ORBITEX GROUP OF FUNDS, 485BPOS, 1999-07-12

ORBITEX GROUP OF FUNDS
485BPOS, 1999-07-12

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<PAGE>

As filed with the Securities and Exchange Commission on July 12, 1999
Securities Act of 1933 File No. 333-20635
Investment Company Act of 1940 File No. 811-8037

--------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/

Pre-Effective Amendment No. / /
---
Post-Effective Amendment No. 6 /X/
---

and

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/

Amendment No. 8 /X/
---

(Check appropriate box or boxes)
--------------------------------

ORBITEX GROUP OF FUNDS
(Exact Name of Registrant as Specified in Charter)

410 Park Avenue, 18th Floor, New York, New York 10022
(Address of Principal Executive Office)

Registrant's Telephone Number, including Area Code:
(212) 891-7900

----------------------------------------------------

James L. Nelson
410 Park Avenue, 18th Floor,
New York, New York 10022
(Name and Address of Agent for Service)

Copies to:

M. Fyzul Khan, Legal Counsel Leonard B. Mackey, Jr., Esq.
Orbitex Management, Inc. Rogers & Wells
410 Park Avenue, 18th Floor 200 Park Avenue
New York, New York 10022 New York, New York 10166

Approximate Date of Proposed Public Offering: As soon as practicable after this
Registration Statement becomes effective.

It is proposed that this filing will become effective: (check appropriate box)
X immediately upon filing pursuant to paragraph (b)
---
on _________ pursuant to paragraph (b)
---
60 days after filing pursuant to paragraph (a)(1)
---
75 days after filing pursuant to paragraph (a)(2)
---
on ______ days after filing pursuant to paragraph (a)(2)
---

If appropriate, check the following box:
This post-effective amendment designates a new effective date for
--- a previously filed post-effective amendment.

<PAGE>

ORBITEX GROUP OF FUNDS

CROSS-REFERENCE SHEET

Pursuant to Rule 495(a)

Prospectus for Orbitex Group of Funds:
Orbitex Growth Fund
Orbitex Info-Tech & Communications Fund
Orbitex Strategic Natural Resources Fund

Orbitex Focus 30 Fund

Orbitex Health & Biotechnology Fund

PART A

Item No. Heading
- -------- -------

1. Front and Back Cover Pages Front and Back Cover

2. Risk/Return Summary: Investment, Funds at a Glance; Fund Details; More
Risks, and Performance Information About Risk

3. Risk/Return Summary: Fee Table Funds at Glance

4. Investment Objectives, Investment Funds at a Glance; Fund Details; More
Strategies, and Related Risks Information About Risk

5. Management's Discussion of Fund N/A
Performance

6. Management, Organization, and Management
Capital Structure

7. Shareholder Information Your Account; Pricing of Fund Shares;
Federal Tax Considerations

8. Distribution Arrangements Your Account; Pricing of Fund Shares;
Federal Tax Considerations

9. Financial Highlights Information N/A

<PAGE>

ORBITEX GROUP OF FUNDS

CROSS-REFERENCE SHEET

Pursuant to Rule 495(a)

Prospectus for Orbitex Group of Funds:
Orbitex Prime Reserves Fund

PART A

Item No. Heading
- -------- -------

1. Front and Back Cover Pages Front and Back Cover

2. Risk/Return Summary: Investment, The Fund at a Glance; Fund Details;
Risks, and Performance More Information About Risk

3. Risk/Return Summary: Fee Table The Fund at a Glance

4. Investment Objectives, Investment Fund at a Glance; Fund Details; More
Strategies, and Related Risks Information About Risk

5. Management's Discussion of Fund N/A
Performance

6. Management, Organization, and Management
Capital Structure

7. Shareholder Information Your Account; Pricing of Fund Shares;
Federal Tax Considerations

8. Distribution Arrangements Your Account; Pricing of Fund Shares;
Federal Tax Considerations

9. Financial Highlights Information N/A

<PAGE>

ORBITEX GROUP OF FUNDS

CROSS-REFERENCE SHEET

Pursuant to Rule 495(a)

Prospectus for Orbitex Group of Funds:
Orbitex Prime Reserves Fund
Institutional Shares

PART A

Item No. Heading
- -------- -------
<S> <C>
1. Front and Back Cover Pages Front and Back Cover

2. Risk/Return Summary: Investment, Risks, The Fund at a Glance; Fund Details/ More
and Performance Information About Risk

3. Risk/Return Summary: Fee Table The Fund at Glance

4. Investment Objectives, Investment Fund at a Glance; Fund Details; More Information
Strategies, and Related Risks About Risk

5. Management's Discussion of Fund N/A
Performance

6. Management, Organization, and Capital Management
Structure

7. Shareholder Information Your Account; Pricing of Fund Shares; Federal Tax
Considerations

8. Distribution Arrangements Your Account; Pricing of Fund Shares: Federal Tax
Considerations

9. Financial Highlights Information N/A
</TABLE>

<PAGE>

ORBITEX GROUP OF FUNDS

CROSS-REFERENCE SHEET

Pursuant to Rule 495(a)

Statement of Additional Information for Orbitex Group of Funds:
Orbitex Growth Fund
Orbitex Info-Tech & Communications Fund
Orbitex Strategic Natural Resources Fund

Orbitex Focus 30 Fund

Orbitex Health & Biotechnology Fund
Orbitex Prime Reserves Fund

PART B

Item No. Heading
- -------- -------

10. Cover Page and Table of Front and Back Cover
Contents

11. Fund History General Information and History;
Organization of the Trust

12. Description of the Fund and Investment Restrictions; Description of
Its Investments and Risks Securities, Other Investment Policies
and Risk Considerations

13. Management of the Fund Management of the Trust

14. Control Persons and Principal Principal Holders of Securities
Holders of Securities

15. Investment Advisory and Other Investment Management and Other
Services Services Administrator; Custodian;
Transfer Agenct Services

16. Brokerage Allocation and Other Distribution of Shares; Brokerage
Practices Allocation and Other Practices

17. Capital Stock and Other Purchase, Redemption, and Pricing of
Securities Shares

18. Purchase, Redemption, and Purchase, Redemption, and Pricing of
Pricing of Shares Shares

19. Taxation of the Fund Taxes

20. Underwriters Distribution of Shares

21. Calculation of Performance Performance Information About the Funds
Data

22. Financial Statements N/A

<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS

<TABLE>
<S> <C>
FUNDS AT A GLANCE.............................................................................. 3
Key Investment Concepts................................................................ 3
Orbitex Growth Fund.................................................................... 4
Orbitex Info-Tech & Communications Fund................................................ 10
Orbitex Strategic Natural Resources Fund............................................... 16
Orbitex Focus 30 Fund.................................................................. 22
Orbitex Health & Biotechnology Fund.................................................... 28

FUND DETAILS................................................................................... 32
Orbitex Growth Fund.................................................................... 32
Orbitex Info-Tech & Communications Fund................................................ 33
Orbitex Strategic Natural Resources Fund............................................... 34
Orbitex Focus 30 Fund.................................................................. 35
Orbitex Health & Biotechnology Fund.................................................... 36

MORE INFORMATION ABOUT RISKS................................................................... 38

YOUR ACCOUNT................................................................................... 41
Types of Accounts...................................................................... 41
Choosing a Class....................................................................... 41
Classes in Detail...................................................................... 43
Rule 12b-1 Plans in Detail............................................................. 47
Purchasing Shares...................................................................... 47
Redeeming Shares....................................................................... 50
Exchanging Shares...................................................................... 53

PRICING OF FUND SHARES......................................................................... 54

DISTRIBUTIONS.................................................................................. 54

FEDERAL TAX CONSIDERATIONS..................................................................... 55
Taxes on Distributions................................................................. 55
Taxes on Sales or Exchanges............................................................ 55
"Buying a Dividend".................................................................... 55
Tax Withholding........................................................................ 55

MANAGEMENT..................................................................................... 56
Investment Adviser..................................................................... 56
Other Service Providers................................................................ 56

FINANCIAL HIGHLIGHTS........................................................................... 57
</TABLE>

These securities have not been approved or disapproved by the Securities and
Exchange Commission nor has the Commission passed upon the accuracy or adequacy
of this prospectus. Any representation to the contrary is a criminal offense.

<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - KEY INVESTMENT CONCEPTS

This Prospectus describes the Funds' investment objectives, principal investment
strategies, principal investments and risks. You may find the following
definitions of these terms useful as you read the description of the Orbitex
Group of Funds.

[LOGO]

INVESTMENT OBJECTIVE

A Fund's investment objective is its ultimate, overriding goal. It
is the way in which the Fund defines itself amongst all other mutual funds.
There is a wide range of different potential investment objectives. There can be
no assurance that any given Fund will attain its investment objective. You
should think carefully about whether a Fund's investment objective is consistent
with your own objective for the money that you are contemplating investing in
that Fund. If not, you should consider another Fund.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

A Fund's principal investment strategies are the primary means by
which the investment adviser for the Fund (the "Adviser") seeks to
attain its investment objective. A strategy may, among other things, take the
form of an intention on the part of the Adviser to invest primarily in certain
types of securities such as stocks, bonds, or money market instruments, or to
concentrate investments in a particular industry (e.g. technology, healthcare,
energy) or group of industries. Your financial consultant can assist you in
understanding these strategies.

[LOGO]

PRINCIPAL INVESTMENTS

In order to implement its investment strategies, a Fund will invest
principally in certain types of securities. These securities may
include equity securities, such as common stocks, preferred stocks, convertible
securities and warrants, or debt securities, such as corporate bonds, government
securities and mortgage and other asset-backed securities.

[LOGO]

PRINCIPAL RISKS

The principal risks of a Fund are those potential occurrences that, in the
judgement of the Adviser, have the greatest likelihood of disrupting,
interfering with, or preventing a Fund from attaining its investment objective.
Your financial consultant can assist you in understanding these risks.

Prospectus - 3
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX GROWTH FUND

This section briefly describes the Orbitex Growth Fund's goals, principal
investment strategies, risks, expenses and performance. For further information
on how this Fund is managed, please read the section entitled "Fund Details."
[LOGO]
INVESTMENT OBJECTIVE
The objective of the Orbitex Growth Fund is to provide long-term
growth of capital through selective investment in securities of companies of all
sizes that offer potential for growth.
[LOGO]
PRINCIPAL INVESTMENT STRATEGIES
The Fund's principal investment strategies include:

- - Composing a portfolio based upon a "bottom-up" growth-oriented strategy for
selecting investments with a secondary focus on value stocks. The Adviser
seeks to identify companies that are undervalued by the stock market and less
expensive than comparable companies. To do so, the Adviser employs measures
of intrinsic value, such as the company's price-to-earnings ratio (the price
of a stock divided by its earnings per share), historical stock prices and
cash flows (earnings before depreciation and non-cash charges). The Adviser
also employs criteria to identify companies it believes will experience
earnings growth. Finally, the Adviser attempts to identify investment and
economic themes that can drive profits. Finally, the Fund will sell those
holdings that the Adviser has identified as having exceeded their fair market
value and will also sell the securities of a company that has experienced a
fundamental shift in its core business processes and objectives. The Fund
will also sell the securities of a company when the industry in which the
company operates has undergone a shift in focus or industry dynamics.

- - Investing in equity securities of domestic and foreign issuers.

- - Investing in companies regardless of their stock market value (or "market
capitalization").

[LOGO]
PRINCIPAL RISKS
The Fund is subject to the following principal risks:

- - STOCK MARKET RISK: Stock markets are volatile and there is a risk that the
price of a security will rise or fall due to changing economic, political or
market conditions, as well as company-specific factors (see "Issuer-Specific
Risk" below). Consequently, the value of your investment in the Fund will go
up and down, which means that you could lose money.

- - ISSUER-SPECIFIC RISK: The price of an individual security or particular type
of security can be more volatile than the market as a whole and can fluctuate
differently than the market as a whole. An individual issuer's securities can
rise or fall dramatically with little or no warning based upon such things as
a better (or worse) than expected earnings report, news about the development
of a promising product, or the loss of key management personnel. There is
also a risk that the price of a security may never reach a level that the
Adviser believes is representative of its full value or that it may even go
down in price.

- - RISKS OF INVESTING IN FOREIGN SECURITIES. Foreign securities may be riskier
than U.S. investments because of factors such as unstable international
political and economic conditions, currency fluctuations, foreign controls on
investment and currency exchange, withholding taxes, a lack of adequate
company information, less liquid and more volatile markets, and a lack of
governmental regulation. Consequently, there is a risk that a foreign
security may never reach the price that the Adviser believes is

Prospectus - 4
<PAGE>
representative of its full value or that it may even go down in price.

- - INFLATION RISK: There is a possibility that rising prices of goods and
services may have the effect of offsetting the Fund's total return.

WHO MAY WANT TO INVEST IN THE ORBITEX GROWTH FUND

We designed the ORBITEX GROWTH FUND for investors who seek one or more of the
following:

- high long-term growth

- a stock fund to serve as a core holding in an investor's portfolio

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses a blend of value and growth investment styles

- a stock fund that invests in domestic and foreign companies

Prospectus - 5
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX GROWTH FUND

PERFORMANCE AND VOLATILITY

The bar chart and table below show the performance of Class A Shares of the
Orbitex Growth Fund during the last year. The information in the table gives
some indication of the risks of an investment in the Fund by comparing the
Fund's performance with a broad measure of market performance. Past performance
does not necessarily indicate how the Fund will perform in the future.

The returns in the chart do not include the effect of the Fund's front-end sales
charge for Class A Shares, but do include the effect of fee waivers and expense
reimbursements by the Adviser. If the effect of the sales charge were reflected
or if the fee waivers and expense reimbursements had not been in effect, returns
would be lower than those shown.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ORBITEX GROWTH FUND -- CLASS A SHARES
<S> <C>
Total Return for the year ended December 31
1998 7.55%
</TABLE>

The year-to-date return of Class A Shares for the period ended April 30, 1999,
was 8.30%. During the period shown in the bar chart, the highest return for a
quarter was 5.66% (quarter ended 12-31-98) and the lowest return for a quarter
was (16.96)% (quarter ended 9-30-98).

Prospectus - 6
<PAGE>
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIOD ENDED DECEMBER 31, 1998)

The returns in the following table include the effect of Class A Shares' maximum
applicable front-end sales charge and Class B Shares' maximum applicable
contingent deferred sales charge (CDSC) and the effect of fee waivers and
expense reimbursements by the Adviser. If those waivers and reimbursements had
not been in effect, the returns would have been lower than those shown.

<TABLE>
<CAPTION>
PAST 1 YEAR LIFE OF FUND
<S> <C> <C> <C>
Orbitex Growth Fund Class A* 7.55% 11.12%
Orbitex Growth Fund Class B** 8.20% 12.75%
S&P 500-Registered Trademark- Index*** 28.58% 23.59%
</TABLE>

* CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 22, 1997.

** CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 16, 1998. CLASS B'S RETURNS
PRIOR TO SEPTEMBER 16, 1998 THROUGH OCTOBER 22, 1997 ARE THOSE OF CLASS A,
WHICH REFLECT A 12b-1 FEE OF 0.40%. IF CLASS B'S 12b-1 FEE HAD BEEN
REFLECTED, TOTAL RETURNS PRIOR TO SEPTEMBER 16, 1998 WOULD HAVE BEEN LOWER.

*** THE S&P 500-REGISTERED TRADEMARK- INDEX IS AN UNMANAGED INDEX. INDEX RETURNS
ASSUME REINVESTMENT OF DIVIDENDS; UNLIKE THE FUND'S RETURNS, HOWEVER, THEY
DO NOT REFLECT ANY FEES OR EXPENSES.

Prospectus - 7
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX GROWTH FUND

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Class A Shares or Class B Shares of the Orbitex Growth Fund.

<TABLE>
<CAPTION>
CLASS A CLASS B
------- -------
SHARES SHARES
------- -------
<S> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchase (as a % of offering price) 5.75%(1) None
Maximum Deferred Sales Charge (Load) (as a % of lower of original purchase
price or redemption proceeds) None(2) 5.00%
Maximum Sales Charge (Load) Imposed on Reinvested Dividends Distributions None None
Redemption Fee (as a % of amount redeemed, if applicable) None None
Exchange Fee None None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 0.75% 0.75%
Distribution and/or Service Fee (12b-1) Fees 0.40% 1.00%(3)
Other Expenses 16.88% 16.88%
------- -------
Total Annual Operating Expenses 18.03%(4) 18.63%(4)
------- -------
------- -------
</TABLE>

- --------------------------------------------------------------------------------

(1) Reduced for purchases of $50,000 or more by certain investors. See "Your
Account - Classes in Detail - Class A - Reduced Sales Charge."

(2) Purchases of Class A Shares of $1 million or more by certain investors
are not subject to any sales load at the time of purchase, but a 1%
contingent deferred sales charge applies on amounts redeemed within one
year of purchase. See "Your Account - Classes in Detail - Class A -
Reduced Sales Charge."

(3) Including a 0.25% shareholder servicing fee.

(4) The Adviser has agreed to waive and/or reimburse fees and expenses to
the extent necessary so that Class A Shares' and Class B Shares' total
operating expenses do not exceed 2.00% and 2.60%, respectively, of
average daily net assets, subject to possible reimbursement by the Fund
in future years if such reimbursement can be achieved within the
foregoing expense limits. Consequently, the Investment Adviser fees
actually charged may in the future be higher than reflected above, if
consistent with the limits on total operations expenses. The information
contained in the table above and the example below reflects the expenses
of each class of the Fund without taking into account any applicable fee
waivers and/or reimbursements. The Adviser may discontinue such fee
waivers and/or expense reimbursements at any time, in its sole
discretion.

Prospectus - 8
<PAGE>
EXAMPLE

This example is intended to help you compare the cost of investing in the
Orbitex Growth Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year, that you
reinvest all dividends and distributions, and that the Fund's operating expenses
remain the same. Although your actual costs and the return on your investment
may be higher or lower, based on these assumptions your costs would be:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
----------- -----------
<S> <C> <C> <C>
1 $ 2,164 $ 2,236
3 $ 4,747 $ 4,830
5 $ 6,701 $ 6,815
10 $ 9,749 $ 9,719
</TABLE>

You would pay the following expenses if you did not redeem your shares:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
----------- -----------
<S> <C> <C> <C>
1 $ 2,164 $ 1,736
3 $ 4,747 $ 4,530
5 $ 6,701 $ 6,615
10 $ 9,749 $ 9,719
</TABLE>

Prospectus - 9
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX INFO-TECH & COMMUNICATIONS FUND

This section briefly describes the Orbitex Info-Tech & Communications Fund's
goals, principal investment strategies, risks, expenses and performance. For
further information on how this Fund is managed, please read the section
entitled "Fund Details."

[LOGO]

INVESTMENT OBJECTIVE

- - The objective of the Orbitex Info-Tech & Communications Fund is long-term
growth of capital through selective investment in the securities of
communications, information and related technology companies.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund's principal investment strategies include:

- - Investing at least 65% of its total assets in equity securities issued by
communications, information and related technology companies (see description
of communications and information companies in "Fund Details" section on page
33).

- - The Adviser will attempt to modify portfolio composition to benefit from
changing relative performance among various sub-sectors of the
communications, information and related technology industries. The Fund will
sell those holdings that the Adviser has identified as having exceeded their
fair market value and will also sell the securities of a company that has
experienced a fundamental shift in its core business processes and
objectives. The Fund will also sell the securities of a company when the
industry in which the company operates has undergone a shift in focus or
industry dynamics.

- - Investing primarily in common stocks.

- - Investing in equity securities of both domestic and foreign issuers.

- - Investing in companies regardless of their stock market value (or "market
capitalization").

[LOGO]

PRINCIPAL RISKS

The Fund is subject to the following principal risks:

- - RISKS OF INFORMATION AND COMMUNICATIONS SECTOR: Because of its narrow focus,
the Fund's performance is closely tied to, and affected by, events occurring
in the information, communications, and related technology industries.
Companies in the same industry often face similar obstacles, issues and
regulatory burdens. As a result, the securities owned by the Fund may react
similarly to and move in unison with one another. Because technology
continues to advance at an accelerated rate, and the number of companies and
product offerings continues to expand, these companies could become
increasingly sensitive to short product cycles, aggressive pricing and
intense competition. Many technology companies sell stock before they have a
commercially viable product, and may be acutely susceptible to problems
relating to bringing their products to market. Additionally, many technology
companies have very high price/earnings ratios, high price volatility, and
high personnel turnover due to severe labor shortages for skilled technology
professionals.

