Statement of Additional Info - Gabelli

Investing in REITs involves risks similar to those associated with investing in small capitalization companies. REITs
may have limited financial resources, may trade less frequently and in a limited volume, and may be subject to more
abrupt or erratic price movements than larger company securities.
Derivatives (All Funds). The Funds may invest in derivative securities as described below; however, none of the Funds
have a present intention to utilize one or more of the various practices such that five percent or more of a Fund's net
assets will be at risk with respect to derivative practices. The successful use by a Fund of derivatives is subject to the
Adviser's ability to predict correctly movements in one or more underlying instruments, indices, stocks, the market
generally, or a particular industry. The use of derivatives requires different skills and techniques than predicting changes
in the price of individual stocks. There can be no assurance of a Fund's successful use of derivatives if and when utilized.
Limitations on the Purchase and Sale of Futures Contracts and Certain Options. (All Funds) Subject to the
guidelines of the Board, each Fund may engage in “commodity interest” transactions (generally, transactions in futures,
certain options and certain currency transactions) only for bona fide hedging or other permissible transactions in
accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to
amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of
exemption from registration as a “commodity pool operator” with respect to each Fund. Each Fund and the Adviser are
therefore not subject to registration or regulation as a commodity pool operator under the CEA. Due to the recent
amendments to Rule 4.5 under the CEA, certain trading restrictions are now applicable to each Fund as of January 1,
2013. These trading restrictions permit each Fund to engage in commodity interest transactions that include (i) “bona
fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the
percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions,
provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a)
the sum of the amount of initial margin deposits on the Fund’s existing futures positions and options premiums would
exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized
losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions
would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits
and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, each Fund is limited
in its ability to invest in commodity futures and options (including securities futures, broad-based stock index futures and
financial futures contracts). As a result, in the future, each Fund will be more limited in its ability to use these
instruments than in the past and these limitations may have a negative impact on the ability of the Adviser to manage each
Fund, and on each Fund’s performance.
Call and Put Options on Specific Securities (the Mighty Mites Fund, the SmallCap Equity Fund, the Mid-Cap
Equity Fund, the Income Fund, the Equity Fund, and the Balanced Fund). These Funds may invest up to 5% of
their assets, represented by the premium paid, in the purchase of call and put options on specific securities. A Fund may
write (sell) “covered call” and put options on securities to the extent of 10% of the value of its net assets at the time such
option contracts are written. A call option is a contract that, in return for a premium, gives the holder of the option the
right to buy from the writer of the call option the security underlying the option at a specified exercise price at any time
during the term of the option. The writer of a call option has the obligation, upon exercise of the option, to deliver the
underlying security upon payment of the exercise price during the option period. A put option is the reverse of a call
option, giving the holder the right to sell the security to the writer and obligating the writer to purchase the underlying
security from the holder. The principal reason for writing covered call options is to realize, through the receipt of
premiums, a greater return than would be realized on a Fund's portfolio securities alone. In return for a premium, the
writer of a covered call option forfeits the right to any appreciation in the value of the underlying security above the strike
price for the life of the option (or until a closing purchase transaction can be effected). Nevertheless, the call writer
retains the risk of a decline in the price of the underlying security. Similarly, the principal reason for writing covered put
options is to realize income in the form of premiums. The writer of a covered put option accepts the risk of a decline in
the price of the underlying security. The size of the premiums that a Fund may receive may be adversely affected as new
or existing institutions, including other investment companies, engage in or increase their option-writing activities.
Options written ordinarily will have expiration dates between one and nine months from the date written. The exercise
price of the options may be below, equal to, or above the market values of the underlying securities at the times the
options are written. In the case of call options, these exercise prices are referred to as "in-the-money," "at-the-money,”
and "out-of-the money," respectively. A Fund may write (a) in-the-money call options when the Adviser expects that the
price of the underlying security will remain stable or decline moderately during the option period, (b) at-the-money call
options when the Adviser expects that the price of the underlying security will remain stable or advance moderately
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