BRAZOS MUTUAL FUNDS
N-18F1, 1996-10-28
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                                  Form N-18F-1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


              NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1 UNDER
                       THE INVESTMENT COMPANY ACT OF 1940.









                               Brazos Mutual Funds
                            Exact Name of Registrant


<PAGE>


                            NOTIFICATION OF ELECTION


     The undersigned registered open-end investment company hereby notifies the
Securities and Exchange Commission that it elects to commit itself to pay in
cash all redemptions by a shareholder of record as provided by Rule 18f-1 under
the Investment Company Act of 1940. It is understood that this election is
irrevocable while such Rule is in effect unless the Commission by order upon
application permits the withdrawal of this Notification of Election.


                                    SIGNATURE

     Pursuant to the requirements of Rule 18f-1 under the Investment Company Act
of 1940, the registrant has caused this notification of election to be duly
executed on its behalf in the city of Dallas and the state of Texas on the 24th
day of October, 1996.


                                Signature  Brazos Mutual Funds
                                           (Name of Registrant)

                                       By: Daniel Hockenbrough
                                           Daniel Hockenbrough

                                           (Name of director, trustee
                                           or officer signing on
                                           behalf of Registrant)

                                           President
                                           (Title)


Attest:     Tricia Hundley                             
            (Name)

            Secretary                               
            (Title)



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