<PAGE> 1
PRIVATE INVESTMENT CLASS
OF THE
CASH RESERVE PORTFOLIO
OF
TAX-FREE INVESTMENTS CO.
Supplement dated March 27, 1997
to the Statement of Additional Information dated July 29, 1996,
as supplemented December 16, 1996
A "business day of the Company" is any day on which commercial banks
are open for business. The Company, however, reserves the right to change the
time for which purchase and redemption requests must be submitted to the
Company for execution on the same day on any day when the U.S. primary
broker-dealer community is closed for business or trading is restricted due to
national holidays.
On March 11, 1997, the Board of Directors increased the size of the
Board of Directors from nine (9) Directors to ten (10) Directors, and elected
Mr. Jack Fields to fill the vacancy created by such increase in size. Mr.
Fields' address is P.O. Box 2406, Humble, TX 77347 and he is 45 years
old. Mr. Fields' principal occupation during the last five years was as a
member of the U.S. House of Representatives.
On March 12, 1997, Messrs. Crockett, Fields, Frischling, and Sklar
were appointed by the Board of Directors as members of the Audit Committee of
the Board of Directors; Messrs. Fields, Frischling, Robinson, and Sklar were
appointed by the Board of Directors as members of the Investments Committee of
the Board of Directors; and Messrs. Fields and Robinson were appointed by the
Board of Directors as members of the Nominating and Compensation Committee of
the Board of Directors. In addition, on March 12, 1997, Mr. Crockett was
appointed Vice Chairman of the Nominating and Compensation Committee.
