PRINCIPAL INVESTMENT STRATEGIES

> The fund invests in a portfolio of equity and fixed income securities.
Under normal market conditions, equity securities will comprise between 40% and 65% of the fund's assets, and fixed income securities will comprise at least 25% of the fund's assets.

> The fund may invest in the equity securities of companies of any size. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $187.4 million to $446.9 billion.

> The fixed income portion of the fund will be invested primarily in bonds, which are debt instruments that normally pay a set amount of interest on a regular basis; repay the face amount, or principal, at a stated future date; and are issued by domestic and foreign corporations, federal and state governments, and their agencies. The fund normally invests in investment-grade securities and maintains a dollar-weighted average portfolio maturity (or average life with respect to mortgage-backed and asset-backed securities) of between five and ten years.

> The fund's subadviser reviews and adjusts the blend of securities in an effort to enhance returns based on current market conditions, interest rate projections and other economic factors. The fund seeks to provide an overall return comprising between 40% and 65% of the return of Russell 1000(R) Index and between 35% and 60% of the return of the Lehman Brothers Aggregate Bond Index.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Allocation Risk - The risk that the percentages of the fund's assets invested in equities and fixed income securities, respectively, will not be optimum for market conditions at a given time.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

2 Phoenix Insight Balanced Fund

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to re-invest in obligations with lower interest rates than the original obligations.

o Small and Medium Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

Phoenix Insight Balanced Fund 3

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in common stocks.
These stocks are generally of companies with market capitalization in excess of $1 billion at the time of purchase. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $2.2 billion to $446.9 billion. The fund's policy of investing at least 80% of its assets in common stocks may be changed only upon 60 days written notice to shareholders.

> The fund's subadviser selects securities that are considered to be undervalued and to represent growth opportunities. The subadviser considers many factors, but there is a focus on a company's sales, earnings and valuation.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

Phoenix Insight Core Equity Fund 5

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in equity securities of issuers located in emerging markets countries. The World Bank and other international agencies define an emerging or developing country on the basis of such factors as trade initiatives, per capita income and level of industrialization. There are over 130 countries that are emerging or developing under this standard and approximately 40 of these countries have stock markets. Emerging markets countries generally include every nation in the world except the U.S., Canada, Japan, Australia, New Zealand and most nations located in Western Europe. The fund's policy of investing at least 80% of its assets in the securities of issuers located in emerging markets countries may be changed only upon 60 days written notice to shareholders.

> The fund invests in issuers with the potential for long-term capital appreciation using a "value" approach. The "value" approach emphasizes investments in companies the portfolio manager believes are undervalued.

> The subadviser uses a bottom-up stock and business analysis approach. The subadviser makes its assessments by examining companies one at a time, regardless of size, country of organization, place of principal business activity, or other similar selection criteria. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $341.6 million to $85.4 billion.

The subadviser seeks to identify undervalued companies whose businesses are highly profitable, have consistent operating histories and financial performance, and enjoy favorable long-term economic prospects. A company may be undervalued when, in the opinion of the subadviser, the company is selling for a price that is below its intrinsic worth. A company may be undervalued due to market or economic conditions, temporary earnings declines, unfavorable developments affecting the company or other factors. Such factors may include buying opportunities at attractive prices compared to the subadviser's calculation of future earnings power. The subadviser believes that buying these securities at a price that is below their intrinsic worth may generate greater returns for the fund than those obtained by paying a premium price for companies currently in favor in the market.

The fund may invest substantially all of its assets in common stocks if the subadviser believes that common stocks will appreciate in value.

Phoenix Insight Emerging Markets Fund 7

> The subadviser seeks to achieve attractive absolute returns that exceed the "normalized risk-free" rate, defined as the rate of return available on long-term U.S. Government securities. Utilization of an "absolute" rather than a "relative" valuation yardstick is designed to achieve not only a satisfactory return over the risk-free rate, but at the same time seek safety of principal. The subadviser considers the riskiness of an investment to be a function of the issuer's business rather than the volatility of its stock price.

> In determining which portfolio securities to sell, the subadviser focuses on the operating results of the portfolio companies, not price quotations, to measure the success of an investment. In making sell decisions, the subadviser considers, among other things, whether a security's price target has been met, whether there has been an overvaluation of the issuer by the market, whether there has been a clear deterioration of future earnings power and whether, in the subadviser's opinion, there has been a loss of a long-term competitive advantage.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Currency Rate Risk - The risk that fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect an investment.

o Emerging Markets Risk - The risk that prices of emerging markets securities may be more volatile than those of their counterparts in more established foreign markets.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Geographic Concentration Risk - The risk that, if the fund concentrates its investments in a single country or region, its portfolio will be more susceptible to factors adversely affecting issuers located in that country or region than would a more geographically diverse portfolio of securities.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small and Medium Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Value Stocks Risk - The risk that the fund's focus on value investing will cause the fund to underperform when growth investing is in favor.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

8 Phoenix Insight Emerging Markets Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in common stocks.
These stocks are generally of companies with market capitalization in excess of $1 billion at time of purchase. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $2.2 billion to $446.9 billion.

> The subadviser selects stocks that are representative of the companies found within the Russell 1000(R) Value Index in an effort to:

o provide greater returns, over the long-term, than the securities comprising the Russell 1000(R) Value Index; and

o maintain a risk level approximating that of the Russell 1000(R) Value Index.

The Russell 1000(R) Value Index measures the performance of those Russell 1000(R) companies with lower price-to-book ratios and lower forecasted growth values.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Value Stocks Risk - The risk that the fund's focus on value investing will cause the fund to underperform when growth investing is in favor.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

10 Phoenix Insight Equity Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally holds at least 90% of the 500 securities in the S&P
500(R) Index and attempts to match its holdings of each issue with that security's proportional representation in the S&P 500(R) Index. As of December 31, 2006, the market capitalizations of companies included in the S&P 500(R) Index ranged from $1.4 billion to $446.9 billion. The fund invests a significant portion (typically 95% or more) of its assets in securities in the S&P 500(R) Index.

> The fund's subadviser employs a "passively" managed - or index - investment approach that attempts to replicate the performance of the index while not necessarily investing in all of its stocks. This approach is unlike traditional methods of active investment management whereby securities are selected on the basis of economic, financial and market analysis. On a regular basis, the subadviser compares the fund's performance to that of the S&P 500(R) Index. The subadviser may adjust the fund's holdings if the fund's performance does not adequately track the performance of the S&P
500(R) Index.

> Apart from its equity investments, the fund may use S&P 500(R) Stock Index Futures Contracts to reduce transactional costs and simulate full investment in the S&P 500(R) Index while retaining a cash balance for portfolio management purposes.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small and Medium Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

12 Phoenix Insight Index Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in the securities of small-cap companies, generally equity securities. The subadviser normally considers small-cap companies to include those with a market capitalization no larger than that of the largest company in the Russell 2000(R) Index, an index comprised of stocks with market capitalizations ranging from $39 million to $3.08 billion at December 31, 2006. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $256.9 million to $3.06 billion. The fund's policy of investing at least 80% of its assets in the securities of small-cap companies may be changed only upon 60 days written notice to shareholders.

> The fund seeks to invest in equity securities of companies that the subadviser believes offer superior prospects for growth, i.e., issues with the potential for accelerated earnings or revenue growth relative to the broader stock market and higher-than-average forecast earnings-growth rates. Valuation is a secondary consideration in stock selection.

> The subadviser seeks to maintain a risk level approximating that of the Russell 2000(R) Growth Index, an index that measures the performance of those Russell 2000(R) companies with higher price-to-book ratios and higher forecasted growth values.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Growth Stocks Risk - The risk that the fund's focus on growth investing will cause the fund to underperform when value investing is in favor.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

14 Phoenix Insight Small-Cap Growth Fund

PRINCIPAL INVESTMENT STRATEGIES

>        The fund normally invests at least 80% of its assets in the securities
         of small-cap companies. These securities will normally be equities and
         equity-like instruments. The fund's subadviser normally considers
         small-cap companies to include those with a market capitalization no
         larger than that of the largest company in the Russell 2000(R) Index,
         an index comprised of stocks with market capitalizations ranging from
         $39 million to $3.08 billion at December 31, 2006. As of December 31,
         2006, the market capitalization of the equity issuers in which the fund
         was invested ranged from $330.3 million to $7.01 billion. The fund's
         policy of investing at least 80% of its assets in the securities of
         small-cap companies may be changed only upon 60 days written notice to
         shareholders.

>        The fund seeks to invest in the securities of companies that the
         subadviser believes have growth potential. In selecting securities, the
         subadviser focuses on those companies that appear to have potential for
         above average sales and earnings growth but are attractively valued
         relative to the securities of comparable companies.

>        The subadviser seeks to maintain a risk level approximating that of the
         Russell 2000(R) Index.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

16 Phoenix Insight Small-Cap Opportunity Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in the securities of small-cap companies. These securities will normally be equities and equity-like instruments. The fund's subadviser normally considers small-cap companies to include those with a market capitalization no larger than that of the largest company in the Russell 2000(R) Index, an index comprised of stocks with market capitalizations ranging from $39 million to $3.08 billion as of December 31, 2006. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $235 million to $3.2 billion. The fund's policy of investing at least 80% of its assets in the securities of small-cap companies may be changed only upon 60 days written notice to shareholders.

> The subadviser seeks securities it considers to be undervalued at the time of purchase. The subadviser uses a value investment strategy that seeks companies that are attractively valued relative to the securities of comparable companies. In searching for stocks with lower than average valuations, the subadviser considers, among other things, price-to-earnings and price-to-book ratios.

> The subadviser seeks to maintain a risk level approximating that of the Russell 2000(R) Value Index, an index that measures the performance of those Russell 2000(R) companies with lower price-to-book ratios and lower forecasted growth values.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Value Stocks Risk - The risk that the fund's focus on value investing will cause the fund to underperform when growth investing is in favor.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

18 Phoenix Insight Small-Cap Value Fund

Generally, the value of a fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of such fund's investments decreases, you will lose money.

Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease.

Specific risks of investing in the various Equity Funds are indicated in the chart below and described in detail following the chart.

