rise to federal alternative minimum tax liability and
     may have other federal income tax consequences.

(II) REPURCHASE AGREEMENTS: The Municipal Portfolio may enter into repurchase
     agreements provided that the instruments serving as collateral for the
     agreements are eligible for inclusion in the Municipal Portfolio. A
     repurchase agreement arises when a buyer purchases a security and
     simultaneously agrees with the vendor to resell the security to the vendor
     at an agreed upon time and price.

For a more detailed description of (i) the securities in which the Fund will
invest, (ii) fundamental investment restrictions, and (iii) industry regulations
governing credit quality and maturity, please refer to the Statement of
Additional Information.

RISKS
-------------------------------------------------------------------------------

The Fund complies with industry-standard requirements on the quality, maturity
and diversification of its investments which are designed to help maintain a
$1.00 share price. A significant change in interest rates or a default on the
Fund's investments could cause its share price (and the value of your
investment) to change.

With respect to the Money Market Portfolio and the U.S. Government Portfolio,
investments in U.S. Government securities may or may not be supported by the
full faith and credit of the U.S. Government. Although many U.S. Government
Securities purchased by the Fund, such as those issued by the Federal National
Mortgage Association ("Fannie Mae"), Federal Home Loan Mortgage Corporation
("Freddie Mac") and the Federal Home Loan Banks ("FHLB") may be chartered or
sponsored by Acts of Congress, their securities are neither issued nor
guaranteed by the U.S. Treasury and therefore, are not backed by the full faith
and credit of the United States. Accordingly, no assurance can be given that the
U.S. Government will provide financial support to U.S. government agencies,
instrumentalities or sponsored enterprises if it is not obligated to do so by
law.

The maximum potential liability of the issuers of some U.S. Government
Securities held by the Fund may greatly exceed their current resources,
including their legal right to support from the U.S. Treasury and thus, it is
possible that these issuers

                                       16
<PAGE>

will not have the funds to meet their payment obligations in the future. In such
case, a Fund must look principally to the agency, instrumentality or sponsored
enterprise issuing or guaranteeing the security for ultimate repayment and may
not be able to assert a claim against the U.S. Government itself in the event
the agency, instrumentality or sponsored enterprise does not meet its
commitment.

The U.S. Government Securities that the Fund may purchase include:


o    U.S. Treasury bills, notes and bonds, all of which are direct obligations
     of the U.S. Government.

o    Securities issued by agencies, instrumentalities or sponsored enterprises
     of the U.S. Government that are backed by the full faith and credit of the
     U.S. Government. Among the agencies, instrumentalities and sponsored
     enterprises issuing these obligations are the Government National Mortgage
     Association (Ginnie Mae) and the Federal Housing Administration (FHA).

o    Securities issued by agencies, instrumentalities or sponsored enterprises
     that are not backed by the full faith and credit of the U.S. Government,
     but whose issuing agency, instrumentality or sponsored enterprise has the
     right to borrow from the U.S. Treasury to meet its obligations. Among these
     agencies, instrumentalities and sponsored enterprises issuing these
     obligations are Fannie Mae, Freddie Mac and the FHLB.

o    Securities issued by agencies, instrumentalities or sponsored enterprises
     that are backed solely by the credit of the issuing agency, instrumentality
     or sponsored enterprise. Among these agencies, instrumentalities and
     sponsored enterprises issuing these obligations is the Federal Farm Credit
     System.

Since the Money Market Portfolio may contain securities issued by foreign
governments, or any of their political subdivisions, agencies or
instrumentalities, and by foreign branches of domestic banks, foreign
subsidiaries of domestic banks, domestic and foreign branches of foreign banks,
and commercial paper issued by foreign issuers, the Money Market Portfolio may
be subject to additional investment risks when compared with those incurred by a
fund which invests only in domestic issuers. Foreign securities markets
generally are not as developed or efficient as those in the United States.
Securities of some foreign issuers are less liquid and more volatile than
securities of comparable United States issuers. Similarly, volume in most
foreign securities markets is less than in the United States. The issuers of
some of these securities may be subject to less stringent or different
regulation than are United States issuers. In addition, there may be less
publicly available information about a non-United States issuer, and non-United
States issuers generally are not subject to uniform accounting and financial
reporting standards and requirements. Additional risks associated with foreign
investments might include adverse political and economic developments, seizure
or nationalization of foreign deposits and adoption of governmental restrictions
which might adversely affect the payment of principal and interest on the
foreign securities. Furthermore, some of these foreign securities may be subject
to stamp,

                                       17
<PAGE>

withholding or other excise taxes levied by foreign governments, which
have the effect of increasing the cost of such securities and reducing the
realized gain or increasing the realized loss on such securities at the time of
sale.

The investment policies of the U.S. Government Portfolio may produce a lower
yield than a policy of investing in other types of instruments. The yield of the
U.S. Government Portfolio is likely to be lower than the yield of the Money
Market Portfolio.

Since the Municipal Portfolio invests in municipal debt obligations, the value
of these municipal obligations may be affected by uncertainties on the municipal
debt market related to taxation. In addition, the payment of interest and
preservation of capital are dependent upon the continuing ability of issuers
and/or obligors of state, municipal and public authority debt obligations to
meet these payment obligations.

