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SUPPLEMENT TO THE PROSPECTUS
AND
STATEMENT OF ADDITIONAL INFORMATION
OF
KEYSTONE TAX FREE FUND
(the "Fund")
The Fund's prospectus and statement of additional information are hereby
supplemented as follows:
On May 1, 1995, the Fund will reopen to new investors. The Fund will be
open until July 31, 1995 or until the Fund attains $50,000,000 in aggregate
sales, whichever occurs first (the "Offering Period"). During the Offering
Period, the minimum initial investment will be $1,000.
During the Offering Period, Keystone Investment Distributors Company
("Keystone") will reallow an increased commission equal to 4% of the price
paid for each Fund share sold to those broker/dealers or others who allow
their individual selling representatives to participate in the additional 1%
commission. Broker/dealers or others not allowing their individual selling
representatives to so participate will receive the normal 3% commission.
Keystone reserves the right to terminate this special offer at any time
prior to the expiration of the Offering Period.
In connection with the reopening of the Fund, the maximum annual
expenditures permitted under the Fund's Distribution Plan have been
temporarily fixed at 0.65% of the Fund's average daily net assets until such
time as Keystone shall have been fully paid all amounts due Keystone that
may have arisen from sales during the Offering Period. The Fund's Board of
Trustees, in its sole discretion, may increase or otherwise modify or
eliminate the temporary maximum percentage rate described above.
April 27, 1995
KTFF-SK
