<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED MAY 7, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS A, B AND C SHARES OF:
MUNDER ACCELERATING GROWTH FUND, MUNDER BALANCED FUND, MUNDER GROWTH & INCOME
FUND, MUNDER INTERNATIONAL EQUITY FUND, MUNDER MICRO-CAP EQUITY FUND, MUNDER
MID-CAP GROWTH FUND, MUNDER MULTI-SEASON GROWTH FUND, MUNDER REAL ESTATE EQUITY
INVESTMENT FUND, MUNDER SMALL-CAP VALUE FUND, MUNDER SMALL COMPANY GROWTH FUND,
MUNDER VALUE FUND, MUNDER FRAMLINGTON EMERGING MARKETS FUND, MUNDER FRAMLINGTON
HEALTHCARE FUND AND MUNDER FRAMLINGTON INTERNATIONAL GROWTH FUND
ADDITION OF CO-MANAGER FOR
MUNDER REAL ESTATE EQUITY INVESTMENT FUND
Robert E. Crosby is co-manager of the Real Estate Equity Investment Fund. Mr.
Crosby has co-managed the Fund since March 1998 and was the Fund's primary
analyst from 1996-1998. Mr. Crosby has been with the Advisor since 1993, and
also serves as portfolio manager for separately managed institutional accounts.
CLOSING OF MUNDER MID-CAP GROWTH FUND
Shares of the Mid-Cap Growth Fund are no longer available to new accounts.
CDSC WAIVERS
The "REDEMPTION OF SHARES--What Price Do I Receive For Redeemed Shares?--CDSC
Waivers" section in the Prospectus is hereby supplemented as follows:
We will waive the CDSC payable upon redemption of shares for:
- Redemptions limited to 10% per year of an account's Net Asset Value.
For example, if you maintain an annual balance of $10,000 you can
redeem up to $1,000 annually free of charge.
REDUCTION OF MINIMUM REQUIRED INVESTMENT
The minimum initial investment for Class A, Class B and Class C Shares of a Fund
has been reduced to $250. Subsequent investments must be at least $50.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR
MUNDER BALANCED FUND
The Balanced Fund is managed by a committee of professional portfolio managers
of the Advisor.
<PAGE>
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall is co-manager of the Small-Cap Value and Value Funds. Mr. Wall was
formerly a primary analyst for the Funds. Prior to joining the Advisor in
1995, he was a Senior Equity Analyst with Woodbridge Capital Management, Inc.
(1994-1995) and an Assistant Vice President in Equity Research for Merrill
Lynch, Pierce Fenner & Smith in New York (1992-1994).
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Small Company Growth Fund.
Mr. Wilk, a Senior Portfolio Manager of the Advisor, has managed the Fund
since October 1996 and was the Fund's primary analyst (1995 to 1996). Prior
to joining the Advisor in 1995, Mr. Wilk was a Senior Equity Research Analyst
for the Fund at Woodbridge. Mr. Gura has managed the Fund since March 1997.
Prior to joining the Advisor in 1995, Mr. Gura was a Vice President and
Senior Equity Analyst for the Fund at Woodbridge (1994-1995) and an
investment officer for Manufacturer National Bank Trust Department
(1989-1994).
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
Effective January 1, 1998, the "PURCHASES AND EXCHANGES OF SHARES--What Price Do
I Pay For Shares?--Qualified Employer Sponsored Retirement Plans" section in the
Prospectus is hereby deleted in its entirety and supplemented as follows:
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
We will waive the initial sales charge on purchases of Class A Shares by
employer sponsored retirement plans that are qualified under Section 401(a) or
Section 403(b) of the Code (each, a "Qualified Employee Benefit Plan") and
that (1) invest $1,000,000 or more in Class A Shares of investment portfolios
offered by the Trust, the Company or Framlington or (2) have at least 75
eligible plan participants. In addition, we will waive the CDSC of 1%
charged on certain redemptions within one year of purchase for Qualified
Employee Benefit Plan purchases that meet the above criteria. A 1%
commission will be paid by the Distributor to dealers and other entities (as
permitted by applicable Federal and state law) who initiate and are
responsible for Qualified Employee Benefit Plan purchases that meet the above
criteria. For purposes of this sales charge waiver, Simplified Employee
Pension Plans ("SEPs"), Individual Retirement Accounts ("IRAs") and UPI Plans
are not considered to be Qualified Employee Benefit Plans.