PORTFOLIO HOLDINGS

A schedule of each Portfolio holdings, current as of month-end, will be
available on the Fund's website no earlier than 5 days after the end of each
month. This information will remain available on the website at least until
updated for the next month or until the Fund files with the Securities and
Exchange Commission ("SEC") its semi-annual/annual shareholder report or
quarterly portfolio holdings report that includes such period. The most recent
schedule is available on the Fund's website at
http://www.money-funds.com/portfolioholdings or by calling toll free at (800)
433-1918. The Fund may terminate or modify this policy at any time without
further notice to shareholders. A description of the Fund's policies and
procedures with respect to the disclosure of the Fund's portfolio securities is
available in the Statement of Additional Information.

III.  MANAGEMENT, ORGANIZATION AND CAPITAL STRUCTURE

The Fund's investment manager is Reich & Tang Asset Management, LLC (the
"Manager"). The Manager's principal business office is located at 600 Fifth
Avenue, New York, NY 10020. As of June 30, 2008, the Manager was the investment
manager, adviser or sub-adviser with respect to assets aggregating in excess of
$16.2 billion. The Manager has been an investment adviser since 1970 and
currently is manager or sub-adviser of seventeen portfolios of registered
investment companies, of which it acts as administrator for twelve. The Manager
also advises high net worth individuals, private funds, pension trusts,
profit-sharing trusts and endowments.

Pursuant to the Investment Management Contract between the Fund and the Manager,
the Manager manages each Portfolio's securities and makes decisions with respect
to the purchase and sale of investments, subject to the general control of the
Board of Trustees of the Fund. Pursuant to the Investment Management Contract,
each of the Portfolios pays an annual management fee of 0.12% of each
Portfolio's average daily net assets. For the fiscal year ended March 31, 2008,

                                       18
<PAGE>

the Fund paid the Manager a management fee equal to 0.12% of the Money Market,
0.08% of the U.S. Government, and 0.04% of the Municipal Portfolios' average
daily net assets. A discussion regarding the basis for the Board of Trustees
approving the continuance of the Investment Management Contract is available in
the Fund's annual report for the period ended March 31, 2008.

Pursuant to the Administrative Services Contract between the Fund and the
Manager, the Manager provides all management and administrative services
reasonably necessary for the Fund's operation, other than those services that
the Manager provides to the Fund pursuant to the Investment Management Contract.
The Manager also provides the Fund with personnel to perform all of the clerical
and accounting type functions not performed by the Manager pursuant to the
Investment Management Contract and the Administrative Services Contract. For its
services under the Administrative Services Contract, the Fund pays the Manager
an annual fee of 0.05% of each Portfolio's average daily net assets. For the
fiscal year ended March 31, 2008, the Fund paid the Manager a fee for
administrative services equal to 0.03% of the Money Market, 0.00% of the U.S.
Government and 0.00% of the Municipal Portfolios' average daily net assets.

The Manager, at its discretion, may voluntarily waive all or a portion of the
investment management and the administrative services fees. Any portion of the
total fees received by the Manager and its past profits may be used to provide
shareholder services and for distribution of Fund shares.

In addition, Reich & Tang Distributors, Inc. (the "Distributor"), receives a
servicing fee equal to 0.25% per annum of the average daily net assets of the
Advantage Shares of each Portfolio under the Shareholder Servicing Agreement and
a distribution fee in an amount not to exceed 0.75% per annum of the average
daily net assets of the Advantage Shares under the Distribution Agreement. The
fees are accrued daily and paid monthly.

Investment management fees and operating expenses, which are attributable to
more than one Class of the Fund, will be allocated daily to each Class of shares
based on the percentage of shares outstanding at the end of the day.

SHAREHOLDER INFORMATION

Each Portfolio sells and redeems its shares on a continuing basis at its net
asset value and does not impose a charge for either purchases or redemptions.
All transactions in the Fund are effected through the Fund's transfer agent, who
accepts orders for purchases and redemptions from (i) Oppenheimer & Co. Inc. for
orders placed through Oppenheimer & Co. Inc.'s sweep service or through
Oppenheimer & Co. Inc. securities account, and (ii) the retirement plan sponsor
or administrator for orders placed through the Oppenheimer & Co. Inc. retirement
plan.

                                       19
<PAGE>

PURCHASE AND REDEMPTION OF SHARES
-------------------------------------------------------------------------------

Only the Advantage Shares of the Portfolios are offered through this Prospectus.
All Fund shares are held in an omnibus account at the Fund through Oppenheimer &
Co. Inc., or through Oppenheimer & Co. Inc. retirement plan sponsors or
administrators which will maintain individual investor accounts.

Oppenheimer & Co. Inc. and its affiliates and the Oppenheimer & Co. Inc.
retirement plan sponsors or administrators may impose account fees separate from
any fees charged by the Fund and may also set deadlines for receipt of orders
from investors that are earlier than the deadline of the Fund due to processing
and other reasons. Investors should read this prospectus in conjunction with the
materials provided by Oppenheimer & Co. Inc. and any plan sponsors or
administrators.

