ORBITEX GROUP OF FUNDS, 497, 2000-10-19

ORBITEX GROUP OF FUNDS
497, 2000-10-19

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<PAGE>

PROSPECTUS

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

THE

ORBITEX

CASH RESERVES
FUND
--------------------------------

INSTITUTIONAL SHARES

SEPTEMBER 1, 2000

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>

TABLE OF CONTENTS

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

WHO MAY WANT TO INVEST IN THE ORBITEX FUNDS .................................... 6

FUND DETAILS ................................................................... 7

YOUR ACCOUNT ................................................................... 8

Types of Accounts ........................................................ 8

Purchasing Shares ........................................................ 8

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

Other State and Local Tax Matters ........................................ 13

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

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

Other Service Providers .................................................. 14

WHERE TO GO FOR MORE INFORMATION ............................................... 15
</TABLE>

PLEASE READ THIS PROSPECTUS. This prospectus explains the investment objective,
risks and policies of the Orbitex Cash Reserves Fund, a series of the Orbitex
Group of Funds. 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.

<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."

[GRAPHIC] MASTER-FEEDER STRUCTURE

The Orbitex Cash Reserves Fund (the "Fund") operates under a master-feeder
structure. This means that the Fund seeks to meet its investment objective by
investing all of its investable assets in the Money Market Portfolio of the AMR
Investment Services Trust (the "Portfolio"). The Portfolio has an investment
objective and employs investment strategies that are substantially the same as
the Fund. For the period that the Fund invests its assets in the Portfolio, AMR
Investment Services, Inc. is the Portfolio's investment adviser ("Portfolio
Adviser.")

[GRAPHIC] INVESTMENT OBJECTIVE

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

[GRAPHIC] PRINCIPAL INVESTMENTS

The Fund is a money market fund invests primarily in high-quality, short-term,
dollar-denominated 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 obligations 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.

The Fund invests more than 25% of its total assets in obligations issued by the
domestic banking industry. However, for temporary defensive purposes when the
Portfolio Adviser believes that maintaining this concentration may be
inconsistent with the best interests of shareholders, the Fund may not maintain
this concentration. Although the Fund may invest in banker's acceptances and
certificates of deposit issued by U.S. branches of foreign banks, it invests
only in securities denominated in 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, the Portfolio Adviser must determine that it is of
equivalent quality to those in the two highest credit-quality categories.

The Fund will not exceed an average dollar weighted portfolio maturity of 90
days or less.

[GRAPHIC] 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. In general, the price of a debt security may
fall when interest rates rise and may rise when interest rates fall. The
longer the average maturity of the securities held by the Fund, the more
sensitive the Fund will be to interest rate changes.

- 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 share.

- 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 Portfolio Adviser evaluates 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 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>

PERFORMANCE AND VOLATILITY

As of the date of this Prospectus, the Fund had less than one year of operations
and, therefore, historical performance information is not available. The chart
and table below show the performance of the Institutional Class of shares of the
American AAdvantage Money Market Fund ("AAdvantage Fund"). Like the Fund, the
AAdvantage Fund invests all of its investable assets in the Portfolio. The
AAdvantage Fund has been managed by the Portfolio Adviser since its inception on
September 1, 1987.

During certain years, the expense ratio for the AAdvantage Fund was lower than
the expense ratio of the Institutional Class of the Fund. For the years ended
October 31, the expense ratios of the AAdvantage Fund were 0.24% (1999), 0.23%
(1998), 0.23% (1997), 0.24% (1996), 0.23% (1995), 0.21% (1994), 0.23% (1993),
0.26% (1992), 0.24% (1991), and 0.20% (1990). Because the AAdvantage Fund had
lower expenses during these years, its performance was better than the Fund's
would have been during these years.

The bar chart and table below provide some indication of the risk of an
investment in the Fund by showing how the performance of the AAdvantage Fund,
which also invests in the Portfolio, has varied from year to year.

Investors may call 1-888-ORBITEX to obtain the Fund's current seven-day yield.

Past performance of the AAdvantage Fund is not necessarily indicative of how the
Fund will perform in the future.