We also will waive (i) the initial sales charge on Class A Shares on
purchases by UPI Plans for employees participating in an employer-sponsored or
administered retirement program operating under Section 408A of the Code and
(ii) the CDSC of 1% imposed on certain redemptions within one year of purchase
for these accounts. The Distributor will pay a 1% commission to dealers and
others (as permitted by applicable Federal and state law) who initiate and are
responsible for UPI Plan purchases.
We will waive the initial sales charge for all the investments by Merrill
Lynch Plans if (i) the Plan is recordkept on a daily valuation basis by Merrill
Lynch Group Employee Services ("Merrill
<PAGE>
Lynch") and, on the date the plan sponsor ("the Plan Sponsor") signs the Merrill
Lynch Recordkeeping Service Agreement, the Plan has $3 million or more in assets
invested in broker/dealer funds not advised or managed by Merrill Lynch Asset
Management, L.P. ("MLAM") that are made available pursuant to a Services
Agreement between Merrill Lynch and the Funds' principal underwriter or
distributor and in funds advised or managed by MLAM (collectively, the
"Applicable Investments"); or (ii) the Plan is recordkept on a daily valuation
basis by an independent recordkeeper whose services are provided through a
contract or alliance arrangement with Merrill Lynch, and on the date the Plan
Sponsor signs the Merrill Lynch Recordkeeping Service Agreement, the Plan has $3
million or more in assets, excluding money market funds, invested in Applicable
Investments; or (iii) the Plan has 500 or more eligible employees, as determined
by the Merrill Lynch plan conversion manager, on the date the Plan Sponsor signs
the Merrill Lynch Recordkeeping Service Agreement.
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator") is
the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services for the Company, the Trust and Framlington, State
Street is entitled to receive fees, based on the aggregate daily net assets of
the Funds and certain other investment portfolios that are advised by the
Advisor for which it provides services, computed daily and payable monthly at
the annual rate of 0.113% on the first $2.8 billion of net assets, plus 0.103%
on the next $2.2 billion of net assets, plus 0.101% on the next $2.5 billion of
net assets, plus 0.095% on the next $2.5 billion of net assets, plus 0.080% on
the next $2.5 billion of net assets, plus 0.070% on all net assets in excess of
$12.5 billion (with a $75,000 minimum fee per annum in the aggregate for all
portfolios with respect to the Administrator). If the assets of the Framlington
Funds do not exceed $120 million, the ultimate rate charged the Framlington
Funds will be reduced by their pro-rata portion of the total fees if calculated
at the rates of 0.062% of the first $2.8 billion of net assets, plus 0.052% of
the next $2.2 billion of net assets, plus 0.050% of all net assets in excess of
$5 billion.