Oppenheimer & Co. Inc. may transmit an investor's purchase or redemption order
to the Fund's transfer agent after 4:00 p.m., Eastern time on the day the order
is received from the investor as long as the investor has placed his order with
Oppenheimer & Co. Inc. before 4:00 p.m., Eastern time on that day. The investor
will then receive the net asset value of the Fund's shares determined as of 4:00
p.m., Eastern time on the day he placed his order with Oppenheimer & Co. Inc.
Oppenheimer & Co. Inc. is responsible for instituting procedures to ensure that
purchase orders by its respective clients are processed expeditiously.

Orders placed through the Oppenheimer & Co. Inc. retirement plan will receive
the net asset value of the Fund's shares next determined after the Fund's
transfer agent receives the orders from the retirement plan sponsors or
administrators.

There is no minimum initial or subsequent investment for Advantage Shares.

INITIAL INVESTMENTS (PURCHASES)
-------------------------------------------------------------------------------

Contact your Financial Advisor to arrange for an initial investment in a
Portfolio. You may use a Portfolio either as the money market fund tied to your
Oppenheimer& Co. Inc. securities account through Oppenheimer & Co. Inc.'s sweep
service or as an additional investment position held in your securities account.

The "sweep" means that cash is automatically invested in a Fund when the cash
becomes available in your Oppenheimer & Co. Inc. securities account from any
source such as proceeds from securities sales, receipt of dividends or interest
income, or a check deposit from you. Amounts of $10,000 or more are invested on
the next business day; amounts less than $10,000 are invested once a week on the
first business day of the following week. The sweep automatically withdraws cash
from the Fund when appropriate to cover purchases or other activities in your
account.

Participants in the Oppenheimer & Co. Inc. retirement plan should contact their
plan sponsor to arrange for an initial investment in the Fund.

SUBSEQUENT INVESTMENTS (PURCHASES)
-------------------------------------------------------------------------------
Mail or deliver your check, payable to Oppenheimer & Co. Inc., to your Financial
Advisor. Please write your securities account

                                       20
<PAGE>

number and the Fund name on the check. If you wish to make an investment by
sending a wire from your bank, contact your Financial Advisor to obtain wiring
instructions.

Participants in the Oppenheimer & Co. Inc. retirement plan should contact their
plan sponsor to arrange for subsequent investments in the Fund.

GENERAL INFORMATION ON PURCHASES
-------------------------------------------------------------------------------
Advantage Shares of the Portfolios may be purchased through Oppenheimer & Co.
Inc. The net asset value of each Portfolio of the Fund's shares is determined as
of 4:00 p.m., Eastern time, on each Fund Business Day. Fund Business Day means
weekdays (Monday through Friday) except (i) days on which the New York Stock
Exchange is closed for trading (I.E., national holidays) and (ii) Columbus Day
and Veterans' Day. However, on certain days that the New York Stock Exchange is
closed, the Fund, at the direction of the Manager, may be open for purchases and
redemptions and will determine its net asset value. The net asset value is
computed by dividing the value of each Portfolio's net assets (I.E., the value
of its securities and other assets less its liabilities, including expenses
payable or accrued, but excluding capital stock and surplus) by the total number
of shares outstanding. Each Portfolio intends to maintain a stable net asset
value at $1.00 per share although there can be no assurance that this will be
achieved.

The Fund's portfolio securities are valued at their amortized cost in compliance
with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as
amended (the "1940 Act"). Amortized cost valuation involves valuing an
instrument at its cost and thereafter assuming a constant amortization to
maturity of any discount or premium. If fluctuating interest rates or credit
issues cause the market value of the securities in a Portfolio to deviate more
than 1/2 of 1% from the value determined on the basis of amortized cost, the
Board of Trustees will consider whether any action should be initiated. Although
the amortized cost method provides certainty in valuation, it may result in
periods during which the value of an instrument is higher or lower than the
price the Fund would receive if the instrument were sold.

Shares are issued as of the first determination of the Portfolio's net asset
value per share made after acceptance of the investor's purchase order. In order
to maximize earnings on its Portfolios, the Fund normally has its assets as
fully invested as is practicable. Many securities in which the Fund invests
require the immediate settlement in funds of Federal Reserve member banks on
deposit at a Federal Reserve Bank (commonly known as "Federal Funds"). Portfolio
shares begin accruing income on the day the shares are issued to an investor.

The Fund reserves the right to reject any purchase order of its shares. In
addition, the Fund does not accept cash, and may refuse to accept cash
equivalents (I.E., travelers cheques, money orders, cashier's checks or similar
instruments) and certain other forms of payment at its discretion. Certificates
for Fund shares will not be issued to investors.

                                       21
<PAGE>
WITHDRAWALS (REDEMPTIONS)
-------------------------------------------------------------------------------
For withdrawals other than those automatically activated by the sweep, please
instruct your Financial Advisor as to the withdrawal amount and the delivery of
the proceeds.

Participants in the Oppenheimer & Co. Inc. retirement plan should contact their
plan sponsor to arrange for redemptions of shares held in the Fund.