AMERICAN ADVANTAGE MONEY MARKET FUND-INSTITUTIONAL CLASS
TOTAL RETURN FOR THE YEARS ENDED DECEMBER 31

During the period shown in the bar chart, the highest return for a quarter was
2.06% (quarter ended 6/30/90) and the lowest return for a quarter was 0.80%
(quarters ended 6/30/93, 12/31/93 and 3/31/94).

Average Annual Total Return (for the periods ended December 31, 1999)

<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
American AAdvantage Money Market Fund-
Institutional Class 5.18% 5.58% 5.45%
</TABLE>

Prospectus - 4

<PAGE>

THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you
buy and hold Institutional Shares of the Fund.(1)

<TABLE>
<CAPTION>
<S> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchase None
Maximum Deferred Sales Charge (Load) None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends None
Distributions
Redemption Fee None
Exchange Fee None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 0.10%
Distribution and/or Service (12B-1) Fees None
Other Expenses(2) 0.17%
-----
Total Annual Operating Expenses(2) 0.27%
Fee Waiver and Expense Reimbursement 0.03%(3)
-----
Net Expenses 0.24%
-----
-----
</TABLE>

(1) The expense table and the example below reflect the expenses of both the
Fund and the Portfolio.

(2) Other Expenses for the current fiscal year of the Fund are estimated
without taking into account any applicable fee waivers and/or expense
reimbursements.

(3) The Distributor has contractually agreed to reimburse expenses to the
extent necessary so that Institutional Shares total annual operating
expenses do not exceed 0.24% of the average daily net assets
attributable to such Class. This contractual arrangement will remain in
effect until at least December 31, 2000.

EXAMPLE

This example is intended to help you compare the cost of investing in the 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 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:

<TABLE>
<S> <C>
1 Year $ 25
3 Years $ 85
</TABLE>

Prospectus - 5

<PAGE>

WHO MAY WANT TO INVEST IN THE 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
- 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).

Prospectus - 6

<PAGE>

FUND DETAILS - ORBITEX CASH RESERVES FUND

INVESTMENT DETAILS OF THE ORBITEX
CASH RESERVES FUND

[GRAPHIC] INVESTMENT OBJECTIVE

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

[GRAPHIC] PRINCIPAL INVESTMENT STRATEGIES

The Fund invests in high quality, short-term, dollar-denominated 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.

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 Portfolio Adviser must
determine that its credit quality is equivalent to that of a security rated in
one of the two highest credit-quality categories, pursuant to guidelines
approved by the Board of Trustees of the AMR Investment Services Trust.

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.

The Fund will maintain a dollar-weighted average maturity of 90 days or less and
will not invest in securities with a remaining maturity of more than 397 days.

[GRAPHIC] MASTER-FEEDER STRUCTURE

The Fund operates in a "master-feeder" structure. This means that the Fund is a
"feeder" fund that invests all of its investable assets in a "master" fund
(I.E., the Portfolio) with the same investment objective. The "master" fund
purchases securities for investment.

The Fund can withdraw its investment in the Portfolio at any time if the Adviser
and the Fund's Board determine that it is in the best interest of the Fund and
its shareholders to do so. If this happens, the Fund's assets will be invested
according to the investment policies and restrictions described in this
Prospectus.

Prospectus - 7

<PAGE>

YOUR ACCOUNT

This section describes the services that are available to shareholders.

TYPES OF ACCOUNTS

If you are making an initial investment in the Fund, 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.

- 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.

CLASS IN DETAIL

INSTITUTIONAL CLASS SHARES

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

PURCHASING SHARES

Once you have chosen the type of account, you are ready to establish an account.
YOU MUST COMPLETE AND SIGN AN APPLICATION FOR EACH ACCOUNT YOU OPEN WITH THE
FUND.

Institutional Shares of the Fund are available to investors with a minimum
initial investment of $1,000,000. The minimum for subsequent investments is
$100,000.

The Fund or the distributor of the Fund's shares, Orbitex Funds Distributor,
Inc. (the "Distributor"), may waive or lower these minimum initial investment
amounts in certain cases.

DIRECTLY FROM THE FUND

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

PURCHASE ORDER PROCEDURES

The price for Fund shares is the Fund's net asset value per share (NAV). We
determine the NAV at 4:00 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 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 needs, and which the
Fund uses to pay for the securities it buys.

