SUPPLEMENT DATED MARCH 17, 1999
TO PROSPECTUS DATED OCTOBER 1, 1998
SPARROW GROWTH FUND
CUSIP #846571107
Effective March 17, 1999 the minimum initial investment and minimum
subsequent investment requirements have been lowered for certain accounts, as
described below.
Shares of the Fund are sold on a continuous basis. You may
invest any amount you choose, as often as you wish, subject to the
following schedule:
<TABLE>
<S> <C> <C> <C> <C>
TYPE OF INVESTMENT MINIMUM INITIAL MINIMUM SUBSEQUENT
INVESTMENT INVESTMENT
----------------------------------- ------------------------ ------------------------------
Taxable Accounts $10,000 $500
----------------------------------- ------------------------ ------------------------------
Qualified Retirement Accounts $2,000 $100
----------------------------------- ------------------------ ------------------------------
Qualified Retirement Accounts No minimum Required $100/month for
with Automatic Investment Plan minimum of 12
consecutive months
----------------------------------- ------------------------ ------------------------------
Educational IRA's $500 -0-
----------------------------------- ------------------------ ------------------------------
Educational IRA's with Automatic No minimum Required $100/month for
Investment Plans minimum of 5 consecutive
months
----------------------------------- ------------------------ ------------------------------
</TABLE>
Effective March 17, 1999, the following information replaces the
information currently provided in the prospectus on page 9 under the heading
"Automatic Investment Plan":
You may make regular investments in the Fund with an Automatic
Investment Plan by completing the appropriate section of the account
application and attaching a voided personal check. Investments may be
made monthly to allow dollar-cost averaging by automatically deducting
a minimum of $250/month (or $100/month for a Qualified Retirement Plan,
for a minimum 12 month period) from your bank checking account.
Educational IRA contributions may be made monthly by automatically
deducting a minimum of $100/month for five consecutive months from your
checking account. You may change the amount of your monthly purchase at
any time.
Year 2000 Issue. Like other mutual funds, financial and business
organizations and individuals around the world, the Fund could be adversely
affected if the computer systems used by the Adviser, Administrator or other
service providers to the Fund do not properly process and calculate date-related
information and data from and after January 1, 2000. This is commonly known as
the "Year 2000 Issue." The Adviser and Administrator have taken steps that they
believe are reasonably designed to address the Year 2000 Issue with respect to
computer systems that are used and to obtain reasonable assurances that
comparable steps are being taken by the Fund's major service providers. At this
time, however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on the Fund. In addition, the Adviser cannot make any
assurances that the Year 2000 Issue will not affect the companies in which the
Fund invests or worldwide markets and economies.
This Supplement, and the Prospectus dated October 1, 1998, contain
information that you should know before investing in the Fund and should be
retained for future reference. Additional information is included in the
Statement of Additional Information dated October 1, 1998, which has been filed
with the Securities and Exchange Commission and is incorporated herein by
reference. It is available upon request and without charge by calling (888)
727-3301.