GENERAL INFORMATION ON REDEMPTIONS
-------------------------------------------------------------------------------
You may redeem your shares, in whole or in part, on any day on which a
Portfolio's net asset value is calculated. Shares are redeemed at the net asset
value next determined after receipt of proper notice of redemption. If you
redeem all of your shares, you will receive payment of all dividends declared
but unpaid through the date of redemption. If you redeem only a portion of the
shares in your account, the dividends declared but unpaid on the shares redeemed
will not be distributed to you until the next regular dividend payment date. If
your redemption order is received prior to 4:00 p.m. Eastern time, the
redemption will be effective on that day and the Fund will endeavor to transmit
payment that same business day. If the notice of redemption is received after
4:00 p.m. Eastern time, the redemption will be made on the next business day.

The Fund and its agents reserves the right to "freeze" or "block" (that is,
disallow any further purchases or redemptions from any account) or suspend
account services in certain instances as permitted or required by applicable
laws and regulations, including applicable anti-money laundering regulations.
Examples of such instances include, but are not limited to, (i) where an
accountholder appears on the list of "blocked" entities and individuals
maintained pursuant to OFAC (Office of Foreign Assets Control) regulations, (ii)
where the Fund or its agents detect suspicious activity or suspect fraudulent or
illegal activity, or (iii) when notice has been received by the Fund or its
agents that there is a dispute between the registered or beneficial account
owners.

In addition, in accordance with applicable customer identification regulations,
the Fund reserves the right to redeem the shares of any shareholder and close
the shareholder's account if the Fund and its agents are unable to verify the
shareholder's identity within a reasonable time after the shareholder's account
is opened. If a Fund closes a shareholder's account in this manner, the shares
will be valued in accordance with the net asset value next calculated after the
Fund decides to close the account.

DIVIDENDS AND DISTRIBUTIONS

The Fund declares dividends equal to all its net investment income (excluding
capital gains and losses, if any, and amortization of market discount) on each
Fund Business Day and pays dividends monthly. There is no fixed dividend rate.
In computing these dividends, interest earned and expenses are accrued daily.

                                       22
<PAGE>


Net realized capital gains, if any, are distributed at least annually and in no
event later than 60 days after the end of the Fund's fiscal year.

All dividends and distributions of capital gains are automatically invested, at
no charge, in additional Fund shares of the same Class of shares immediately
upon payment thereof unless a shareholder has elected by written notice to the
Fund to receive either of such distributions in cash. The reinvestment of
capital gains or any taxable dividends does not avoid a taxable event to the
shareholder, even though such shareholder has not received a cash distribution
to pay the resulting tax, if any. See "Tax Consequences."

Election to receive dividends and distributions in cash or shares is made at the
time shares are subscribed for and may be changed by notifying the Fund in
writing at any time prior to the record date for a particular dividend or
distribution. If the shareholder makes no election, the Fund will make the
distribution in shares. There is no sales or other charge in connection with the
reinvestment of dividends and capital gains distributions.


While it is the intention of the Fund to distribute to its shareholders
substantially all of each fiscal year's net income and net realized capital
gains, if any, the amount and time of any such dividend or distribution must
necessarily depend upon the realization by the Fund of income and capital gains
from investments. Except as described herein, each Portfolio's net investment
income (excluding capital gains, if any) will be declared as a dividend on each
Fund Business Day. The Fund declares dividends for Saturdays, Sundays and
holidays on the previous Fund Business Day. The Fund pays dividends monthly.
There is no fixed dividend rate, and there can be no assurance that the Fund
will pay any dividends or realize any capital gains.


FREQUENT TRADING
-------------------------------------------------------------------------------
The Reich & Tang family of funds discourages short-term or excessive trading
("frequent trading") of their shares by shareholders (including by means of
exchanges) and maintains procedures reasonably designed to detect and deter such
frequent trading, except with respect to the money market funds as discussed
below. Frequent trading is sometimes referred to as market timing. Market timing
may take many forms but commonly refers to arbitrage activity involving the
frequent buying and selling of mutual fund shares in order to take advantage of
the fact that there may be a lag between a change in the value of a mutual
fund's portfolio securities and the reflection of that change in the fund's
share price. Frequent trading may dilute the value of fund shares held by
long-term shareholders. Frequent trading may also interfere with the efficient
management of a fund's portfolio, as it may result in a fund maintaining higher
cash balances than it otherwise would (which would result in reduced yields for
money market funds) or cause a fund to sell portfolio securities at a time it
otherwise would not. Frequent trading may further result in increased portfolio
transaction (or brokerage) costs, administrative and other operating costs and
may cause a fund to realize taxable capital gains or harvest capital losses at a
time that it otherwise would not. For these reasons,

                                       23
<PAGE>
frequent trading poses the risk of lower returns for long-term shareholders of a
fund. There is no guarantee that these policies and procedures will be effective
in detecting and preventing frequent trading in whole or in part.

Money market funds are not effective vehicles for market timing activity since
these types of funds seek to maintain a constant net asset value of $1.00 per
share. In addition, the risks of frequent trading are not generally applicable
to money market funds because money market funds are created as cash management
vehicles which accommodate frequent inflows and outflows of cash. As a result,
money market funds are managed to accommodate such cash flows, particularly when
used as sweep vehicles, which generally eliminates the potential for disruptive
trading.

