EQUITRUST MONEY MARKET FUND INC, 485APOS, 1999-09-30

EQUITRUST MONEY MARKET FUND INC
485APOS, 1999-09-30

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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 30, 1999

REGISTRATION NOS. 2-70162

811-3121
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/

PRE-EFFECTIVE AMENDMENT NO. / /

POST-EFFECTIVE AMENDMENT NO. 19 /X/

AND/OR

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/

AMENDMENT NO. 20 /X/

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EQUITRUST MONEY MARKET FUND, INC.

(Exact Name of Registrant as Specified in Charter)

5400 UNIVERSITY AVENUE
WEST DES MOINES, IOWA 50266
(Address of Principal Executive Offices) (Zip Code)

(515) 225-5586
(Registrant's Telephone Number, including Area Code)

STEPHEN M. MORAIN, ESQUIRE
5400 UNIVERSITY AVENUE
WEST DES MOINES, IOWA 50266
(Name and Address of Agent for Service)

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COPY TO:

JAMES A. ARPAIA, ESQUIRE
VEDDER, PRICE, KAUFMAN & KAMMHOLZ
222 NORTH LASALLE STREET
CHICAGO, IL 60601

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It is proposed that this filing will become effective (check appropriate box)

/ / immediately upon filing pursuant to paragraph (b)
/ / on (date) pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)(1)
/X/ on December 1, 1999 pursuant to paragraph (a)(1)
/ / 75 days after filing pursuant to paragraph (a)(2)
/ / on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:
/ / This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

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EQUITRUST MONEY MARKET FUND, INC.
-------------------------------------------

PROSPECTUS

December 1, 1999

EquiTrust Money Market Fund, Inc. (the "Fund") is a no-load, open-end,
diversified management investment company with an investment objective of
maximum current income consistent with liquidity and stability of principal.

Shares of the Fund may be purchased at their net asset value without any sales
charge. The minimum initial investment is $500 and subsequent investments may be
made in any amount. Shares may be redeemed at any time at net asset value as
described herein.

An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED SHARES
OF THE FUND OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

EquiTrust Mutual Funds
5400 University Avenue
West Des Moines, Iowa 50266
800-247-4170

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TABLE OF CONTENTS
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<TABLE>
<S> <C>
AN OVERVIEW OF THE FUND.................................................... 2
PERFORMANCE RECORD......................................................... 3
FEES AND EXPENSES.......................................................... 4
PRINCIPAL RISK FACTORS..................................................... 4
General Discussion of Risks.......................................... 4
Types of Investment Risk............................................. 5
DESCRIPTION OF PRINCIPAL SECURITY TYPES.................................... 5
HOW TO BUY SHARES.......................................................... 6
HOW TO REDEEM SHARES....................................................... 7
OTHER SHAREHOLDER SERVICES................................................. 9
Periodic Withdrawal Plan............................................. 9
Automatic Investment Plan............................................ 9
Exchange Privilege................................................... 10
Facsimile Requests................................................... 10
Retirement Plans..................................................... 10
Education Plan....................................................... 11
PORTFOLIO MANAGEMENT....................................................... 11
OTHER INFORMATION.......................................................... 12
Year 2000............................................................ 12
Distributor.......................................................... 12
Net Asset Value...................................................... 12
DISTRIBUTIONS.............................................................. 13
TAXES...................................................................... 14
FINANCIAL HIGHLIGHTS....................................................... 15
ADDITIONAL INFORMATION..................................................... 16
Shareholder Inquiries................................................ 16
Annual/Semi-Annual Reports to Shareholders........................... 16
Statement of Additional Information.................................. 16
</TABLE>

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YIELD AND PURCHASE INFORMATION
U.S. Toll-Free (800) 247-4170
Iowa Toll-Free (800) 422-3175
Des Moines (515) 225-5586

1
<PAGE>

AN OVERVIEW OF THE FUND

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(SIDEBAR)

INVESTOR PROFILE
WHO SHOULD CONSIDER INVESTING IN THIS FUND?
You may want to invest more of your assets in this Fund if you:
- - require stability of principal
- - are seeking a mutual fund for the cash portion of an asset allocation program
- - need to "park" your money temporarily
or
- - consider yourself a saver rather than an investor
You may want to invest less of your assets in this Fund if you:
- - are seeking an investment that is likely to outpace inflation
- - are investing for retirement or other goals that are many years in the future
or
- - are investing for growth or maximum current income

(End Sidebar)
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INVESTMENT OBJECTIVE

WHAT IS THIS FUND'S GOAL?

The Fund seeks maximum current income consistent with liquidity and stability of
principal. The Fund intends to maintain a stable net asset value of $1.00 per
share.

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PRINCIPAL RISKS

WHAT ARE THE MAIN RISKS OF INVESTING IN THIS FUND?