Prospectus - 10
<PAGE>
- - ISSUER-SPECIFIC RISKS: The price of an individual security or particular type
of security can be more volatile than the market as a whole and can fluctuate
differently than the market as a whole. An individual issuer's securities can
rise or fall dramatically with little or no warning based upon such things as
a better (or worse) than expected earnings report, news about the development
of a promising product, or the loss of key management personnel. There is
also a risk that the price of a security may never reach a level that the
Adviser believes is representative of its full value or that it may even go
down in price.

- - INFLATION RISK: There is a possibility that rising prices of goods and
services may have the effect of offsetting the Fund's total return.

- - RISKS OF FOREIGN SECURITIES: Foreign securities may be riskier than U.S.
investments because of factors such as unstable international political and
economic conditions, currency fluctuations, foreign controls on investment
and currency exchange, withholding taxes, a lack of adequate company
information, less liquid and more volatile markets, and a lack of
governmental regulation. Consequently, there is a risk that a foreign
security may never reach the price that the Adviser believes is
representative of its full value or that it may even go down in price.

WHO MAY WANT TO INVEST IN THE ORBITEX INFO-TECH & COMMUNICATIONS FUND?

We designed the ORBITEX INFO-TECH & COMMUNICATIONS FUND for investors who want
to capitalize on potential opportunities in telecommunications and information
industries and who seek one or more of the following:

- high long-term growth

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses primarily a growth-oriented investment strategy

- a stock fund that invests in foreign and domestic companies

Prospectus - 11
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX INFO-TECH & COMMUNICATIONS FUND

PERFORMANCE AND VOLATILITY

The bar chart and table below show the performance of the Class A Shares of the
Orbitex Info-Tech & Communications Fund during the last year. The information in
the table gives some indication of the risks of an investment in the Fund by
comparing the Fund's performance with a broad measure of market performance.
Past performance does not necessarily indicate how the Fund will perform in the
future.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ORBITEX INFO-TECH & COMMUNICATIONS
FUND -- CLASS A SHARES
<S> <C>
Total Return for the year ended December 31
1998 43.43%
</TABLE>

The year-to-date return of Class A Shares for the period ended April 30, 1999,
was 43.96%. During the period shown in the bar chart, the highest return for a
quarter was 22.33% (quarter ended 3-31-98) and the lowest return for a quarter
was (19.17)% (quarter ended 9-30-98).

Prospectus - 12
<PAGE>
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIOD ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
PAST 1 YEAR LIFE OF FUND
<S> <C> <C> <C>
Orbitex Info-Tech & Communications Fund Class A* 43.43% 28.38%
Orbitex Info-Tech & Communications Fund Class B** 43.84% 29.73
S&P 500-Registered Trademark- Index*** 28.58% 23.59%
Lipper Science and Technology Index**** 46.94% 21.14%
</TABLE>

* CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 22, 1997.

*** THE S&P 500-REGISTERED TRADEMARK- INDEX is an unmanaged index. Index returns
assume reinvestment of dividends; unlike the Fund's returns, however, they
do not reflect any fees or expenses.

****THE LIPPER SCIENCE AND TECHNOLOGY FUNDS INDEX is an equal-weighted
performance index, adjusted for capital-gain distributions and income
dividends, of the largest qualifying funds in this investment objective, and
is compiled by Lipper, Inc.

Prospectus - 13
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX INFO-TECH & COMMUNICATIONS FUND

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Class A Shares or Class B Shares of the Orbitex Info-Tech & Communications Fund.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 1.25% 1.25%
Distribution and/or Service Fee (12b-1) Fees 0.40% 1.00%(3)
Other Expenses 2.63% 2.63%
------- -------
Total Annual Operating Expenses 4.28%(4) 4.88%(4)
------- -------
------- -------
</TABLE>

- --------------------------------------------------------------------------------

(1) Reduced for purchases of $50,000 or more by certain investors. See "Your
Account - Classes in Detail - Class A - Reduced Sales Charge."

(3) Including a 0.25% shareholder servicing fee.

Prospectus - 14
<PAGE>
EXAMPLE

This example is intended to help you compare the cost of investing in the
Orbitex Info-Tech & Communications Fund with the cost of investing in other
mutual funds. The example assumes that you invest $10,000 in the Fund for the
time periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each
year, that you reinvest all dividends and distributions, and that the Fund's
operating expenses remain the same. Although your actual costs and the return on
your investment may be higher or lower, based on these assumptions your costs
would be:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
---------- ----------
<S> <C> <C> <C>
1 $980 $988
3 $1,798 $1,767
5 $2,629 $2,647
10 $4,757 $4,667
</TABLE>

You would pay the following expenses if you did not redeem your shares:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
---------- ----------
<S> <C> <C> <C>
1 $980 $488
3 $1,798 $1,467
5 $2,629 $2,447
10 $4,757 $4,667
</TABLE>

Prospectus - 15
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX STRATEGIC NATURAL RESOURCES FUND

This section describes the Orbitex Strategic Natural Resources Fund's goals,
principal investment strategies, risks, expenses and performance. For further
information on how this Fund is managed, please read the section entitled "Fund
Details."

[LOGO]

INVESTMENT OBJECTIVE

- - The objective of the Orbitex Strategic Natural Resources Fund is long-term
growth of capital through selective investment in the securities of companies
engaged in natural resources industries and industries supportive to natural
resources industries.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund invests in securities of companies that the Adviser
believes are positioned to benefit from increasing worldwide
demand for natural resources. The Fund will sell those holdings that it has
identified as having exceeded their fair market value and will also sell the
securities of a company that has experienced a fundamental shift in its core
business processes and objectives. The Fund will also sell the securities of a
company when the industry in which the company operates has undergone a shift in
focus or industry dynamics.

The Fund's principal investment strategies include:

- - Investing at least 65% of its total assets in equity securities issued by
natural resources companies (see description of natural resources companies
in "Fund Details" section on page 34).

- - Investing primarily in common stocks.

- - Investing in companies regardless of their stock market value (or "market
capitalization").

- - Investing up to 15% of total assets in securities of foreign companies (with
no limit on the percentage the Fund may invest in Canadian issuers).

[LOGO]

PRINCIPAL RISKS

The Fund is subject to the following principal risks:

- - STOCK MARKET RISK: Stock markets are volatile and there is a risk that the
price of a security will rise or fall due to changing economic, political or
market conditions, as well as company-specific factors (see "Issuer-Specific
Risks" below). Consequently, the value of your investment in the Fund will go
up and down, which means that you could lose money.

- - RISKS OF NATURAL RESOURCES SECTOR: Because of its narrow focus, the Fund's
performance is closely tied to and affected by events occurring in the
natural resources industries. Companies in the same industry often face
similar obstacles, issues and regulatory burdens. As a result, the securities
owned by the Fund may react similarly to and move in unison with one another.
Companies in the natural resources sector are subject to swift fluctuations
in supply and demand. These fluctuations may be caused by events relating to
international political and economic developments, energy conservation, the
success of exploration projects, and tax and other governmental regulatory
policies. Consequently, the Fund's performance may sometimes be significantly
better or worse than that of other types of funds.

Prospectus - 16
<PAGE>
or no warning based upon such things as a better (or worse) than expected
earnings report, news about the development of a promising product, or the
loss of key management personnel. There is also a risk that the price of a
security may never reach the level that the Adviser believes is
representative of its full value or that it may even go down in price.

WHO MAY WANT TO INVEST IN THE ORBITEX STRATEGIC NATURAL RESOURCES FUND?

We designed the ORBITEX STRATEGIC NATURAL RESOURCES FUND for investors who see
strong economic trends as an indicator of future natural resource demand and who
seek one or more of the following:

- high long-term growth

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses primarily a growth-oriented investment strategy

- a stock fund that invests in foreign and domestic companies

Prospectus - 17
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX STRATEGIC NATURAL RESOURCES FUND

PERFORMANCE AND VOLATILITY

The bar chart and table below show the performance of the Class A Shares of the
Orbitex Natural Resources Fund during the last year. The information in the
table gives some indication of the risks of an investment in the Fund by
comparing the Fund's performance with a broad measure of market performance.
Past performance does not necessarily indicate how the Fund will perform in the
future.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ORBITEX STRATEGIC
NATURAL RESOURCES FUND -- CLASS A SHARES
<S> <C>
Total Return for the year ended December 31
1998 (23.90)%
</TABLE>

The year-to-date return of Class A Shares for the period ended April 30, 1999,
was 29.51%. During the period shown in the bar chart, the highest return for a
quarter was 3.65% (quarter ended 3-31-98) and the lowest return for a quarter
was (21.77)% (quarter ended 9-30-98).

Prospectus - 18
<PAGE>
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIOD ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
PAST 1 LIFE OF
YEAR FUND
<S> <C> <C> <C>
Orbitex Natural Resources Fund Class A* (23.90)% (21.41)%
Orbitex Natural Resources Fund Class B** (23.36)% (19.91)%
S&P 500-Registered Trademark- Index*** 28.58% 23.59%
Lipper Natural Resources Funds Index**** (23.12)% (26.30)%
</TABLE>

* CLASS A SHARES COMMENCED OPERATIONS ON OCTOBER 23, 1997.

** CLASS B SHARES COMMENCED OPERATIONS ON SEPTEMBER 21, 1998. CLASS B'S RETURNS
PRIOR TO SEPTEMBER 21, 1998 THROUGH OCTOBER 23, 1997 ARE THOSE OF CLASS A,
WHICH REFLECT A 12b-1 FEE OF 0.40%. IF CLASS B'S 12b-1 FEE HAD BEEN
REFLECTED, TOTAL RETURNS PRIOR TO SEPTEMBER 16, 1998 WOULD HAVE BEEN LOWER.

*** THE S&P 500-REGISTERED TRADEMARK- INDEX IS AN UNMANAGED INDEX. Index returns
assume reinvestment of dividends; unlike the Fund's returns, however, they
do not reflect any fees or expenses.

****THE LIPPER NATURAL RESOURCES FUNDS INDEX is an equal-weighted performance
index, adjusted for capital-gain distributions and income dividends, of the
largest qualifying funds in this investment objective, and is compiled by
Lipper, Inc.

Prospectus - 19
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX STRATEGIC NATURAL RESOURCES FUND

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Class A Shares or Class B Shares of the Orbitex Natural Resources Fund.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 1.25% 1.25%
Distribution and/or Service Fee (12b-1) Fees 0.40% 1.00%(3)
Other Expenses 5.53% 5.53%
------- -------
Total Annual Operating Expenses 7.18%(4) 7.78%(4)
------- -------
------- -------
</TABLE>

- --------------------------------------------------------------------------------

(1) Reduced for purchases of $50,000 or more by certain investors. See "Your
Account - Classes in Detail - Class A - Reduced Sales Charge."

(3) Including a 0.25% shareholder servicing fee.

Prospectus - 20
<PAGE>
EXAMPLE

This example is intended to help you compare the cost of investing in the
Orbitex Natural Resources Fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year, that you
reinvest all dividends and distributions, and that the Fund's operating expenses
remain the same. Although your actual costs and the return on your investment
may be higher or lower, based on these assumptions your costs would be:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
----------- -----------
<S> <C> <C> <C>
1 $1,244 $1,267
3 $2,540 $2,538
5 $3,779 $3,828
10 $6,649 $6,588
</TABLE>

You would pay the following expenses if you did not redeem your shares:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
----------- -----------
<S> <C> <C> <C>
1 $1,244 $767
3 $2,540 $2,238
5 $3,779 $3,628
10 $6,649 $6,588
</TABLE>

Prospectus - 21
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX FOCUS 30 FUND

This section describes the Orbitex Focus 30 Fund's goals, principal investment
strategies, risks, expenses and performance. For further information on how this
Fund is managed, please read the section entitled "Fund Details."

[LOGO]

INVESTMENT OBJECTIVE

- - The objective of the Orbitex Focus 30 Fund is long-term growth of capital and
current income through focused investment in the securities of some or all of
the 30 companies listed on the New York Stock Exchange that make up the Dow
Jones Industrial Average. The Fund is not an index fund.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund's principal investment strategies include:

- - Investing at least 90% of its total assets in the common stock of some or all
of the 30 companies that make up the Dow Jones Industrial Average ("DJIA").*
The stocks of these widely known companies are all listed on the New York
Stock Exchange and represent major American corporations engaged in a variety
of industries. The Adviser will weight the Fund's investments toward the DJIA
companies that its believes will perform better than other DJIA companies.

AND

- - Investing up to 10% of its assets in common stocks of companies included in
the S&P 500-Registered Trademark- Index.**

- - The Fund will sell those holdings that the Adviser has identified as having
exceeded their fair market value and will also sell the securities of a
company that has experienced a fundamental shift in its core business
processes and objectives. The Fund will also sell the securities of a company
when the industry in which it operates has undergone a shift in focus or
industry dynamics.

[LOGO]

PRINCIPAL RISKS

The Fund is subject to the following principal risks:

- - STOCK MARKET RISK: Stock markets are volatile and there is a risk that the
price of a security will rise or fall due to changing economic, political or
market conditions, as well as company-specific factors (see "Issuer-Specific
Risks" below). Consequently, the value of your investment in the Fund will go
up and down, which means that you could lose money.

- - ISSUER-SPECIFIC RISKS: The price of an individual security or particular type
of security can be more volatile than the market as a whole and can fluctuate
differently than the value of the market as a whole. An individual issuer's
securities can rise or fall dramatically with little or no warning based upon
such things as a better (or worse) than expected earnings report, news about
the development of a promising product, or the loss of key management
personnel. There is also a risk that the price of a security may never reach
the level that the Adviser believes is representative of its full value or
that it may even go down in price.

- - INFLATION RISK: There is a possibility that rising prices of goods and
services may have the effect of offsetting the Fund's total return.

- ------------------------

* "Dow Jones Industrial Average" and "DJIA" are the property of Dow Jones &
Company. The Orbitex Focus 30 Fund is neither affiliated with, nor endorsed by,
Dow Jones & Company.

- ------------------------

** "S&P 500 Index" is a registered trademark of McGraw-Hill Co., Inc. The
Orbitex Focus 30 Fund is neither affiliated with, nor endorsed by, McGraw- Hill
Co., Inc.

Prospectus - 22
<PAGE>

WHO MAY WANT TO INVEST IN THE ORBITEX FOCUS 30 FUND?

We designed the ORBITEX FOCUS 30 FUND for investors who seek one or more of the
following:

- high long-term growth

- a stock fund that focuses its investments in the 30 companies included in
the Dow Jones Industrial Average

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses primarily a blend of value and growth oriented
investment strategies

Prospectus - 23
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX FOCUS 30 FUND

PERFORMANCE AND VOLATILITY

Before July 8, 1999, the Fund operated as a separate fund called the ASM Index
30 Fund ("ASM Fund"). On or about July 12, 1999, the Fund was reorganized as a
new Fund of the Orbitex Group of Funds. In connection with this reorganization,
Class A Shares and Class B Shares were added to the Fund, while existing
shareholders of the ASM Fund received Class D Shares in exchange for their ASM
Fund shares. Upon the effectiveness of the reorganization, the investment policy
of the Fund changed from the "passive" investment in an equal number of shares
of each of the companies in the DJIA to the "active" investment in some or all
of those companies based on the Adviser's assessment of the prospects for those
companies. In addition, the Fund may now invest up to 10% of its assets in other
companies included in the S&P 500-Registered Trademark- Index. Moreover, the ASM
Fund was subject to a different level of fees than will be applied to the Fund.

The bar chart and table below show the performance of Class D Shares of the
Orbitex Focus 30 Fund during the last year when it operated as the ASM Fund. The
information gives some indication of the risks of an investment in the Fund by
comparing the Fund's performance with a broad measure of market performance.
Past performance does not necessarily indicate how the Fund will perform in the
future. Furthermore, because of the change in investment policy and a different
fee level, the performance shown below, which reflects the Fund's previous
"passive" investment policy, should not be considered indicative of the
performance of the Fund as an actively managed Fund. In addition, the
performance of the ASM Fund would have been lower had it been subject to the
higher level of expenses expected for the Fund.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ORBITEX FOCUS 30 FUND -- CLASS D SHARES
<S> <C>
Total Return for the years ended December 31
1992 5.70%
1993 13.33%
1994 1.04%
1995 29.05%
1996 24.78%
1997 24.51%
1998 16.78%
</TABLE>

The year-to-date return of the ASM Index 30 Fund for the period ended April 30,
1999 was 17.64%. During the period shown in the bar chart, the highest return
for a quarter was 17.08% (quarter ended 3-31-97) and the lowest return for a
quarter was (11.72%) (quarter ended 9-30-98).

Prospectus - 24
<PAGE>

AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIOD ENDED DECEMBER 31, 1998)

<TABLE>
<CAPTION>
PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Orbitex Focus 30 Fund Class A* N/A% N/A% N/A%
Orbitex Focus 30 Fund Class B** N/A% N/A% N/A%
Orbitex Focus 30 Fund Class D*** 16.78% 18.79% 12.88%
Dow Jones Industrial Average**** 18.00% 22.06% 17.94%
</TABLE>

* AS OF DECEMBER 31, 1998, CLASS A SHARES HAD NOT COMMENCED OPERATIONS.

** AS OF DECEMBER 31, 1998, CLASS B SHARES HAD NOT COMMENCED OPERATIONS.

*** CLASS D RETURNS ARE THOSE OF THE ASM FUND.

****THE DOW JONES INDUSTRIAL AVERAGE IS AN UNMANAGED INDEX. THE INDEX RETURNS
ASSUME REINVESTMENT OF DIVIDENDS; UNLIKE THE FUND'S RETURNS, HOWEVER, THEY
DO NOT REFLECT ANY FEES OR EXPENSES.

Prospectus - 25
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX FOCUS 30 FUND

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Class A Shares, Class B Shares or Class D Shares of the Orbitex Focus 30 Fund.

<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
-------- -------- --------
SHARES SHARES SHARES
-------- -------- --------
<S> <C> <C> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchase (as a % of offering
price) 5.75%(1) None None
Maximum Deferred Sales Charge (Load) (as a % of lower of original
purchase price or redemption proceeds) None (2) 5.00% None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
Distributions None None None
Redemption Fee (as a % of amount redeemed, if applicable) None None None
Exchange Fee None None None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND
ASSETS)
Management Fees 0.75% 0.75% 0.75%
Distribution and/or Service Fee (12b-1) Fees 0.40% 1.00%(3) 0.00%
Other Expenses 0.85%(4) 0.85%(4) 0.85%(4)
-------- -------- --------
Total Annual Operating Expenses 2.00%(5) 2.60%(5) 1.60%(5)
Fee Waiver and Expense Reimbursement --% --% 0.85%
-------- -------- --------
Net Expenses --% --% 0.75%
-------- -------- --------
-------- -------- --------
</TABLE>

- --------------------------------------------------------------------------------
(1) Reduced for purchases of $50,000 or more by certain investors. See "Your
Account - Classes in Detail - Class A - Reduced Sales Charge."
(2) Purchases of Class A Shares of $1 million or more by certain investors
are not subject to any sales load at the time of purchase, but a 1%
contingent deferred sales charge applies on amounts redeemed within one
year of purchase. See "Your Account - Classes in Detail - Class A -
Reduced Sales Charge."
(3) Including a 0.25% shareholder servicing fee.

(4) Other expenses are estimated.

(5) Orbitex Management has agreed to waive and/or reimburse fees and
expenses to the extent necessary so that Class A Shares' and Class B
Shares' total operating expenses do not exceed 1.15% and 1.75%,
respectively, of average daily net assets. Orbitex Management may
discontinue such fee waivers and/or expense reimbursements at any time,
in its sole discretion, subject to possible reimbursement by the Fund in
future years if such reimbursement can be achieved within the foregoing
expense limits. Consequently, the Investment Adviser fees actually
charged may in the future be higher than reflected above, if consistent
with the limits on total operations expenses. Orbitex Management has
also agreed contractually to waive its management fee and to reimburse
expenses, other than extraordinary or non-recurring expenses, so that
the expense ratio of the Class D Shares does not exceed 0.60 of 1% until
January 1, 2000 and 0.75 of 1% until July 1, 2000. The information
contained in the above table and the example below reflects the expenses
of each class of shares without taking into account any applicable fee
waivers and/or reimbursements, except for those applicable to the Class
D Shares through July 1, 2000.