Nonetheless, as indicated under "General Information on Purchases," the Fund
reserves the right to reject any purchase order for its shares for any reason
and thus may exercise such right in the event it determines that a purchase
order is disruptive to the Fund's management or otherwise. The Fund's procedures
with respect to frequent purchases and redemptions of Fund shares by
shareholders are thus limited to the Fund exercising its right to reject
purchase orders it determines in its discretion to be disruptive. The Fund may
change its policies relating to frequent trading at any time without prior
notice to shareholders.

TAX CONSEQUENCES

The Fund intends to continue to qualify for the income tax treatment applicable
to a regulated investment company under the Internal Revenue Code of 1986, as
amended (the "Code"), for each Portfolio. To qualify as a regulated investment
company, each Portfolio must meet certain tests concerning its investments and
distributions. For each year a Portfolio qualifies as a regulated investment
company, the Portfolio will not be subject to federal income tax on its
investment company taxable income (which generally consists of ordinary income,
including taxable interest, and realized net short-term capital gains in excess
of realized net long-term capital losses, if any) and net long-term capital
gains distributed to its shareholders in the form of dividends or capital gain
distributions. Additionally, each Portfolio will not be subject to a federal
excise tax if the Portfolio distributes each year at least 98% of its ordinary
income and 98% of its capital gain income to its shareholders and any
undistributed and untaxed amounts from prior years.

Dividends of investment company taxable income are taxable to the recipient
shareholders as ordinary income. The Fund expects that as a result of its
investment objectives, except as provided in the following paragraph,
distributions will (i) consist primarily of ordinary income, (ii) in the case of
corporate shareholders, not be eligible for the dividends received deduction,
and (iii) in the case of individual shareholders, not be eligible for the
reduced tax rate currently applicable to certain

                                       24
<PAGE>
qualified dividend income. Dividends and distributions are treated in the same
manner for federal income tax purposes whether the shareholders receive cash or
additional shares. A shareholder who elects to reinvest in additional shares
will be treated for tax purposes as if it had received and reinvested the cash
dividend.


The Fund expects that as a result of the investment objectives of the Municipal
Portfolio, distributions by the Municipal Portfolio will be exempt from regular
federal income tax to the extent that they are derived from Municipal Securities
and designated as exempt-interest dividends, provided that the Municipal
Portfolio complies with the requirements of the Code regarding qualification to
pay exempt-interest dividends. Exempt-interest dividends received by a
shareholder may be subject to federal alternative minimum tax, state and local
tax, and other limitations applicable to certain shareholders. Investors should
consult their own tax advisors with respect to the treatment of exempt-interest
dividends based on their specific facts.

A shareholder's initial tax basis for its shares in the Fund will be its cost of
the shares, including any fees or expenses. The sale of shares in the Fund will
be the taxable disposition of an asset, with gain or loss recognized in an
amount equal to the difference between the shareholder's adjusted tax basis for
the shares and the proceeds received on the sale. Gain or loss generally will be
treated as capital gain or loss if the shares in the Fund are held as capital
assets. Such capital gain or loss will be long-term if the shareholder has held
the shares in the Fund for more than one year, and, for individual shareholders,
may qualify for the maximum capital gain tax rate of 15% (for taxable years
beginning before January 1, 2011) rather than the tax rate applicable to
ordinary income. The exchange of shares of one Portfolio for shares of another
Portfolio, if available, will also be treated as a taxable disposition of the
shares exchanged, on which gain or loss will be recognized. In either case, loss
recognition may be affected by the loss disallowance rules of the Code.


The Fund is required by federal law to withhold 28% of reportable payments as
backup withholding (which may include dividends, capital gain distributions and
redemptions) paid to shareholders who have not complied with Code requirements
regarding the supplying of their taxpayer identification number and the
reporting of income. In connection with this withholding requirement, a
shareholder will be asked to certify on its application that the social security
or tax identification number provided is correct and that the shareholder is not
subject to backup withholding for various reasons including previous
underreporting to the IRS.

Distributions from the U.S. Government Portfolio that are derived from interest
on certain obligations of the United States Government and agencies thereof, and
distributions from the Municipal Portfolio that are derived from interest on
certain obligations of states and agencies thereof, may be exempt from state and
local taxes in certain states. Investors should consult their own tax advisors
regarding specific questions as to federal, state or local taxes. Additional tax
information is provided in the Statement of Additional Information.

                                       25
<PAGE>
DISTRIBUTION ARRANGEMENTS

RULE 12B-1 FEES
-------------------------------------------------------------------------------
Investors do not pay a front-end sales charge to purchase shares of the Fund.
However, the Fund pays fees in connection with the distribution of shares and/or
for the provision of servicing to the Advantage Shares shareholders. The Fund
pays these fees from its assets on an ongoing basis and therefore, over time,
the payment of these fees will increase the cost of your investment and may cost
you more than paying other types of sales charges.