As with any money market fund, the yield paid by the Fund will vary with changes
in interest rates. Also, there is a possibility that the Fund's share value
could fall below $1.00, which could reduce the value of your investment.

To the extent that it invests in certain securities, the Fund may be affected by
additional risks relating to REPURCHASE AGREEMENTS (credit risk), SHORT-TERM
TRADING (market risk, as well as potentially higher transaction costs), and
WHEN-ISSUED SECURITIES (market, opportunity and leverage risks). However, these
risks are lessened by the high quality of the securities in which the Fund
invests.

These risks, and the risks associated with other higher-risk securities and
practices that the Fund may utilize, are described in more detail later in this
prospectus. SHARES OF THIS FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, A BANK OR OTHER FINANCIAL INSTITUTION AND ARE NOT
INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
FINANCIAL INSTITUTION OR GOVERNMENT BODY. Before you invest, please carefully
read the section on "Principal Risk Factors."

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PRIMARY INVESTMENT STRATEGIES

HOW DOES THIS FUND PURSUE ITS OBJECTIVE?

This Fund invests exclusively in U.S. dollar-denominated money market securities
maturing in 13 months or less from the date of purchase, including those issued
by U.S. financial institutions, corporate issuers, the U.S. Government and its
agencies, instrumentalities and municipalities. At least 95% of the Fund's
assets must be rated in the highest short-term category (or its unrated
equivalent), and 100% of the Fund's assets must be invested in securities rated
in the two highest rating categories. A more detailed description of the rating
categories and the types of permissible issuers is contained in the Statement of
Additional Information ("SAI"). The Fund maintains a dollar-weighted average
portfolio maturity of 90 days or less. The Fund may also:

- - Lend securities to financial institutions, enter into repurchase agreements,
engage in short-term trading and purchase securities on a when-issued or
forward commitment basis; and
- - Invest up to 10% of its assets in illiquid securities, although it generally
will not invest in such securities.

2
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PERFORMANCE RECORD
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The following bar chart provides an illustration of the performance of the Fund
during each of the last ten years. The bar chart indicates the degree of
variability that the Fund experienced in its performance from year to year. This
reflects the degree of risk of an investment in the Fund. Please remember that
past performance is no indicator or guarantee of the results that the Fund may
achieve in the future. Future annual returns may be greater or less than the
returns shown in the chart.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ANNUAL RETURNS
LAST TEN YEARS
<S> <C>

89 8.64%
90 7.69%
91 5.46%
92 2.50%
93 1.84%
94 2.66%
95 4.48%
96 3.91%
97 4.15%
98 4.46%
</TABLE>

<TABLE>
<CAPTION>
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<S> <C> <C>
BEST QUARTER: Second Quarter 1989 2.25%
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WORST QUARTER: First Quarter 1993 0.41%
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</TABLE>

* The year-to-date return as of September 30, 1999 was %.

The following table compares the average annual total returns of the Fund to
those of the 90-day T-Bill Index over the periods shown. The 90-day T-Bill Index
is a widely recognized index of three-month Treasury bills. The 90-day T-Bill
Index figures do not reflect any fees or expenses, and you cannot invest
directly in the Index.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN ONE YEAR FIVE YEARS TEN YEARS
--------- ----------- ----------
(for periods ending
December 31, 1998)
<S> <C> <C> <C>
MONEY MARKET PORTFOLIO 4.46% 3.93% 4.56%
--------- ----- -----
90-DAY T-BILL INDEX 4.85% 4.96% 5.29%
--------- ----- -----
</TABLE>

The performance data was calculated after deducting all fees and charges
actually incurred by the Fund. During certain periods shown, the Adviser
reimbursed the Fund for certain operating expenses, which lowered expenses for
the Portfolio.

3
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FEES AND EXPENSES

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This table describes the fees and expenses that you may pay if you buy and
hold shares of the Fund.

<TABLE>
<S> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENTS)
Maximum Sales Load Imposed on Purchases........................................ None
Maximum Sales Load Imposed on Reinvested Dividends............................. None
Deferred Sales Load............................................................ None
Redemption Fee................................................................. None
Exchange Fee................................................................... None

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
(As a percentage of net assets)

Management Fees................................................................ 0.25%
12b-1 Fees..................................................................... None
Other Expenses................................................................. 1.05%
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Total Fund Operating Expenses.......................................... 1.30%
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----------
</TABLE>

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
EXAMPLE
This example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. This example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. This example also assumes that your investment
has a 5% return each year and the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, based on those assumptions your
costs would be:.................................................................... $132 $412 $713 $1,568
</TABLE>

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PRINCIPAL RISK FACTORS
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GENERAL DISCUSSION OF RISKS

The Fund is subject to the risk of income volatility, financial risk (credit
risk), and market risk (interest rate risk). Income volatility refers to the
degree and rapidity with which changes in overall market interest rates
diminish the level of current income from a portfolio of income bearing
securities. Financial risk relates to the ability of an issuer of a debt
security to pay principal and interest on such security on a timely basis
and is the risk that the issuer could default on its obligations and the
Fund could lose its investment. In general, market risk is the risk that
when prevailing rates decline, the market value of income-bearing securities
(particularly fixed-income securities) tends to increase. Conversely, when
interest rates increase, the market value of income-bearing securities
(particularly fixed-income securities) tends to decline.

