UNITED SERVICES FUNDS
497, 1996-10-03
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                                HIGHEST YIELDING

          -------------------                --------------------- 
                 5.30%                               5.16%                 
          7-Day Current Yield                7-Day Effective Yield 
          -------------------                --------------------- 
                                   

                  THE U.S. GOVERNMENT SECURITIES SAVINGS FUND

          LIPPER'S #1 
          GOVERNMENT         [GRAPHIC:  U.S. FAMILY OF FUNDS LOGO]
          MONEY FUND                                              
          FOR 5 YEARS        



                                                           Take action now. Call
                                                        1-800-557-2297, ext. 155
- ----------
*As of 9/30/96.  The U.S.  Government  Securities  Savings Fund,  like all money
market funds, is: * not sponsored nor guaranteed by the U.S.  Government * not a
deposit  of nor  endorsed  by any bank * not  insured  by the FDIC nor any other
agency.  The U.S.  Government  Securities  Savings  Fund was ranked #1 out of 73
government money market funds by Lipper Analytical Services. The fund was ranked
#4 out of 113 for the one-year  period ending  6/30/96.  Past  performance is no
guarantee of future  results.  Money market  yields may change  daily.  The U.S.
Government  Securities Savings Fund is managed to maintain a stable $1 per share
value;  however,  there is no guarantee it will be able to do so. The Advisor of
the Fund has guaranteed  total fund  operating  expenses (as a percentage of net
assets)  will not exceed  0.40% until  6/30/97,  or until such later date as the
Advisor determines.  In accordance with SEC guidelines,  capital gains or losses
are excluded from yield calculations.  A monthly small account fee will apply if
your balance falls below the $1,000  minimum.  For more  information,  including
charges and expenses, call 1-800-US-FUNDS.  Please read the prospectus carefully
before investing.                                                         IBD421



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