The Fund's Board of Trustees has adopted a Rule 12b-1 distribution and
service plan (the "Plan"), with respect to the Advantage Shares of the Fund and,
pursuant to the Plan, the Fund and the Distributor have entered into a
Distribution Agreement and a Shareholder Servicing Agreement.

Under the Distribution Agreement, the Distributor serves as distributor of the
Fund's shares. The Distributor receives a distribution fee not to exceed 0.75%
per annum of the Advantage Shares' average daily net assets (the "Distribution
Fee") for providing distribution related services and for making payments to
Oppenheimer & Co. Inc. for providing assistance in distributing the Advantage
Shares. As agent for the Fund, the Distributor will solicit orders for the
purchase of the Fund's shares, provided that any orders will not be binding on
the Fund until accepted by the Fund as principal. This fee is accrued daily and
paid monthly.

Under the Shareholder Servicing Agreement, the Distributor receives, with
respect to the Advantage Shares, a service fee equal to 0.25% per annum of each
Portfolio's Advantage Shares' average daily net assets (the "Shareholder
Servicing Fee") for providing personal shareholder services and for the
maintenance of shareholder accounts. The fees are accrued daily and paid
monthly. Any portion of the fee may be deemed to be used by the Distributor for
payments to Oppenheimer & Co. Inc. with respect to its provision of such
services to its clients or customers who are Advantage shareholders of each
Portfolio.

The Plan and the Shareholder Servicing Agreement provide that in addition to the
shareholder servicing fee the Fund will pay for (i) telecommunications expenses,
including the cost of dedicated lines and CRT terminals, incurred by the
Distributor and Oppenheimer & Co. Inc. in carrying out their obligations under
the Shareholder Servicing Agreement with respect to Advantage Shares or the
Participating Organization agreement, as the case may be, and (ii) preparing,
printing and delivering the Fund's Prospectus to existing shareholders of the
Fund and preparing and printing Fund applications for shareholder accounts.

The Plan provides that the Manager may make payments from time to time from its
own resources, which may include the management fee, administrative services
fee, and past profits for the following purposes: (i) to pay the cost of, and to
compensate others, including Oppenheimer & Co. Inc. with whom the Distributor
has entered into written agreements, for performing shareholder servicing on
behalf of the Advantage

                                       26
<PAGE>
Shares of the Fund; (ii) to compensate Oppenheimer & Co. Inc. for providing
assistance in distributing the Advantage Shares of the Fund; and (iii) to pay
the costs of the preparation and printing of brochures and other promotional
materials, mailings to prospective shareholders, advertising, and other
promotional activities, including the salaries and/or commissions of sales
personnel of the Distributor and other persons in connection with the
distribution of the Fund's shares. The Distributor may also make payments from
time to time from its own resources, which may include the Shareholder Servicing
Fee and past profits, for the purposes enumerated in (i) above. The Distributor
may determine the amount of such payments made pursuant to the Plan, provided
that such payments will not increase the amount which the Fund is required to
pay to the Manager and Distributor for any fiscal year under either the
Investment Management Contract, Administrative Services Agreement, Distribution
Agreement or Shareholder Servicing Agreement in effect for that year.


Oppenheimer & Co. Inc. receives distribution and servicing payments from the
Distributor with respect to the Advantage Shares in amounts that exceed the
payments the Distributor receives from the Fund pursuant to the Plan,
Distribution Agreement and Shareholder Servicing Agreement with respect to such
shares. The excess of such payments over the total payments the Distributor
receives from the Fund represents payments made out of the Manager's and/or
Distributor's own resources. These payments may be referred to as "revenue
sharing" but do not change the price paid by investors to purchase the Fund's
shares or the amount the Fund receives as proceeds from such sales. Revenue
sharing payments may be made to Oppenheimer & Co. Inc. for providing services to
the Fund or its shareholders, including, without limitation, shareholder
servicing, administration, accounting, transfer agency and/or distribution
service. The amount of these payments may create an incentive for Oppenheimer &
Co. Inc., and its affiliates to sell shares of the Fund to you or to recommend
one Fund complex over another. Please speak with your financial advisor to learn
more about these payments. Additional information regarding these payments can
be found in the Fund's Statement of Additional Information. In addition, to the
extent allowable under the Financial Industry Regulatory Authority ("FINRA")
rules and any other applicable regulations, the Distributor or an affiliate may
contribute to sales programs for Oppenheimer & Co. Inc. and may provide non-cash
compensation to Oppenheimer & Co. Inc. like sponsorship or funding of sales
seminars, tickets to sporting events, theater or other entertainment,
opportunities to participate in golf or other outings and gift certificates for
meals or by giving out merchandise at industry conferences, which may be paid
for by the Distributor or an affiliate out of its own resources.