No sales charges are assessed on the purchase or sale of Fund shares. Shares of
the Fund are offered and purchase orders accepted between the hours of 8:30 a.m.
(Eastern) and 5:30 p.m. (Eastern) on any day on which the Federal Reserve Bank
of New York is open.

If a purchase order is received by wire prior to the Fund's deadline, the
purchase price will be the NAV per share next determined on that day, and you
will begin earning dividends on your investment that day. If a purchase order is
received by wire after the applicable deadline, the purchase price will be the
NAV, and you will begin earning dividends, on the following day that the Fund is
open for business. Checks to purchase shares are accepted subject to collection
at full face value in U.S. funds and must be drawn in U.S. dollars on a U.S.
bank. The Funds will not accept cash, "starter" checks, credit card checks or
third party checks.

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 Manager and the Distributor each reserve the right to reject any
purchase for any reason and to cancel any purchase due to non-payment. If we
cancel your purchase due to non-payment, you will be responsible for any loss
the Fund incurs.

Prospectus - 8

<PAGE>

<TABLE>
<CAPTION>
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METHOD OF PURCHASE PROCEDURES
PURCHASE
--------------------------------------------------------------------------------------------------------
<S> <C>
THROUGH A Contact your Financial Consultant. Your Financial Consultant can tell you the
FINANCIAL time by which you must submit your order in order to begin receiving dividends
CONSULTANT that day. Your Financial Consultant must transmit the order to the Funds
before 3:00 p.m.
[GRAPHIC]
--------------------------------------------------------------------------------------------------------
BY MAIL OR FAX Send your completed application with your check, payable to "Orbitex Group of
Funds - Cash Reserves Fund" to:
[GRAPHIC]
Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0164

You may also fax your application. Our fax number is 1-631-951-0577. 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
[GRAPHIC] 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: Orbitex
Cash Reserves Fund, DDA No 5181-592-6, 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
[GRAPHIC] may make subsequent purchases in your account by telephoning 1-888-ORBITEX
between 8:30 a.m. and 5:30 p.m. Eastern time on any day the Fund is open.
Purchase requests received after 3:00 p.m. Eastern time will be executed on the
next day that the Fund is open for business. We will electronically transfer
money from the bank account you designate on your Application to your account
with the Trust.
--------------------------------------------------------------------------------------------------------
IMPORTANT Once you have requested a telephone transaction, and a confirmation number has
NOTES 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>

Prospectus - 9
<PAGE>

SELLING SHARES

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

We will mail your redemption proceeds to your current address or transmit them
electronically to your designated bank account. Except under certain conditions
discussed below, we will send your redemption to you within seven days after we
receive your redemption request. Delivery of proceeds from shares purchased by
check or pre-authorized automatic investment may be delayed until the funds have
cleared. This may take up to 15 days.

The Fund reserves the right to suspend redemptions or postpone the date of
payment (i) when the NYSE or Federal Reserve is closed (other than for customary
weekend and holiday closings); (ii) when trading on the NYSE is restricted;
(iii) when the SEC determines that an emergency exists so that disposal of the
Fund's investments or determination of its NAV is not reasonably practicable; or
(iv) by order of the SEC for protection of the Fund's shareholders.

Although the Fund intends to redeem shares in cash, it reserves the right to pay
the redemption price in whole or in part by a distribution of readily marketable
securities held by the Portfolio. Unpaid dividends credited to an account up to
the date of redemption of all shares of the Fund generally will be paid at the
time of redemption.

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 $750,000 for
Institutional Shares, 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 $750,000 for Institutional Shares before we
will process the redemption.

<TABLE>
<CAPTION>
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METHOD OF REDEMPTION REDEMPTION PROCEDURES
--------------------------------------------------------------------------------------------------------
<S> <C>
THROUGH A Contact your financial consultant.
FINANCIAL
PROFESSIONAL
[GRAPHIC]

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BY TELEPHONE You may authorize redemption of some or all shares in your account with the Fund
[GRAPHIC] by telephoning the Fund at 1-888-ORBITEX between 8:30 a.m. and 5:30 p.m. Eastern
time on any day the Fund is open. Redemption requests received after 3:00 p.m.
Eastern time will be executed on the next day that the Fund is open for
business. 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 of Institutional Shares; or
- must provide supporting legal documents.