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED MAY 7, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS K SHARES OF:
MUNDER ACCELERATING GROWTH FUND, MUNDER BALANCED FUND, MUNDER GROWTH & INCOME
FUND, MUNDER INDEX 500 FUND, MUNDER INTERNATIONAL EQUITY FUND, MUNDER MICRO-CAP
EQUITY FUND, MUNDER MID-CAP GROWTH FUND, MUNDER MULTI-SEASON GROWTH FUND, MUNDER
REAL ESTATE EQUITY INVESTMENT FUND, MUNDER SMALL-CAP VALUE FUND, MUNDER SMALL
COMPANY GROWTH FUND, MUNDER VALUE FUND, MUNDER FRAMLINGTON EMERGING MARKETS
FUND, MUNDER FRAMLINGTON HEALTHCARE FUND, MUNDER FRAMLINGTON INTERNATIONAL
GROWTH FUND, MUNDER BOND FUND, MUNDER INTERMEDIATE BOND FUND, MUNDER
INTERNATIONAL BOND FUND, MUNDER U.S. GOVERNMENT INCOME FUND, MUNDER MICHIGAN
TRIPLE TAX-FREE BOND FUND, MUNDER TAX-FREE BOND FUND, MUNDER TAX-FREE
INTERMEDIATE BOND FUND, MUNDER SHORT TERM TREASURY FUND, MUNDER CASH INVESTMENT
FUND, MUNDER TAX-FREE MONEY MARKET FUND AND MUNDER U.S. TREASURY MONEY MARKET
FUND
ADDITION OF CO-MANAGER FOR
MUNDER REAL ESTATE EQUITY INVESTMENT FUND
Robert E. Crosby is co-manager of the Real Estate Equity Investment Fund. Mr.
Crosby has co-managed the Fund since March 1998 and was the Fund's primary
analyst from 1996-1998. Mr. Crosby has been with the Advisor since 1993, and
also serves as portfolio manager for separately managed institutional accounts.
CLOSING OF MUNDER MID-CAP GROWTH FUND AND
Shares of the Mid-Cap Growth Fund are no longer available to new accounts.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR
MUNDER BALANCED FUND
The Balanced Fund is managed by a committee of professional portfolio managers
of the Advisor.
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall is co-manager of the Small-Cap Value and Value Funds. Mr. Wall was
formerly a primary analyst for the Funds. Prior to joining the Advisor in
1995, he was a Senior Equity Analyst with Woodbridge Capital Management, Inc.
(1994-1995) and an Assistant Vice President in Equity Research for Merrill
Lynch, Pierce Fenner & Smith in New York (1992-1994).
<PAGE>
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Small Company Growth Fund.
Mr. Wilk, a Senior Portfolio Manager of the Advisor, has managed the Fund
since October 1996 and was the Fund's primary analyst (1995 to 1996). Prior
to joining the Advisor in 1995, Mr. Wilk was a Senior Equity Research Analyst
for the Fund at Woodbridge. Mr. Gura has managed the Fund since March 1997.
Prior to joining the Advisor in 1995, Mr. Gura was a Vice President and
Senior Equity Analyst for the Fund at Woodbridge (1994-1995) and an
investment officer for Manufacturer National Bank Trust Department
(1989-1994).
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator") is
the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services for the Company, the Trust and Framlington, State
Street is entitled to receive fees, based on the aggregate daily net assets of
the Funds and certain other investment portfolios that are advised by the
Advisor for which it provides services, computed daily and payable monthly at
the annual rate of 0.113% on the first $2.8 billion of net assets, plus 0.103%
on the next $2.2 billion of net assets, plus 0.101% on the next $2.5 billion of
net assets, plus 0.095% on the next $2.5 billion of net assets, plus 0.080% on
the next $2.5 billion of net assets, plus 0.070% on all net assets in excess of
$12.5 billion (with a $75,000 minimum fee per annum in the aggregate for all
portfolios with respect to the Administrator). If the assets of the Framlington
Funds do not exceed $120 million, the ultimate rate charged the Framlington
Funds will be reduced by their pro-rata portion of the total fees if calculated
at the rates of 0.062% of the first $2.8 billion of net assets, plus 0.052% of
the next $2.2 billion of net assets, plus 0.050% of all net assets in excess of
$5 billion.