Prospectus - 26
<PAGE>
EXAMPLE

This example is intended to help you compare the cost of investing in the
Orbitex Focus 30 Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year, that you
reinvest all dividends and distributions, and that the Fund's operating expenses
remain the same. Although your actual costs and the return on your investment
may be higher or lower, based on these assumptions your costs would be:

<TABLE>
<CAPTION>
YEAR
- -------------------

CLASS A CLASS B CLASS D
----------- ----------- -----------
<S> <C> <C> <C> <C>
1 $ 766 $ 763 $ 69
3 $ 1,166 $ 1,108 $ 417
</TABLE>

You would pay the following expenses if you did not redeem your shares:

<TABLE>
<CAPTION>
YEAR
- -------------------

CLASS A CLASS B CLASS D
----------- ----------- -----------
<S> <C> <C> <C> <C>
1 $ 766 $ 263 $ 69
3 $ 1,166 $ 808 $ 417
</TABLE>

Prospectus - 27
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX HEALTH & BIOTECHNOLOGY FUND

This section briefly describes the Orbitex Health & Biotechnology Fund's goals,
principal investment strategies, risks, expenses and performance. For further
information on how this Fund is managed, please read the section entitled "Fund
Details."
[LOGO]
INVESTMENT OBJECTIVE
- - The objective of the Orbitex Health & Biotechnology Fund is long-term growth
of capital through selective investment in the securities of companies
engaged in the healthcare, health products, pharmaceuticals, medical research
and biotechnology research development and implementation and other areas
related to the health industry.
[LOGO]
PRINCIPAL INVESTMENT STRATEGIES
The Fund's principal investment strategies include:

- - Investing at least 65% of its total assets in equity securities issued by
healthcare companies and biotechnology companies (see description of
healthcare companies and biotechnology companies in "Fund Details" section on
page 36). As a matter of fundamental policy, the Fund will concentrate
(invest at least 25% of its total assets) in securities issued by companies
in the health and biotechnology industries.

- - Composing a portfolio based upon a "bottom-up" blending of value and growth
criteria as well as identifying investment and economic themes that can drive
profits.

- - Investing primarily in common stocks.

- - Investing in companies regardless of their stock market value (or "market
capitalization").

- - Investing up to 25% of its total assets in foreign companies.

- - The Fund will sell those holdings that it has identified as having exceeded
their fair market value and will also sell the securities of a company that
has experienced a fundamental shift in its core business processes and
objectives. The Fund will also sell the securities of a company when the
industry in which the company operates has undergone a shift in focus or
industry dynamics.

[LOGO]
PRINCIPAL RISKS
The Fund is subject to the following principal risks:

- - STOCK MARKET RISK: Stock markets are volatile and there is a risk that the
price of a security will rise or fall due to changing economic, political or
market conditions, as well as company-specific factors (see "Issuer-Specific
Risks" below). Consequently, the value of your investment in the Fund will go
up and down, which means that you could lose money.

- - RISKS OF HEALTHCARE AND BIOTECHNOLOGY SECTOR: Because of its narrow focus,
the Fund's performance is closely tied to and affected by events occurring in
the healthcare and biotechnology industries. Companies in the same industry
often face similar obstacles, issues and regulatory burdens. As a result, the
securities owned by the Fund may react similarly to and move in unison with
one another.
Healthcare companies are subject to government regulation and approval of
their products and services, which can have a significant effect on their
market price. Furthermore, the types of products or services produced or
provided by these companies may quickly become obsolete. Moreover, liability
for products that are later alleged to be harmful or unsafe may be

Prospectus - 28
<PAGE>
substantial, and may have a significant impact on a healthcare company's
market value and/or share price.
Biotechnology companies are affected by patent considerations, intense
competition, rapid technology change and obsolescence, and regulatory
requirements of various federal and state agencies. In addition, many of
these companies are relatively small and have thinly traded securities, may
not yet offer products or offer a single product, and may have persistent
losses during a new product's transition from development to production or
erratic revenue patterns. Moreover, stock prices of biotechnology companies
are very volatile, particularly when their products are up for regulatory
approval and/or under regulatory scrutiny. Consequently, the Fund's
performance may sometimes be significantly better or worse than that of other
types of funds.

- - RISKS OF NON-DIVERSIFICATION: Because the Orbitex Health & Biotechnology Fund
is non-diversified, it may have greater exposure to volatility than other
funds. Because a non-diversified fund may invest a larger percentage of its
assets in the securities of a single company than diversified funds, the
performance of that company can have a substantial impact on the fund's share
price.

- - INFLATION RISK: There is a possibility that rising prices of goods and
services may have the effect of offsetting the Fund's total return.

WHO MAY WANT TO INVEST IN THE ORBITEX HEALTH & BIOTECHNOLOGY FUND?

We designed the ORBITEX HEALTH & BIOTECHNOLOGY FUND for investors who want to
capitalize on potential opportunities in the health and biotechnology industries
and who seek one or more of the following:

- high long-term growth

- a stock fund that invests in companies that are involved in the
healthcare and biotechnology industries

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses primarily a growth-oriented investment strategy

- a stock fund that invests in domestic and foreign companies

Prospectus - 29
<PAGE>
- --------------------------------------------------------------------------------
FUNDS AT A GLANCE - ORBITEX HEALTH & BIOTECHNOLOGY FUND

PERFORMANCE AND VOLATILITY

As of July 12, 1999, the Orbitex Health & Biotechnology Fund had not commenced
operations.

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Class A Shares or Class B Shares of the Orbitex Health & Biotechnology Fund.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 1.25% 1.25%
Distribution and/or Service Fee (12b-1) Fees 0.40% 1.00%(3)
Other Expenses 1.61% 1.61%
------- -------
Total Annual Operating Expenses 3.26%(4) 3.86%(4)
------- -------
------- -------
</TABLE>

- --------------------------------------------------------------------------------

(1) Reduced for purchases of $50,000 or more by certain investors. See "Your
Account - Classes in Detail - Class A - Reduced Sales Charge."

(3) Including a 0.25% shareholder servicing fee.

Prospectus - 30
<PAGE>
EXAMPLE

This example is intended to help you compare the cost of investing in the
Orbitex Health & Biotechnology Fund with the cost of investing in other mutual
funds. The example assumes that you invest $10,000 in the Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each
year, that you reinvest all dividends and distributions, and that the Fund's
operating expenses remain the same. Although your actual costs and the return on
your investment may be higher or lower, based on these assumptions your costs
would be:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
----------- -----------
<S> <C> <C> <C>
1 $ 885 $ 888
3 $ 1,521 $ 1,478
</TABLE>

You would pay the following expenses if you did not redeem your shares:

<TABLE>
<CAPTION>
YEAR
- -----------------------------------------

CLASS A CLASS B
----------- -----------
<S> <C> <C> <C>
1 $ 885 $ 388
3 $ 1,521 $ 1,178
</TABLE>

Prospectus - 31
<PAGE>
- --------------------------------------------------------------------------------
FUND DETAILS - ORBITEX GROWTH FUND

INVESTMENT DETAILS OF THE ORBITEX GROWTH FUND

[LOGO]

INVESTMENT OBJECTIVE

The Orbitex Growth Fund seeks to provide long-term growth of capital
through selective investment in securities of companies of all sizes that offer
potential for growth.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund strives to provide a high return through a unique
multi-factor selection process. The Adviser generally screens
first for "value stocks." These stocks tend to trade at below market
price/earnings, price/cash flow, and price/book value ratios. The Adviser looks
for stocks that are at the low end of their historical range within those same
categories.

Next, the Adviser screens for stocks with strong cash flow or earnings momentum.
In particular, the Adviser seeks out stocks that it expects to grow cash flow or
earnings by at least 20% per year over the next several years.

Finally, the Adviser screens stocks that show positive price momentum. In other
words, the Adviser seeks stocks that it believes have a strong fundamental case
for purchase but generally defers purchasing those stocks until the market
begins to perceive the positive fundamentals.

The Adviser believes that this combination of searching for stocks having the
attributes of value, growth, and price momentum will provide superior
performance. However, if the Adviser's strategies do not work as intended, the
Fund may not achieve its objective.

[LOGO]

PRINCIPAL INVESTMENTS

The Fund may invest in the securities of any issuer, including U.S.
and foreign companies, governments and government agencies. The Fund
expects to invest primarily in U.S. common stocks, but may also invest in other
types of equity securities and debt securities of any quality.

PORTFOLIO MANAGER

Richard A. Begun is the portfolio manager for the Growth Fund. Mr. Begun joined
Orbitex in 1999 and brings with him 11 years of investment management
experience. Formerly, he was with the Bank of New York from 1995 to 1999 where
he co-managed the bank's institutional small cap growth fund and its
institutional large cap growth fund. Prior to joining the Bank, Mr. Begun was an
Investment Management Consultant at Evaluation Associates, Inc. from 1993 to
1995.

INVESTMENT STRATEGIST

Courtney D. Smith is the Chief Investment Strategist for the Growth Fund. In
this capacity, he lends his global investment experience and expertise to the
portfolio manager. Mr. Smith joined Orbitex Management, Inc. in 1996. Formerly,
he was President and Chief Executive Officer of the brokerage firm Quantum
Financial Services, Inc. from 1993 to 1996. Mr. Smith also serves as Chief
Investment Strategist for the Orbitex Focus 30 Fund and the Orbitex Health &
Biotechnology Fund.

Prospectus - 32
<PAGE>
- --------------------------------------------------------------------------------
FUND DETAILS - ORBITEX INFO-TECH & COMMUNICATIONS FUND

INVESTMENT DETAILS OF THE ORBITEX
INFO-TECH & COMMUNICATIONS FUND

[LOGO]

INVESTMENT OBJECTIVE

The Orbitex Info-Tech & Communications Fund seeks long-term growth
of capital through selective investment in the securities of communications,
information and related technology companies.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund will invest in companies that the Adviser expects to
capitalize on emerging changes in the global communications and
information technology industries.

The Fund defines a "communications company" as an entity in which:

- - at least 50% of the company's revenues or earnings were derived from
communications activities; or

- - at least 50% of the company's assets were devoted to such activities, based
upon the company's most recent fiscal year.

The Fund defines an "information company" as an entity in which:

- - at least 50% of the company's revenues or earnings were derived from
information activities; or

- - at least 50% of the company's assets were devoted to such activities, based
upon the company's most recent fiscal year.

Communications, information and related technology companies may include, among
others, those engaged primarily in designing, developing or providing the
following products and services: communications, electronic components and
equipment, broadcasting, computer software and hardware, semiconductors,
internet and network equipment and services.

In buying and selling securities for the Fund, the Adviser relies on fundamental
analysis of each issuer and its potential for success in light of its current
financial condition, its industry position and economic and market conditions.
Factors considered include growth potential, earnings estimates and management.
However, if the Adviser's strategies do not work as intended, the Fund may not
achieve its objective.

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PRINCIPAL INVESTMENTS

The Fund will normally invest at least 65% of its total assets in
equity securities issued by communications, information and related
technology companies. The Fund expects to invest primarily in U.S. and foreign
common stocks but may also invest in other types of equity securities,
investment grade debt securities and in securities of companies outside the
communications, information and technology industries.

PORTFOLIO MANAGER

Craig W. Ellis is the portfolio manager for the Info-Tech & Communications Fund.
Mr. Ellis joined Orbitex Management, Inc. in 1998. Formerly he was with Alliance
Capital Management Corporation where he was a senior vice president from 1997 to
1998. At Alliance, Mr. Ellis was responsible for the firm's investments in the
global communications technology area. Prior to joining Alliance, Mr. Ellis was
a managing director at Wheat First Union where he served as a telecommunications
services analyst from 1992 to 1997.

Prospectus - 33
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FUND DETAILS - ORBITEX STRATEGIC NATURAL RESOURCES FUND

INVESTMENT DETAILS OF THE ORBITEX
STRATEGIC NATURAL RESOURCES FUND

[LOGO]

INVESTMENT OBJECTIVE

The Orbitex Strategic Natural Resources Fund seeks to provide
long-term growth of capital through selective investment in the securities of
companies engaged in natural resources industries and industries supportive to
natural resources industries.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund invests in securities of companies that the Adviser
believes are positioned to benefit from increasing worldwide
demand for natural resources. There is no guarantee, however, that the Adviser's
strategies will work as intended.

[LOGO]

PRINCIPAL INVESTMENTS

The Fund will normally invest at least 65% of its total assets in
equity securities issued by natural resources companies. The Fund
expects to invest primarily in U.S. common stocks but may also invest in other
types of equity securities, debt securities of any quality and in securities of
companies outside of the natural resources industries.

The Fund defines a "natural resources company" as an entity in which:

- - at least 50% of the company's revenues or earnings were derived from natural
resource activities; or

- - at least 50% of the company's assets were devoted to such activities, based
upon the company's most recent fiscal year.

Natural resources companies include service companies that provide services to
producers and refiners of natural resources or provide other products and
services, which the Adviser believes are significant to the ownership and
development of natural resources and companies that develop energy efficient
technologies, such as systems for energy conversion, conservation, and pollution
control. Natural resource companies also include companies that own, explore,
develop or produce:

- - precious metals (e.g., gold, platinum and silver),

- - ferrous and non-ferrous metals (e.g., iron, aluminum and copper),

- - strategic metals (e.g., uranium and titanium),

- - hydrocarbons (e.g., coal, oil and natural gases),

- - forest products,

- - other basic commodities (such as foodstuffs),

- - refined products (such as chemicals and steel)

PORTFOLIO MANAGER

Konrad Krill is the portfolio manager for the Strategic Natural Resources Fund.
Mr. Krill joined Orbitex Management, Inc. in 1997. From 1986 to 1997, he was
Vice President and portfolio manager at Morgan Stanley Dean Witter, where he
managed over $500 million in mutual fund and high net worth individual pension
assets.

Prospectus - 34
<PAGE>
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FUND DETAILS - ORBITEX FOCUS 30 FUND

INVESTMENT DETAILS OF THE ORBITEX
FOCUS 30 FUND

[LOGO]

INVESTMENT OBJECTIVE

The objective of the Orbitex Focus 30 Fund is long-term growth of
capital and current income through focused investment in the securities of some
or all of the 30 companies listed on the New York Stock Exchange that make up
the Dow Jones Industrial Average.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Orbitex Focus 30 Fund seeks to achieve its investment
objective principally by investing in companies with large market
capitalizations and well-established earnings and dividend histories. The market
capitalization of a company is the company's stock price multiplied by the total
number of shares of its stock outstanding; in other words, the value placed on
the company by the stock markets. The companies in which the Fund invests
represent dominant, key firms in their respective industries, and almost all of
the equity securities held by the Fund trade on the New York Stock Exchange.

[LOGO]

PRINCIPAL INVESTMENTS

The Fund invests at least 90% of its assets in the common stock of
some or all of the 30 companies that make up the Dow Jones
Industrial Average ("DJIA"). The Adviser will weight the Fund's investments
toward the DJIA companies that its believes will perform better than other DJIA
companies.

The Fund also invests up to 10% of its assets in common stocks of "large
capitalization" companies included in the S&P 500-Registered Trademark- Index.

PORTFOLIO MANAGER

Richard A. Begun is the portfolio manager for the Focus 30 Fund. Mr. Begun
joined Orbitex in 1999 and brings with him 11 years of investment management
experience. Formerly, he was with the Bank of New York from 1995 to 1999 where
he co-managed the bank's institutional small cap growth fund and its
institutional large cap growth fund. Prior to joining the Bank, Mr. Begun was an
Investment Management Consultant at Evaluation Associates, Inc. from 1993 to
1995.

INVESTMENT STRATEGIST

Courtney D. Smith is the Chief Investment Strategist for the Focus 30 Fund. In
this capacity, he lends his global investment experience and expertise to the
portfolio manager. Mr. Smith joined Orbitex Management, Inc. in 1996. Formerly,
he was President and Chief Executive Officer of the brokerage firm Quantum
Financial Services, Inc. from 1993 to 1996. Mr. Smith also serves as Chief
Investment Strategist for the Orbitex Growth Fund and the Orbitex Health &
Biotechnology Fund.

Prospectus - 35
<PAGE>
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FUND DETAILS - ORBITEX HEALTH & BIOTECHNOLOGY FUND

INVESTMENT DETAILS OF THE ORBITEX
HEALTH & BIOTECHNOLOGY FUND

[LOGO]

INVESTMENT OBJECTIVE

The Orbitex Health & Biotechnology Fund seeks to provide long-term
growth of capital through selective investment in securities of healthcare and
biotechnology companies of all sizes that offer potential for growth.

[LOGO]

PRINCIPAL INVESTMENT STRATEGIES

The Fund will invest in companies that the Adviser expects to
capitalize on emerging changes in the healthcare and biotechnology
industries.

The Fund defines a "healthcare company" as an entity that is principally engaged
in:

- the design, manufacture or sale of products or services used for or in
connection with health care, medicine, personal care or cosmetics.

- research and development of pharmaceutical products and services.

- the operation of healthcare facilities.

- design, manufacture, or sale of healthcare-related products and services.

The Fund defines a "biotechnology company" as an entity that is principally
engaged in:

- research, development, manufacture or distribution of products and
services relating to human health care, pharmaceuticals, agricultural and
veterinary applications, and the environment.

- manufacturing and/or distributing biotechnological and biomedical
products, including devices, instruments and/or drug delivery systems.

The Fund also defines a "healthcare or biotechnology company" as an entity that
is principally engaged in providing materials, products or services to a
healthcare or biotechnology company.

The Fund considers a company to be "principally engaged" in one of the above
activities if at least 50% of its revenues or profits come from those
activities.

[LOGO]

PRINCIPAL INVESTMENTS

Under normal market conditions, the Fund intends to invest at least
65% of its total assets in equity, equity-related or debt securities
of healthcare and biotechnology companies.

The Fund expects to invest primarily in U.S. common stocks, but may also invest
in other types of equity securities and investment grade debt securities. The
Fund may invest up to 25% of its assets in the securities of foreign issuers,
however.

PORTFOLIO MANAGER

Timothy F. Bepler, CFA is the portfolio manager for the Health & Biotechnology
Fund. Mr. Bepler joined Orbitex in 1999 and brings with him eight years of
investment analysis and management experience in the Healthcare industry.
Formerly, he was a vice president at Merrill Lynch Asset Management from 1996 to
1999 where he was a Healthcare analyst for a Growth and Income fund. Prior to
joining Merrill Lynch, he was the sole Healthcare analyst for a division of
Credit Suisse from 1995 to 1996 and he was a senior analyst at Value Line, Inc.
from 1994-1995.

Prospectus - 36
<PAGE>

INVESTMENT STRATEGIST

Prospectus - 37
<PAGE>
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MORE INFORMATION ABOUT RISKS

[LOGO]

Many factors affect the Funds' performance. The Funds' share prices
change daily based on changes in market conditions in response to
economic, political and financial developments. The direction and
extent of those price changes will be affected by the financial condition,
industry and economic sector, and geographic location of the companies in which
the Funds invest, and the Funds' level of investment in the securities of those
companies. WHEN YOU REDEEM YOUR SHARES OF THE FUNDS, THEY COULD BE WORTH MORE OR
LESS THAN WHAT YOU PAID FOR THEM.

The Orbitex Group of Funds' Statement of Additional Information includes
additional information regarding the risks associated with the Funds'
investments.

The following factors may significantly affect each Fund's performance. Stock
market volatility is a principal risk for each Fund, as are the risks of foreign
securities for the Growth Fund and Strategic Natural Resources Fund. The other
factors set forth below are not considered principal risks for any of the Funds.

STOCK MARKET VOLATILITY: The value of equity securities fluctuates in response
to issuer, political, market and economic developments. Equity prices can
fluctuate dramatically in response to these developments. Different parts of the
market can react differently to these developments. For example, large cap
stocks can react differently than small cap stocks, and "growth" stocks can
react differently than "value" stocks. Political or economic developments can
affect a single issuer, issuers within an industry or economic sector or
geographic region, or the market as a whole. All Funds within the Orbitex Group
of Funds are subject to stock market volatility.

INTEREST RATE CHANGES: Debt securities have varying levels of sensitivity to
changes in interest rates. In general, the price of a debt security may fall
when interest rates rise and may rise when interest rates fall. Securities with
longer maturities may be more sensitive to interest rate changes. All Funds
within the Orbitex Group of Funds are subject to interest rate changes.