---------------------------------------------------------------------------------------------------------
BY CHECK Choose the check-writing feature on the account application.
- Minimum check amount is $100
- A $2 service fee per check is charged for check copies
- A $15 service fee will be charged when a check is presented for an amount
greater than the value of the shareholder's account
- A $12 fee will be charged for "stop payment" requests
- Not available for Institutional Class Shares
---------------------------------------------------------------------------------------------------------

Prospectus - 10
<PAGE>

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METHOD OF REDEMPTION PROCEDURES
REDEMPTION
---------------------------------------------------------------------------------------------------------
BY MAIL You may mail a written request to Orbitex Group of Funds. Our mailing address is
[GRAPHIC] c/o American Data Services, Inc. P.O. Box 5786, Hauppauge, New York 11788-0164.
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; 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
1-631-951-0577. 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 "GOOD For our mutual protection, your redemption request must include:
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); and
- 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>

Prospectus - 11

<PAGE>

TELEPHONE REDEMPTIONS

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
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 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), the wire
will arrive at your bank by the close of business that same day. Requests that
we receive later than noon (Eastern) will arrive at your bank by the close of
business the following business day. We require a minimum redemption of $25,000
of the Institutional Shares in order to send your redemption proceeds by wire.

TRANSFERRING REGISTRATION

You can transfer the registration of your shares in the Fund to another owner by
completing a transfer form and sending it to American Data Services, Inc., P.O.
Box 5786, Hauppauge, New York 11788-0164.

HOW TO REACH THE FUND

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
<S> <C>
By telephone 1-888-ORBITEX (or 1-888-672-4839)
[GRAPHIC] Call for account or Fund information

--------------------------------------------------------------------------------
By regular mail Orbitex Group of Funds
[GRAPHIC] c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0164

--------------------------------------------------------------------------------
By express or registered mail Orbitex Group of Funds
c/o American Data Services, Inc.
150 Motor Parkway
Hauppauge, New York 11788-0164
--------------------------------------------------------------------------------
</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 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 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 the Fund's net income
(interest less expenses) and capital gains on its investments.

The Fund declares dividends from net investment income daily and pays them the
first business day after the end of each month. Shares purchased by wire before
3:00 p.m. Eastern Time begin earning dividends that day. Although the Fund does
not expect to realize net long-term capital gains, any capital gains realized
will be distributed at least annually.

You will receive distributions from the 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 Fund as undeliverable, you will not
receive interest on amounts represented by the uncashed checks.

FEDERAL TAX CONSOLIDATIONS

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.

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 OF THE ORBITEX CASH RESERVES FUND

Orbitex Management, Inc. (the "Manager"), 410 Park Avenue, New York, NY 10022,
is the Fund's investment adviser. The Manager is a subsidiary of Orbitex
Financial Services Group, Inc. and an affiliate of Clarke Lanzen Skalla
Investment Firm, Inc, Orbitex Funds Distributor, Inc. and American Data
Services, Inc.

Under the terms of the investment advisory agreement, the Manager is responsible
for formulating the Fund's investment programs and for making day-to-day
investment decisions and engaging in portfolio transactions. As long as the Fund
invests all of its investable assets in the Portfolio, investment decisions will
be made by the investment adviser to the Portfolio, AMR Investment Services,
Inc.

Pursuant to an investment advisory agreement with Orbitex Group of Funds, the
Manager has been retained as a "dormant' or back-up" investment adviser to
manage the assets of the Fund that are not invested in the Portfolio. If the
Fund redeems assets from the Portfolio and invests them directly, the Manager
would be responsible for formulating the Fund's investment programs and for
making day-to-day investment decisions and engaging in portfolio transactions
for those assets.

The Manager 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 Manager may retain sub-advisers at the
Manager's own cost and expense, for the purpose of managing the investment of
the assets of the Fund.

The investment advisory agreement with the Manager provides that, as
compensation for its services, the Manager will receive a fee at an annualized
rate based on the Fund's average daily net assets. The Manager has agreed to
waive its advisory fee for the period that the Fund is a "feeder" in a
master-feeder relationship.