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                                                  CORE      EMERGING                         SMALL-CAP      SMALL-CAP      SMALL-CAP
RISKS FOR ONE                       BALANCED     EQUITY      MARKETS     EQUITY    INDEX       GROWTH      OPPORTUNITY       VALUE
OR MORE FUNDS                         FUND        FUND        FUND        FUND      FUND        FUND          FUND           FUND
------------------------------------------------------------------------------------------------------------------------------------
Allocation                              X
------------------------------------------------------------------------------------------------------------------------------------
Credit                                  X
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Currency Rate                                                   X
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Emerging Markets                                                X
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Foreign Securities                      X                       X
------------------------------------------------------------------------------------------------------------------------------------
Geographic Concentration                                        X
------------------------------------------------------------------------------------------------------------------------------------
Growth Stocks                                                                                    X
------------------------------------------------------------------------------------------------------------------------------------
Interest Rate                           X
------------------------------------------------------------------------------------------------------------------------------------
Leverage                                                                             X
------------------------------------------------------------------------------------------------------------------------------------
Manager                                 X           X           X          X         X           X              X              X
------------------------------------------------------------------------------------------------------------------------------------
Market                                  X           X           X          X         X           X              X              X
------------------------------------------------------------------------------------------------------------------------------------
Prepayment                              X
------------------------------------------------------------------------------------------------------------------------------------

Small Company                                                                                    X              X              X

------------------------------------------------------------------------------------------------------------------------------------
Small and Medium Company                X                       X                    X
------------------------------------------------------------------------------------------------------------------------------------
Value Stocks                                                    X          X                                                   X
------------------------------------------------------------------------------------------------------------------------------------
Volatility                                          X           X          X                     X              X              X
------------------------------------------------------------------------------------------------------------------------------------

ALLOCATION RISK

The risk that the percentages of the fund's assets invested in equities and fixed income securities, respectively, will not be optimum for market conditions at a given time, which may cause a fund to underperform as compared to a fund with a more favorable allocation.

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

20 Phoenix Insight Equity Funds

CURRENCY RATE RISK

The risk that fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect an investment. Although a fund may engage in foreign currency hedge transactions to help reduce this risk, those transactions may not be effective or appropriate in particular situations nor, of course, will they protect against declines in security values.

EMERGING MARKETS RISK

The risk that prices of emerging markets securities may be more volatile than those of their counterparts in more established foreign markets. Investments in less-developed countries whose markets are still emerging generally present risks in greater degree than those presented by investments in foreign issuers based in countries with developed securities markets and more advanced regulatory systems. Prior governmental approval may be required in some developing countries for the release of investment income, capital and sale proceeds to foreign investors, and some developing countries may limit the extent of foreign investment in domestic companies.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

GEOGRAPHIC CONCENTRATION RISK

The risk that, if a fund concentrates its investments in a single country or region, its portfolio will be more susceptible to factors adversely affecting issuers located in that country or region than would a more geographically diverse portfolio of securities.

GROWTH STOCKS RISK

Because growth stocks typically make little or no dividend payments to shareholders, investment return is based on a stock's capital appreciation, making return more dependent on market increases and decreases. Growth stocks are therefore more susceptible than non-growth stocks to market changes, tending to drop more sharply when markets fall. Growth-oriented funds typically underperform when value investing is in favor.

INTEREST RATE RISK

The risk that bond prices overall will decline because of rising interest rates. With fixed-rate securities, an increase in prevailing interest rates typically causes the value of those securities to fall, while a decline in prevailing interest rates generally produces an increase in the market value of the securities. As interest rates increase, slower than expected principal payments may extend the average life of fixed income securities. This will have the effect of locking in a

Phoenix Insight Equity Funds 21

below-market interest rate, increasing a fund's duration and reducing the value of such a security. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk. Changes in interest rates will affect the value of longer-term fixed income securities more than shorter-term securities and lower quality securities more than higher quality securities.

LEVERAGE RISK

The risk that downward price changes in a security may result in a loss greater than a fund's investment in the security. This risk exists through the use of certain securities or techniques (e.g., forward or futures contracts, derivative securities or purchases on margin) that tend to magnify changes in an index or market.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MARKET RISK

The risk that the market value of a fund's investments will fluctuate as the stock and bond markets fluctuate. Market risk may affect a single issuer, industry or section of the economy or it may affect the market as a whole.

PREPAYMENT RISK

The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing a fund to reinvest in obligations with lower interest rates than the original obligations. As interest rates decline, the issuers of securities held by a fund may prepay principal earlier than scheduled, forcing a fund to reinvest in lower yielding securities. This prepayment may reduce a fund's income. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk.

SMALL COMPANY RISK

The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates. The trading volume of small company securities is normally lower than that of larger companies. Changes in the demand for the securities of smaller companies generally have a disproportionate effect on their market price, tending to make prices rise more in response to buying demand and fall more in response to selling pressure.

SMALL AND MEDIUM COMPANY RISK

Companies with small and medium market capitalizations are often companies with a limited operating history or companies in industries that have recently emerged due to cultural, economic, regulatory or technological developments. Such developments can have a significant impact or negative effect on small and medium market capitalization companies and their stock performance and can make investment returns highly volatile. Product lines are often less

22 Phoenix Insight Equity Funds

diversified and more susceptible to competitive threats. Small and medium market capitalization stocks are subject to varying patterns of trading volume and may, at times, be difficult to sell.

VALUE STOCKS RISK

Value stocks involve the risk that the value of the security will not be recognized for an unexpectedly long period of time, and that the security is not undervalued but is appropriately priced due to fundamental problems not yet apparent. Value-oriented funds typically underperform when growth investing is in favor.

VOLATILITY RISK

The risk that performance will be affected by unanticipated events (e.g., significant earnings shortfalls or gains, war, or political events) that cause major price changes in individual securities or market sectors.

Phoenix Insight Equity Funds 23

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in bonds. "Bonds" are fixed income debt securities of various types of issuers, including corporate bonds, mortgage-backed and asset-backed securities, U.S. Government securities and other short-term instruments. U.S. Government securities that the fund may invest in may be backed by:

o the full faith and credit of the U.S. Government;

o the full faith and credit of the U.S. Treasury; or

o may not be backed by either the U.S Government or U.S Treasury.

The fund intends to invest in bonds, at least 65% of which are rated at the time of investment Baa3 or higher by Moody's Investors Service or BBB- or higher by Standard & Poor's Corporation. The fund's policy of investing at least 80% of its assets in bonds may be changed only upon 60 days written notice to shareholders.

> The fund's subadviser uses a value-driven style that focuses on issue and sector selection, measured interest rate anticipation and trading opportunities.

> Securities selected for fund investment may be of any maturity or duration.
Duration measures the interest rate sensitivity of a fixed income security by assessing and weighting the present value of a security's payment pattern. Normally, the fund's dollar-weighted average duration will vary between two and eight years. The subadviser may adjust the fund's dollar-weighted average duration based on changing expectations for the federal funds rate, the shape of the yield curve, swap spreads, mortgage prepayments, credit spreads, and capital market liquidity. For instance, if the federal funds rate is expected to rise, the subadviser may choose to move the fund's dollar-weighted average duration to the lower end of the band. Within this context, it is expected that the fund's dollar-weighted average maturity will range between three and fifteen years. On December 31, 2006, the average duration of the fund's fixed income securities was 4.60 years and the average adjusted maturity was 5.77 years. Typically, for a fund maintaining an average duration of 4.60 years, a one percent increase in interest rates would cause a 4.60% decrease in the value of the fund's fixed income assets. Similarly, a one percent decrease in interest rates typically would cause the value of the fund's fixed income assets to increase by 4.60%.

> Securities may be reviewed for sale due to anticipated changes in interest rates, changes in the creditworthiness of issuers, or general financial or market developments.

28 Phoenix Insight Bond Fund

> The subadviser's investment strategies may result in a higher portfolio turnover rate for the fund. A high portfolio turnover rate increases costs to the fund, negatively affects fund performance, and may increase capital gain distributions, resulting in greater tax liability to fund shareholders.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o High Yield Securities Risk - The risk that lower rated securities generally have a higher incidence of default and may be less liquid than higher rated securities.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Long-Term Maturities/Durations Risk - The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 46.

Phoenix Insight Bond Fund 29

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in domestic and foreign high yield bonds that have a credit quality rated below "Baa" by Moody's Investors Service, Inc. (Moody's) and "BBB" by Standard and Poor's Corporation (S&P). "Bonds" are fixed income debt securities of various types of issuers, including corporate bonds, mortgage-backed and asset-backed securities, U.S. Government securities and other short-term instruments. The fund may also invest in a broad range of interest-rate sensitive securities, including preferred stocks, interest-rate futures contracts, and foreign currency futures and forwards for the purpose of hedging. The fund's policy of investing at least 80% of its assets in high yield bonds may be changed only upon 60 days written notice to shareholders.

> Principally, securities are selected from a broad universe of domestic high yield corporate bonds, although the fund may invest in other types of high yield securities. The fund's subadviser uses an investment process that focuses on adding value through issue selection, sector/industry selection and opportunistic trading. The subadviser evaluates market conditions in the context of broad macroeconomic trends. It generally overweights those sector/industries where well-valued companies can be identified and whose business profiles (and credit measures) are viewed to be improving.

> The subadviser considers credit research an integral component of its higher quality high yield investment process. It invests across the credit rating spectrum with an emphasis on securities that are moving up the credit rating scale of a nationally recognized statistical rating organization and generally those rated Ba/BB and B/B by Moody's, Standard & Poor's or Fitch, at the time of investment. If after the time of investment a security's rating declines, the fund is not obligated to sell the security.

> The subadviser attempts to maintain the duration of the fund at a level similar to that of its style benchmark. Duration measures the interest rate sensitivity of a fixed income security by assessing and weighting the present value of the security's payment pattern. Generally, the longer the maturity the greater the duration and, therefore, the greater effect interest rate changes have on the price of the security. At December 31, 2006, the modified duration to maturity for the benchmark and the fund was 4.42 and 4.10 years, respectively. Typically, for a fund maintaining a modified duration to maturity of 4.10 years, a one percent increase in interest rates would cause a 4.10% decrease in the value

Phoenix Insight High Yield Bond Fund 31

of the fund's assets. Similarly, a one percent decrease in interest rates typically would cause the value of the fund's assets to increase by 4.10%.

> The subadviser's investment strategies may result in a higher portfolio turnover rate for the fund. A high portfolio turnover rate increases costs to the fund, negatively affects fund performance, and may increase capital gain distributions, resulting in greater tax liability to fund shareholders.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o High Yield Securities (Junk Bond) Risk - The risk that lower rated securities generally have a higher incidence of default and may be less liquid than higher rated securities.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Long-Term Maturities/Durations Risk - The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 46.

Because of the speculative nature of the fund's investments, you should carefully consider the risks associated with this fund before you purchase shares.