                                       27
<PAGE>
IV. FINANCIAL HIGHLIGHTS


These financial highlights tables are intended to help you understand the
financial performance of the Advantage Shares of the Money Market Portfolio,
U.S. Government Portfolio and Municipal Portfolios since inception. Certain
information reflects financial results for a single Portfolio share. The total
returns in the tables represent the rate that an investor would have earned on
an investment in the Fund (assuming reinvestment of all dividends and
distributions). This information has been derived from the Fund's financial
statements audited by PricewaterhouseCoopers LLP, whose report, along with the
Fund's financial statements, is included in the annual report, which is
available upon request.
<TABLE>
<CAPTION>
                                                                       MONEY MARKET PORTFOLIO
Advantage shares                                                                Commencement of Operations
----------------                                           Year Ended            November 1, 2006 through
                                                           March 31, 2008               March 31, 2007
                                                         --------------               --------------
Per Share Operating Performance:
(for a share outstanding throughout the year)
<S>                                                             <C>                        <C>
Net asset value, beginning of year.....................     $   1.00                    $    1.00
                                                            ---------                   ----------
Income from investment operations:
   Net investment income...............................         0.040                        0.018
   Net realized and unrealized gain(loss)on investments         0.000                        0.000
                                                            ---------                   ----------
   Total from investment operations....................         0.040                        0.018
Less distributions from:
   Dividends from net investment income................        (0.040)                      (0.018)
   Net realized gain on investments....................        (0.000)                      (0.000)
                                                            ---------                   ----------
   Total Distributions.................................        (0.040)                      (0.018)
                                                            ---------                   ----------
Net asset value, end of year...........................     $   1.00                    $    1.00
                                                            =========                   ==========
Total Return...........................................         4.06%                        1.81%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................     $3,451,676                  $3,113,588
Ratios to average net assets:
   Expenses (net of fees waived) (b)...................         1.02%                        1.02%(c)
   Net investment income...............................         3.95%                        4.35%(c)
   Management and administration fees waived...........         0.02%                        0.03%(c)
   Distribution fees waived............................         0.17%                        0.16%(c)
   Sub-Accounting fees waived..........................         0.10%                        0.10%(c)
   Expenses paid indirectly............................         0.00%                        0.00%(c)
<FN>
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>

</TABLE>

                                       28
<PAGE>
IV. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
                                                                   U.S. GOVERNMENT PORTFOLIO
<S>                                                             <C>                          <C>

Advantage shares                                                               Commencement of Operations
----------------                                          Year Ended            December 2, 2006 through
Per Share Operating Performance:                         March 31, 2008               March 31, 2007
                                                         --------------               --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year.....................     $   1.00                    $    1.00
                                                            ---------                   ----------
Income from investment operations:
   Net investment income...............................         0.036                        0.018
   Net realized and unrealized gain(loss)on investments        (0.000)                       0.000
                                                            ---------                   ----------
   Total from investment operations....................         0.036                        0.018
Less distributions from:
   Dividends from net investment income................        (0.036)                      (0.018)
   Net realized gain on investments....................         --                           --
                                                            ---------                   ----------
   Total Distributions.................................        (0.036)                      (0.018)
                                                            ---------                   ----------
Net asset value, end of year...........................     $   1.00                    $    1.00
                                                            =========                   ==========
Total Return...........................................         3.71%                        1.77%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................     $ 662,379                   $ 193,827
Ratios to average net assets:
   Expenses (net of fees waived) (b)...................         1.02%                        1.02%(c)
   Net investment income...............................         3.37%                        4.26%(c)
   Management and administration fees waived...........         0.09%                        0.16%(c)
   Distribution fees waived............................         0.16%                        0.16%(c)
   Sub-Accounting fees waived..........................         0.10%                        0.10%(c)
<FN>
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
</TABLE>

                                       29
<PAGE>
IV. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
                                                                          MUNICIPAL PORTFOLIO

                                                                                COMMENCEMENT OF OPERATIONS
                                                           YEAR ENDED            NOVEMBER 2, 2006 THROUGH
ADVANTAGE SHARES                                         MARCH 31, 2008               MARCH 31, 2007
----------------                                         --------------               --------------
<S>                                                            <C>                           <C>
PER SHARE OPERATING PERFORMANCE:
(for a share outstanding throughout the year)
Net asset value, beginning of year.....................     $   1.00                    $    1.00
                                                            ---------                   ----------
Income from investment operations:
   Net investment income...............................         0.025                        0.011
   Net realized and unrealized gain(loss)  on investments       0.000                         --
                                                            ---------                   ----------
   Total from investment operations....................         0.025                        0.011
Less distributions from:
   Dividends from net investment income................        (0.025)                      (0.011)
   Net realized gain on investments....................        (0.000)                       (--)
                                                            ---------                   ----------
   Total Distributions.................................        (0.025)                      (0.011)
                                                            ---------                   ----------
Net asset value, end of year...........................     $   1.00                    $    1.00
                                                            =========                   ==========
Total Return...........................................         2.52%                        1.09%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................     $ 221,862                   $ 136,546
Ratios to average net assets:
   Expenses (net of fees waived) (b)...................         1.02%                        1.02%(c)
   Net investment income...............................         2.41%                        2.65%(c)
   Management and administration fees waived...........         0.13%                        0.16%(c)
   Distribution fees waived............................         0.16%                        0.16%(c)
   Sub-Accounting fees waived..........................         0.10%                        0.10%(c)
   Expenses paid indirectly............................         0.00%                         --
<FN>
(a)      Unannualized
(b)      Include expenses paid indirectly
(c)      Annualized
</FN>
</TABLE>
                                       30
<PAGE>
                     NOTICE OF REICH & TANG* PRIVACY POLICY

         WE DO NOT DISCLOSE TO THIRD PARTIES NONPUBLIC PERSONAL INFORMATION
ABOUT CURRENT OR FORMER REICH & TANG CUSTOMERS, CLIENTS OR MUTUAL FUND
SHAREHOLDERS OTHER THAN AS DESCRIBED BELOW.