DEFENSIVE STRATEGIES: In response to market, economic, political or other
conditions, the Adviser may temporarily use a different investment strategy for
a Fund for defensive purposes. Such a strategy could include investing up to
100% of the Fund's assets in cash or cash equivalent securities. If the Adviser
does so, it could affect a Fund's performance and the Fund might not achieve its
investment objective. All Funds within the Orbitex Group of Funds except, for
the Focus 30 Fund, expect to employ defensive strategies.

RISKS OF FOREIGN SECURITIES: Foreign securities may be riskier than U.S.
investments because of factors such as unstable international political and
economic conditions, currency fluctuations, foreign controls on investment and
currency exchange, withholding taxes, a lack of adequate company information,
less liquid and more volatile markets, and a lack of governmental regulation.
All Funds within the Orbitex Group of Funds, except for the Focus 30 Fund, are
subject to risks of foreign securities.

LOWER-QUALITY DEBT SECURITIES: The Orbitex Growth Fund, Orbitex Info-Tech &
Communications Fund, Orbitex Strategic Natural Resources Fund, and the Orbitex
Health & Biotechnology Fund may each invest up to 35% of their assets in
lower-quality debt securities, otherwise known as "junk bonds." Junk bonds are
debt securities that are rated below investment-grade (investment grade
securities are rated BBB or better by Standard & Poor's Rating Service or Baa or
better by Moody's Investors Service) by Standard & Poor's Rating Service or
Moody's Investors Service, Inc. These securities are generally considered to be
speculative and involve greater risk of loss or price changes due to changes in
the issuer's capacity to pay.

Prospectus - 38
<PAGE>
DERIVATIVES AND OTHER STRATEGIES: The Funds may invest in options, futures,
foreign securities, foreign currencies, and other derivatives (collectively,
"Derivative Transactions"), and may enter into certain types of short sales.

If these practices are used by the Funds, the intent would be primarily to hedge
the Funds' portfolios. For example, a Fund may purchase or sell options
contracts on equity securities to hedge against the risk of fluctuations in the
prices of securities held by the Fund. Or, a Fund may purchase or sell stock
index futures contracts and would purchase put options or write call options on
such futures contracts to protect against a general stock market decline or
decline in a specific market sector that could adversely affect the Fund's
holdings.

Investing for hedging purposes may result in certain transaction costs, which
may reduce a Fund's performance. In addition, no assurances can be given that
hedging will be implemented or that each derivative position will achieve a
perfect correlation with the security or currency being hedged against. All
Funds within the Orbitex Group of Funds, except for the Cash Reserve Fund, are
subject to risks from Derivative Transactions.

PORTFOLIO TURNOVER RATES. The portfolio turnover rates for the fiscal year
ending April 30, 1999, of the Growth Fund, the Info-Tech & Communications Fund
and the Strategic Natural Resources Fund were 957%, 360% and 921%, respectively.
These turnover rates are higher than the average of many mutual funds, and are
the result of and are the result of the focused and specialized nature of the
Funds and the resulting need for the Funds to seek out investment opportunities
to achieve each Fund's investment objectives. Controlling risk in each of the
funds is critical. The Growth Fund experienced high turnover as a result of the
sharp drop in the market for this sector which required that positions be
reduced to protect client assets. In addition, there was a period of extreme
sector rotation in early 1999 which led to higher than normal turnover. The
turnover was higher as a result of protective measures taken during each of
these periods. The turnover rate for the Strategic Natural Resources Fund was
impacted by the overall size of the Fund and the Fund's need for liquidity. In
addition, natural resources securities have been trading in a narrow range
without direction. As a result, the manager of the Fund traded positions in the
Fund to capture investment profit. The Info-Tech and Communications Fund's
turnover rate was primarily driven by the introduction and heightened market
interest in the internet sector; and the Fund's turnover is consistent with the
trading market for this sector.

High portfolio turnover (i.e., 100% or greater) involves additional brokerage
expense and may increase realized capital gains distributions, with adverse tax
consequences for the Fund's shareholders. See "Taxation of the Fund" on page 55.

Prospectus - 39
<PAGE>
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MORE INFORMATION ABOUT RISKS

YEAR 2000: The Funds' operations depend on the seamless functioning of computer
systems in the financial service industry, including those of the Adviser,
Administrator, Sub-Administrator, Custodian, Distributor and the Transfer Agent.
Many computer software systems in use today cannot properly process date-related
information after December 31, 1999. The "Year 2000" issue stems from the use of
a two-digit format to define the year in certain date-sensitive application
systems rather than the use of a four-digit format. As a result, date-sensitive
software programs could recognize a date using "00" as the year 1900 rather than
the year 2000. This could result in major systems or process failures or the
generation of erroneous data, which would lead to disruptions in the Funds'
business operations.

The Adviser has made compliance with the Year 2000 issue a high priority and is
taking steps to address the issue with respect to its computer systems. The
Funds' major service providers have informed the Adviser that they are taking
comparable steps. The Adviser does not currently believe that the Year 2000
issue will have a material impact on its ability to continue to fulfill its
duties as investment adviser. In addition, the issuers of securities the Funds
own could have Year 2000 computer problems. These problems could negatively
affect the value of their securities, which, in turn, could impact the Funds'
performance. An issuer's Year 2000 readiness is only one of many factors the
Adviser may consider when making investment decisions, and other factors may
receive greater weight.

LITIGATION THAT MAY AFFECT THE FOCUS 30 FUND: On February 8 and June 2, 1999,
suits were filed against a former director and officer of the ASM Index 30 Fund
(the "ASM Fund"), the former investment adviser Vector Investment Advisors, Inc.
(Vector) of the ASM Fund, and the ASM Fund itself alleging that the former
officer of the ASM failed to invest in the ASM Fund amounts purportedly paid by
the plaintiffs to the ASM Fund's investment adviser. One suit also alleged
improper and unauthorized redemptions of ASM Fund Shares owned by the
plaintiffs. The relief sought in one suit is the recovery of the investment
amounts and interest thereon, additional general, consequential and incidental
damages, legal costs and disbursements, and declaratory and injunctive relief to
preclude the ASM Index 30 Fund from transferring or permitting the dissipation
of its assets. The relief sought in the other suit is recovery of the investment
amounts and amounts derived from the alleged improper redemptions. With the
possible exception of Steven H. Adler, a former officer and director of the ASM
Index 30 Fund, that fund had no knowledge that the amounts purportedly paid by
the plaintiffs to the former investment adviser were, as the plaintiffs have
alleged to be invested in the fund. Upon consummation of the reorganization of
the ASM Index 30 Fund into the Orbitex Focus 30 Fund, the Orbitex Focus 30 Fund
will succeed to the obligations, if any, of the ASM Fund with respect to these
suits including obligations of the ASM Fund to indemnify its officers and
directors. At the present time, the liability of the Orbitex Focus 30 Fund, if
any, is not readily determinable.

Prospectus - 40
<PAGE>
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YOUR ACCOUNT

[LOGO]

This section describes the services that are available to shareholders.

TYPES OF ACCOUNTS

If you are making an initial investment in the Funds, you will need to open an
account. You may establish the following types of accounts:

- - INDIVIDUAL OR JOINT OWNERSHIP. One person owns an individual account while
two or more people own a joint account. We will treat each individual owner
of a joint account as authorized to give instructions on purchases, sales and
exchanges of shares without notice to the other owners. However, we will
require each owner's signature guarantee for any transaction requiring a
signature guarantee.

- - GIFT OR TRANSFER TO MINORS. A Custodian maintains a Uniform Gifts to Minors
Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account for the benefit
of a minor. To open an UGMA or UTMA account, you must include the minor's
social security number on the application.

- - TRUST. A trust can open an account. You must include the name of each
trustee, the name of the trust and the date of the trust agreement on the
application.

- - CORPORATIONS, PARTNERSHIPS AND OTHER LEGAL ENTITIES. Corporations,
partnerships and other legal entities may also open an account. A general
partner of the partnership or an authorized officer of the corporation or
other legal entity must sign the application and resolution form.

- - RETIREMENT. If you are eligible, you may set up your account under a
tax-sheltered retirement plan, such as an Individual Retirement Account. Your
financial consultant can help you determine if you are eligible.

CHOOSING A CLASS

After deciding which type of account to open, you must select a class of shares.
All the Funds offer two classes of shares (Class A and Class B). The Focus 30
Fund also offers a third class of shares (Class D). Class D Shares are only
available to shareholders who previously were shareholders of the ASM Index 30
Fund at the time of the reorganization.

Each share class has its own sales charge and expense structure, including
different 12b-1 fees (see "Classes in Detail" below and "Rule 12b-1 Plans in
Detail" on page 47 for additional information). The Class A Shares have an
initial sales charge while the Class B Shares have a contingent deferred sales
charge if you redeem shares held for six years or less. There are no sales
charges, 12b-1 fees or shareholder services fees for Class D Shares.

Each class represents an interest in the same portfolio of securities and each
has the same rights with one exception. Pursuant to the Investment Company Act
of 1940, you will have exclusive voting rights with respect to the Distribution
Plan and Agreement pursuant to Rule 12b-1, if any, for the class you choose.

We offer these classes to allow you to choose the class that will be most
beneficial to you. Your decision should depend upon a number of factors
including the amount you purchase and the length of time you plan to hold the
shares. For example, if you are investing a large amount of money and plan to
hold your shares for a long period of time, the Class A Shares may make the most
sense for you. However, if you plan to invest less money and are investing for
at least six years, Class B Shares might make better sense. Your financial
consultant can assist you in determining which class is best for you. Because
all future investments in your account will be made in the share class you
designate when opening the account, you should make your decision carefully.

Prospectus - 41
<PAGE>

COMPARISON OF CLASSES
CLASS A--INITIAL SALES CHARGE CLASS B--CONTINGENT DEFERRED SALES CLASS D--NO SALES CHARGE (FOCUS 30 FUND
- Initial sales charge of 5.75% or CHARGE ONLY)
less (see chart on page 43). - No initial sales charge. This allows Note: Class D Shares are only available
- Lower sales charges for larger 100% of your purchase price to be to shareholders who were shareholders of
investments (see page 43). invested in the Fund. the ASM Index 30 Fund and certain
- Lower annual expenses than Class B - Deferred sales charge of 5% or less Institutional investors.
Shares due to lower marketing and on shares you redeem within six years - No initial or contingent deferred
service (12b-1) fee of 0.40%. (see chart on page 45). sales charge.
- An annual fee of 1.00% under each - No annual marketing and service
Fund's rule 12b-1 plan, 0.75% of (12b-1) fee.
which is for marketing and 0.25% of - Lower annual expenses than Class A
which is for shareholder services. and Class B.
This will result in a lower total
return than comparable Class A
Shares.
- Automatic conversion to Class A
Shares after six years, thereby
reducing future annual expenses.
</TABLE>

Prospectus - 42
<PAGE>
CLASSES IN DETAIL

CLASS A--INITIAL SALES CHARGE

The sales charge for Class A Shares of all Funds is 5.75% of the offering price.
However, the Adviser may reduce or waive this sales charge as described in
"Reduced Sales Charge."

REDUCED SALES CHARGE

You can qualify for a reduction or waiver of this sales charge by investing one
lump sum in a particular class of a Fund. You can also qualify for a sales
charge reduction or waiver through a right of accumulation or a letter of intent
if you are a United States resident. See the discussions of "Right of
Accumulation" and "Letter of Intent" on page 44."

If you are a United States resident and are investing more than $50,000, the
Adviser will reduce the sales charge you pay. The chart at the bottom of this
page shows the sales charge you will pay based on the amount of your purchase.

You can purchase Class A Shares without any initial sales charge if you are a
United States resident and invest $1 million or more in Class A shares. However,
if you redeem those shares within one year of the purchase, you must pay a
contingent deferred sales charge of 1%. We will waive the contingent deferred
sales charge only in the following situations:
- - If the Fund involuntarily redeems your shares; or

- - If you reinvest the proceeds from your redemption in the Funds within 90 days
of your redemption.

REDUCED SALES CHARGE FOR U.S. RESIDENTS

SALES CHARGE AS A BROKER REALLOWANCE
SALES CHARGE AS A PERCENTAGE OF AS A
PERCENTAGE OF NET INVESTMENT PERCENTAGE OF
AMOUNT OF PURCHASE OFFERING PRICE (NET ASSET VALUE) OFFERING PRICE(1)
- ------------------------------------ -------------------- -------------------- --------------------
<S> <C> <C> <C>
Less than $50,000 5.75% 6.10% 5.00%
$50,000 but less than $100,000 4.50% 4.71% 3.75%
$100,000 but less than $250,000 3.50% 3.63% 2.75%
$250,000 but less than $500,000 2.50% 2.56% 2.00%
$500,000 but less than $1,000,000 2.00% 2.04% 1.75%
$1,000,000 or more None (See below)(2) None (See below)(2) (See below)(2)
</TABLE>

1 At the discretion of the Orbitex Group of Funds, however, the entire sales
charge may at times be reallowed to dealers. The Staff of the Securities and
Exchange Commission has indicated that dealers who receive more than 90% of the
sales charge may be considered underwriters.

2 The distributor will pay certain commissions to Selling Group Members (See
page 48) who initiate and are responsible for purchases by any single purchaser
who is a resident of the United States. For purchases of $1 million to $3
million, the Distributor will pay 1%, plus 0.50% on any amounts over $3 million
up to $50 million, and 0.25% on any amounts over $50 million.

Prospectus - 43
<PAGE>
RIGHT OF ACCUMULATION

For the purposes of determining the sales charge, the right of accumulation
allows you to include prior purchases of Class A Shares of any Orbitex Fund as
part of your current investment. To qualify for this option, you must be either:

- - an individual;

- - an individual and spouse purchasing shares for your own account or trust or
custodial accounts for your minor children; or

- - a fiduciary purchasing for any one trust, estate or fiduciary account,
including employee benefit plans created under Sections 401 or 457 of the
Internal Revenue Code, including related plans of the same employer.

If you plan to rely on this right of accumulation, you must notify the
Distributor at the time of your purchase. You will need to give the Distributor
your account numbers. If applicable, you will need to provide the account
numbers of your spouse and your minor children as well as the ages of your minor
children.

LETTER OF INTENT

The letter of intent allows you to count all investments within a 13-month
period in a Fund as if you were making them all at once for the purposes of
calculating the sales charges. The minimum initial investment under a letter of
intent is 5% of the total letter of intent amount. You may include a purchase
not originally made pursuant to a letter of intent under a letter of intent
entered into within 90 days of the original purchase.

EXCHANGES OF CLASS D SHARES OF THE ORBITEX FOCUS 30 FUND INTO CLASS A SHARES OF
OTHER ORBITEX FUNDS

If you received Class D Shares of the Orbitex Focus 30 Fund in exchange for
shares of the ASM Index 30 Fund, you may exchange your Class D Shares for Class
A Shares of another Orbitex Fund without paying any sales charge. If you close
your Class D account in the Focus 30 Fund (either by redeeming or by exchanging
all of your Class D Shares), however, you may not later reopen your account with
Class D Shares of the Focus 30 Fund.

OTHER CIRCUMSTANCES

We also offer Class A Shares with low or no sales charges through various other
special arrangements. Your financial consultant can help you determine if any of
these programs is appropriate for you.

Class A Shares issued pursuant to the automatic reinvestment of income dividends
and capital gains distributions are not subject to any sales charges.

Prospectus - 44
<PAGE>
CLASS B--CONTINGENT DEFERRED SALES CHARGE

You will not pay an initial sales charge if you choose to invest in Class B
Shares. However, if you redeem your shares within six years, you will pay a
contingent deferred sales charge as described in the table below. The amount of
this charge is based on your original purchase price, or the current net asset
value of the shares you redeem, whichever is less.

We will waive the contingent deferred sales charge under the following
circumstances:

- - redemptions made within one year after the death of a shareholder or
registered joint owner;

- - redemptions made to facilitate minimum required distributions made from an
IRA or other retirement plan account after age 70 1/2; and

- - involuntary redemptions made by a Fund.

Class B Shares issued pursuant to the automatic reinvestment of income dividends
and capital gains distributions are not subject to any contingent deferred or
other sales charges.

- --------------------------------------------------------------------------------

CONTINGENT DEFERRED SALES CHARGE

<TABLE>
<CAPTION>
YEARS AFTER PURCHASE THAT YOU REDEEM YOUR SHARES CONTINGENT DEFERRED SALES CHARGE(1)
- ----------------------------------------------------- ---------------------------------------------
<S> <C>
1(st) Year 5.00%
2(nd) Year 4.00%
3(rd) Year 3.00%
4(th) Year 3.00%
5(th) Year 2.00%
6(th) Year 1.00%
After 6 Years None(2)
</TABLE>

1 The contingent deferred sales charge will be the lesser of (1) the original
purchase price or (2) the net asset value of the shares being redeemed.

2 Class B Shares will automatically convert to Class A Shares after six years
after you purchase them. This conversion relieves Class B shareholders who have
held their shares for more than six years of the higher asset-based distribution
charge that applies to Class B Shares under the 12b-1 Plan described in the
section entitled "Rule 12b-1 Plans in Detail."

Prospectus - 45
<PAGE>
CLASS D

Class D Shares are offered without any sale charges, and are not subject to any
12b-1 or shareholder servicing fees.

CLASS D SHARES ARE ONLY AVAILABLE TO SHAREHOLDERS WHO HELD SHARES OF THE ASM
INDEX 30 FUND ON THE DATE THE ASM FUND WAS REORGANIZED AS THE ORBITEX FOCUS 30
FUND, AND TO CERTAIN INSTITUTIONAL INVESTORS.

If you held shares of the ASM Index 30 Fund, you may purchase additional Class D
Shares of the Orbitex Focus 30 Fund for the account that was established when
your received shares of the Focus 30 Fund in exchange for your ASM Fund Shares.

In addition, if you held shares of the ASM Fund on the date of reorganization,
you may purchase Class D Shares of the Orbitex Focus 30 Fund for a new account
established for:

- - you

- - one of your immediate family members

- - a trust or individual retirement account or self-employed retirement place
for the benefit of you or any of your immediate family members

- - your or an immediate family member's estate.

Prospectus - 46
<PAGE>
RULE 12b-1 PLANS IN DETAIL

The Board of Trustees of the Orbitex Group of Funds has adopted for Class A
Shares and Class B Shares separate Distribution Plans and Agreements pursuant to
Rule 12b-1 under the Investment Company Act of 1940 (the "Plans").

The Plan adopted for Class A Shares allows each Fund to use part of its assets
for the sale and distribution of its Class A Shares, including advertising,
marketing and other promotional activities. Under this Plan, each Fund pays
Funds Distributor, Inc. (the "Distributor"), an amount equal to 0.40% of average
net assets attributable to Class A Shares of that Fund on an annualized basis.

The Plan adopted for Class B Shares also allows each Fund to use part of its
assets for the sale and distribution of its Class B Shares, including
advertising, marketing and other promotional activities. For these services,
under the Plan, each Fund pays Funds Distributor, Inc., the Distributor, an
amount equal to 0.75% of average net assets attributable to Class B Shares of
that Fund on an annualized basis. The Class B Plan also allows each Fund to pay
the Distributor for certain shareholder services provided to Class B
shareholders or other service providers that have entered into agreements with
the Distributor to provide these services. For these services, each Fund pays a
shareholder service fee equal to 0.25% of average net assets attributable to
Class B Shares of that Fund on an annualized basis.

Because these distribution and shareholder service fees are paid out of a Fund's
assets on an ongoing basis, the fees may, over time, increase the cost of an
investing in a Fund and cost investors more than other types of sales loads.

PURCHASING SHARES

Once you have chosen the type of account and a class of shares, you are ready to
establish an account. Class A Shares and Class B Shares of each Fund are
available to investors making a minimum initial investment of $2,500 per Fund
for regular accounts and $2,000 for individual retirement accounts. The minimum
for subsequent investments is $250.

Class D shares of the Focus 30 Fund are available only to individuals who were
shareholders of the ASM Index 30 Fund on the date it was reorganized as the
Orbitex Focus 30 Fund, and to certain institutional investors. The minimum for
subsequent investments in Class D Shares of the Focus 30 Fund by individual
investors is $100.

The Trust or Adviser may waive or lower these minimums in certain cases. YOU
MUST COMPLETE AND SIGN AN APPLICATION FOR EACH ACCOUNT YOU OPEN WITH EACH FUND.

The price for Fund shares is the Fund's net asset value per share (NAV) plus any
applicable sales charge. We determine the NAV as of the close of trading on the
New York Stock Exchange (normally 4:00 p.m. Eastern time) every day that the
Exchange is open. We will price your order at the next NAV calculated after the
Fund receives your order. For more information on how we price shares, see
"Pricing of Fund Shares" on page 54.