INVESTMENT ADVISER OF THE MONEY MARKET PORTFOLIO OF THE AMR
INVESTMENT SERVICES TRUST

AMR Investment Services, Inc. is the Portfolio's investment adviser. The
Portfolio Adviser's address is 4333 Amon Carter Boulevard, MD 5645, Fort
Worth, Texas 76155. The Portfolio Adviser is a wholly-owned subsidiary of AMR
Corporation, the parent company of American Airlines, Inc. The Portfolio
Adviser was organized in 1986 to provide investment management, advisory,
administrative and asset management consulting services. As of March 31,
2000, the Portfolio Adviser had approximately $23.3 billion of assets under
management, including approximately $10.1 billion under active management and
$13.2 billion as named fiduciary or financial adviser. Of this total,
approximately $14.9 billion of assets are related to AMR Corporation.
American AAdvantage Money Market Fund is a service mark of AMR Investment
Services, Inc. American Airlines is not responsible for investments made in
the Orbitex Cash Reserves Fund.

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.

ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT

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

DISTRIBUTOR

Orbitex Funds Distributor, Inc.
14747 California Street
Omaha, Nebraska 68154

CUSTODIAN

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

COUNSEL

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

INDEPENDENT ACCOUNTANTS

Fund

PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110

Portfolio

Ernst & Young LLP
2121 San Jacinto #1500
Dallas, Texas 75201

FINANCIAL HIGHLIGHTS

Financial Highlights for the ORBITEX Cash Reserves Fund are not available
because, as of the date of this Prospectus, the Fund had less than one year of
operations.

Prospectus - 14

<PAGE>

WHERE TO GO FOR MORE INFORMATION:

You will find more information about the ORBITEX Cash Reserves Fund and 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 11788-0164
1-888-ORBITEX (OR 1-888-672-4839)
www.orbitexusa.com

2. Write the Public Reference Room of the Securities and Exchange Commission
("SEC") and ask them to mail you a copy. Or, you may e-mail your request to
[email protected]. 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
U.S. SECURITIES & EXCHANGE COMMISSION
450 FIFTH STREET, NW, WASHINGTON, DC 20549-0102.
1-202-942-8090

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

IF YOU ARE A CURRENT FUND SHAREHOLDER AND 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>

PROSPECTUS

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

THE

ORBITEX

CASH RESERVES

FUND

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

INVESTOR SHARES

----------

SEPTEMBER 1, 2000

Prospectus - 1

<PAGE>

TABLE OF CONTENTS

THE FUND AT A GLANCE.......................................... 3

WHO MAY WANT TO INVEST IN THE ORBITEX FUNDS................... 6

FUND DETAILS.................................................. 7

YOUR ACCOUNT.................................................. 8

Types of Accounts......................................... 8

Purchasing Shares......................................... 8

Selling Shares............................................ 11

How to Reach the Fund .................................... 13

PRICING OF FUND ACCOUNT....................................... 14

DISTRIBUTIONS................................................. 14

FEDERAL TAX CONSIDERATIONS.................................... 14

Taxes on Distributions.................................... 14

Tax Withholding........................................... 14

Other State and Local Tax Matters......................... 14

MANAGEMENT.................................................... 15

Investment Adviser........................................ 15

Other Service Providers................................... 15

WHERE TO GO FOR MORE INFORMATION.............................. 16

Prospectus - 2
<PAGE>

THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

[GRAPHIC] MASTER-FEEDER STRUCTURE

[GRAPHIC] INVESTMENT OBJECTIVE

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

[GRAPHIC] PRINCIPAL INVESTMENTS

The Fund will not exceed an average dollar weighted portfolio maturity of 90
days or less.

[GRAPHIC] 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:

- 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 share.

- 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>

PERFORMANCE AND VOLATILITY

Investors may call 1-888-ORBITEX to obtain the Fund's current seven-day yield.

Past performance of the AAdvantage Fund is not necessarily indicative of how the
Fund will perform in the future.

AMERICAN AADVANTAGE MONEY MARKET FUND-INSTITUTIONAL CLASS
TOTAL RETURN FOR THE YEARS ENDED DECEMBER 31

[GRAPH]

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8.40% 6.77% 4.02% 3.28% 4.22% 6.04% 5.50% 5.64% 5.56% 5.18%
</TABLE>

Average Annual Total Return (for the periods ended December 31, 1999)

<TABLE>
<CAPTION>
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
American AAdvantage Money Market Fund-
Institutional Class 5.18% 5.58% 5.45%
</TABLE>