         WE COLLECT NONPUBLIC PERSONAL INFORMATION ABOUT YOU, SUCH AS YOUR NAME,
ADDRESS, SOCIAL SECURITY NUMBER, ACCOUNT ACTIVITY AND ACCOUNT BALANCES FROM YOUR
ACCOUNT APPLICATION AND OTHER FORMS THAT YOU MAY DELIVER TO US. WE USE THIS
INFORMATION TO PROVIDE ADVISORY SERVICES TO YOU, TO OPEN AN ACCOUNT FOR YOU, OR
TO PROCESS A TRANSACTION FOR YOUR ACCOUNT. IN ORDER TO SERVICE YOUR ACCOUNT AND
EFFECT YOUR TRANSACTIONS, WE PROVIDE YOUR NONPUBLIC PERSONAL INFORMATION TO OUR
AFFILIATES AND TO UNAFFILIATED FIRMS TO EFFECT OR PROCESS TRANSACTIONS FOR YOU
OR TO ASSIST US IN SERVICING YOUR ACCOUNT.

         WE MAY ALSO DISCLOSE NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO OTHER
SERVICE PROVIDERS WHO AGREE TO PROTECT THE CONFIDENTIALITY OF YOUR INFORMATION
AND TO USE THE INFORMATION ONLY FOR THE PURPOSE FOR WHICH THE DISCLOSURE IS
MADE. WE DO NOT OTHERWISE PROVIDE NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO
OUTSIDE FIRMS, ORGANIZATIONS OR INDIVIDUALS EXCEPT AS PERMITTED BY LAW.

         WE RESTRICT ACCESS TO NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO THOSE
EMPLOYEES WHO NEED TO KNOW THAT INFORMATION TO PROVIDE PRODUCTS OR SERVICES TO
YOU. WE MAINTAIN PHYSICAL, ELECTRONIC AND PROCEDURAL SAFEGUARDS THAT COMPLY WITH
FEDERAL STANDARDS TO GUARD YOUR PERSONAL INFORMATION.
------------------

*    FOR PURPOSES OF THIS NOTICE, "REICH & TANG" INCLUDES: REICH & TANG ASSET
     MANAGEMENT, LLC, REICH & TANG DISTRIBUTORS, INC., REICH & TANG SERVICES,
     INC. AND ALL MUTUAL FUNDS OR OTHER FUNDS MANAGED OR ADVISED BY REICH & TANG
     ASSET MANAGEMENT, LLC.

             THIS PAGE IS NOT PART OF THE PRECEDING FUND PROSPECTUS

<PAGE>
SHARES OF DAILY INCOME FUND -
MONEY MARKET PORTFOLIO
U.S. GOVERNMENT PORTFOLIO
MUNICIPAL PORTFOLIO

A Statement of Additional Information
(SAI) dated July 29, 2008, includes
additional information about the Fund
and its investments and is incorporated
by reference into this Prospectus.
Further information about each
Portfolio's investments is available in
the Fund's annual and semi-annual
reports to shareholders. You may obtain
the SAI and the annual and semi-annual
reports without charge by calling the
Fund at (212) 830-5345 or toll-free at
(800) 433-1918. You may also obtain the
SAI and the annual and semi-annual
reports without charge by visiting the
Fund's website at
http://www.money-funds.com/funds/AdvantageLiquidity.
To request other information about the
Fund, please call your financial
intermediary or the Fund.

                                          OPPENHEIMER [GRAPHIC OMITTED]
                                          AVAILABLE EXCLUSIVELY TO CUSTOMERS OF:
                                          OPPENHEIMER & CO. AND ITS AFFILIATES

                                          ADVANTAGE PRIMARY
                                          LIQUIDITY FUND

                                          ADVANTAGE GOVERNMENT
                                          LIQUIDITY FUND

                                          ADVANTAGE MUNICIPAL
                                          LIQUIDITY FUND

                                          PROSPECTUS
                                          JULY 29, 2008

A current SAI has been filed with the
Securities and Exchange Commission.
Information about the Fund (including
the SAI) is also available from the
Public Reference Room of the Securities
and Exchange Commission. Information on
the operation of the Public Reference
Room may be obtained by calling the
Commission at (202) 551-8090. Fund
reports and other information about the
Fund are available on the EDGAR Database
on the Commission's Internet site at
http://www.sec.gov. Copies of this
information may be obtained, after
paying a duplicating fee, by electronic
request at publicinfo@sec.gov, or by
writing the Commission's Public
Reference Section, Washington, D.C.
20549-0104.

Investment Company Act No. 811-8312

                         REICH & TANG DISTRIBUTORS, INC.
                                600 FIFTH AVENUE
                               NEW YORK, NY 10020
                                 (212) 830-5220


 ADV_DIF07/08P