32 Phoenix Insight High Yield Bond Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in Government Bonds which are defined as:

o U.S. Treasury securities whose interest and principal payments are backed by the full faith and credit of the U.S. Government and securities issued by U.S. Government agencies and instrumentalities whose interest and principal payments may be supported by the full faith and credit of the U.S. Treasury (such as Government National Mortgage Association participation certificates); or

o Securities issued by U.S. Government agencies whose interest and principal payments are not backed by the full faith and credit of the U.S. Government and may be supported by the limited authority of the issuer to borrow from the U.S. Treasury (such as securities of the Federal Home Loan Bank); the discretionary authority of the U.S. Government to purchase certain obligations (such as securities of the Federal National Mortgage Association); or the credit of the issuer only; and, repurchase agreements collateralized by U.S. Government securities.

The fund's policy of investing at least 80% of its assets in Government Bonds may be changed only upon 60 days written notice to shareholders.

> The fund's subadviser may invest up to 20% of the fund's assets in one or more of the following types of securities, which normally will be investment-grade:

o Asset-backed securities

o Non-agency mortgage-backed securities

o Corporate bonds

> The dollar-weighted average portfolio maturity (or average life with respect to mortgage-backed and asset-backed securities) generally will be in the intermediate range of between three and ten years. Maturity composition refers to the percentage of securities within specific maturity ranges as well as the aggregate weighted average portfolio maturity. On December 31, 2006, the average maturity of the Lehman Brothers Intermediate Government Bond Index was 4.03 years; the average adjusted maturity of the fund was 5.18 years.

34 Phoenix Insight Intermediate Government Bond Fund

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 46.

Phoenix Insight Intermediate Government Bond Fund 35

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in tax-exempt bonds, generally municipal securities. These securities generate income that is exempt from federal income tax and not subject to the federal alternative minimum tax. This policy is fundamental and may only be changed by shareholder approval. The fund may also invest in securities that generate income that is not exempt from federal or state income tax and is subject to the federal alternative minimum tax.

Income exempt from federal or state income tax may be subject to state or local income tax. Any capital gains distributed by the fund may be taxable.

The fund will normally purchase only securities that are investment grade.

> The subadviser employs:

o interest rate risk management techniques to temper the potential negative impact of interest rate increases on the fund's share price; and

o credit analysis to determine whether the municipalities issuing the bonds are likely to repay their debt.

> The fund also may invest in U.S. Government securities and securities with various forms of credit enhancement (such as bank letters of credit). The fund may buy and sell options and interest rate futures contracts to hedge against declines in value of portfolio securities.

> Under normal market conditions, the fund's investments will have a dollar-weighted average portfolio maturity in a range of three to twelve years. Maturity composition refers to the percentage of securities within specific maturity ranges as well as the aggregate weighted average portfolio maturity. On December 31, 2006, the average maturity of the Lehman Brothers 3-15 Year Blend Municipal Bond Index was 8.38 years; the average adjusted maturity of the fund was 6.4 years.

Phoenix Insight Intermediate Tax-Exempt Bond Fund 37

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Municipal Market Risk - The risk that certain factors may negatively affect the value of municipal securities and, as a result, the share price of the fund.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 46.

38 Phoenix Insight Intermediate Tax-Exempt Bond Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in bonds with a short/intermediate-term average maturity. "Bonds" are fixed income debt securities of various types of issuers, including corporate bonds, mortgage-backed and asset-backed securities, U.S. Government securities and other short-term instruments. The fund's policy of investing at least 80% of its assets in short/intermediate bonds may be changed only upon 60 days written notice to shareholders.

> The fund generally invests in investment grade securities. Investment grade securities are those with credit ratings, at the time of acquisition, within the four highest rating categories of a nationally recognized statistical rating organization, or if unrated, those that the subadviser determines, pursuant to procedures reviewed and approved by the Board of Trustees, are of comparable quality.

> The fund may invest in bonds and debentures, U.S. Government securities, U.S.
dollar denominated debt obligations of foreign governments, mortgage-backed and asset-backed securities, municipal securities, zero-coupon securities, other floating/variable rate obligations, and options and interest-rate futures contracts.

> The fund normally maintains a dollar-weighted average maturity (or average life with respect to mortgage-backed and asset-backed securities) of between two and five years.

Temporary Defensive Strategy. If a defensive position is warranted, the fund may hold short-term U.S. Government securities (such as Treasury bills), high-quality money market instruments and cash. When the fund takes such a defensive position, the fund may not be able to meet its investment objective.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

40 Phoenix Insight Short/Intermediate Bond Fund

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 46.

Phoenix Insight Short/Intermediate Bond Fund 41

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in tax-exempt bonds, generally municipal securities with varying maturities. These securities generate income that is exempt from federal income tax and not subject to the federal alternative minimum tax. This policy is fundamental and may only be changed by shareholder approval. The fund may also invest in securities that generate income that is not exempt from federal or state income tax and is subject to the federal alternative minimum tax.

Income exempt from federal or state income tax may be subject to state or local income tax. Any capital gains distributed by the fund may be taxable.

The fund will normally purchase only securities that are investment grade.

> The subadviser employs:

o interest rate risk management techniques to temper the potential negative impact of interest rate increases on the fund's share price; and

o credit analysis to determine whether the municipalities issuing the bonds are likely to repay their debt.

> The fund also may invest in U.S. Government securities and securities with various forms of credit enhancement (such as bank letters of credit). The fund may buy and sell options and interest rate futures contracts to hedge against declines in the value of portfolio securities.

> In pursuit of higher income, the subadviser normally favors longer-term bonds that typically mature in ten years or more. In exchange for this higher potential income, investors may experience higher share-price volatility than would occur through investments with shorter maturities.

Phoenix Insight Tax-Exempt Bond Fund 43

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Municipal Market Risk - The risk that certain factors may negatively affect the value of municipal securities and, as a result, the share price of the fund.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 46.

44 Phoenix Insight Tax-Exempt Bond Fund

The value of your shares and the level of income you receive are subject to risks associated with the types of securities selected for fund investment. Neither a fund, nor its adviser or subadviser, can assure you that a particular level of income will consistently be achieved or that the value of the fund's investments that supports your share value will increase. If the value of fund investments decreases, your share value will decrease.

Specific risks of investing in the various Fixed Income Funds are indicated in the chart below and are described in detail following the chart.

-----------------------------------------------------------------------------------------------------------------------------------
                                                                    INTERMEDIATE   INTERMEDIATE         SHORT/
  RISKS FOR ONE OR                        BOND        HIGH YIELD     GOVERNMENT     TAX-EXEMPT       INTERMEDIATE     TAX-EXEMPT
  MORE FUNDS                              FUND         BOND FUND     BOND FUND       BOND FUND        BOND FUND       BOND FUND
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Credit                                    X              X             X               X                X               X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Foreign Securities                                       X                                              X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  High Yield Securities                     X              X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Income                                    X              X             X               X                X               X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Interest Rate                             X              X             X               X                X               X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Leverage                                                 X                             X                X               X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------

  Long-Term Maturities/Durations            X              X

------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Manager                                   X              X             X               X                X               X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Municipal Market                                                                       X                                X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------
  Prepayment                                X              X             X               X                X               X
------------------------------------- -------------- ------------- -------------- ---------------- ---------------- ---------------

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

HIGH YIELD SECURITIES (JUNK BOND) RISK

Securities rated "BB" or below by S&P or "Ba" or below by Moody's are known as "high yield" securities and are commonly referred to as "junk bonds". These securities involve greater risk of loss due to credit deterioration and are less liquid, especially during periods of economic uncertainty or change, than higher-quality debt securities. Lower-rated debt securities generally have a higher risk that the issuer of the security may default and not make the payment of interest or principal.

46 Phoenix Insight Fixed Income Funds

INCOME RISK

The risk that falling interest rates will cause a fund's income to decline. A fund's dividends decline when interest rates fall because the fund then must invest in lower-yielding bonds.

INTEREST RATE RISK

The risk that bond prices overall will decline because of rising interest rates. With fixed-rate securities, an increase in prevailing interest rates typically causes the value of those securities to fall, while a decline in prevailing interest rates generally produces an increase in the market value of the securities. As interest rates increase, slower than expected principal payments may extend the average life of fixed income securities. This will have the effect of locking in a below-market interest rate, increasing a fund's duration and reducing the value of such a security. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk. Changes in interest rates will affect the value of longer-term fixed income securities more than shorter-term securities and lower quality securities more than higher quality securities.

LEVERAGE RISK

The risk that downward price changes in a security may result in a loss greater than a fund's investment in the security. This risk exists through the use of certain securities or techniques (e.g., forward or futures contracts, derivative securities or purchases on margin) that tend to magnify changes in an index or market.

LONG-TERM MATURITIES/DURATIONS RISK

Fixed income securities with longer maturities or durations may be subject to greater price fluctuations due to interest rate, tax law, and general market changes than securities with shorter maturities or durations.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MUNICIPAL MARKET RISK

The risk that certain factors may negatively affect the value of municipal securities, and, as a result, the share price of a fund that invests in them. These factors include political or legislative changes, uncertainties related to the tax status of the securities or the rights of investors in the securities. A fund may invest in municipal obligations that are related in such a way (e.g., multiple apparently unrelated issues that depend on the financial rating or support of a single government unit) that an economic, business or political development or change that affects one of these obligations would also affect the others.

PREPAYMENT RISK

The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing a fund to reinvest in obligations with lower interest rates than the original obligations. As interest rates decline, the issuers of securities held by a fund may prepay principal earlier than scheduled, forcing a fund to reinvest in lower yielding securities. This prepayment may reduce a fund's income. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk.

Phoenix Insight Fixed Income Funds 47

PRINCIPAL INVESTMENT STRATEGIES

> The fund invests only in high-quality, short-term money market instruments that, in the opinion of the fund's subadviser, present minimal credit risks. The fund normally invests at least 80% of its assets in government money market securities which are defined as:

o U.S. Treasury securities whose interest and principal payments are backed by the full faith and credit of the U.S. Government and securities issued by U.S. Government agencies and instrumentalities whose interest and principal payments may be supported by the full faith and credit of the U.S. Treasury (such as Government National Mortgage Association participation certificates); or

o Securities issued by the U.S. Government whose interest and principal payments are not backed by the full faith and credit of the U.S. Government and may be supported by the limited authority of the issuer to borrow from the U.S. Treasury (such as securities of the Federal Home Loan Bank); the discretionary authority of the U.S. Government to purchase certain obligations (such as securities of the Federal National Mortgage Association); or the credit of the issuer only; and repurchase agreements collateralized by U.S. Government securities.