Prospectus - 4
<PAGE>

THE FUND AT A GLANCE - ORBITEX CASH RESERVES FUND

INVESTOR EXPENSES

This table describes the fees and expenses that you may pay if you buy and
hold Investor Shares of the Fund.(1)

<TABLE>
<S> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchase none
Maximum Deferred Sales Charge (Load) none
Maximum Sales Charge (Load) Imposed on Reinvested Dividends none
Distributions
Redemption Fee none
Exchange Fee none

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fees 0.10%
Distribution and/or Service (12b-1) Fees 0.25%(2)
Other Expenses(3) 0.32%
------
Total Annual Operating Expenses(3) 0.67%
Fee Waiver and Expense Reimbursement 0.07%(4)
------
Net Expenses 0.60%
======
</TABLE>

(1) The expense table and the example below reflect the expenses of both
the Fund and the Portfolio.

(2) The Fund may pay financial institutions and investment professionals
for providing investment and account services a fee of up to 0.25% Of
the total assets attributable to Investor Shares held by their
customers.

(3) Other Expenses for the current fiscal year of the Fund are estimated
without taking into account any applicable fee waivers and/or expense
reimbursements.

(4) The Distributor has contractually agreed to reimburse expenses to the
extent necessary so that Investor Shares total annual operating
expenses do not exceed 0.60% Of the average daily net assets
attributable to such Class. This contractual arrangement will remain
in effect until at least December 31, 2000.

EXAMPLE

<TABLE>
<S> <C>
1 Year $ 61
3 Years $208
</TABLE>

Prospectus - 5
<PAGE>

WHO MAY WANT TO INVEST IN THE ORBITEX CASH RESERVES FUND

We designed the ORBITEX CASH RESERVES FUND for investors who:

The ORBITEX CASH RESERVES FUND is NOT appropriate for investors who seek one or
more of the following:
- high long-term growth
- tax-exempt income

Prospectus - 6
<PAGE>

FUND DETAILS - ORBITEX CASH RESERVES FUND

INVESTMENT DETAILS OF THE ORBITEX CASH RESERVES FUND

[GRAPHIC] INVESTMENT OBJECTIVE

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

[GRAPHIC] PRINCIPAL INVESTMENT STRATEGIES

- 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.

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
Portfolio Adviser must determine that its credit quality is equivalent to
that of a security rated in one of the two highest credit-quality categories,
pursuant to guidelines approved by the Board of Trustees of the AMR
Investment Services Trust.

The Fund will maintain a dollar-weighted average maturity of 90 days or less and
will not invest in securities with a remaining maturity of more than 397 days.

[GRAPHIC] MASTER-FEEDER STRUCTURE

Prospectus - 7
<PAGE>

YOUR ACCOUNT

[GRAPHIC] This section describes the services that are available to
shareholders.

TYPES OF ACCOUNTS

If you are making an initial investment in the Fund, 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.

CLASS IN DETAIL

INVESTOR CLASS SHARES

Investor Shares are offered without any sales charges, but are subject to a
shareholder servicing fee of up to 0.25% of the total assets attributable to
Investor Shares held by their customers.

PURCHASING SHARES

Once you have chosen the type of account, you are ready to establish an account.
YOU MUST COMPLETE AND SIGN AN APPLICATION FOR EACH ACCOUNT YOU OPEN WITH THE
FUND.

Investor Shares of the Fund are available to investors with a minimum initial
investment of $2,500. The minimum for subsequent investments is $500. YOU MAY
PURCHASE INVESTOR SHARES THROUGH A FINANCIAL INSTITUTION, INVESTMENT
PROFESSIONAL OR DIRECTLY FROM THE FUND.

The Fund or the distributor of the Fund's shares, Orbitex Funds Distributor,
Inc. (the "Distributor"), may waive or lower these minimum initial investment
amounts in certain cases.

ADDITIONAL INFORMATION FOR PURCHASING INVESTOR SHARES

THROUGH A FINANCIAL INSTITUTION OR INVESTMENT PROFESSIONAL

You should contact your financial institution -- a securities dealer, bank or
other financial service firm -- or investment professional ("Financial
Consultant") to establish an account.

After your account is established, submit your purchase order to your Financial
Consultant. You should consult with your Financial Consultant to determine the
time at which you must submit your order in order to begin receiving dividends
that day. 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 directly with the Fund by submitting a completed
account application and sending your payment by Federal Reserve wire or check.