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED MAY 7, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS Y SHARES OF:
MUNDER ACCELERATING GROWTH FUND, MUNDER BALANCED FUND, MUNDER GROWTH & INCOME
FUND, MUNDER INTERNATIONAL EQUITY FUND, MUNDER MICRO-CAP EQUITY FUND, MUNDER
MID-CAP GROWTH FUND, MUNDER MULTI-SEASON GROWTH FUND, MUNDER REAL ESTATE EQUITY
INVESTMENT FUND, MUNDER SMALL-CAP VALUE FUND, MUNDER SMALL COMPANY GROWTH FUND,
MUNDER VALUE FUND, MUNDER FRAMLINGTON EMERGING MARKETS FUND, MUNDER FRAMLINGTON
HEALTHCARE FUND, MUNDER FRAMLINGTON INTERNATIONAL GROWTH FUND, MUNDER BOND FUND,
MUNDER INTERMEDIATE BOND FUND, MUNDER INTERNATIONAL BOND FUND, MUNDER U.S.
GOVERNMENT INCOME FUND, MUNDER MICHIGAN TRIPLE TAX-FREE BOND FUND, MUNDER
TAX-FREE BOND FUND, MUNDER TAX-FREE INTERMEDIATE BOND FUND, MUNDER SHORT TERM
TREASURY FUND, MUNDER CASH INVESTMENT FUND, MUNDER MONEY MARKET FUND, MUNDER
TAX-FREE MONEY MARKET FUND AND
MUNDER U.S. TREASURY MONEY MARKET FUND
ADDITION OF CO-MANAGER FOR
MUNDER REAL ESTATE EQUITY INVESTMENT FUND
Robert E. Crosby is co-manager of the Real Estate Equity Investment Fund. Mr.
Crosby has co-managed the Fund since March 1998 and was the Fund's primary
analyst from 1996-1998. Mr. Crosby has been with Munder Capital Management
since 1993, and also serves as portfolio manager for separately managed
institutional accounts.
CLOSING OF MUNDER MID-CAP GROWTH FUND
Shares of the Mid-Cap Growth Fund are no longer available to new accounts.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR
MUNDER BALANCED FUND
The Balanced Fund is managed by a committee of professional portfolio managers
of the Advisor.
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall is co-manager of the Small-Cap Value and Value Funds. Mr. Wall was
formerly a primary analyst for the Funds. Prior to joining the Advisor in
1995, he was a Senior Equity Analyst with Woodbridge Capital Management, Inc.
(1994-1995) and an Assistant Vice President in Equity Research for Merrill
Lynch, Pierce Fenner & Smith in New York (1992-1994).
<PAGE>
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Small Company Growth Fund.
Mr. Wilk, a Senior Portfolio Manager of the Advisor, has managed the Fund
since October 1996 and was the Fund's primary analyst (1995 to 1996). Prior
to joining the Advisor in 1995, Mr. Wilk was a Senior Equity Research Analyst
for the Fund at Woodbridge. Mr. Gura has managed the Fund since March 1997.
Prior to joining the Advisor in 1995, Mr. Gura was a Vice President and
Senior Equity Analyst for the Fund at Woodbridge (1994-1995) and an
investment officer for Manufacturer National Bank Trust Department
(1989-1994).
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator") is
the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services for the Company, the Trust and Framlington, State
Street is entitled to receive fees, based on the aggregate daily net assets of
the Funds and certain other investment portfolios that are advised by the
Advisor for which it provides services, computed daily and payable monthly at
the annual rate of 0.113% on the first $2.8 billion of net assets, plus 0.103%
on the next $2.2 billion of net assets, plus 0.101% on the next $2.5 billion of
net assets, plus 0.095% on the next $2.5 billion of net assets, plus 0.080% on
the next $2.5 billion of net assets, plus 0.070% on all net assets in excess of
$12.5 billion (with a $75,000 minimum fee per annum in the aggregate for all
portfolios with respect to the Administrator). If the assets of the Framlington
Funds do not exceed $120 million, the ultimate rate charged the Framlington
Funds will be reduced by their pro-rata portion of the total fees if calculated
at the rates of 0.062% of the first $2.8 billion of net assets, plus 0.052% of
the next $2.2 billion of net assets, plus 0.050% of all net assets in excess of
$5 billion.