The fund's policy of investing at least 80% of its assets in government short-term money market instruments may be changed only upon 60 days written notice to shareholders.

> The fund will purchase only securities (other than U.S. Government securities) that have been rated within the two highest rating categories by at least two nationally recognized statistical rating organizations, unless only one such agency has rated the security, (or, if not rated, are considered by the adviser to be of comparable quality). No more than 5% of the fund's assets will be invested in securities in the second highest rating category. The fund's current income generally will be lower than the income provided by funds that invest in securities with longer maturities or lower quality.

52 Phoenix Insight Government Money Market Fund

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 58.

PRINCIPAL INVESTMENT STRATEGIES

> The fund invests only in high-quality, short-term money market instruments that, in the opinion of the fund's subadviser, present minimal credit risks. The fund invests in a broad range of short-term money market instruments, including U.S. Government securities, repurchase agreements, as well as bank and commercial obligations. Commercial paper purchased by the fund will consist of U.S. dollar-denominated direct obligations of domestic and foreign corporate issuers, including bank holding companies.

> The fund will purchase only U.S. dollar-denominated securities. In addition, the fund will purchase only securities (other than U.S. Government securities) that have been rated within the two highest rating categories by at least two nationally recognized statistical rating organizations, unless only one such agency has rated the security, (or, if not rated, are considered by the subadviser to be of comparable quality). No more than 5% of the fund's assets will be invested in securities in the second highest rating category. The fund's current income generally will be lower than the income provided by funds that invest in securities with longer maturities or lower quality.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

54 Phoenix Insight Money Market Fund

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 58.

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in high-quality, short-term money market instruments that generate income that is generally exempt from federal income tax and are not subject to the federal alternative minimum tax. This policy is fundamental and may only be changed by shareholder approval. The fund may also invest in securities that generate income that is not exempt from federal or state income tax.

Income exempt from federal or state income tax may be subject to state or local income tax. Any capital gains distributed by the fund may be taxable.

> The fund will invest primarily in U.S. dollar-denominated municipal securities.

> The fund will purchase only securities (other than U.S. Government securities) that have been rated within the two highest rating categories by at least two nationally recognized statistical rating organizations, unless only one such agency has rated the security, (or, if not rated, are considered by the subadviser to be of comparable quality). The fund's current income generally will be lower than the income provided by funds that invest in securities with taxable income or securities with longer maturities or lower quality.

> Depending on market conditions, the fund may temporarily hold up to 20% of the current value of its assets in securities whose interest income is subject to taxation.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

56 Phoenix Insight Tax-Exempt Money Market Fund

o Municipal Market Risk - The risk that certain factors may negatively affect the value of municipal securities and, as a result, the share price of the fund.

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 58.

An investment in a Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. 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.

Specific risks of investing in the various Money Market Funds are indicated in the chart below and described in detail following the chart.

--------------------------------- --------------------------------- -------------------------------- -------------------------------
  RISKS FOR ONE OR                           GOVERNMENT                       MONEY MARKET                   TAX-EXEMPT MONEY
  MORE FUNDS                              MONEY MARKET FUND                       FUND                         MARKET FUND
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Counterparty                                    X                                X                                X
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Credit                                          X                                X                                X
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Foreign Securities                                                               X
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Income                                          X                                X                                X
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Manager                                         X                                X                                X
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Municipal Market                                                                                                  X
--------------------------------- --------------------------------- -------------------------------- -------------------------------
  Principal Stability                             X                                X                                X
--------------------------------- --------------------------------- -------------------------------- -------------------------------

COUNTERPARTY RISK

The risk that a fund incurs when it engages in repurchase, reverse repurchase, derivative, when-issued, forward-commitment, delayed-settlement and securities-lending transactions or other similar transactions with another party, relies on the other party to consummate the transaction and is subject to the risk of default by the other party. Failure of the other party to consummate the transaction may result in the fund's incurring a loss or missing an opportunity to obtain a price believed to be advantageous.

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

58 Phoenix Insight Money Market Funds

INCOME RISK

The risk that falling interest rates will cause a fund's income to decline. A fund's dividends decline when interest rates fall because the fund then must invest in lower-yielding bonds.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MUNICIPAL MARKET RISK

The risk that certain factors may negatively affect the value of municipal securities, and, as a result, the share price of a fund that invests in them. These factors include political or legislative changes, uncertainties related to the tax status of the securities or the rights of investors in the securities. A fund may invest in municipal obligations that are related in such a way (e.g., multiple apparently unrelated issues that depend on the financial rating or support of a single government unit) that an economic, business or political development or change that affects one of these obligations would also affect the others.

PRINCIPAL INVESTMENT STRATEGIES

> The fund invests in a portfolio of equity and fixed income securities.
Under normal market conditions, equity securities will comprise between 40% and 65% of the fund's assets, and fixed income securities will comprise at least 25% of the fund's assets.

> The fund may invest in the equity securities of companies of any size. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $187.4 million to $446.9 billion.

> The fixed income portion of the fund will be invested primarily in bonds, which are debt instruments that normally pay a set amount of interest on a regular basis; repay the face amount, or principal, at a stated future date; and are issued by domestic and foreign corporations, federal and state governments, and their agencies. The fund normally invests in investment-grade securities and maintains a dollar-weighted average portfolio maturity (or average life with respect to mortgage-backed and asset-backed securities) of between five and ten years.

> The fund's subadviser reviews and adjusts the blend of the securities in an effort to enhance returns based on current market conditions, interest rate projections and other economic factors. The fund seeks to provide an overall return comprising between 40% and 65% of the return of Russell 1000(R) Index and between 35% and 60% of the return of the Lehman Brothers Aggregate Bond Index.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Allocation Risk - The risk that the percentages of the fund's assets invested in equities and fixed income securities, respectively, will not be optimum for market conditions at a given time.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

2 Phoenix Insight Balanced Fund

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

o Small and Medium Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

Phoenix Insight Balanced Fund 3

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in common stocks.
These stocks are generally of companies with market capitalization in excess of $1 billion at time of purchase. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $2.2 billion to $446.9 billion. The fund's policy of investing at least 80% of its assets in common stocks may be changed only upon 60 days written notice to shareholders.

> The fund's subadviser selects securities that are considered to be undervalued and to represent growth opportunities. The subadviser considers many factors, but there is a focus on a company's sales, earnings and valuation.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

Phoenix Insight Core Equity Fund 5

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in equity securities of issuers located in emerging markets countries. The World Bank and other international agencies define an emerging or developing country on the basis of such factors as trade initiatives, per capita income and level of industrialization. There are over 130 countries that are emerging or developing under this standard and approximately 40 of these countries have stock markets. Emerging markets countries generally include every nation in the world except the U.S., Canada, Japan, Australia, New Zealand and most nations located in Western Europe. The fund's policy of investing at least 80% of its assets in the securities of issuers located in emerging markets countries may be changed only upon 60 days written notice to shareholders.

> The fund invests in issuers with the potential for long-term capital appreciation using a "value" approach. The "value" approach emphasizes investments in companies the portfolio manager believes are undervalued.

> The subadviser uses a bottom-up stock and business analysis approach. The subadviser makes its assessments by examining companies one at a time, regardless of size, country of organization, place of principal business activity, or other similar selection criteria. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $341.6 million to $85.4 billion.

The subadviser seeks to identify undervalued companies whose businesses are highly profitable, have consistent operating histories and financial performance, and enjoy favorable long-term economic prospects. A company may be undervalued when, in the opinion of the subadviser, the company is selling for a price that is below its intrinsic worth. A company may be undervalued due to market or economic conditions, temporary earnings declines, unfavorable developments affecting the company or other factors. Such factors may include buying opportunities at attractive prices compared to the subadviser's calculation of future earnings power. The subadviser believes that buying these securities at a price that is below their intrinsic worth may generate greater returns for the fund than those obtained by paying a premium price for companies currently in favor in the market.

The fund may invest substantially all of its assets in common stocks if the subadviser believes that common stocks will appreciate in value.

Phoenix Insight Emerging Markets Fund 7

> The subadviser seeks to achieve attractive absolute returns that exceed the "normalized risk-free" rate, defined as the rate of return available on long-term U.S. Government securities. Utilization of an "absolute" rather than a "relative" valuation yardstick is designed to achieve not only a satisfactory return over the risk-free rate, but at the same time seek safety of principal. The subadviser considers the riskiness of an investment to be a function of the issuer's business rather than the volatility of its stock price.

> In determining which portfolio securities to sell, the subadviser focuses on the operating results of the portfolio companies, not price quotations, to measure the success of an investment. In making sell decisions, the subadviser considers, among other things, whether a security's price target has been met, whether there has been an overvaluation of the issuer by the market, whether there has been a clear deterioration of future earnings power and whether, in the subadviser's opinion, there has been a loss of a long-term competitive advantage.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Currency Rate Risk - The risk that fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect an investment.

o Emerging Markets Risk - The risk that prices of emerging markets securities may be more volatile than those of their counterparts in more established foreign markets.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Geographic Concentration Risk - The risk that, if the fund concentrates its investments in a single country or region, its portfolio will be more susceptible to factors adversely affecting issuers located in that country or region than would a more geographically diverse portfolio of securities.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small and Medium Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Value Stocks Risk - The risk that the fund's focus on value investing will cause the fund to underperform when growth investing is in favor.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

8 Phoenix Insight Emerging Markets Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in common stocks.
These stocks are generally of companies with market capitalization in excess of $1 billion at time of purchase. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $2.2 billion to $446.9 billion.

> The subadviser selects stocks that are representative of the companies found within the Russell 1000(R) Value Index in an effort to:

o provide greater returns, over the long-term, than the securities comprising the Russell 1000(R) Value Index; and

o maintain a risk level approximating that of the Russell 1000(R) Value Index.

The Russell 1000(R) Value Index measures the performance of those Russell 1000(R) companies with lower price-to-book ratios and lower forecasted growth values.

Risks Related to Principal Investment Strategies

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Value Stocks Risk - The risk that the fund's focus on value investing will cause the fund to underperform when growth investing is in favor.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

10 Phoenix Insight Equity Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally holds at least 90% of the 500 securities in the S&P
500(R) Index and attempts to match its holdings of each issue with that security's proportional representation in the S&P 500(R) Index. As of December 31, 2006 the market capitalizations included in the S&P 500(R) Index ranged from $1.4 billion to $446.9 billion. The fund invests a significant portion (typically 95% or more) of its assets in securities in the S&P 500(R) Index.