The Funds and the Distributor each reserve the right to reject any purchase for
any reason and to cancel any purchase due to non-payment. You must make all
purchases in United States dollars and draw all checks on United States banks.
If we cancel your purchase due to non-payment, you will be responsible for any
loss the Funds incur. We will not accept cash or third-party checks for the
purchase of shares.

Prospectus - 47
<PAGE>

<TABLE>
<S> <C>
METHOD OF PURCHASE PROCEDURES
PURCHASE
- --------------------------------------------------------------------------------------------------------
THROUGH A Contact your financial consultant.
FINANCIAL
PROFESSIONAL
[LOGO]
- --------------------------------------------------------------------------------------------------------
THROUGH The Distributor authorizes certain securities dealers, banks or other financial
SELLING GROUP service firms (collectively, "Selling Group Members") to purchase your shares.
MEMBERS To receive that day's share price:
- you must place your order with the Selling Group Member before the close of
[LOGO] regular trading on the New York Stock Exchange (normally 4:00 p.m. Eastern
time); and
- the Selling Group Member must transmit the order to the Funds before 5:00
p.m. Eastern time on that same day.
- --------------------------------------------------------------------------------------------------------
BY MAIL To purchase Shares of the ORBITEX GROWTH FUND, ORBITEX INFO-TECH &
COMMUNICATIONS FUND, or the ORBITEX STRATEGIC NATURAL RESOURCES FUND, send your
[LOGO] completed application to:
Orbitex Group of Funds
P.O. Box 8069
Boston, Massachusetts 02266-8069
To purchase Shares of the ORBITEX FOCUS 30 FUND or the ORBITEX HEALTH &
BIOTECHNOLOGY FUND, send your completed application to:
Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0786
Include with your application your check, payable to "Orbitex Group of Funds -
(Name of Fund)." If you are purchasing Shares of more than one Orbitex Fund, you
must include a separate application and a separate check for each Fund.
</TABLE>

Prospectus - 48
<PAGE>

<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------
BY WIRE - INITIAL PURCHASE: For the ORBITEX GROWTH FUND, ORBITEX INFO-TECH &
COMMUNICATIONS FUND or the ORBITEX STRATEGIC NATURAL RESOURCES FUND, call us
[LOGO] at 1-888-ORBITEX for instructions and to receive an account number. You will
need to instruct a Federal Reserve System member bank to wire Funds to: State
Street Bank and Trust Company, ABA No. 011000028, Attn.: Custody &
Shareholder Services, Credit: Name of Fund, DDA No. 9905-295-3, FBO:
Shareholder Name, Name of Fund, Shareholder Account Number. You must also
complete and mail an application to the address shown above under "By Mail."
- INITIAL PURCHASE: For the ORBITEX FOCUS 30 FUND or the ORBITEX HEALTH &
BIOTECHNOLOGY FUND, call us at 1-888-ORBITEX for instructions and to receive
an account number. You will need to instruct a Federal Reserve System member
bank to wire Funds to: State Street Bank and Trust Company, ABA No.
011000028, Attn.: Custody, Credit: Name of Fund, DDA No. 51815926, FBO:
Shareholder Name, Name of Fund, Shareholder Account Number. You must also
complete and mail an application to the address shown above under "By Mail."
- SUBSEQUENT PURCHASE: Wire Funds to the designated bank account for each
Fund.
You may wire funds between 8:00 a.m. and 4:00 p.m. Eastern time. To make a
same-day wire investment, please call 1-888-ORBITEX by 12:00 noon to notify us
of your intention to wire Funds, and make sure your wire arrives by 4:00 p.m.
Eastern time. Please note that your bank may charge a fee for the wire. WIRE
TRANSACTIONS ARE NOT AVAILABLE FOR RETIREMENT ACCOUNTS.
- --------------------------------------------------------------------------------------------------------
BY EXCHANGE You may exchange your shares for the same class of shares of another Fund by
written request sent to the Funds at:
[LOGO] Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0786
- --------------------------------------------------------------------------------------------------------
BY TELEPHONE You may make subsequent purchases in your account by telephoning 1-888-ORBITEX
between 8:30 a.m. and 4:00 p.m. Eastern time on any day the Funds are open. We
[LOGO] will electronically transfer money from the bank account you designate on your
Application to your account with the Trust. This investment option is only
available if you have not declined, or cancelled your telephone investment
privilege. See the discussion of "Telephone Redemptions" on page 51.
- --------------------------------------------------------------------------------------------------------
SUBSEQUENT The minimum subsequent purchase is $250 per Fund, except for reinvestment of
PURCHASES dividends and distributions and Class D purchases with minimum amount of $100.
[LOGO]
</TABLE>

Prospectus - 49
<PAGE>
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------------------
IMPORTANT NOTES Once you have requested a telephone transaction, and a confirmation number has
been assigned, the transaction cannot be revoked. We reserve the right to refuse
any purchase request.
You can redeem shares that you purchased by check. However, while we will
process your redemption request at the next-determined net asset value after we
receive it, your redemption proceeds will be not available until your check
clears. This could take up to ten calendar days.
</TABLE>

REDEEMING SHARES

You have the right to sell ("redeem") all or any part of your shares subject to
certain restrictions. Selling your shares in a Fund is referred to as a
"redemption" because the Fund buys back its shares. We will redeem your shares
at the net asset value next computed following receipt of your redemption
request in good order. See "Redemption Procedures - Request in "Good Order"' on
page 52.

We will mail your redemption proceeds to your current address or transmit them
electronically to your designated bank account. Except under certain emergency
conditions, we will send your redemption to you within seven days after we
receive your redemption request.

The Funds cannot accept requests that specify a certain date for redemption or
which specify any other special conditions. Please call 1-888-ORBITEX for
further information. WE WILL NOT PROCESS YOUR REDEMPTION REQUEST IF IT IS NOT IN
PROPER FORM (SEE CHART ON PAGE 51). WE WILL NOTIFY YOU IF YOUR REDEMPTION
REQUEST IS NOT IN PROPER FORM.

If, as a result of your redemption, your account value drops below $1,000, we
may redeem the remaining shares in your account. We will notify you in writing
of our intent to redeem your shares. We will allow at least sixty days
thereafter for you to make an additional investment to bring your account value
up to at least $1,000 before we will process the redemption.

If you purchased your Class A Shares without any sales charge because your
initial investment was $1 million or more, you will pay a redemption fee equal
to 1.00% of the proceeds from the redemption of your Shares you are redeeming if
you purchased those Shares within one year of the date of your purchase. See the
discussion of "Reduced Sales Charges" on page 43.

SIGNATURE GUARANTEES

Your redemption request must be accompanied by a "signature guarantee" under
certain circumstances, such as if you are redeeming shares valued at $50,000 or
greater or if you ask us to send the redemption proceeds to an address other
than the address of record or to a person other than the registered
shareholder(s) for the account.

CONTINGENT DEFERRED SALES CHARGES

If you redeem your Class B Shares within six years of the date you purchased the
Shares, you will pay a contingent deferred sales charge as described on page 45.
There is no such charge for the sale of Class A Shares or Class D Shares, except
that investors who paid no initial sales charge on their purchase of Class A
Shares by investing $1 million or more will pay a 1% contingent deferred sales
charge on any Class A Shares redeemed within one year of purchase. There are no
a contingent deferred sales charges imposed on redemptions of Class D Shares of
the Orbitex Focus 30 Fund.

THIRD PARTY TRANSACTIONS

If you buy and redeem shares of the Funds through a member of the National
Association of Securities Dealers, Inc., that member may charge a fee for that
service.

The Orbitex Group of Funds has authorized one or more brokers to accept on its
behalf purchase and

Prospectus - 50
<PAGE>

redemption orders. Such brokers are authorized to designate intermediaries to
accept orders on the Fund's behalf. The Fund will be deemed to have received the
order when an authorized broker or a broker authorized designee accepts your
order. You order will be priced at the Funds' net asset value next computed
after it is received by the authorized broker or broker authorized designee.

REDEMPTION-IN-KIND

The Funds reserve the right to honor requests for redemption or repurchase
orders by making payment in whole or in part in readily marketable securities
("redemption in kind") if the amount of such a request is large enough to affect
operations (for example, if the request is greater than $250,000 or 1% of a
Fund's assets). The securities will be chosen by the Fund and valued at the
Fund's net asset value. A shareholder may incur transaction expenses in
converting these securities to cash.

<TABLE>
<S> <C>
METHOD OF REDEMPTION PROCEDURES
REDEMPTION
- ----------------------------------------------------------------------------------------------------
BY TELEPHONE You may authorize redemption of some or all shares in your account with the Funds by
telephoning the Funds at 1-888-ORBITEX between 8:30 a.m. and 4:00 p.m. Eastern time
[LOGO] on any day the Funds are open. You will NOT be eligible to use the telephone
redemption service if you:
- have declined or canceled your telephone investment privilege;
- wish to redeem less than $1,500;
- must provide supporting legal documents such as a signature guarantee, or if
necessary, for redemption requests by corporations, trusts and partnerships; and
- wish to redeem from a retirement account.
- ----------------------------------------------------------------------------------------------------

BY MAIL If you are redeeming Shares of the ORBITEX GROWTH FUND, ORBITEX INFO-TECH &
COMMUNICATIONS FUND, or the ORBITEX STRATEGIC NATURAL RESOURCES FUND, you may send
[LOGO] your redemption request to:
Orbitex Group of Funds
P.O. Box 8069
Boston, Massachusetts 02266-8069
If you are redeeming Shares of the ORBITEX FOCUS 30 FUND or the ORBITEX HEALTH &
BIOTECHNOLOGY FUND, you may send your redemption request to:
Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0786
</TABLE>

Prospectus - 51
<PAGE>
<TABLE>
<S> <C>
You must include the following information in your written request:
- a letter of instruction stating the name of the Fund, the number of shares you
are redeeming, the names in which the account is registered and your account
number;
- other supporting legal documents, if necessary, for redemption requests by
corporations, trusts and partnerships;
- a signature guarantee, if necessary
- ----------------------------------------------------------------------------------------------------
BY WIRE You may request your redemption proceeds be wired directly to the bank account
designated on your application. The Funds' transfer agent will charge you a $10.00
[LOGO] fee for each wire redemption. The transfer agent will deduct the fee directly from
your account. Your bank may also impose a fee for the incoming wire.
- ----------------------------------------------------------------------------------------------------
REQUEST IN For our mutual protection, all redemption requests must include:
"GOOD ORDER" - your account number
- the amount of the transaction
- for mail request, signatures of all owners EXACTLY as registered on the account
o signature guarantees, if required (signature guarantees can be obtained at
most banks, credit unions, and licensed brokers
- any supporting legal documentation that may be required
YOUR REDEMPTION REQUEST WILL BE PROCESSED AT THE NEXT-DETERMINED SHARE PRICE
AFTER WE HAVE RECEIVED ALL REQUIRED INFORMATION.
- ----------------------------------------------------------------------------------------------------
IMPORTANT Once we have processed your redemption request, and a confirmation number has been
NOTE given, the transaction CANNOT be revoked.
</TABLE>

OPTIONS FOR REDEMPTION PROCEEDS

You may receive your redemption proceeds by check or by wire.

CHECK REDEMPTIONS. Normally we will mail your check within two business days of
a redemption.

WIRE REDEMPTIONS. Before you can receive redemption proceeds by wire, you must
establish this option by completing a special form or the appropriate section of
your account application.

If we receive your request for a wire redemption by noon Eastern Time, the wire
will arrive at your bank by the close of business that same day. Requests that
we receive later than noon Eastern Time will arrive at your bank by the close of
business the following business day.

We require a minimum redemption of $10,000 in order to send your redemption
proceeds by wire.

TELEPHONE REDEMPTIONS AND EXCHANGES.

We will automatically establish the telephone redemption option for your
account, unless you instruct us otherwise in writing. Telephone redemptions are
easy and convenient, but this account option involves a risk of loss from
unauthorized or fraudulent transactions. We will take reasonable precautions to
protect your account from fraud. You should do the same by keeping your account
information private and by reviewing immediately any account statements and

Prospectus - 52
<PAGE>
confirmations that you receive. Please contact us immediately about any
transaction you believe to be unauthorized.

Orbitex reserves the right to refuse a telephone redemption or exchange if the
caller cannot provide:

- the account number

- the name and address exactly as registered on the account

- the primary social security or employer identification number as registered
on the account

We may also require a password from the caller.

Orbitex will not be responsible for any account losses due to telephone fraud,
so long as we have taken reasonable steps to verify the caller's identity. If
you wish to cancel the telephone redemption feature for your account, please
notify us in writing.

EXCHANGING SHARES

The exchange privilege is a convenient way to buy shares in each Fund in order
to respond to changes in your investment goals or in market conditions. You may
exchange your shares for shares of the same class of another Fund at no cost to
you (or, if you hold D Class Shares of the Orbitex Focus 30 Fund, you may
exchange them for Class A Shares of another Orbitex Fund). If you establish a
new account by exchange, the exchanged shares must have a minimum value of
$2,500. All subsequent exchanges must have a minimum value of $250 per Fund. You
may exchange shares either by telephone, if you have not canceled your telephone
privilege, or in writing. Written requests for exchange must provide the
following:

- - current Fund's name;

- - account names and numbers;

- - name of the Fund you wish to exchange your shares into;

- - the amount you wish to exchange;

- - specify the shareholder privileges you wish to retain (e.g., Telephone
Privileges); and

- - signatures of all registered owners.

To exchange shares by telephone, you should call 1-888-ORBITEX between 8:30 a.m.
and 4:00 p.m. Eastern time on any day the Funds are open. We will process
telephone requests made after 4:00 p.m. Eastern Time at the close of business on
the next business day. You should notify the Funds in writing of all shareholder
service privileges you wish to continue in any new account opened by a telephone
exchange request.

Please note that we will only accept exchanges if your ownership registrations
in both accounts are identical.

We will value your exchanged shares at their respective net asset value next
determined after the receipt of the exchange request. We will not impose an
initial sales charge, redemption fee or penalty on exchanges. Please note that
an exchange may have tax consequences for you. We reserve the right to modify or
terminate the exchange privilege upon sixty days' written notice to you.

TRANSFERRING REGISTRATION

You can transfer the registration of your shares in an Orbitex Fund to another
owner by completing a transfer form and sending to American Data Services, Inc.,
P.O. Box 5786, Hauppauge, New York 11788-0786.

Prospectus - 53
<PAGE>
- --------------------------------------------------------------------------------
PRICING OF FUND SHARES

Each Fund's net asset value for each class of shares or NAV is calculated on
each day that the New York Stock Exchange is open. The NAV is the value of a
single share of a Fund. The administrators calculate the NAV for each Fund they
administer at the close of business of the New York Stock Exchange, normally
4:00 p.m. Eastern time. The NAV is determined by subtracting the total of the
Fund's liabilities from its total assets and dividing the remainder by the
number of shares outstanding. The value of each Fund's total assets is generally
based on the market value of the securities that the Fund holds. If market
values are not available, we will determine the fair value of securities using
procedures that the Board of Trustees has approved. We will also fair value
securities whose values are materially affected by events occurring after the
closing of a foreign market. In those circumstances where a security's price is
not considered to be market indicative, the security's valuation may differ from
an available market quotation. Foreign securities may be traded in their primary
markets on weekends or other days when the Fund does not price its shares.
Therefore, the NAV of Funds holding foreign securities may change on days when
shareholders will not be able to buy or redeem their Fund shares.

- --------------------------------------------------------------------------------
DISTRIBUTIONS

As a shareholder, you are entitled to your share of a Fund's net income and
capital gains on its investments. Each Fund passes substantially all of its
earnings along to its investors as distributions. When a Fund earns dividends
from stocks and interest from bonds and other debt securities and distributes
these earnings to shareholders, it is called a dividend distribution. A Fund
realizes capital gains when it sells securities for a higher price than it paid.
When net long-term capital gains are distributed to shareholders, it is called a
capital gain distribution. Net short-term capital gains are considered ordinary
income and are included in dividend distributions.

Long-term vs. Short-term capital gains:
- Long-term capital gains are realized on securities held for more than
one year and are part of your capital gain distribution.
- Short-term capital gains are realized on securities held less then one
year and are part of your dividend distributions.

The Orbitex Focus 30 Fund distributes dividends quarterly, and capital gains
annually. The capital gain distributions will typically be declared and paid in
December.

The other Orbitex Funds distribute dividends and capital gains annually. These
distributions will typically be declared and paid in December.

You will receive distributions from a Fund in additional shares of the Fund
unless you choose to receive your distributions in cash. If you wish to change
the way in which you receive distributions, you should call 1-888-ORBITEX for
instructions.

If you have elected to receive distributions in cash, and the postal or other
delivery service returns your check to the Funds as undeliverable, you will not
receive interest on amounts represented by the uncashed checks.

Prospectus - 54
<PAGE>
- --------------------------------------------------------------------------------
FEDERAL TAX CONSIDERATIONS

Your investment will have tax consequences that you should consider. Some of the
more common federal tax consequences are described here but you should consult
your tax consultant about your particular situation. ALTHOUGH IT IS NOT AN
INVESTMENT OBJECTIVE, THE FUNDS' ADVISER WILL ATTEMPT TO TAKE INTO ACCOUNT THE
TAX CONSEQUENCES OF ITS INVESTMENT DECISIONS. However, there may be occasions
when the Adviser's investment decisions will result in a negative tax
consequence for the Funds' shareholders.

TAXES ON DISTRIBUTIONS

You will generally be subject to pay federal income tax and possibly state taxes
on all Fund distributions. Your distributions will be taxed in the same manner
whether you receive the distributions in cash or additional shares of the Fund.
Distributions that are derived from net long-term capital gains will generally
be taxed as long-term capital gains. The rate of tax will depend on how long the
Fund held the securities on which it realized the gains. In general, for
individual shareholders, the maximum capital gain rate is 20 percent. All other
distributions, including short-term capital gains, will be taxed as ordinary
income. The Fund sends detailed tax information to its shareholders about the
amount and type of its distributions by January 31 for the prior calendar year.

TAXES ON SALES OR EXCHANGES

If you redeem your shares of a Fund, or exchange them for shares of another
Fund, you will be subject to tax on any taxable gain. Your taxable gain or loss
is computed by subtracting your tax basis in the shares from the redemption
proceeds (in the case of a sale) or the value of the shares received (in the
case of an exchange). Because your tax basis depends on the original purchase
price and on the price at which any dividends may have been reinvested, you
should keep your account statements so that you or your tax preparer will be
able to determine whether a sale or exchange will result in a taxable gain or
loss.

"BUYING A DIVIDEND"

Unless your investment is in a tax-deferred account, you may want to avoid
investing in a Fund close to the date of a distribution because you pay the full
pre-distribution price for your shares and then receive part of your investment
back as a taxable distribution.

TAX WITHHOLDING

The Funds may be required to withhold U.S. federal income tax at the rate of 31%
from all taxable distributions and from proceeds from certain sales and
exchanges payable to shareholders who fail to provide the Funds with their
correct taxpayer identification number or to make required certifications, or
who have been notified by the IRS that they are subject to backup withholding.
Any such withheld amounts may be credited against the shareholder's U.S. federal
income tax liability.

Prospectus - 55
<PAGE>
- --------------------------------------------------------------------------------
MANAGEMENT

INVESTMENT ADVISER
Orbitex Management, Inc., is the Funds' investment adviser (the "Adviser"). The
Adviser's address is 410 Park Avenue, New York, NY 10022. The Adviser is an
affiliate of Orbitex Management Ltd., an investment adviser that provides
investment services to individuals and institutions including Canadian unit
trusts.

As compensation for its services, each of the following Funds paid the Adviser a
fee for the fiscal year ended April 30, 1999, at the annualized rate (expressed
as a percentage of average daily net assets) of 0% for the Growth Fund, 0% for
the Info-Tech & Communications Fund, 0% for the Strategic Natural Resources
Fund. On February 28, 1999, the Adviser began managing the ASM Index 30 Fund,
pursuant to an interim advisory agreement. During the period February 28, 1999
through June 30, 1999, the Focus 30 Fund paid the Adviser at the annualized rate
of 0.08%. As of July 12, 1999, the Health & Biotechnology Fund had not commenced
operations.

OTHER SERVICE PROVIDERS

The Funds rely on other companies to provide necessary services for their
day-to-day operations. Below is a list of these service providers. American Data
Services, Inc. is expected to become an affiliate of Orbitex Management, Inc. in
July 1999.

