July 15, 1997
SUPPLEMENT TO PROSPECTUS DATED
June 2, 1997
AFBA Five Star Fund, Inc.
Mutual Fund Total Returns
Page 23
The table and footnotes under the caption "Mutual Fund Total Returns"
should read as follows:
Mutual Fund Total Returns1
Inception2
Year Ended to Year Ended
June 30, 1997 June 30, 1997
Buffalo Balanced Fund 17.06% 14.69%
S&P 500 and Merrill Lynch
Bond Fund Weighted Index 20.08% 18.48%
Buffalo Equity Fund 31.77% 32.76%
S&P 500 Index 31.98% 31.77%
Buffalo USA Global Fund 32.54% 30.89%
S&P 500 Index 31.98% 31.77%
Buffalo High Yield Fund 18.33% 18.31%
Merrill Lynch High Yield
Bond Fund Index 14.30% 1 1.95%
1 Mutual fund total return (price change and reinvested distributions)
2 The inception dates of the mutual funds are: Buffalo Balanced
Fund - August 12, 1994; Buffalo Equity Fund; Buffalo USA Global Fund;
and Buffalo High Yield Fund - May 19, 1995.
The comparative indices are not adjusted to reflect expenses or other
fees that the SEC requires to be reflected in mutual fund performance.
The fees if reflected, would reduce the performance quoted. The mutual
fund performance assumes the reinvestment of all dividends and
distributions. The comparative indices have been adjusted to
reflect reinvestment of dividends on securities in the index.
The Standard and Poor's 500 Index is an unmanaged index composed
of 400 industrial, 40 financial, 40 utilities and 20 transportation
stocks.
The Merrill Lynch Bond Fund Index is an unmanaged index composed of
all corporate bond funds including short, intermediate and long-term
bond funds.
The Merrill Lynch High Yield Bond Fund Index is an unmanaged index
composed of all high yield bond funds.
The Merrill Lynch High Yield Bond Fund Index is an unmanaged index
composed of all high yield bond funds.
The S&P 500 and Merrill Lynch Bond Fund Index Weighted Average is
a hypothetical combination of unmanaged indices and reflects a 50%
each equal weighting; at 6-30-97, the Buffalo Balanced Fund's
portfolio consisted of an approximate mix of 29% stocks and 69%
bonds (the percentage allocations did not vary significantly
throughout the periods presented).