> The fund's subadviser employs a "passively" managed - or index - investment approach that attempts to replicate the performance of the index while not necessarily investing in all of its stocks. This approach is unlike traditional methods of active investment management whereby securities are selected on the basis of economic, financial and market analysis. On a regular basis, the subadviser compares the fund's performance to that of the S&P 500(R) Index. The subadviser may adjust the fund's holdings if the fund's performance does not adequately track the performance of the S&P
500(R) Index.

> Apart from its equity investments, the fund may use S&P 500(R) Stock Index Futures Contracts to reduce transactional costs and simulate full investment in the S&P 500(R) Index while retaining a cash balance for portfolio management purposes.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small and Medium Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

12 Phoenix Insight Index Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in the securities of small-cap companies, generally equity securities. The subadviser normally considers small-cap companies to include those with a market capitalization no larger than that of the largest company in the Russell 2000(R) Index, an index comprised of stocks with market capitalizations ranging from $39 million to $3.08 billion at December 31, 2006. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $256.9 million to $3.06 billion. The fund's policy of investing at least 80% of its assets in the securities of small-cap companies may be changed only upon 60 days written notice to shareholders.

> The fund seeks to invest in equity securities of companies that the subadviser believes offer superior prospects for growth, i.e., issues with the potential for accelerated earnings or revenue growth relative to the broader stock market and higher-than-average forecast earnings-growth rates. Valuation is a secondary consideration in stock selection.

> The subadviser seeks to maintain a risk level approximating that of the Russell 2000(R) Growth Index, an index that measures the performance of those Russell 2000(R) companies with higher price-to-book ratios and higher forecasted growth values.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Growth Stocks Risk - The risk that the fund's focus on growth investing will cause the fund to underperform when value investing is in favor.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

14 Phoenix Insight Small-Cap Growth Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in the securities of small-cap companies. These securities will normally be equities and equity-like instruments. The fund's subadviser normally considers small-cap companies to include those with a market capitalization no larger than that of the largest company in the Russell 2000(R) Index, an index comprised of stocks with market capitalizations ranging from $39 million to $3.08 billion at December 31, 2006. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $330.3 million to $7.01 billion. The fund's policy of investing at least 80% of its assets in the securities of small-cap companies may be changed only upon 60 days written notice to shareholders.

> The fund seeks to invest in the securities of companies that the subadviser believes have growth potential. In selecting securities, the subadviser focuses on those companies that appear to have potential for above average sales and earnings growth but are attractively valued relative to the securities of comparable companies.

> The subadviser seeks to maintain a risk level approximating that of the Russell 2000(R) Index.

Risks Related to Principal Investment Strategies

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

16 Phoenix Insight Small-Cap Opportunity Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in the securities of small-cap companies. These securities will normally be equities and equity-like instruments. The fund's subadviser normally considers small-cap companies to include those with a market capitalization no larger than that of the largest company in the Russell 2000(R) Index, an index comprised of stocks with market capitalizations ranging from $39 million to $3.08 billion as of December 31, 2006. As of December 31, 2006, the market capitalization of the equity issuers in which the fund was invested ranged from $235 million to $3.2 billion. The fund's policy of investing at least 80% of its assets in the securities of small-cap companies may be changed only upon 60 days written notice to shareholders.

> The subadviser seeks securities it considers to be undervalued at the time of purchase. The subadviser uses a value investment strategy that seeks companies that are attractively valued relative to the securities of comparable companies. In searching for stocks with lower than average valuations, the subadviser considers, among other things, price-to-earnings and price-to-book ratios.

> The subadviser seeks to maintain a risk level approximating that of the Russell 2000(R) Value Index, an index that measures the performance of those Russell 2000(R) companies with lower price-to-book ratios and lower forecasted growth values.

Risks Related to Principal Investment Strategies

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Market Risk - The risk that the market value of the fund's investments will fluctuate as the stock and bond markets fluctuate.

o Small Company Risk - The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates.

o Value Stocks Risk - The risk that the fund's focus on value investing will cause the fund to underperform when growth investing is in favor.

o Volatility Risk - The risk that performance will be affected by unanticipated events that cause major price changes in individual securities or market sectors.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 20.

18 Phoenix Insight Small-Cap Value Fund

The value of a fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of such fund's investments decreases, you will lose money.

Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease.

Specific risks of investing in the various Equity Funds are indicated in the chart below and described in detail following the chart.

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                                          CORE       EMERGING                               SMALL-CAP      SMALL-CAP     SMALL-CAP
RISKS FOR ONE              BALANCED      EQUITY      MARKETS       EQUITY       INDEX        GROWTH       OPPORTUNITY      VALUE
OR MORE FUNDS                FUND         FUND         FUND         FUND        FUND          FUND           FUND           FUND
------------------------------------------------------------------------------------------------------------------------------------
Allocation                     X
------------------------------------------------------------------------------------------------------------------------------------
Credit                         X
------------------------------------------------------------------------------------------------------------------------------------
Currency Rate                                           X
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Emerging Markets                                        X
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Foreign Securities             X                        X
------------------------------------------------------------------------------------------------------------------------------------
Geographic Concentration                                X
------------------------------------------------------------------------------------------------------------------------------------
Growth Stocks                                                                                   X
------------------------------------------------------------------------------------------------------------------------------------
Interest Rate                  X
------------------------------------------------------------------------------------------------------------------------------------
Leverage                                                                          X
------------------------------------------------------------------------------------------------------------------------------------
Manager                        X           X            X            X            X             X              X             X
------------------------------------------------------------------------------------------------------------------------------------
Market                         X           X            X            X            X             X              X             X
------------------------------------------------------------------------------------------------------------------------------------
Prepayment                     X
------------------------------------------------------------------------------------------------------------------------------------
Small Company                                                                                   X              X             X
------------------------------------------------------------------------------------------------------------------------------------

Small and Medium Company       X                        X                         X
------------------------------------------------------------------------------------------------------------------------------------
Value Stocks                                            X            X                                                       X

------------------------------------------------------------------------------------------------------------------------------------
Volatility                                 X            X            X                          X              X             X
------------------------------------------------------------------------------------------------------------------------------------

ALLOCATION RISK

The risk that the percentages of the fund's assets invested in equities and fixed income securities, respectively, will not be optimum for market conditions at a given time, which may cause a fund to underperform as compared to a fund with a more favorable allocation.

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

20 Phoenix Insight Equity Funds

CURRENCY RATE RISK

The risk that fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect an investment. Although a fund may engage in foreign currency hedge transactions to help reduce this risk, those transactions may not be effective or appropriate in particular situations nor, of course, will they protect against declines in security values.

EMERGING MARKETS RISK

The risk that the prices of emerging markets securities may be more volatile than those of their counterparts in more established foreign markets. Investments in less-developed countries whose markets are still emerging generally present risks in greater degree than those presented by investments in foreign issuers based in countries with developed securities markets and more advanced regulatory systems. Prior governmental approval may be required in some developing countries for the release of investment income, capital and sale proceeds to foreign investors, and some developing countries may limit the extent of foreign investment in domestic companies.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

GEOGRAPHIC CONCENTRATION RISK

The risk that, if a fund concentrates its investments in a single country or region, its portfolio will be more susceptible to factors adversely affecting issuers located in that country or region than would a more geographically diverse portfolio of securities.

GROWTH STOCKS RISK

Because growth stocks typically make little or no dividend payments to shareholders, investment return is based on a stock's capital appreciation, making return more dependent on market increases and decreases. Growth stocks are therefore more susceptible than non-growth stocks to market changes, tending to drop more sharply when markets fall. Growth-oriented funds typically underperform when value investing is in favor.

INTEREST RATE RISK

The risk that bond prices overall will decline because of rising interest rates. With fixed-rate securities, an increase in prevailing interest rates typically causes the value of those securities to fall, while a decline in prevailing interest rates generally produces an increase in the market value of the securities. As interest rates increase, slower than expected principal payments may

Phoenix Insight Equity Funds 21

extend the average life of fixed income securities. This will have the effect of locking in a below-market interest rate, increasing a fund's duration and reducing the value of such a security. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk. Changes in interest rates will affect the value of longer-term fixed income securities more than shorter-term securities and lower quality securities more than higher quality securities.

LEVERAGE RISK

The risk that downward price changes in a security may result in a loss greater than a fund's investment in the security. This risk exists through the use of certain securities or techniques (e.g., forward or futures contracts, derivative securities or purchases on margin) that tend to magnify changes in an index or market.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MARKET RISK

The risk that the market value of a fund's investments will fluctuate as the stock and bond markets fluctuate. Market risk may affect a single issuer, industry or section of the economy or it may affect the market as a whole.

PREPAYMENT RISK

The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing a fund to reinvest in obligations with lower interest rates than the original obligations. As interest rates decline, the issuers of securities held by a fund may prepay principal earlier than scheduled, forcing a fund to reinvest in lower yielding securities. This prepayment may reduce a fund's income. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk.

SMALL COMPANY RISK

The risk that investments in smaller companies may be more volatile than investments in larger companies, as smaller companies generally experience higher growth and failure rates. The trading volume of small company securities is normally lower than that of larger companies. Changes in the demand for the securities of smaller companies generally have a disproportionate effect on their market price, tending to make prices rise more in response to buying demand and fall more in response to selling pressure.

SMALL AND MEDIUM COMPANY RISK

Companies with small and medium market capitalizations are often companies with a limited operating history or companies in industries that have recently emerged due to cultural,

22 Phoenix Insight Equity Funds

economic, regulatory or technological developments. Such developments can have a significant impact or negative effect on small and medium market capitalization companies and their stock performance and can make investment returns highly volatile. Product lines are often less diversified and more susceptible to competitive threats. Small and medium market capitalization stocks are subject to varying patterns of trading volume and may, at times, be difficult to sell.

VALUE STOCKS RISK

Value stocks involve the risk that the value of the security will not be recognized for an unexpectedly long period of time, and that the security is not undervalued but is appropriately priced due to fundamental problems not yet apparent. Value-oriented funds typically underperform when growth investing is in favor.

VOLATILITY RISK

The risk that performance will be affected by unanticipated events (e.g., significant earnings shortfalls or gains, war, or political events) that cause major price changes in individual securities or market sectors.

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in bonds. "Bonds" are fixed income debt securities of various types of issuers, including corporate bonds, mortgage-backed and asset-backed securities, U.S. Government securities and other short-term instruments. U.S. Government securities that the fund may invest in may be backed by:

o the full faith and credit of the U.S. Government;

o the full faith and credit of the U.S. Treasury; or

o may not be backed by either the U.S. Government or U.S. Treasury.