ADMINISTRATOR FOR THE TRUST

American Data Services, Inc.
The Hauppauge Corporate Center
150 Motor Parkway
Hauppauge, New York 11788

SUB-ADMINISTRATOR FOR THE GROWTH FUND, INFO-TECH & COMMUNICATIONS FUND AND
STRATEGIC NATURAL RESOURCES FUND

State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110

CUSTODIAN FOR TRUST

State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110

DISTRIBUTOR

Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109

TRANSFER AND DIVIDEND DISBURSING AGENT FOR THE GROWTH FUND, INFO-TECH &
COMMUNICATIONS FUND AND STRATEGIC NATURAL RESOURCES FUND

Boston Financial Data Service, Inc.
Two Heritage Drive
North Quincy, Massachusetts 02171

TRANSFER AND DIVIDEND DISBURSING AGENT FOR THE FOCUS 30 FUND AND HEALTH &
BIOTECHNOLOGY FUND

American Data Services, Inc.
The Hauppauge Corporate Center
150 Motor Parkway
Hauppauge, New York 11788

COUNSEL

Rogers & Wells LLP
200 Park Avenue
New York, New York 10166

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110

Prospectus - 56
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

[LOGO]

FINANCIAL HIGHLIGHTS

The Financial Highlights table is intended to help you understand the Funds'
financial performance for the fiscal period ended April 30, 1999. Certain
information reflects financial results for a single Fund share. The total
returns in the table represent the rate that an investor would have earned or
lost on an investment in the Fund (assuming reinvestment of all dividends and
distributions). This information has been audited by PricewaterhouseCoopers LLP,
whose report, along with the Funds' financial statements, are included in the
Funds' annual report, which is available upon request.

FINANCIAL HIGHLIGHTS

Period Ended April 30, 1999

Financial Highlights For a Fund Share Outstanding Throughout the Period

<TABLE>
<CAPTION>
ORBITEX GROWTH FUND
-----------------------------------------------------------------
CLASS A SHARES CLASS A SHARES CLASS B SHARES
------------------- ------------------- ---------------------
FOR THE YEAR FOR THE PERIOD FOR THE PERIOD
ENDED ENDED ENDED
APRIL 30, 1999 (b) APRIL 30, 1998 (a) APRIL 30, 1999 (a)(b)
------------------- ------------------- ---------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......... $ 17.93 $ 15.00 $ 16.46
------ ------ ------
Income (Loss) from investment operations:
Net investment income (loss).............. (0.15) 0.26(e) (0.12)
Net realized and unrealized gain on
investments and foreign currency
related transactions................. 1.70 2.67 3.11
------ ------ ------
Total income from investment operations... 1.55 2.93 2.99
------ ------ ------
Less distributions from net investment
income..................................... (0.19) -- (0.21)
Less distributions from net realized gains.... (0.63) -- (0.63)
------ ------ ------
Total distributions from net investment
income and net realized gains........ (0.82) -- (0.84)
------ ------ ------
NET ASSET VALUE, END OF PERIOD................ $ 18.66 $ 17.93 $ 18.61
------ ------ ------
------ ------ ------
TOTAL RETURN(c)............................... 9.07% 19.53% 18.61%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)...... $ 1,422 $ 891 $ 54
Ratio of expenses to average net
assets(d)............................ 1.93% 2.11% 2.03%
Ratio of net expenses to average net
assets (net of custodial
credits)(d).......................... 1.88% 1.60% 2.00%
Ratio of total expenses to average net
assets before waivers, reimbursements
and custodial credits(d)............. 23.92% 50.13% 18.75%
Ratio of net investment income (loss) to
average net assets(d)................ (0.85)% 4.41%(e) (1.05)%
Portfolio turnover rate................... 957% 448% 957%
</TABLE>

- ------------------------------

<TABLE>
<C> <S>
(a) The commencement of investment operations was October 22, 1997 and
September 16, 1998 for Growth Fund Class A Shares and Class B Shares,
respectively.
(b) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period.
(c) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains distributions, and assume no
sales charge. Had the Adviser, Administrator, Custodian and Distributor not
absorbed a portion of the expenses, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(d) Annualized for periods less than one year.
(e) Net investment income per share and the net investment income ratio would
have been lower without a certain investment strategy followed by the
Adviser during the current fiscal year.
</TABLE>

Prospectus - 57
<PAGE>

<TABLE>
<CAPTION>
ORBITEX INFO-TECH &
COMMUNICATIONS FUND
-----------------------------------------------------------
CLASS A SHARES CLASS A SHARES CLASS B SHARES
--------------- ------------------- -------------------
FOR THE YEAR FOR THE PERIOD FOR THE PERIOD
ENDED ENDED ENDED
APRIL 30, 1999 APRIL 30, 1998 (a) APRIL 30, 1999 (a)
--------------- ------------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......... $ 19.62 $ 15.00 $ 18.23
------- ------ -------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:.....
Net investment loss....................... (0.08) 0.00 (0.08)
Net realized and unrealized gain on
investments and foreign currency
related transactions................. 11.26 4.62 12.51
------- ------ -------
Total income from investment operations... 11.18 4.62 12.43
------- ------ -------
Less distributions from net investment
income..................................... -- -- --
Less distributions from net realized gains.... (0.18) -- (0.18)
------- ------ -------
Total distributions from net investment
income and net realized gains........ (0.18) -- (0.18)
------- ------ -------
NET ASSET VALUE, END OF PERIOD................ $ 30.62 $ 19.62 $ 30.48
------- ------ -------
------- ------ -------
TOTAL RETURN(b)............................... 57.43% 30.80% 68.67%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)...... $ 34,335 $ 2,440 $ 18,904
Ratio of expenses to average net
assets(c)............................ 2.07% 2.88% 2.41%
Ratio of net expenses to average net
assets (net of custodial
credits)(c).......................... 2.07% 2.40% 2.40%
Ratio of total expenses to average net
assets before waivers, reimbursements
and custodial credits(c)............. 4.04% 39.06% 4.41%
Ratio of net investment loss to average
net assets(c)........................ (0.70)% (1.27)% (1.40)%
Portfolio turnover rate................... 360% 76% 360%
</TABLE>

- ------------------------------

<TABLE>
<C> <S>
(a) The commencement of investment operations was October 22, 1997 and
September 16, 1998 for Info-Tech & Communications Fund Class A Shares and
Class B Shares, respectively.
(b) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains distributions, and assume no
sales charge. Had the Adviser, Administrator, Custodian and Distributor not
absorbed a portion of the expenses, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(c) Annualized for periods less than one year.
</TABLE>

Prospectus - 58
<PAGE>

<TABLE>
<CAPTION>
ORBITEX STRATEGIC NATURAL RESOURCES FUND
------------------------------------------------------------------------
CLASS A SHARES CLASS A SHARES CLASS B SHARES
------------------ ------------------ ------------------
FOR THE PERIOD
FOR THE YEAR FOR THE PERIOD ENDED
ENDED ENDED APRIL 30, 1999
APRIL 30, 1999 (b) APRIL 30, 1998 (a) (a)(b)
------------------ ------------------ ------------------
<C> <S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......... $ 16.54 $ 15.00 $ 12.22
------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment gain (loss)................ 0.00 0.38(e) (0.05)
Net realized and unrealized gain (loss) on
investments and foreign currency
related transactions................. (1.25) 1.22 3.21(g)
------ ------ ------
Total income (loss) from investment
operations........................... (1.25) 1.60 3.16
------ ------ ------
Less distributions from net investment
income..................................... (0.37) (0.03) (0.40)
Less distributions from net realized gains.... 0.00(f) (0.03) 0.00(f)
------ ------ ------
Total distributions from net investment
income and net realized gains........ (0.37) (0.06) (0.40)
------ ------ ------
NET ASSET VALUE, END OF PERIOD................ $ 14.92 $ 16.54 $ 14.98
------ ------ ------
------ ------ ------
TOTAL RETURN(c)............................... (6.86)% 10.74% 26.92%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)...... $ 4,286 $ 5,698 $ 408
Ratio of expenses to average net
assets(d)............................ 2.19% 2.45% 2.40%
Ratio of net expenses to average net
assets (net of custodial
credits)(d).......................... 2.17% 2.40% 2.40%
Ratio of total expenses to average net
assets before waivers, reimbursements
and custodial credits(d)............. 8.76% 9.27% 8.49%
Ratio of net investment income (loss) to
average net assets(d)................ 0.00% 6.12%(e) (0.66)%
Portfolio turnover rate................... 921% 519% 921%
</TABLE>

- ------------------------------

(a) The commencement of investment operations was October 23, 1997 and
September 21, 1998 for Strategic Natural Resources Fund Class A Shares and
Class B Shares, respectively.
(b) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period.
(c) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains distributions, and assume no
sales charge. Had the Adviser, Administrator, Custodian and Distributor not
absorbed a portion of the expenses, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(d) Annualized for periods less than one year.
(e) Net investment income per share and the net investment income ratio would
have been lower without a certain investment strategy followed by the
Adviser during the current fiscal year.
(f) Amount represents less than $0.01 per share.
(g) The amount shown may not accord with the change in aggregate gains and
losses of portfolio securities due to the timing of sales and redemptions
of Fund shares.

Prospectus - 59
<PAGE>

<TABLE>
<CAPTION>
ORBITEX FOCUS 30 FUND CLASS D(1)
------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31
------------------------------------------------------------------------------
1998 1997 1996 1995 (a) 1994 (a)
SIX MONTHS ---------- ---------- ---------- ---------- ----------
ENDED
APRIL 30,
1999 (b)
-----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD..................... $ 19.02 $ 17.21 $ 14.13 $ 11.37 $ 9.78 $ 10.07
----------- ---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS:
Net investment income
(loss)............... (0.12) 0.32 0.18 0.08 -- 0.56
Net gains (losses) from
investments (realized
and unrealized)...... 4.62 2.54 3.34 2.76 1.77 (0.16)
----------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations........... 4.50 2.86 3.52 2.84 1.77 0.40
----------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS:
From net investment
income............... (0.17) (0.27) (0.18) (0.07) (0.05) (0.52)
In excess of net
investment income.... -- -- (0.11) (0.01) (0.13) --
From net realized gains... (1.23) (0.78) (0.15) -- -- --
Tax return of capital..... -- -- -- -- -- (0.17)
----------- ---------- ---------- ---------- ---------- ----------
Total distributions....... (1.40) (1.05) (0.44) (0.08) (0.18) (0.69)
----------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF
PERIOD..................... $ 22.12 $ 19.02 $ 17.21 $ 14.13 $ 11.37 $ 9.78
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN.................. 24.93%(2) 17.13% 25.18% 25.01% 18.10% 3.97%
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)................ $ 27,426 $ 29,535 $ 21,127 $ 9,315 $ 9,704 $ 7,277
Ratio of expenses to
average net
assets*.............. 2.85%(2)(c) 0.18% 0.42% 1.86% 3.01%** 0.75%
Ratio of net investment
income (loss) to
average net
assets*.............. (1.14%)(3) 1.60% 1.15% 0.53% 0.04% 2.17%
Portfolio turnover
rate***.............. 30.20%(2) 196.35% 264.69% 391.00% 340.00% 1193.00%
- --------------------------------------------------------------------------------------------------------------------------------
* Ratios are presented net of fees voluntarily reduced. If such voluntary fee reductions had not occured, the ratios would
have been as follows:
Ratio of expenses to
average net assets....... 4.09%(3) 0.91% 1.05% 2.59% 5.77% 2.94%
Ratio of net investment
income (loss) to average
net assets................ (2.38%)(3) 0.87% 0.88% (0.20%) (2.72%) (0.02%)

As a result of certain tax adjustments necessitated by the Fund's failure to qualify as a regulated investment company for
the years ended October 31, 1995 and 1994, as well as other adjustments, the gross expense ratios previously reported for
these periods have been restated.

** Includes $50,460 of interest expense not subject to the expense reimbursement agreement.

*** The Fund continues to be as fully invested in equities as possible. Therefore, portfolio turnover is higher than most equity
mutual funds because purchases and sales of securities are necessary for settlement of transactions requested by Fund
shareholders.

(1) This information reflects the operation of the ASM Index 30 Fund, Inc., which was reorganized into Class D Shares of the
Orbitex Focus 30 Fund on or about July 12, 1999.

(2) Not Annualized

(3) Annualized

(a) Audited by predecessor auditor.

(b) Prior to March 1, 1999, Vector Index Advisors, Inc. served the ASM Index 30 Fund, Inc. as investment advisor.

(c) Ratio includes amounts related to the general operating expnese and general reserve expense recognized as a result of the
termination of the investment advisory agreement with the former Advisor (see Note 2 of the Notes to Financial Statements).
If such expenses had not been incurred, the ratio of expense to average net assets would be 0.57% (annualized).
</TABLE>

Prospectus - 60
<PAGE>
WHERE TO GO FOR MORE INFORMATION:

You will find more information about the Orbitex Group of Funds in the following
documents:

- ANNUAL AND SEMI-ANNUAL REPORTS: Our annual and semi-annual reports list
the holdings in each Fund, describe each Fund's performance, include
financial statements for the Funds, and discuss the market conditions and
strategies that significantly affected the Funds' performance during
their last fiscal year.

- STATEMENT OF ADDITIONAL INFORMATION ("SAI"): The Statement of Additional
Information contains additional and more detailed information about each
Fund.

The SAI and the financial statements included in the current annual and
semi-annual reports are incorporated by reference into (and are thus a part of)
this Prospectus.

THERE ARE THREE WAYS TO GET A COPY OF THESE DOCUMENTS:

1. Call or write for one, and a copy will be sent without charge.

ORBITEX GROUP OF FUNDS
C/O AMERICAN DATA SERVICES, INC.
P.O. BOX 5786
HAUPPAUGE, NEW YORK 11788-0786
1-888-ORBITEX (OR 1-888-672-4839)
WWW.ORBITEXUSA.COM

2. Call or write the Public Reference Room of the Securities and Exchange
Commission ("SEC") and ask them to mail you a copy. The SEC charges a fee for
this service. You can also go to the Public Reference Room and copy the
documents while you are there. Information about the Public Reference Room may
be obtained by calling the number below.

PUBLIC REFERENCE ROOM OF THE SEC
WASHINGTON, D.C. 20549-6009
1-800-SEC-0330

3. Go to the SEC's website (www.sec.gov) and download a free text-only version.

IF YOU ARE A CURRENT FUND SHAREHOLDER WOULD LIKE INFORMATION ABOUT YOUR ACCOUNT,
ACCOUNT TRANSACTIONS, OR ACCOUNT STATEMENTS, PLEASE CALL US AT 1-888-ORBITEX (OR
1-888-672-4839)

IF YOU PURCHASED YOUR SHARES THROUGH A FINANCIAL INSTITUTION, YOU MAY CONTACT
THAT INSTITUTION FOR MORE INFORMATION.

The Orbitex Group of Funds' Investment Company Act File Number is 811-8037.

Prospectus - 61
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS

<TABLE>
<S> <C>
THE FUND AT A GLANCE..................................................................................... 3

FUND DETAILS............................................................................................. 5

MORE INFORMATION ABOUT RISKS............................................................................. 6

YOUR ACCOUNT............................................................................................. 7

Types of Accounts................................................................................ 7

Purchasing Shares................................................................................ 7

Shareholder Services Plan........................................................................ 7

Selling Shares................................................................................... 10

How to Reach the Fund............................................................................ 12

PRICING OF FUND SHARES................................................................................... 13

DISTRIBUTIONS............................................................................................ 13

FEDERAL TAX CONSIDERATIONS............................................................................... 13

Taxes on Distributions........................................................................... 13

Tax Withholding.................................................................................. 13

MANAGEMENT............................................................................................... 14

Investment Adviser............................................................................... 14

Investment Sub-Adviser........................................................................... 14

Other Service Providers.......................................................................... 14
</TABLE>

PLEASE READ THIS PROSPECTUS. This prospectus explains the objective, risks, and
policies of the Orbitex Cash Reserves Fund Institutional Shares. Reading the
prospectus will help you decide whether the Fund is the right investment for
you. The Prospectus also includes information that you will need to open your
account and to buy or sell (redeem) shares of the Fund. Please keep it for
future reference.

IMPORTANT NOTE. The Orbitex Cash Reserves Fund features two separate classes of
shares: Institutional Service Shares and Institutional Shares. Institutional
Service Shares are offered through this prospectus, and are available through
certain financial institutions. Institutional Shares of the Orbitex Cash
Reserves Fund require a minimum initial investment of $5 million, and are
offered through a separate prospectus. Unlike the Institutional Service Shares
offered here, Institutional Shares are not subject to a shareholder services
fee; as a result, the performance of these two classes will differ.

UNLESS OTHERWISE INDICATED, ALL REFERENCES IN THIS PROSPECTUS TO THE FEES,
EXPENSES, OR INVESTMENT PERFORMANCE OF THE ORBITEX CASH RESERVES FUND RELATE
SPECIFICALLY TO THE INSTITUTIONAL SERVICE SHARES OF THE FUND.

<PAGE>
- --------------------------------------------------------------------------------
THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

This risk/return summary briefly describes the Orbitex Cash Reserves Fund's
goals, principal investments, risks, expenses and performance. For further
information on how this Fund is managed, please read the section entitled "Fund
Details."

[LOGO]
INVESTMENT OBJECTIVE
The objective of the Orbitex Cash Reserves Fund is to provide
current income while maintaining liquidity and a stable share price of $1.00.

PRINCIPAL INVESTMENTS

[LOGO]
The Fund invests primarily in high-quality, short-term money
market instruments,
including commercial paper, notes and bonds issued by U.S.
corporations, obligations issued by the U.S. Government and its agencies and
instrumentalities, and obligation issued by U.S. and foreign banks, such as
banker's acceptances and certificates of deposit. The Fund also invests in
repurchase agreements backed by U.S. Government obligations.

To be considered high-quality, a security generally must be rated in one of the
two highest credit-quality categories for short-term securities by at least two
nationally recognized rating services (or by one, if only one rating service has
rated the security). If a security is unrated, the Adviser or Sub-adviser must
determine that it is a quality equivalent to those in the two highest
credit-quality categories.

The Fund will maintain an average portfolio maturity of 90 days or less.

[LOGO]
PRINCIPAL RISKS
Although money market funds are considered to be among the safest of
all investments, they are not risk free. Here are the main risks associated with
an investment in the Fund:

- - INTEREST RATE RISK: The yield paid by the Fund will vary with changes in
short-term interest rates. Falling short-term interest rates will cause the
Fund's income to decline.

- - CREDIT RISK: Because the Fund only invests in high quality obligations,
credit risk is very low. Nevertheless, if an issuer fails to pay interest or
repay principal, the value of your investment could decline.

- - REPURCHASE AGREEMENTS. Repurchase agreements carry the risk that the other
party may not fulfill its obligations under the agreement. This could cause
the value of your investment to decline.

- - SHARE PRICE. There is no guarantee that the Fund will be able to preserve the
value of your investment at $1.00 per shares.

- - INFLATION RISK: There is a possibility that rising prices of goods and
services may have the effect of offsetting the Fund's total return.

- - SELECTION OF INVESTMENTS. The Adviser and Sub-adviser evaluate the risk and
reward presented by all securities purchased by the Fund and how they advance
the Fund's investment objective. It is possible, however, that these
evaluations may be inaccurate.

AN INVESTMENT IN THE ORBITEX CASH RESERVES FUND IS NOT A DEPOSIT OF ANY BANK AND
IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER 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.

Prospectus - 3
<PAGE>
- --------------------------------------------------------------------------------
THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

We designed the ORBITEX CASH RESERVES FUND for investors who:

- are making short-term investments

- are investing emergency reserve money

- want to avoid high volatility or possible losses on their investment

- are seeking regular income consistent with these goals

The ORBITEX CASH RESERVES FUND is NOT appropriate for investors who seek one or
more of the following:

- high long-term growth

- a stock fund to serve as a core holding in an investor's portfolio

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses a blend of value and growth investment styles

- are seeking tax-exempt income

IF YOU ARE SEEKING INVESTMENTS WITH THESE CHARACTERISTICS, YOU MAY WISH TO
CONSIDER OTHER FUNDS IN THE ORBITEX GROUP OF FUNDS. TO OBTAIN A FREE PROSPECTUS,
PLEASE CALL US AT 1-888-ORBITEX (OR 1-888-672-4839).

