<PAGE> 1
TAX-FREE INVESTMENTS CO.
INSTITUTIONAL CASH RESERVE SHARES
Supplement dated June 18, 1998
to the Prospectus dated July 29, 1997,
as supplemented September 12, 1997
and January 30, 1998
On May 12, 1998, the Board of Directors (the "Board") of Tax-Free
Investments Co. approved, subject to shareholder approval, the elimination of
or changes to certain fundamental investment policies of the Cash Reserve
Portfolio (the "Portfolio"). Shareholders of the Portfolio will be asked to
approve these changes at a special meeting to be held on July 17, 1998. If
approved, these changes will become effective as of July 24, 1998.
Reference is made to Investment Restrictions (1) and (2) of the
Portfolio, set forth on page 6. The Board has unanimously approved the
elimination of these investment restrictions and in the event shareholders
approve the proposed changes, Investment Restrictions (1) and (2) will be
eliminated and replaced in their entirety with the following fundamental
investment restrictions:
"(1) purchase the securities of any issuer if, as a result, the
Portfolio would fail to be a diversified company within the meaning of
the 1940 Act, the rules and regulations promulgated thereunder, as
such statute, rules and regulations are amended from time to time;
provided, however, that the Portfolio may purchase securities of other
investment companies to the extend permitted by the 1940 Act and the
rules and regulations promulgated thereunder (as such statute, rules
and regulations are amended from time to time) or to the extent
permitted by exemptive order or other similar relief[.]"
"(2) concentrate 25% or more of its total assets in the securities of
issuers in a particular industry; provided, however, that securities
issued or guaranteed by banks or subject to financial guaranty
insurance are not subject to this limitation; and provided further,
that securities issued or guaranteed by the U. S. Government, its
agencies and instrumentalities and tax-exempt securities issued by
state and local governments and their political subdivisions, are not
included within this restriction."
In addition, if shareholders approve the proposed change to Investment
Restriction (2), the Portfolio will be subject to the following non-fundamental
investment policies:
"The Portfolio does not intend to purchase securities of an issuer if,
after giving effect to such purchase, 25% or more of the value of the
Portfolio's total assets would be invested in securities of one or
more issuers conducting their principal activities in the same state.
The Portfolio may invest 25% or more of its total assets in industrial
development bonds.
<PAGE> 2
The Portfolio does not intend to purchase securities of an issuer if,
after giving effect to such purchase, 25% or more of the value of the
Portfolio's total assets would be invested in securities the interest
on which is paid from revenues of projects with similar
characteristics. This policy applies to industrial development bonds
as well as other tax-exempt securities. This policy shall not apply,
however, in the event such securities are subject to a guarantee.
With respect to securities that are subject to a guarantee, the
Portfolio does not intend to purchase any such security if, after
giving effect to such purchase, 25% or more of its total assets would
be invested in securities issued or guaranteed by entities in a
particular industry. Securities issued or guaranteed by a bank or
subject to financial guaranty insurance are not subject to this
policy."
Reference is made to Investment Restriction (3) of the Portfolio, set
forth on page 6. The Board has unanimously approved the elimination of this
investment restriction as a fundamental investment policy and in the event
shareholders approve the proposed change, Investment Restriction (3) will be
eliminated and replaced in its entirety with an identical non-fundamental
investment policy.