The fund intends to invest in bonds, at least 65% of which are rated at the time of investment Baa3 or higher by Moody's Investors Service or BBB- or higher by Standard & Poor's Corporation. The fund's policy of investing at least 80% of its assets in bonds may be changed only upon 60 days written notice to shareholders.

> The fund's subadviser uses a value-driven style that focuses on issue and sector selection, measured interest rate anticipation and trading opportunities.

> Securities selected for fund investment may be of any maturity or duration.
Duration measures the interest rate sensitivity of a fixed income security by assessing and weighting the present value of a security's payment pattern. Normally, the fund's dollar weighted average duration will vary between two and eight years. The subadviser may adjust the fund's dollar-weighted average duration based on changing expectations for the federal funds rate, the shape of the yield curve, swap spreads, mortgage prepayments, credit spreads, and capital market liquidity. For instance, if the federal funds rate is expected to rise, the subadviser may choose to move the fund's dollar-weighted average duration to the lower end of the band. Within this context, it is expected that the fund's dollar-weighted average maturity will range between three and fifteen years. On December 31, 2006, the average duration of the fund's fixed income securities was 4.60 years and the average adjusted maturity was 5.77 years. Typically, for a fund maintaining an average duration of 4.60 years, a one percent increase in interest rates would cause a 4.60% decrease in the value of the fund's fixed income assets. Similarly, a one percent decrease in interest rates typically would cause the value of the fund's fixed income assets to increase by 4.60%.

> Securities may be reviewed for sale due to anticipated changes in interest rates, changes in the creditworthiness of issuers, or general financial or market developments.

26 Phoenix Insight Bond Fund

> The subadviser's investment strategies may result in a higher portfolio turnover rate for the fund. A high portfolio turnover rate increases costs to the fund, negatively affects fund performance, and may increase capital gain distributions, resulting in greater tax liability to fund shareholders.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o High Yield Securities Risk - The risk that lower rated securities generally have a higher incidence of default and may be less liquid than higher rated securities.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Long-Term Maturities/Durations Risk - The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 44.

Phoenix Insight Bond Fund 27

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in domestic and foreign high yield bonds that have a credit quality rated below "Baa" by Moody's Investors Service, Inc. (Moody's) and "BBB" by Standard and Poor's Corporation (S&P). "Bonds" are fixed income debt securities of various types of issuers, including corporate bonds, mortgage-backed and asset-backed securities, U.S. Government securities and other short-term instruments. The fund may also invest in a broad range of interest-rate sensitive securities, including preferred stocks, interest-rate futures contracts, and foreign currency futures and forwards for the purpose of hedging. The fund's policy of investing at least 80% of its assets in high yield bonds may be changed only upon 60 days written notice to shareholders.

> Principally, securities are selected from a broad universe of domestic high yield corporate bonds, although the fund may invest in other types of high yield securities. The fund's subadviser uses an investment process that focuses on adding value through issue selection, sector/industry selection and opportunistic trading. The subadviser evaluates market conditions in the context of broad macroeconomic trends. It generally overweights those sector/industries where well-valued companies can be identified and whose business profiles (and credit measures) are viewed to be improving.

> The subadviser considers credit research an integral component of its higher quality high yield investment process. It invests across the credit rating spectrum with an emphasis on securities that are moving up the credit rating scale of a nationally recognized statistical rating organization and generally those rated Ba/BB and B/B by Moody's, Standard & Poor's or Fitch, at the time of investment. If after the time of investment a security's rating declines, the fund is not obligated to sell the security.

> The subadviser attempts to maintain the duration of the fund at a level similar to that of its style benchmark. Duration measures the interest rate sensitivity of a fixed income security by assessing and weighting the present value of the security's payment pattern. Generally, the longer the maturity the greater the duration and, therefore, the greater effect interest rate changes have on the price of the security. At December 31, 2006, the modified duration to maturity for the benchmark and the fund was 4.42 and 4.10 years, respectively. Typically, for a fund maintaining a modified duration to maturity of 4.10 years, a one percent increase in interest rates would cause a 4.10% decrease in the value

     of the fund's assets. Similarly, a one percent decrease in interest rates
     typically would cause the value of the fund's assets to increase by 4.10%

>    The subadviser's investment strategies may result in a higher portfolio

turnover rate for the fund. A high portfolio turnover rate increases costs to the fund, negatively affects fund performance, and may increase capital gain distributions, resulting in greater tax liability to fund shareholders.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o High Yield Securities (Junk Bond) Risk - The risk that lower rated securities generally have a higher incidence of default and may be less liquid than higher rated securities.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Long-Term Maturities/Durations Risk - The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 44.

Because of the speculative nature of the fund's investments, you should carefully consider the risks associated with this fund before you purchase shares.

30 Phoenix Insight High Yield Bond Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in Government Bonds which are defined as:

o U.S. Treasury securities whose interest and principal payments are backed by the full faith and credit of the U.S. Government and securities issued by U.S. Government agencies and instrumentalities whose interest and principal payments may be supported by the full faith and credit of the U.S. Treasury (such as Government National Mortgage Association participation certificates); or

o Securities issued by U.S. Government agencies whose interest and principal payments are not backed by the full faith and credit of the U.S. Government and may be supported by the limited authority of the issuer to borrow from the U.S. Treasury (such as securities of the Federal Home Loan Bank); the discretionary authority of the U.S. Government to purchase certain obligations (such as securities of the Federal National Mortgage Association); or the credit of the issuer only; and, repurchase agreements collateralized by U.S. Government securities.

The fund's policy of investing at least 80% of its assets in Government Bonds may be changed only upon 60 days written notice to shareholders.

> The fund's subadviser may invest up to 20% of the fund's assets in one or more of the following types of securities, which normally will be investment-grade:

o Asset-backed securities

o Non-agency mortgage-backed securities

o Corporate bonds

5 The dollar-weighted average portfolio maturity (or average life with respect to mortgage-backed and asset-backed securities) generally will be in the intermediate range of between three and ten years. Maturity composition refers to the percentage of securities within specific maturity ranges as well as the aggregate weighted average portfolio maturity. On December 31, 2006, the average maturity of the Lehman Brothers Intermediate Government Bond Index was 4.03 years; the average adjusted maturity of the fund was 5.18 years.

32 Phoenix Insight Intermediate Government Bond Fund

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 44.

Phoenix Insight Intermediate Government Bond Fund 33

Principal Investment Strategies

> The fund normally invests at least 80% of its assets in tax-exempt bonds, generally municipal securities. These securities generate income that is exempt from federal income tax and not subject to the federal alternative minimum tax. This policy is fundamental and may only be changed by shareholder approval. The fund may also invest in securities that generate income that is not exempt from federal or state income tax and is subject to the federal alternative minimum tax.

Income exempt from federal or state income tax may be subject to state or local income tax. Any capital gains distributed by the fund may be taxable.

The fund will normally purchase only securities that are investment grade.

> The subadviser employs:

o interest rate risk management techniques to temper the potential negative impact of interest rate increases on the fund's share price; and

o credit analysis to determine whether the municipalities issuing the bonds are likely to repay their debt.

> The fund also may invest in U.S. Government securities and securities with various forms of credit enhancement (such as bank letters of credit). The fund may buy and sell options and interest rate futures contracts to hedge against declines in the value of portfolio securities.

> Under normal market conditions, the fund's investments will have a dollar-weighted average portfolio maturity in a range of three to twelve years. Maturity composition refers to the percentage of securities within specific maturity ranges as well as the aggregate weighted average portfolio maturity. On December 31, 2006, the average maturity of the Lehman Brothers 3-15 Year Blend Municipal Bond Index was 8.38 years; the average adjusted maturity of the fund was 6.4 years.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o    Credit Risk - The risk that an issuer of a security will fail to pay
     interest or principal in a timely manner or that negative perceptions of
     the issuer's ability to make such payments will cause the price of the
     security to decline.

o    Income Risk - The risk that falling interest rates will cause the fund's
     income to decline.

o    Interest Rate Risk - The risk that bond prices overall will decline because
     of rising interest rates.

o    Leverage Risk - The risk that downward price changes in a security may
     result in a loss greater than the fund's investment in that security.

o    Manager Risk - The risk that poor security selection will cause the fund to
     underperform other funds with a similar investment objective.

o Municipal Market Risk - The risk that certain factors may negatively affect the value of municipal securities and, as a result, the share price of the fund.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 44.

36 Phoenix Insight Intermediate Tax-Exempt Bond Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in bonds with a short/intermediate-term average maturity. "Bonds" are fixed income debt securities of various types of issuers, including corporate bonds, mortgage-backed and asset-backed securities, U.S. Government securities and other short-term instruments. The fund's policy of investing at least 80% of its assets in short/intermediate bonds may be changed only upon 60 days written notice to shareholders.

> The fund generally invests in investment grade securities. Investment grade securities are those with credit ratings, at the time of acquisition, within the four highest rating categories of a nationally recognized statistical rating organization, or if unrated, those that the subadviser determines, pursuant to procedures reviewed and approved by the Board of Trustees, are of comparable quality.

> The fund may invest in bonds and debentures, U.S. Government securities, U.S. dollar denominated debt obligations of foreign governments, mortgage-backed and asset-backed securities, municipal securities, zero-coupon securities, other floating/variable rate obligations, and options and interest-rate futures contracts.

> The fund normally maintains a dollar-weighted average maturity (or average life with respect to mortgage-backed and asset-backed securities) of between two and five years.

Temporary Defensive Strategy. If a defensive position is warranted, the fund may hold short-term U.S. Government securities (such as Treasury bills), high-quality money market instruments and cash. When the fund takes such a defensive position, the fund may not be able to meet its investment objective.

Risks Related to Principal Investment Strategies

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities Risk - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

38 Phoenix Insight Short/Intermediate Bond Fund

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 44.

Phoenix Insight Short/Intermediate Bond Fund 39

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in tax-exempt bonds, generally municipal securities with varying maturities. These securities generate income that is exempt from federal income tax and not subject to the federal alternative minimum tax. This policy is fundamental and may only be changed by shareholder approval. The fund may also invest in securities that generate income that is not exempt from federal or state income tax and is subject to the federal alternative minimum tax.

Income exempt from federal or state income tax may be subject to state or local income tax. Any capital gains distributed by the fund may be taxable.

The fund will normally purchase only securities that are investment grade.