No performance information is provided since the Fund had not commenced
operation as of the date of this Prospectus.

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Institutional Service Shares of the Orbitex Cash Reserves Fund.

<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND
ASSETS)
Management Fees 0.15%
Distribution and/or Service Fee (12b-1) Fees 0.00%
Other Expenses 0.40%*
-----
Total Annual Operating Expenses 0.55%**
-----
-----
</TABLE>

- --------------------------------------------------------------------------------

* Includes a shareholder service fee of 0.25% of the Fund's average daily net
assets. The Fund may pay financial institutions and investment professionals
for providing investment and account services a fee up to 0.25% of the total
assets attributable to Institutional Service Shares held by their customers.

** The information contained in the above table and the example below is based
upon the fee stated in the Fund's contract with the Adviser and the
estimated amount of Other Expenses for the current fiscal year of the
Institutional class of the Fund without taking into account any applicable
fee waivers and/or reimbursements. The Adviser has agreed voluntarily to
waive and/or reimburse fees and expenses to the extent necessary so that
Institutional Service Shares' total operating expenses do not exceed 0.50%,
of the Fund's average daily net assets, subject to possible reimbursement by
the Fund in future years if such reimbursement can be achieved within the
foregoing expense limits. Consequently, the Investment Adviser fees actually
charged may in the future be higher than reflected above, if consistent with
the limits on total operations expenses. The Adviser may discontinue such
fee waivers and/or expense reimbursements at any time, in its sole
discretion.

EXAMPLE

This example is intended to help you compare the cost of investing in the
Orbitex Cash Reserves Fund with the cost of investing in other money market
funds. The example assumes that you invest $10,000 in the Fund for the time
periods indicated and then sell all of your shares at the end of those periods.
The example also assumes that your investment has a 5% annual return, the
reinvestment of all dividends and distributions and that the Fund's operating
expenses remain the same as shown in the table above. Although your actual costs
and the return on your investment may be higher or lower, based on these
assumptions your costs would be:

Prospectus - 4
<PAGE>
- --------------------------------------------------------------------------------
FUND DETAILS - ORBITEX CASH RESERVES FUND

INVESTMENT DETAILS OF THE ORBITEX CASH RESERVES FUND

[LOGO]
INVESTMENT OBJECTIVE

The objective of the Orbitex Cash Reserves Fund is to provide
current income while maintaining liquidity and a stable share price of $1.00.

PRINCIPAL INVESTMENT STRATEGIES

[LOGO]
The Fund invests in high quality, short-term money market
instruments. Money
market instruments are short-term investments, usually with a
maturity of 13 months or less. Some common money market instruments are:

- - Treasury bills and notes, which are securities issued by the U.S. government
or its agencies and instrumentalities.

- - Commercial paper, which is a promissory note issued by a large company or
financial firm

- - Banker's acceptances, which are credit instruments guaranteed by a bank;

- - Negotiable certificates of deposit, which are issued by banks in large
denominations.

Although the Fund may invest in banker's acceptances and certificates of deposit
issued by U.S. or foreign banks, it restricts its currency exposure to U.S.
dollars.

To be considered high-quality, a security generally must be rated in one of the
two highest credit-quality categories for short-term securities by at least two
nationally recognized rating services (or by one, if only one rating service has
rated the security). If a security is unrated, it must be determined by the
Adviser or Sub-adviser to be of quality equivalent to those in the two highest
credit-quality categories.

The Fund may also invest in repurchase agreements backed by U.S. Government
obligations. Repurchase agreements are transactions in which the Fund buys
securities from a seller (usually a bank or broker-dealer) that agrees to buy
them back from the Fund on a certain date and at a certain price.

When the Adviser or Sub-adviser anticipates that short-term interest rates will
decrease, the average maturity of the Fund's portfolio may be increased to
lock-in prevailing rates before the anticipated decrease in rates. Conversely,
when the Adviser or Sub-adviser anticipates that short-term interest rates will
increase, the average maturity of the portfolio may be reduced. In any event,
the Fund will maintain a dollar-weighed average maturity of 90 days or less and
will not invest in securities with remaining maturity of more than 397 days.

INVESTMENT ADVISER

Orbitex Management, Inc., is the Funds' investment adviser ("Adviser"). The
Adviser's address is 410 Park Avenue, New York, NY 10022. The Adviser is an
affiliate of Orbitex Management Ltd., an investment adviser that provides
investment services to individuals and institutions including Canadian unit
trusts.

INVESTMENT SUB-ADVISER

Harris Investment Management, Inc. (Harris Management) is the investment
sub-adviser. The sub-adviser's address is 190 S. LaSalle St., Chicago, Illinois
60690. Harris Management was organized and exists under the laws of the State of
Delaware and registered pursuant to the Investment Advisers Act of 1940. Harris
Management is a wholly-owned subsidiary of Harris Bankcorp, Inc. Harris Bankcorp
is a wholly-owned subsidiary of Bankmont Financial Corp, which in turn is a
wholly-owned subsidiary of Bank of Montreal, a publicly-traded Canadian banking
institution. Harris Management serves as portfolio management agent for the
Harris Insight-Registered Trademark- Funds. As of March 31, 1999, Harris
Investment Management, Inc. managed approximately $13.4 billion of discretionary
assets.

PORTFOLIO MANAGER

Randall T. Royther, is the portfolio manager for the Orbitex Cash Reserves Fund.
Mr. Royther joined Harris Trust in 1990 and is a partner at Harris Investment
Management. He has ten years of investment management experience and was
appointed portfolio manager of the Government Money Market Fund in 1995 and of
the Money Market Fund in 1995.

Prospectus - 5
<PAGE>
- --------------------------------------------------------------------------------
MORE INFORMATION ABOUT RISKS

[LOGO]
The main risks associated with an investment in the Orbitex Cash Reserves Fund
have been described above. The following supplements that discussion.

YEAR 2000: The Funds' operations depend on the seamless functioning of computer
systems in the financial service industry, including those of the Adviser, the
Sub-Adviser, the Administrator, the Custodian, Distributor and the Transfer
Agent. Many computer software systems in use today cannot properly process
date-related information after December 31, 1999. The "Year 2000" issue stems
from the use of a two-digit format to define the year in certain date-sensitive
application systems rather than the use of a four-digit format. As a result,
date-sensitive software programs could recognize a date using "00" as the year
1900 rather than the year 2000. This could result in major systems or process
failures or the generation of erroneous data, which would lead to disruptions in
the Funds' business operations.

The Adviser and Sub-Adviser have made compliance with the Year 2000 issue a high
priority and are taking steps to address the issue with respect to its computer
systems. The Funds' major service providers have informed the Adviser that they
are taking comparable steps. The Adviser does not currently believe that the
Year 2000 issue will have a material impact on its ability to continue to
fulfill its duties as investment adviser. In addition, the issuers of securities
the Fund own could have Year 2000 computer problems. These problems could
negatively affect the value of their securities, which, in turn, could impact
the Fund's performance. An issuer's Year 2000 readiness is only one of many
factors the Adviser or Sub-Adviser may consider when making investment
decisions, and other factors may receive greater weight.

Prospectus - 6
<PAGE>
- --------------------------------------------------------------------------------
YOUR ACCOUNT

This section describes the services that are available to shareholders.

[LOGO]

TYPES OF ACCOUNTS

If you are making an initial investment in the Funds, you will need to open an
account. You may establish the following types of accounts:

- - TRUST. A trust can open an account. You must include the name of each
trustee, the name of the trust and the date of the trust agreement on the
application.

PURCHASING SHARES

Once you have chosen the type of account you are ready to establish an account.

Institutional Service Shares of the Orbitex Cash Reserves Fund are available to
investors making a minimum initial investment of $25,000. The minimum for
subsequent investments is $1,000. The Trust or Adviser may waive or lower these
minimums in certain cases.

You may purchase Shares through a financial institution, investment professional
or directly from the Fund.

SHAREHOLDER SERVICES PLAN

The Trustees of the Orbitex Group of Funds has adopted a shareholders services
plan for Institutional Service Shares of the Orbitex Cash Reserves Fund. This
plan allows the Distributor to enter into shareholder services agreements on the
Fund's behalf with certain institutional investors ("Shareholder Service
Organizations"). Under these shareholder service agreements, the Fund may pay
fees to financial institutions and investment professionals for providing
investment and account services to their customers that hold Institutional
Service Shares of the Orbitex Cash Reserves Fund.

Because Institutional Service Shares pay these service fees on an ongoing basis,
your investment cost may be higher over time than Institutional Shares of the
Fund that are not subject to these shareholder service fees.

THROUGH A FINANCIAL INSTITUTION OR INVESTMENT PROFESSIONAL

You should contact your financial institution or investment professional to
establish an account.

After your account is established, submit your purchase order to your financial
institution or investment professional ("financial consultant") before 3:00 p.m.
Eastern time. If the financial consultant forwards the order to the Fund and the
Fund receives payment by 3:00 p.m. Eastern time, you will become the owner of
Shares and begin receiving dividends that day. If the Fund receives the order
and payment after 3:00 p.m. Eastern time, you will become the owner of the
Shares and begin earning dividends on the next day the Fund is open for
business.

Financial consultants should send payments according to the instructions in the
sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

You can establish your account with the Fund by submitting a completed account
application and sending your payment by Federal Reserve wire or check.

YOU MUST COMPLETE AND SIGN AN APPLICATION FOR EACH ACCOUNT YOU OPEN WITH THE
FUND.

The price for Fund shares is the Fund's net asset value per share (NAV). We
determine the NAV at 3:00 p.m. Eastern time every day that the Federal Reserve
Bank of New York is open. We will price your order at the next NAV calculated
after the Fund accepts your order. For more information on how we price shares,
see "Pricing of Fund Shares" on page 13.

Before your payment can be invested in the Orbitex Cash Reserves Fund, it must
be converted to "federal funds," which are Federal Reserve deposits that banks
and other financial institutions draw upon to meet short-term cash

Prospectus - 7
<PAGE>

needs, and which the Orbitex Cash Reserves Fund uses to pay for the securities
it buys.

If you or your financial consultant notifies us by 2:00 p.m. Eastern time that
you intend to purchase shares that day, and if we receive your purchase order
with the necessary information and your payment by federal funds wire by 3:00
p.m. Eastern time that same day, you will begin earning dividends on your
investment that day.

If you pay for your shares by check, it will typically take us one business day
to convert your payment to federal funds. Because of this conversion period, if
we receive your check before 3:00 p.m. Eastern time, your account will be
credited with the purchase, and normally you will begin earning dividends on the
next business day.

The Fund, the Adviser and the Distributor each reserve the right to reject any
purchase for any reason and to cancel any purchase due to non-payment. You must
make all purchases in United States dollars and draw all checks on United States
banks. If we cancel your purchase due to non-payment, you will be responsible
for any loss the Fund incurs. We will not accept cash or third-party checks for
the purchase of shares.

Prospectus - 8
<PAGE>

<TABLE>
<S> <C>
METHOD OF PURCHASE PROCEDURES
PURCHASE
THROUGH A Contact your financial consultant.
FINANCIAL
PROFESSIONAL
[LOGO]
THROUGH Funds Distributor, Inc. authorizes certain securities dealers, banks or other financial
SELLING GROUP service firms (collectively, "Selling Group Members") to sell you shares. To receive that
MEMBERS day's share price:
- you must place your order with the Selling Group Member before 2:00 p.m. Eastern time; and
[LOGO] - the Selling Group Member must transmit the order to the Funds before 3:00 p.m.
BY MAIL OR FAX Send your completed application with your check, payable to "Orbitex Group of Funds - Orbitex
Cash Reserves Fund" to:
[LOGO] Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0786
You may also fax your application. Our fax number is 1-516-951-0577. Please note that we
cannot open your account until we receive your payment by check or federal funds wire.
BY WIRE - INITIAL PURCHASE: Call the Fund at 1-888-ORBITEX for instructions and to receive an
account number. You will need to instruct a Federal Reserve System member bank to wire Funds
[LOGO] to: State Street Bank and Trust Company, ABA No. 011000028, Attn.: Custody, Credit:
Orbitex Cash Reserves Fund, DDA No. 51815926, FBO: [Shareholder Name], Orbitex Cash
Reserves Fund, [Shareholder Account Number]. You must also complete and mail or fax an
application to the address shown above under "By Mail."
- SUBSEQUENT PURCHASE: Wire Funds to the designated account at State Street Bank and Trust
Company.
You may wire funds between 8:30 a.m. and 3:00 p.m. Eastern time. To make a same-day wire
investment, please notify Orbitex by 2:00 p.m. Eastern time of your intention to wire Funds,
and make sure your wire arrives by 3:00 p.m. Eastern time. Please note that your bank may
charge a fee for the wire.
BY TELEPHONE If you have not declined or canceled your telephone investment privilege, you may make
subsequent purchases in your account by telephoning 1-888-ORBITEX between 8:30 a.m. and 3:00
[LOGO] p.m. Eastern time on any day the Fund is open. We will electronically transfer money from the
bank account you designate on your Application to your account with the Trust.
</TABLE>

Prospectus - 9
<PAGE>
<TABLE>
<S> <C>
IMPORTANT NOTES Once you have requested a telephone transaction, and a confirmation number has been assigned,
the transaction cannot be revoked. We reserve the right to refuse any purchase request.
You can redeem shares that you purchased by check. However, while we will process your
redemption request at the next-determined net asset value after we receive it, your
redemption proceeds will be not available until your check clears. This could take up to ten
calendar days.
</TABLE>

SELLING SHARES

You have the right to sell all or any part of your shares subject to certain
restrictions. Selling your shares in a Fund is a "redemption" because the Fund
buys back its shares. We will redeem your shares at the net asset value next
computed following receipt of your redemption request.

The Fund cannot accept requests that specify a certain date for redemption or
which specify any other special conditions.
Please call 1-888-ORBITEX for further information. WE WILL NOT PROCESS YOUR
REDEMPTION REQUEST IF IT IS NOT IN PROPER FORM (SEE CHART BELOW). WE WILL NOTIFY
YOU IF YOUR REDEMPTION REQUEST IS NOT IN PROPER FORM.

If, as a result of your redemption, your account value drops below $10,000, we
may redeem the remaining shares in your account. We will notify you in writing
of our intent to redeem your shares. We will allow at least sixty days
thereafter for you to make an additional investment to bring your account value
up to at least $25,000 before we will process the redemption.

<TABLE>
<S> <C>
METHOD OF REDEMPTION PROCEDURES
REDEMPTION

THROUGH A Contact your financial consultant.
FINANCIAL
PROFESSIONAL
[LOGO]

BY TELEPHONE You may authorize redemption of some or all shares in your account with the Fund by
telephoning the Fund at 1-888-ORBITEX between 8:30 a.m. and 3:00 p.m. Eastern time on any day
[LOGO] the Fund is open. You will not be eligible to use the telephone redemption service if you:
- Have declined or canceled your telephone investment privilege;
- wish to redeem less than $5,000; or,
- must provide supporting legal documents.
</TABLE>

Prospectus - 10
<PAGE>

<TABLE>
<S> <C>
BY MAIL You may mail a written request to Orbitex Group of Funds. Our mailing address is c/o American
Data Services, Inc. P.O. Box 5786 Hauppauge, New York 11788-0786. You must include the
[LOGO] following information in your written request:
- a letter of instruction stating the name of the Fund, the number of shares you are
redeeming, the names in which the account is registered and your account number;
- other supporting legal documents, if necessary, for redemption requests by corporations,
trusts and partnerships; and
- a signature guarantee when you request us to send the redemption proceeds to an address
other than the address of record or to a person other than the registered shareholder(s) for
the account.
BY FAX You may fax a written request to Orbitex Group of Funds. Our fax number is 1-516-951-0577. You
must include the following information in your written request:
- a letter of instruction stating the name of the Fund, the number of shares you are
redeeming, the names in which the account is registered and your account number;
NOTE: WE CANNOT ACCEPT A WRITTEN REDEMPTION REQUEST IF SUPPORTING LEGAL DOCUMENTS OR A
SIGNATURE GUARANTEE IS NECESSARY FOR THE REQUEST TO BE IN "GOOD ORDER."
REQUEST IN For our mutual protection, your redemption request must include:
"GOOD ORDER" - your account number
- the amount of the transaction
- for mail request, signatures of all owners EXACTLY as registered on the account
- signature guarantees, if required (signature guarantees can be obtained at most banks,
credit unions, and licensed brokers
- any supporting legal documentation that may be required
YOUR REDEMPTION REQUEST WILL BE PROCESSED AT THE NEXT-DETERMINED SHARE PRICE AFTER WE HAVE
RECEIVED ALL REQUIRED INFORMATION.
IMPORTANT NOTE Once we have processed your redemption request, and a confirmation number has been given, the
transaction CANNOT be revoked.
</TABLE>

Prospectus - 11
<PAGE>
TELEPHONE REDEMPTIONS.

Orbitex reserves the right to refuse a telephone redemption if the caller cannot
provide:

- - the account number

- - the name and address exactly as registered on the account

- - the primary social security or employer identification number as registered
on the account

We may also require a password from the caller.

Orbitex will not be responsible for any account losses due to telephone fraud so
long as we have taken reasonable steps to verify the caller's identity. If you
wish to cancel the telephone redemption feature for your account, please notify
us in writing.

OPTIONS FOR REDEMPTION PROCEEDS
You may receive your redemption proceeds by check or by wire.
CHECK REDEMPTIONS. Normally we will mail your check within two business days of
a redemption.
WIRE REDEMPTIONS. Before you can receive redemption proceeds by wire, you must
establish this option by completing a special form or the appropriate section of
your account application.
If we receive your request for a wire redemption by noon Eastern time, the wire
will arrive at your bank by the close of business that same day. Requests that
we receive later than noon Eastern time will arrive at your bank by the close of
business the following business day.

We require a minimum redemption of $5,000 in order to send your redemption
proceeds by wire.

TRANSFERRING REGISTRATION

You can transfer the registration of your shares in the Cash Reserves Fund to
another owner by completing a transfer form and sending it to American Data
Services, Inc., P.O. Box 5786, Hauppauge, New York 11788-0786.

HOW TO REACH THE FUND

<TABLE>
<S> <C>
We are available to answer your questions about the Fund or your account by telephone or by mail Monday
through Friday 8:30 a.m. to 5:30 p.m. Eastern time. Please note, however, that purchase or redemption requests
must be received by 3:00 p.m. Eastern time on a day the Fund is open for business. Purchase or redemption
requests received after 3:00 p.m. Eastern time will be executed on the next day that the Fund is open for
business.
BY TELEPHONE 1-888-ORBITEX (or 1-888-672-4839)
Call for account or Fund information
[LOGO]
BY REGULAR MAIL Orbitex Group of Funds
c/o American Data Services, Inc.
[LOGO] P.O. Box 5786
Hauppauge, New York 11788-0786
BY EXPRESS OR REGISTERED MAIL Orbitex Group of Funds
c/o American Data Services, Inc.
150 Motor Parkway
Hauppauge, New York 11788-0786
</TABLE>

Prospectus - 12
<PAGE>
- --------------------------------------------------------------------------------
PRICING OF FUND SHARES

The Fund's net asset value per share or NAV is calculated each day the Federal
Reserve Bank of New York is open. The NAV is the value of a single share of a
Fund. The NAV is calculated at 3:00 p.m. Eastern time. The NAV is determined by
subtracting the total of the Fund's liabilities from its total assets and
dividing the remainder by the number of shares outstanding. The securities in
the Fund's portfolio are valued at their amortized cost which does not

take into account unrealized gains or losses on securities. This method involves
initially valuing a security at its cost and thereafter assuming a constant
amortization to maturity of any premium paid or accreting discount. The
amortized cost method minimizes changes in the market value of the Fund's
portfolio securities and helps it maintain a stable price of $1.00 per share.
There can be no assurance, however, that the Fund will maintain its net asset
value at $1.00 per share.

- --------------------------------------------------------------------------------
DISTRIBUTIONS

As a shareholder, you are entitled to your share of a Fund's net income
(interest less expenses) and capital gains on its investments. The Orbitex Cash
Reserves Fund declares dividends from net investment income daily and pays them
the first business day after the end of each month. Although the Fund does not
expect to realize net long-term capital gains, any capital gains realized will
be distributed at least annually.

If you have elected to receive distributions in cash, and the postal or other
delivery service returns your check to the Fund as undeliverable, you will not
receive interest on amounts represented by the uncashed checks.

