THE COLONIAL FUND
Supplement to Prospectuses
dated February 28, 1996
Effective September 16, 1996, the section entitled "Equity Securities Generally"
under the caption How the Fund Pursues Its Objectives and Certain Risk Factors,
will be revised in its entirety as follows:
Equity Securities Generally. The Fund may invest without limit in U.S. stock
exchange or NASDAQ National Market System listed common stocks and foreign
common stocks which, when purchased, meet quantitative standards which in the
Adviser's judgment indicate above average financial soundness and high intrinsic
value relative to price. Companies in which the Fund invests will fall into one
of the following three categories:
1. Companies whose current business activities provide earnings, dividends
or assets that represent above average value for each dollar invested;
or
2. Companies whose business activities are concentrated in industries or
business strategies which are expected to provide above average
stability or value in turbulent markets; or
3. Companies with anticipated business growth prospects that represent
above average value for each dollar invested.
For this purpose, "average" will not be pegged to a specific index but rather
determined in the Adviser's judgment based on an eligible universe of securities
of appropriate market capitalization for which sufficient data is available.
Such average may also be qualified by industry group or sector.
Up to 5% of the Fund's net assets may be invested in common stocks not meeting
any of the foregoing conditions at the time of purchase.
TF-36/615C-0896 September 16, 1996
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