> The subadviser employs:

o interest rate risk management techniques to temper the potential negative impact of interest rate increases on the fund's share price; and

o credit analysis to determine whether the municipalities issuing the bonds are likely to repay their debt.

> The fund also may invest in U.S. Government securities and securities with various forms of credit enhancement (such as bank letters of credit). The fund may buy and sell options and interest rate futures contracts to hedge against declines in the value of portfolio securities.

> In pursuit of higher income, the subadviser normally favors longer-term bonds that typically mature in ten years or more. In exchange for this higher potential income, investors may experience higher share-price volatility than would occur through investments with shorter maturities.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

Phoenix Insight Tax-Exempt Bond Fund 41

o Interest Rate Risk - The risk that bond prices overall will decline because of rising interest rates.

o Leverage Risk - The risk that downward price changes in a security may result in a loss greater than the fund's investment in that security.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Municipal Market Risk - The risk that certain factors may negatively affect the value of municipal securities and, as a result, the share price of the fund.

o Prepayment Risk - The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates than the original obligations.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 44.

42 Phoenix Insight Tax-Exempt Bond Fund

The value of your shares and the level of income you receive are subject to risks associated with the types of securities selected for fund investment. Neither a fund, nor its adviser or subadviser, can assure you that a particular level of income will consistently be achieved or that the value of the fund's investments that supports your share value will increase. If the value of fund investments decreases, your share value will decrease.

Specific risks of investing in the various Fixed Income Funds are indicated in the chart below and are described in detail following the chart.

---------------------------------------------------------------------------------------------------------------------------
                                                           INTERMEDIATE     INTERMEDIATE        SHORT/
RISKS FOR ONE OR                   BOND     HIGH YIELD      GOVERNMENT       TAX-EXEMPT      INTERMEDIATE     TAX-EXEMPT
MORE FUNDS                         FUND      BOND FUND      BOND FUND        BOND FUND        BOND FUND       BOND FUND
---------------------------------------------------------------------------------------------------------------------------
Credit                               X           X              X                X                X               X
---------------------------------------------------------------------------------------------------------------------------
Foreign Securities                               X                                                X
---------------------------------------------------------------------------------------------------------------------------
High Yield Securities                X           X
---------------------------------------------------------------------------------------------------------------------------
Income                               X           X              X                X                X               X
---------------------------------------------------------------------------------------------------------------------------
Interest Rate                        X           X              X                X                X               X
---------------------------------------------------------------------------------------------------------------------------
Leverage                                         X                               X                X               X
---------------------------------------------------------------------------------------------------------------------------

Long-Term Maturities/Durations       X           X

---------------------------------------------------------------------------------------------------------------------------
Manager                              X           X              X                X                X               X
---------------------------------------------------------------------------------------------------------------------------
Municipal Market                                                                 X                                X
---------------------------------------------------------------------------------------------------------------------------
Prepayment                           X           X              X                X                X               X
---------------------------------------------------------------------------------------------------------------------------

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

44 Phoenix Insight Fixed Income Funds

HIGH YIELD SECURITIES (JUNK BOND) RISK

Securities rated "BB" or below by S&P or "Ba" or below by Moody's are known as "high yield" securities and are commonly referred to as "junk bonds". These securities involve greater risk of loss due to credit deterioration and are less liquid, especially during periods of economic uncertainty or change, than higher-quality debt securities. Lower-rated debt securities generally have a higher risk that the issuer of the security may default and not make the payment of interest or principal.

INCOME RISK

The risk that falling interest rates will cause a fund's income to decline. A fund's dividends decline when interest rates fall because the fund then must invest in lower-yielding bonds.

INTEREST RATE RISK

The risk that bond prices overall will decline because of rising interest rates. With fixed-rate securities, an increase in prevailing interest rates typically causes the value of those securities to fall, while a decline in prevailing interest rates generally produces an increase in the market value of the securities. As interest rates increase, slower than expected principal payments may extend the average life of fixed income securities. This will have the effect of locking in a below-market interest rate, increasing a fund's duration and reducing the value of such a security. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk. Changes in interest rates will affect the value of longer-term fixed income securities more than shorter-term securities and lower quality securities more than higher quality securities.

LEVERAGE RISK

The risk that downward price changes in a security may result in a loss greater than a fund's investment in the security. This risk exists through the use of certain securities or techniques (e.g., forward or futures contracts, derivative securities or purchases on margin) that tend to magnify changes in an index or market.

LONG-TERM MATURITIES/DURATIONS RISK

Fixed income securities with longer maturities or durations may be subject to greater price fluctuations due to interest rate, tax law, and general market changes than securities with shorter maturities or durations.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MUNICIPAL MARKET RISK

The risk that certain factors may negatively affect the value of municipal securities, and, as a result, the share price of a fund that invests in them. These factors include political or legislative

Phoenix Insight Fixed Income Funds 45

changes, uncertainties related to the tax status of the securities or the rights of investors in the securities. A fund may invest in municipal obligations that are related in such a way (e.g., multiple apparently unrelated issues that depend on the financial rating or support of a single government unit) that an economic, business or political development or change that affects one of these obligations would also affect the others.

PREPAYMENT RISK

The risk that issuers will prepay fixed rate obligations when interest rates fall, forcing a fund to reinvest in obligations with lower interest rates than the original obligations. As interest rates decline, the issuers of securities held by a fund may prepay principal earlier than scheduled, forcing a fund to reinvest in lower yielding securities. This prepayment may reduce a fund's income. If a fund invests in asset-backed and mortgage-backed securities, it is more vulnerable to this risk.

46 Phoenix Insight Fixed Income Funds

PRINCIPAL INVESTMENT STRATEGIES

>        The fund invests only in high-quality, short-term money market
         instruments that, in the opinion of the fund's subadviser, present
         minimal credit risks. The fund normally invests at least 80% of its
         assets in government money market securities which are defined as:


         o  U.S. Treasury securities whose interest and principal payments are
            backed by the full faith and credit of the U.S. Government and
            securities issued by U.S. Government agencies and instrumentalities
            whose interest and principal payments may be supported by the full
            faith and credit of the U.S. Treasury (such as Government National
            Mortgage Association participation certificates); or

         o  Securities issued by the U.S. Government whose interest and
            principal payments are not backed by the full faith and credit of
            the U.S. Government and may be supported by the limited authority of
            the issuer to borrow from the U.S. Treasury (such as securities of
            the Federal Home Loan Bank); the discretionary authority of the U.S.
            Government to purchase certain obligations (such as securities of
            the Federal National Mortgage Association); or the credit of the
            issuer only; and repurchase agreements collateralized by U.S.
            Government securities.

         The fund's policy of investing at least 80% of its assets in government
         short-term money market instruments may be changed only upon 60 days
         written notice to shareholders.


>        The fund will purchase only securities (other than U.S. Government
         securities) that have been rated within the two highest rating
         categories by at least two nationally recognized statistical rating
         organizations, unless only one such agency has rated the security, (or,
         if not rated, are considered by the adviser to be of comparable
         quality). No more than 5% of the fund's assets will be invested in
         securities in the second highest rating category. The fund's current
         income generally will be lower than the income provided by funds that
         invest in securities with longer maturities or lower quality.

50 Phoenix Insight Government Money Market Fund

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 56.

PRINCIPAL INVESTMENT STRATEGIES

>        The fund invests only in high-quality, short-term money market
         instruments that, in the opinion of the fund's subadviser, present
         minimal credit risks. The fund invests in a broad range of short-term
         money market instruments, including U.S. Government securities,
         repurchase agreements, as well as bank and commercial obligations.
         Commercial paper purchased by the fund will consist of U.S.
         dollar-denominated direct obligations of domestic and foreign corporate
         issuers, including bank holding companies.


>        The fund will purchase only U.S. dollar-denominated securities. In
         addition, the fund will purchase only securities (other than U.S.
         Government securities) that have been rated within the two highest
         rating categories by at least two nationally recognized rating
         agencies, unless only one such agency has rated the security, (or, if
         not rated, are considered by the subadviser to be of comparable
         quality). No more than 5% of the fund's assets will be invested in
         securities in the second highest rating category. The fund's current
         income generally will be lower than the income provided by funds that
         invest in securities with longer maturities or lower quality.

Risks Related to Principal Investment Strategies
o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

52 Phoenix Insight Money Market Fund

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies on page 56.

PRINCIPAL INVESTMENT STRATEGIES

>        The fund normally invests at least 80% of its assets in high-quality,
         short-term money market instruments that generate income that is
         generally exempt from federal income tax and are not subject to the
         alternative minimum tax. This policy is fundamental and may only be
         changed by shareholder approval. The fund may also invest in securities
         that generate income that is not exempt from federal or state income
         tax.

         Income exempt from federal or state income tax may be subject to state
         or local income tax. Any capital gains distributed by the fund may be
         taxable.

>        The fund will invest primarily in U.S. dollar-denominated municipal
         securities.


>        The fund will purchase only securities (other than U.S. Government
         securities) that have been rated within the two highest rating
         categories by at least two nationally recognized rating agencies,
         unless only one such agency has rated the security, (or, if not rated,
         are considered by the subadviser to be of comparable quality). The
         fund's current income generally will be lower than the income provided
         by funds that invest in securities with taxable income or securities
         with longer maturities or lower quality.


>        Depending on market conditions, the fund may temporarily hold up to
         20% of the current value of its assets in securities whose interest
         income is subject to taxation.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES
o   Counterparty Risk - The risk that the fund incurs when it engages in certain
    investment techniques where it relies on the other party to consummate the
    transaction and is subject to the risk of default by the other party.

o   Credit Risk - The risk that an issuer of a security will fail to pay
    interest or principal in a timely manner or that negative perceptions of the
    issuer's ability to make such payments will cause the price of the security
    to decline.

o   Income Risk - The risk that falling interest rates will cause the fund's
    income to decline.

o   Manager Risk - The risk that poor security selection will cause the fund to
    underperform other funds with a similar investment objective.

54 Phoenix Insight Tax-Exempt Money Market Fund

o   Municipal Market Risk - The risk that certain factors may negatively affect
    the value of municipal securities and, as a result, the share price of the
    fund.

o   Principal Stability Risk - The risk that the fund may not be able to
    maintain a stable net asset value of $1.00.

For a more detailed description of above risks, see Risks Related to Principal Investment Strategies, page 56.

An investment in a Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. 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.

Specific risks of investing in the various Money Market Funds are indicated in the chart below and described in detail following the chart.