PURCHASE ORDER PROCEDURES

Prospectus - 8
<PAGE>

purchase shares are accepted subject to collection at full face value in U.S.
funds and must be drawn in U.S. dollars on a U.S. bank. The Funds will not
accept cash, "starter" checks, credit card checks or third party checks.

SHAREHOLDER SERVICES PLAN

The Board of Trustees of the Orbitex Group of Funds has adopted a shareholder
services plan for Investor Shares of the Fund. This plan allows the Distributor
to enter into shareholder services agreements on the Fund's behalf with
Financial Consultants. Under these shareholder service agreements, the Fund may
pay fees to these Financial Consultants for providing investment and account
services to their customers that hold Investor Shares of the Fund.

BECAUSE THE SHAREHOLDER SERVICE FEES ARE PAID OUT OF THE FUND'S ASSETS ON AN
ONGOING BASIS, THE FEES MAY, OVER TIME, INCREASE THE COST OF INVESTING IN THE
INVESTOR SHARES OF THE FUND AND COST INVESTORS MORE THAN OTHER TYPES OF SALES
LOADS.

Prospectus - 9
<PAGE>

--------------------------------------------------------------------------------
METHOD OF PURCHASE PROCEDURES
PURCHASE
--------------------------------------------------------------------------------
<S> <C>
THROUGH A Contact your Financial Consultant. Your Financial Consultant
FINANCIAL can tell you the time by which you must submit your order in
CONSULTANT order to begin receiving dividends that day. Your Financial
[GRAPHIC] Consultant 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
[GRAPHIC] "Orbitex Group of Funds - Cash Reserves Fund" to:

Orbitex Group of Funds
c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0164

You may also fax your application. Our fax number is
1-631-951-0577. 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
[GRAPHIC] 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:
Orbitex Cash Reserves Fund, DDA No. 5181-592-6, 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
[GRAPHIC] investment privilege, you may make subsequent purchases in
your account by telephoning 1-888-ORBITEX between 8:30 a.m.
and 5:30 p.m. Eastern time on any day the Fund is open.
Purchase requests received after 3:00 p.m. Eastern time will
be executed on the next day that the Fund is open for
business. We will electronically transfer money from the
bank account you designate on your Application to your
account with the Trust.
--------------------------------------------------------------------------------
IMPORTANT Once you have requested a telephone transaction, and a
NOTES 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>

Prospectus - 10

<PAGE>

SELLING SHARES

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

If, as a result of your redemption, your account value drops below $2,000 for
Investor Shares, 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 $2,000 for Investor Shares before we will
process the redemption.

--------------------------------------------------------------------------------
METHOD OF REDEMPTION PROCEDURES
REDEMPTION
--------------------------------------------------------------------------------

<S> <C>
THROUGH A Contact your financial consultant.
FINANCIAL
PROFESSIONAL
[GRAPHIC]
--------------------------------------------------------------------------------
BY TELEPHONE You may authorize redemption of some or all shares in your
[GRAPHIC] account with the Fund by telephoning the Fund at
1-888-ORBITEX between 8:30 a.m. and 5:30 p.m. Eastern time
on any day the Fund is open. Redemption requests received
after 3:00 p.m. Eastern time will be executed on the next
day that the Fund is open for business. 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 $1,000 of Investor Shares; or
- must provide supporting legal documents.
--------------------------------------------------------------------------------
BY CHECK Choose the check-writing feature on the account application.

- Minimum check amount is $100
- A $2 service fee per check is charged for check copies
- A $15 service fee will be charged when a check is presented for an amount
greater than the value of the shareholder's account
- A $12 fee will be charged for "stop payment" requests
--------------------------------------------------------------------------------
</TABLE>

Prospectus - 11

<PAGE>

--------------------------------------------------------------------------------
METHOD OF REDEMPTION PROCEDURES
REDEMPTION

<S> <C>
--------------------------------------------------------------------------------
BY MAIL You may mail a written request to Orbitex Group of Funds.
[GRAPHIC] Our mailing address is c/o American Data Services, Inc. P.O.
Box 5786, Hauppauge, New York 11788-0164. 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; 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 1-631-951-0577. 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 "GOOD For our mutual protection, your redemption request must include:
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); and

- 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
NOTE confirmation number has been given, the transaction CANNOT
be revoked.
--------------------------------------------------------------------------------
</TABLE>

Prospectus - 12

<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

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), the wire
will arrive at your bank by the close of business that same day. Requests that
we receive later than noon (Eastern) will arrive at your bank by the close of
business the following business day. We require a minimum redemption of $1,000
of the Investor Shares in order to send your redemption proceeds by wire.