- --------------------------------------------------------------------------------
FEDERAL TAX CONSIDERATIONS

TAXES ON DISTRIBUTIONS

You will generally be subject to federal income tax and possibly state taxes on
all Fund distributions. Your distributions will be taxed in the same manner
whether you receive the distributions in cash or additional shares of the Fund.
The Fund expects that all, or substantially all, of its distributions will
consist of ordinary income. Taxable dividends paid in January may be taxable as
if they had been paid the previous December. The Fund sends detailed tax
information to its shareholders about the amount and type of its distributions
by January 31 for the prior calendar year.

TAX WITHHOLDING

The Fund may be required to withhold U.S. federal income tax at the rate of 31%
from all taxable distributions payable to shareholders who fail to provide the
Fund with their correct taxpayer identification number or to make required
certifications, or who have been notified by the IRS that they are subject to
backup withholding. Any such withheld amounts may be credited against the
shareholder's U.S. federal income tax liability.

OTHER STATE AND LOCAL TAX MATTERS

Generally, shareholders may also be subject to state and local taxes on
distributions and redemption. State income taxes may not apply, however, to the
portions of the Fund's distributions, if any, that are attributable to interest
on U.S. Government securities or on securities of the particular state.

Prospectus - 13
<PAGE>
- --------------------------------------------------------------------------------
MANAGEMENT

INVESTMENT ADVISER

Under the terms of an investment advisory agreement, the Adviser is responsible
for formulating the Funds' investment programs and for making day-to-day
investment decisions and engaging in portfolio transactions. The Adviser also
furnishes corporate officers, provides office space, services and equipment and
supervises all matters relating to the Fund's operations. The advisory agreement
also provides that the Adviser may retain sub-advisers at the Adviser's own cost
and expense, for the purpose of managing the investment of the assets of one or
more Funds.

As compensation for its services, the Fund pays the Adviser a fee at an
annualized rate of 0.15% of the Fund's average daily net assets.

INVESTMENT SUB-ADVISER

OTHER SERVICE PROVIDERS

The Fund also relies on other companies to provide necessary services for its
day-to-day operations. Below is a list of these service providers. American Data
Services, Inc. is expected to become an affiliate of Orbitex Management, Inc. in
July 1999.

ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT

American Data Services, Inc.
The Hauppauge Corporate Center
150 Motor Parkway
Hauppauge, New York 11788

DISTRIBUTOR

Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109

CUSTODIAN

State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110

COUNSEL

Rogers & Wells LLP
200 Park Avenue
New York, New York 10166

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110

Prospectus - 14
<PAGE>
WHERE TO GO FOR MORE INFORMATION:

You will find more information about the Orbitex Group of Funds in the following
documents:

- - ANNUAL AND SEMI-ANNUAL REPORTS: Our annual and semi-annual reports list the
Fund's holdings, describe its performance, include financial statements for
the Fund, and discuss the market conditions and strategies that significantly
affected the Fund's performance during their last fiscal year.

- - STATEMENT OF ADDITIONAL INFORMATION: The Statement of Additional Information
contains additional and more detailed information about the Fund, and is
incorporated by reference into this prospectus (it is considered to be a part
of this Prospectus).

The SAI and the financial statements included in the current annual and
semi-annual reports are incorporated by reference into (and are thus a part of)
this prospectus.

THERE ARE THREE WAYS TO GET A COPY OF THESE DOCUMENTS:

1. Call or write for one, and a copy will be sent without charge.

ORBITEX GROUP OF FUNDS
C/O AMERICAN DATA SERVICES, INC.
P.O. BOX 5786
HAUPPAUGE, NEW YORK 11788-0786
1-888-ORBITEX (OR 1-888-672-4839)
WWW.ORBITEXUSA.COM

2. Call or write the Public Reference Room of the Securities and Exchange
Commission ("SEC") and ask them to mail you a copy. The SEC charges a fee
for this service. You can also go to the Public Reference Room and copy the
documents while you are there. Information about the Public Reference Room
may be obtained by calling the number below.

PUBLIC REFERENCE ROOM OF THE SEC
WASHINGTON, D.C. 20549-6009
1-800-SEC-0330

3. Go to the SEC's website (www.sec.gov) and download a free text-only version.

IF YOU ARE A CURRENT FUND SHAREHOLDER WOULD LIKE INFORMATION ABOUT YOUR ACCOUNT,
ACCOUNT TRANSACTIONS, OR ACCOUNT STATEMENTS, PLEASE CALL US AT 1-888-ORBITEX (OR
1-888-672-4839)

IF YOU PURCHASED YOUR SHARES THROUGH A FINANCIAL INSTITUTION, YOU MAY CONTACT

THAT INSTITUTION FOR MORE INFORMATION.

The Orbitex Group of Funds Investment Company Act File Number is 811-8037.

Prospectus - 15
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS

<TABLE>
<S> <C>
THE FUNDS AT A GLANCE.................................................................................... 3

FUND DETAILS............................................................................................. 5

MORE INFORMATION ABOUT RISKS............................................................................. 6

YOUR ACCOUNT............................................................................................. 7

Types of Accounts................................................................................ 7

Purchasing Shares................................................................................ 7

Selling Shares................................................................................... 8

How to Reach the Fund............................................................................ 10

PRICING OF FUND SHARES................................................................................... 11

DISTRIBUTIONS............................................................................................ 11

FEDERAL TAX CONSIDERATIONS............................................................................... 11

Taxes on Distributions........................................................................... 11

Tax Withholding.................................................................................. 11

MANAGEMENT............................................................................................... 12

Investment Adviser............................................................................... 12

Investment Sub Adviser........................................................................... 12

Other Service Providers.......................................................................... 12
</TABLE>

IMPORTANT NOTE. The Orbitex Cash Reserves Fund features two separate classes of
shares: Institutional Shares and Institutional Service Shares. Institutional
Shares of the Cash Reserves Fund require a minimum initial investment of $5
million, and are offered through this prospectus. Institutional Service Shares
are available through certain financial institutions, and are offered through a
separate prospectus. Institutional Shares and Institutional Service Shares do
not have the same expenses; as a result, the performance of these two classes
will differ.

<PAGE>
- --------------------------------------------------------------------------------
THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

[LOGO]
INVESTMENT OBJECTIVE

- The objective of the Orbitex Cash Reserves Fund is to provide
current income while maintaining liquidity and a stable share
price of $1.00.

PRINCIPAL INVESTMENTS

The Fund will maintain an average portfolio maturity of 90 days or less.

[LOGO]
PRINCIPAL RISKS

Although money market funds are considered to be among the safest of
all investments, they are not risk free. Here are the main risks associated with
an investment in the Fund:

- - INTEREST RATE RISK: The yield paid by the Fund will vary with changes in
short-term interest rates. Falling short-term interest rates will cause the
Fund's income to decline.

- - REPURCHASE AGREEMENTS. Repurchase agreements carry the risk that the other
party may not fulfill its obligations under the agreement. This could cause
the value of your investment to decline.

- - SHARE PRICE. There is no guarantee that the Fund will be able to preserve the
value of your investment at $1.00 per shares.

- - INFLATION RISK: There is a possibility that rising prices of goods and
services may have the effect of offsetting the Fund's total return.

Prospectus - 3
<PAGE>
- --------------------------------------------------------------------------------
THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

We designed the ORBITEX CASH RESERVES FUND for investors who:

- are making short-term investments

- are investing emergency reserve money

- want to avoid high volatility or possible losses on their investment

- are seeking regular income consistent with these goals

The ORBITEX CASH RESERVES FUND is NOT appropriate for investors who seek one or
more of the following:

- high long-term growth

- a stock fund to serve as a core holding in an investor's portfolio

- a stock fund to complement a portfolio of more conservative investments

- a stock fund that uses a blend of value and growth investment styles

- are seeking tax-exempt income

No performance information is provided since the Fund had not commenced
operations as of the date of this Prospectus.

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
Institutional Shares of the Orbitex Cash Reserves Fund.

<TABLE>
<S> <C>
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 0.15%
Distribution and/or Service Fee (12b-1) Fees 0.00%
Other Expenses 0.15%
-----
Total Annual Operating Expenses 0.30%*
-----
-----
</TABLE>

- --------------------------------------------------------------------------------

* The information contained in the above table and the example below is
based upon the fee stated in the Fund's contract with the Adviser and the
estimated amount of Other Expenses for the current fiscal year of the
Institutional class of the Fund without taking into account any
applicable fee waivers and/or reimbursements. The Adviser has agreed
voluntarily to waive and/or reimburse fees and expenses to the extent
necessary so that Institutional Shares' total operating expenses do not
exceed 0.25%, of the Fund's average daily net assets, subject to possible
reimbursement by the Fund in future years if such reimbursement can be
achieved within the foregoing expense limits. Consequently, the
Investment Adviser fees actually charged may in the future be higher than
reflected above, if consistent with the limits on total operations
expenses. The Adviser may discontinue such fee waivers and/or expense
reimbursements at any time, in its sole discretion.

EXAMPLE

Prospectus - 4
<PAGE>
- --------------------------------------------------------------------------------
FUND DETAILS - ORBITEX CASH RESERVES FUND

INVESTMENT DETAILS OF THE ORBITEX CASH RESERVES FUND

[LOGO]
INVESTMENT OBJECTIVE

The objective of the Orbitex Cash Reserves Fund is to provide
current income while maintaining liquidity and a stable share price of $1.00.

PRINCIPAL INVESTMENT STRATEGIES

[LOGO]

The Fund invests in high quality, short-
term money market instruments. Money market instruments are short-term
investments, usually with a maturity of 13 months or less. Some common money
market instruments are:

- - Treasury bills and notes, which are securities issued by the U.S. government
or its agencies and instrumentalities.

- - Commercial paper, which is a promissory note issued by a large company or
financial firm

- - Banker's acceptances, which are credit instruments guaranteed by a bank;

- - Negotiable certificates of deposit, which are issued by banks in large
denominations.

Although the Fund may invest in banker's acceptances and certificates of deposit
issued by U.S. or foreign banks, it restricts its currency exposure to U.S.
dollars.

To be considered high-quality, a security generally must be rated in one of the
two highest credit-quality categories for short-term securities by at least two
nationally recognized rating services (or by one, if only one rating service has
rated the security). If a security is unrated, it must be determined by the
Adviser or Sub-adviser to be of quality equivalent to those in the two highest
credit-quality categories.

them back from the Fund on a certain date and at a certain price.

INVESTMENT ADVISER

INVESTMENT SUB-ADVISER

PORTFOLIO MANAGER

Prospectus - 5
<PAGE>
- --------------------------------------------------------------------------------
MORE INFORMATION ABOUT RISKS

[LOGO]
The main risks associated with an investment in the Orbitex Cash Reserves Fund
have been described above. The following supplements that discussion.

Prospectus - 6
<PAGE>
- --------------------------------------------------------------------------------
YOUR ACCOUNT

This section describes the services that are available to shareholders.

[LOGO]

TYPES OF ACCOUNTS

If you are making an initial investment in the Funds, you will need to open an
account. You may establish the following types of accounts:

- - TRUST. A trust can open an account. You must include the name of each
trustee, the name of the trust and the date of the trust agreement on the
application.

PURCHASING SHARES

Once you have chosen the type of account you are ready to establish an account.
Institutional shares of the Orbitex Cash Reserves Fund are available to
investors making a minimum initial investment of $5,000,000. The minimum for
subsequent investments is $1,000,000. The Trust or Adviser may waive or lower
these minimums in certain cases. YOU MUST COMPLETE AND SIGN AN APPLICATION FOR
EACH ACCOUNT YOU OPEN WITH THE FUND.

If you notify us by 2:00 p.m. Eastern time that you intend to purchase shares
that day, and if we receive your purchase order in good form and your payment by
federal funds wire by 3:00 p.m. Eastern time that same day, you will begin
earning dividends on your investment that day.

Prospectus - 7
<PAGE>

<TABLE>
<S> <C>
METHOD OF PURCHASE PROCEDURES
PURCHASE
BY MAIL OR FAX Send your completed application with your check, payable to "Orbitex Group of Funds - Orbitex
Cash Reserves Fund" to:
[LOGO] Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0786
You may also fax your application. Our fax number is 1-516-951-0577. Please note that we
cannot open your account until we receive your payment by check or federal funds wire.
BY WIRE - INITIAL PURCHASE: Call the Fund at 1-888-ORBITEX for instructions and to receive an
account number. You will need to instruct a Federal Reserve System member bank to wire Funds
[LOGO] to: State Street Bank and Trust Company, ABA No. 011000028, Attn.: Custody, Credit:
Orbitex Cash Reserves Fund, DDA No. 51815926, FBO: [Shareholder Name], Orbitex Cash
Reserves Fund, [Shareholder Account Number]. You must also complete and mail or fax an
application to the address shown above under "By Mail."
- SUBSEQUENT PURCHASE: Wire Funds to the designated account at State Street Bank and Trust
Company.
You may wire funds between 8:30 a.m. and 3:00 p.m. Eastern time. To make a same-day wire
investment, please notify Orbitex by 2:00 p.m. Eastern time of your intention to wire Funds,
and make sure your wire arrives by 3:00 p.m. Eastern time. Please note that your bank may
charge a fee for the wire.
BY TELEPHONE If you have not declined or canceled your telephone investment privilege, you may make
subsequent purchases in your account by telephoning 1-888-ORBITEX between 8:30 a.m. and 3:00
[LOGO] p.m. Eastern time on any day the Fund is open. We will electronically transfer money from the
bank account you designate on your Application to your account with the Trust.
IMPORTANT NOTES Once you have requested a telephone transaction, and a confirmation number has been assigned,
the transaction cannot be revoked. We reserve the right to refuse any purchase request.
You can redeem shares that you purchased by check. However, while we will process your
redemption request at the next -determined net asset value after we receive it, your
redemption proceeds will be not available until your check clears. This could take up to ten
calendar days.
</TABLE>

SELLING SHARES

The Fund cannot accept requests that specify a certain date for redemption or
which specify any other special conditions.

Please call 1-888-ORBITEX for further information. WE WILL NOT PROCESS YOUR
REDEMPTION REQUEST IF IT IS NOT IN PROPER FORM (SEE CHART BELOW). WE WILL NOTIFY
YOU IF YOUR REDEMPTION REQUEST IS NOT IN PROPER FORM.

If, as a result of your redemption, your account value drops below $5 million,
we may redeem the remaining shares in your account. We will notify you in
writing of our intent to redeem your shares. We will allow at least sixty days
thereafter for you to make an additional investment to bring your account value
up to at least $5 million before we will process the redemption.

Prospectus - 8
<PAGE>

<TABLE>
<S> <C>
METHOD OF REDEMPTION PROCEDURES
REDEMPTION
BY TELEPHONE You may authorize redemption of some or all shares in your account with the Fund by
telephoning the Fund at 1-888-ORBITEX between 8:30 a.m. and 3:00 p.m. Eastern time on any day
[LOGO] the Fund is open. You will not be eligible to use the telephone redemption service if you:
- Have declined or canceled your telephone investment privilege;
- wish to redeem less than $25,000; or,
- must provide supporting legal documents.
BY MAIL You may mail a written request to Orbitex Group of Funds. Our mailing address is c/o American
Data Services, Inc. P.O. Box 5786 Hauppauge, New York 11788-0786. You must include the
[LOGO] following information in your written request:
- a letter of instruction stating the name of the Fund, the number of shares you are
redeeming, the names in which the account is registered and your account number;
- other supporting legal documents, if necessary, for redemption requests by corporations,
trusts and partnerships; and
- a signature guarantee when you request us to send the redemption proceeds to an address
other than the address of record or to a person other than the registered shareholder(s) for
the account.
BY FAX You may fax a written request to Orbitex Group of Funds. Our fax number is 1-516-951-0577. You
must include the following information in your written request:
- a letter of instruction stating the name of the Fund, the number of shares you are
redeeming, the names in which the account is registered and your account number;
NOTE: WE CANNOT ACCEPT A WRITTEN REDEMPTION REQUEST IF SUPPORTING LEGAL DOCUMENTS OR A
SIGNATURE GUARANTEE IS NECESSARY FOR THE REQUEST TO BE IN "GOOD ORDER."
REQUEST IN For our mutual protection, your redemption request must include:
"GOOD ORDER" - your account number
- the amount of the transaction
- for mail request, signatures of all owners EXACTLY as registered on the account
- signature guarantees, if required (signature guarantees can be obtained at most banks,
credit unions, and licensed brokers
- any supporting legal documentation that may be required
YOUR REDEMPTION REQUEST WILL BE PROCESSED AT THE NEXT-DETERMINED SHARE PRICE AFTER WE HAVE
RECEIVED ALL REQUIRED INFORMATION.
IMPORTANT NOTE Once we have processed your redemption request, and a confirmation number has been given, the
transaction CANNOT be revoked.
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Prospectus - 9
<PAGE>
TELEPHONE REDEMPTIONS.

Orbitex reserves the right to refuse a telephone redemption if the caller cannot
provide:

- - the account number

- - the name and address exactly as registered on the account

- - the primary social security or employer identification number as registered
on the account

We may also require a password from the caller.

TRANSFERRING REGISTRATION

You can transfer the registration of your shares in the Orbitex Cash Reserves
Fund to another owner by completing a transfer form and sending it to American
Data Services, Inc., P.O. Box 5786, Hauppauge, New York 11788-0786.

HOW TO REACH THE FUND

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<S> <C>
We are available to answer your questions about the Fund or your account by telephone or by mail Monday
through Friday 8:30 a.m. to 5:30 p.m. Eastern time. Please note, however, that purchase or redemption requests
must be received by 3:00 p.m. Eastern time on a day the Fund is open for business. Purchase or redemption
requests received after 3:00 p.m. Eastern time will be executed on the next day that the Fund is open for
business.
By Telephone 1-888-ORBITEX (or 1-888-672-4839)
Call for account or Fund information
[LOGO]
By regular mail Orbitex Group of Funds
c/o American Data Services, Inc.
[LOGO] P.O. Box 5786
Hauppauge, New York 11788-0786
By express or registered mail Orbitex Group of Funds
c/o American Data Services, Inc.
150 Motor Parkway
Hauppauge, New York 11788-0786
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Prospectus - 10
<PAGE>
- --------------------------------------------------------------------------------
PRICING OF FUND SHARES

- --------------------------------------------------------------------------------
DISTRIBUTIONS

- --------------------------------------------------------------------------------
FEDERAL TAX CONSIDERATIONS

TAXES ON DISTRIBUTIONS

TAX WITHHOLDING

OTHER STATE AND LOCAL TAX MATTERS

Prospectus - 11
<PAGE>
- --------------------------------------------------------------------------------
MANAGEMENT

INVESTMENT ADVISER

Orbitex Management, Inc., is the Fund's investment adviser ("Adviser"). The
Adviser's address is 410 Park Avenue, New York, NY 10022. The Adviser is an
affiliate of Orbitex Management Ltd., an investment adviser that provides
investment services to individuals and institutions including Canadian unit
trusts.
Under the terms of an investment advisory agreement, the Adviser is responsible
for formulating the Funds' investment programs and for making day-to-day
investment decisions and engaging in portfolio transactions. The Adviser also
furnishes corporate officers, provides office space, services and equipment and
supervises all matters relating to the Fund's operations. The advisory agreement
also provides that the Adviser may retain sub-advisers at the Adviser's own cost
and expense, for the purpose of managing the investment of the assets of one or
more Funds.

As compensation for its services, the Fund pays the Adviser a fee at an
annualized rate of 0.15% of the Fund's average daily net assets.

INVESTMENT SUB-ADVISER

OTHER SERVICE PROVIDERS

ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT

American Data Services, Inc.
The Hauppauge Corporate Center
150 Motor Parkway
Hauppauge, New York 11788

DISTRIBUTOR

Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109

CUSTODIAN

State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110

COUNSEL

Rogers & Wells LLP
200 Park Avenue
New York, New York 10166

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110

Prospectus - 12
<PAGE>
WHERE TO GO FOR MORE INFORMATION:

You will find more information about the Orbitex Group of Funds in the following
documents:

- ANNUAL AND SEMI-ANNUAL REPORTS: Our annual and semi-annual reports list
the Fund's holdings, describe its performance, include financial
statements for the Fund, and discuss the market conditions and strategies
that significantly affected the Fund's performance during their last
fiscal year.

- STATEMENT OF ADDITIONAL INFORMATION: The Statement of Additional
Information contains additional and more detailed information about the
Fund, and is incorporated by reference into this prospectus (it is
considered to be a part of this Prospectus).