--------------------------------------------------------------------------------------------------------
  RISKS FOR ONE OR                GOVERNMENT               MONEY MARKET            TAX-EXEMPT MONEY
  MORE FUNDS                  MONEY MARKET FUND                FUND                  MARKET FUND
--------------------------------------------------------------------------------------------------------
  Counterparty                        X                          X                        X
--------------------------------------------------------------------------------------------------------
  Credit                              X                          X                        X
--------------------------------------------------------------------------------------------------------
  Foreign Securities                                             X
--------------------------------------------------------------------------------------------------------
  Income                              X                          X                        X
--------------------------------------------------------------------------------------------------------
  Manager                             X                          X                        X
--------------------------------------------------------------------------------------------------------
  Municipal Market                                                                        X
--------------------------------------------------------------------------------------------------------
  Principal Stability                 X                          X                        X
--------------------------------------------------------------------------------------------------------

COUNTERPARTY RISK

The risk that a fund incurs when it engages in repurchase, reverse repurchase, derivative, when-issued, forward-commitment, delayed-settlement and securities-lending transactions or other similar transactions with another party, relies on the other party to consummate the transaction and is subject to the risk of default by the other party. Failure of the other party to consummate the transaction may result in the fund's incurring a loss or missing an opportunity to obtain a price believed to be advantageous.

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

56 Phoenix Insight Money Market Funds

INCOME RISK

The risk that falling interest rates will cause a fund's income to decline. A fund's dividends decline when interest rates fall because the fund then must invest in lower-yielding bonds.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MUNICIPAL MARKET RISK

The risk that certain factors may negatively affect the value of municipal securities, and, as a result, the share price of a fund that invests in them. These factors include political or legislative changes, uncertainties related to the tax status of the securities or the rights of investors in the securities. A fund may invest in municipal obligations that are related in such a way (e.g., multiple apparently unrelated issues that depend on the financial rating or support of a single government unit) that an economic, business or political development or change that affects one of these obligations would also affect the others.

PRINCIPAL INVESTMENT STRATEGIES

>        The fund seeks to maintain a stable $1.00 per share price.

>        The fund invests only in high-quality, short-term money market
         instruments that, in the opinion of the fund's subadviser, present
         minimal credit risks. The fund invests in a broad range of short-term
         money market instruments, including U.S. government securities,
         repurchase agreements, as well as bank and commercial obligations.
         Commercial paper purchased by the fund will consist of U.S.
         dollar-denominated direct obligations of domestic and foreign corporate
         issuers, including bank holding companies.


>        The fund will limit the dollar-weighted average maturity of its
         investments to 90 days or less and will buy securities with remaining
         maturities no longer than 397 days.

>        The fund will purchase only U.S. dollar-denominated securities. In
         addition, the fund will purchase only securities (other than U.S.
         government securities) that have been rated within the two highest
         rating categories by at least two nationally recognized statistical
         rating organizations, unless only one such agency has rated the
         security, (or, if not rated, are considered by the subadviser to be of
         comparable quality). No more than 5% of the fund's assets will be
         invested in securities in the second highest rating category. The
         fund's current income generally will be lower than the income provided
         by funds that invest in securities with longer maturities or lower
         quality.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

GENERAL

An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. 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.

Phoenix Insight Money Market Fund 1

COUNTERPARTY RISK

The risk that a fund incurs when it engages in repurchase, reverse repurchase, derivative, when-issued, forward-commitment, delayed-settlement and securities-lending transactions or other similar transactions with another party, relies on the other party to consummate the transaction and is subject to the risk of default by the other party. Failure of the other party to consummate the transaction may result in the fund's incurring a loss or missing an opportunity to obtain a price believed to be advantageous.

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

INCOME RISK

The risk that falling interest rates will cause a fund's income to decline. A fund's dividends decline when interest rates fall because the fund then must invest in lower-yielding bonds.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

PRINCIPAL INVESTMENT STRATEGIES

> The fund invests only in high-quality, short-term money market instruments that, in the opinion of the fund's subadviser, present minimal credit risks. The fund normally invests at least 80% of its assets in government money market securities which are defined as:

o U.S. Treasury securities whose interest and principal payments are backed by the full faith and credit of the U.S. Government and securities issued by U.S. Government agencies and instrumentalities whose interest and principal payments may be supported by the full faith and credit of the U.S. Treasury (such as Government National Mortgage Association participation certificates); or

o Securities issued by the U.S. Government whose interest and principal payments are not backed by the full faith and credit of the U.S. Government and may be supported by the limited authority of the issuer to borrow from the U.S. Treasury (such as securities of the Federal Home Loan Bank); the discretionary authority of the U.S. Government to purchase certain obligations (such as securities of the Federal National Mortgage Association); or the credit of the issuer only; and repurchase agreements collateralized by U.S. Government securities.

The fund's policy of investing at least 80% of its assets in government short-term money market instruments may be changed only upon 60 days written notice to shareholders.

2 Phoenix Insight Government Money Market Fund

> The fund will purchase only securities (other than U.S. Government securities) that have been rated within the two highest rating categories by at least two nationally recognized statistical rating organizations, unless only one such agency has rated the security, (or, if not rated, are considered by the adviser to be of comparable quality). No more than 5% of the fund's assets will be invested in securities in the second highest rating category. The fund's current income generally will be lower than the income provided by funds that invest in securities with longer maturities or lower quality.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 11.

Phoenix Insight Government Money Market Fund 3

PRINCIPAL INVESTMENT STRATEGIES

> The fund invests only in high-quality, short-term money market instruments that, in the opinion of the fund's subadviser, present minimal credit risks. The fund invests in a broad range of short-term money market instruments, including U.S. Government securities, repurchase agreements, as well as bank and commercial obligations. Commercial paper purchased by the fund will consist of U.S. dollar-denominated direct obligations of domestic and foreign corporate issuers, including bank holding companies.

> The fund will purchase only U.S. dollar-denominated securities. In addition, the fund will purchase only securities (other than U.S. Government securities) that have been rated within the two highest rating categories by at least two nationally recognized statistical rating organizations, unless only one such agency has rated the security, (or, if not rated, are considered by the subadviser to be of comparable quality). No more than 5% of the fund's assets will be invested in securities in the second highest rating category. The fund's current income generally will be lower than the income provided by funds that invest in securities with longer maturities or lower quality.

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

Phoenix Insight Money Market Fund 5

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Foreign Securities - The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 11.

6 Phoenix Insight Money Market Fund

PRINCIPAL INVESTMENT STRATEGIES

> The fund normally invests at least 80% of its assets in high-quality, short-term money market instruments that generate income that is generally exempt from federal income tax and are not subject to the alternative minimum tax. This policy is fundamental and may only be changed by shareholder approval. The fund may also invest in securities that generate income that is not exempt from federal or state income tax.

Income exempt from federal or state income tax may be subject to state or local income tax. Any capital gains distributed by the fund may be taxable.

> The fund will invest primarily in U.S. dollar-denominated municipal securities.

> The fund will purchase only securities (other than U.S. Government securities) that have been rated within the two highest rating categories by at least two nationally recognized rating agencies, unless only one such agency has rated the security, (or, if not rated, are considered by the subadviser to be of comparable quality). The fund's current income generally will be lower than the income provided by funds that invest in securities with taxable income or securities with longer maturities or lower quality.

> Depending on market conditions, the fund may temporarily hold up to 20% of the current value of its assets in securities whose interest income is subject to taxation.

8 Phoenix Insight Tax-Exempt Money Market Fund

RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES

o Counterparty Risk - The risk that the fund incurs when it engages in certain investment techniques where it relies on the other party to consummate the transaction and is subject to the risk of default by the other party.

o Credit Risk - The risk that an issuer of a security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.

o Income Risk - The risk that falling interest rates will cause the fund's income to decline.

o Manager Risk - The risk that poor security selection will cause the fund to underperform other funds with a similar investment objective.

o Municipal Market Risk - The risk that certain factors may negatively affect the value of municipal securities and, as a result, the share price of the fund.

o Principal Stability Risk - The risk that the fund may not be able to maintain a stable net asset value of $1.00.

For a more detailed description of the above risks, see Risks Related to Principal Investment Strategies, page 11.

Phoenix Insight Tax-Exempt Money Market Fund 9

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. 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.

Specific risks of investing in the various money market funds are indicated in the chart below and described in detail following the chart.

-----------------------------------------------------------------------------------------------------------------------------------
                                               GOVERNMENT                                                      TAX-EXEMPT
  RISKS FOR ONE OR                            MONEY MARKET                    MONEY MARKET                   MONEY MARKET
  MORE FUNDS                                      FUND                            FUND                          FUND
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Counterparty                                      X                              X                              X
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Credit                                            X                              X                              X
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Foreign Securities                                                               X
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Income                                            X                              X                              X
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Manager                                           X                              X                              X
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Municipal Market                                                                                                X
------------------------------------ ------------------------------- ----------------------------- --------------------------------
  Principal Stability                               X                              X                              X
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COUNTERPARTY RISK

The risk that a fund incurs when it engages in repurchase, reverse repurchase, derivative, when-issued, forward-commitment, delayed-settlement and securities-lending transactions or other similar transactions with another party, relies on the other party to consummate the transaction and is subject to the risk of default by the other party. Failure of the other party to consummate the transaction may result in the fund's incurring a loss or missing an opportunity to obtain a price believed to be advantageous.

CREDIT RISK

The risk that an issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will

Phoenix Insight Money Market Funds 11

cause the price of the security to decline. Debt securities rated below investment-grade are especially susceptible to this risk.

FOREIGN SECURITIES RISK

The risk that the prices of foreign securities may be more volatile than those of their domestic counterparts owing in part to possible political or economic instability; limits on repatriation of capital; exchange controls or exchange rate fluctuations; less publicly available information as a result of accounting, auditing, and financial reporting standards different from those used in the U.S.; more volatile markets; less securities regulation; less favorable tax provisions; war or expropriation.

INCOME RISK

The risk that falling interest rates will cause a fund's income to decline. A fund's dividends decline when interest rates fall because the fund then must invest in lower-yielding bonds.

MANAGER RISK

The risk that poor security selection will cause a fund to underperform other funds with a similar investment objective.

MUNICIPAL MARKET RISK

The risk that certain factors may negatively affect the value of municipal securities, and, as a result, the share price of a fund that invests in them. These factors include political or legislative changes, uncertainties related to the tax status of the securities or the rights of investors in the securities. A fund may invest in municipal obligations that are related in such a way (e.g., multiple apparently unrelated issues that depend on the financial rating or support of a single government unit) that an economic, business or political development or change that affects one of these obligations would also affect the others.