TRANSFERRING REGISTRATION

You can transfer the registration of your shares in the Fund to
another owner by completing a transfer form and sending it to
American Data Services, Inc., P.O. Box 5786, Hauppauge, New
York 11788-0164.

HOW TO REACH THE FUND

--------------------------------------------------------------------------------
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)
[GRAPHIC] Call for account or Fund information
--------------------------------------------------------------------------------
By regular mail Orbitex Group of Funds
[GRAPHIC] c/o American Data Services, Inc.
P.O. Box 5786
Hauppauge, New York 11788-0164
--------------------------------------------------------------------------------
By express or Orbitex Group of Funds
registered mail c/o American Data Services, Inc.
150 Motor Parkway
Hauppauge, New York 11788-0164
--------------------------------------------------------------------------------

Prospectus - 13

<PAGE>

PRICING OF FUND SHARES

DISTRIBUTIONS

As a shareholder, you are entitled to your share of the Fund's net income
(interest less expenses) and capital gains on its investments.

FEDERAL TAX CONSIDERATIONS

TAXES ON DISTRIBUTIONS

TAX WITHHOLDING

OTHER STATE AND LOCAL TAX MATTERS

Prospectus - 14

<PAGE>

MANAGEMENT

INVESTMENT ADVISER OF THE ORBITEX CASH RESERVES FUND

Orbitex Management, Inc. (the "Manager"), 410 Park Avenue,
New York, NY 10022, is the Fund's investment adviser. The
Manager is a subsidiary of Orbitex Financial Services Group, Inc.
and an affiliate of Clarke Lanzen Skalla Investment Firm, Inc,
Orbitex Funds Distributor, Inc. and American Data Services, Inc.

INVESTMENT ADVISER OF THE MONEY MARKET PORTFOLIO OF THE AMR
INVESTMENT SERVICES TRUST

AMR Investment Services, Inc. is the Portfolio's investment adviser. The
Portfolio Adviser's address is 4333 Amon Carter Boulevard, MD 5645, Fort Worth,
Texas 76155. The Portfolio Adviser is a wholly-owned subsidiary of AMR
Corporation, the parent company of American Airlines, Inc. The Portfolio Adviser
was organized in 1986 to provide investment management, advisory, administrative
and asset management consulting services. As of March 31, 2000, the Portfolio
Adviser had approximately $23.3 billion of assets under management, including
approximately $10.1 billion under active management and $13.2 billion as named
fiduciary or financial adviser. Of this total, approximately $14.9 billion of
assets are related to AMR Corporation. American

AAdvantage Money Market Fund is a service mark of AMR Investment Services, Inc.
American Airlines is not responsible for investments made in the Orbitex Cash
Reserves Fund.

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.

ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT
--------------------------------------------------

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

DISTRIBUTOR
-----------

Orbitex Funds Distributor, Inc.
14747 California Street
Omaha, Nebraska 68154

CUSTODIAN
---------

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

COUNSEL
------

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

INDEPENDENT ACCOUNTANTS
-----------------------

Fund

PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110

Portfolio

Ernst & Young LLP
2121 San Jacinto #1500
Dallas, Texas 75201

FINANCIAL HIGHLIGHTS

Financial Highlights for the ORBITEX Cash Reserves Fund are not available
because, as of the date of this Prospectus, the Fund had less than one year of
operations.

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WHERE TO GO FOR MORE INFORMATION:

You will find more information about the ORBITEX Cash Reserves Fund and 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 11788-0164
1-888-ORBITEX (OR 1-888-672-4839)
WWW.ORBITEXUSA.COM

PUBLIC REFERENCE ROOM
U.S. SECURITIES & EXCHANGE COMMISSION
450 FIFTH STREET, NW, WASHINGTON, DC 20549-0102.
1-202-942-8090

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

IF YOU ARE A CURRENT FUND SHAREHOLDER AND 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 - 16