4
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Since the Fund is managed to maintain a constant $1.00 share price, the Fund
is subject to little market or financial risk because it invests in high
quality short-term investments that reflect current market interest rates.
However, the Fund could experience a high level of current income volatility
because the level of its current income directly reflects short-term
interest rates.

Also, as with all mutual funds, there is no guarantee that the Fund will
achieve its goal.

An investment in the Fund should help you meet your individual investment
goals for principal stability, liquidity and income, but it should not
represent your complete investment program.

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TYPES OF INVESTMENT RISK

CREDIT RISK. The risk that the issuer of a security, or the counterparty to
a contract, will default or otherwise not honor a financial obligation.

FINANCIAL RISK. For income-bearing securities, credit risk.

INFORMATION RISK. The risk that key information about a security or market
is inaccurate or unavailable.

INTEREST RATE RISK. The risk of declines in market value of an income
bearing investment due to changes in prevailing interest rates. With
fixed-rate securities, a rise in interest rates typically causes a decline
in market values, while a fall in interest rates typically causes an
increase in market values.

LEVERAGE RISK. The risks associated with securities or investment practices
that enhance return (or loss) without increasing the amount of investment,
such as using certain derivative securities. A Portfolio's gain or loss on a
leveraged position may be greater than the actual market gain or loss in the
underlying security or instrument. The Fund may also incur additional costs
in taking a leveraged position that may not be incurred in taking a
nonleveraged position.

LIQUIDITY RISK. The risk that certain securities or other investments may be
difficult or impossible to sell at the time the Fund would like to sell them
or at the price the Fund values them.

MARKET RISK. The risk that the market value of a security may move up and
down, sometimes rapidly and unpredictably due to factors that have nothing
to do with the issuer. This risk is common to all income bearing securities
and mutual funds that invest in them.

OPPORTUNITY RISK. The risk of missing out on an investment opportunity
because the assets necessary to take advantage of it are tied up in less
advantageous investments.

VALUATION RISK. The risk that the market value of an investment will fall
substantially below the Fund's valuation of the investment.

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DESCRIPTION OF PRINCIPAL SECURITY TYPES

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U.S. GOVERNMENT SECURITIES. Bills, notes, bonds and other debt securities
issued by the U.S. Treasury. These are direct obligations of the U.S.
Government and differ mainly in the length of their maturities.

5
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U.S. GOVERNMENT AGENCY OR INSTRUMENTALITY SECURITIES. Debt securities issued
or guaranteed by agencies or instrumentalities of the U.S. Government.
Although these securities are not direct obligations of the U.S. Government,
some are supported by the full faith and credit of the U.S. Treasury; others
are supported only by the limited right of the issuer to borrow from the
U.S. Treasury; and others depend solely upon the credit of the agency or
instrumentality and not the U.S. Treasury.

OBLIGATIONS OF BANKS OR SAVINGS INSTITUTIONS. Certificates of deposit,
bankers' acceptances and other short-term debt obligations of commercial
banks or savings and loan associations.

COMMERCIAL PAPER. Short-term unsecured promissory notes issued by
corporations, primarily to finance short-term credit needs. The Fund will
only invest in commercial paper that is rated A-1 or A-2 by Standard &
Poor's Corporation ("S&P") or Prime-1 or Prime-2 by Moody's Investors
Service, Inc. ("Moody's") or, if unrated, issued by a corporation having an
outstanding debt issue rated at least AA or Aa by S&P or Moody's.

OTHER CORPORATE DEBT SECURITIES. Outstanding nonconvertible corporate debt
securities (e.g., bonds and debentures) which were not issued as short-term
obligations but which have 13 months or less remaining to maturity. The Fund
will only invest in such obligations that at the time of purchase are rated
AA or Aa or better by S&P or Moody's.

The Fund has adopted a number of restrictions and policies relating to the
investment of its assets and its activities that are fundamental and may not
be changed without the approval of a majority of the Fund's outstanding
shares as defined in the SAI.

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HOW TO BUY SHARES
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Shares of the Fund are offered and sold on a continuous basis. The offering
price per share will be at the NAV next determined after an order and payment
is received in the form described below. Purchase orders in proper form
received by wire transfer will be effected at the next determined NAV. If you
invest by mail, purchase orders in proper form will be effected at the NAV
next determined after the funds have been converted into federal funds,
normally one full business day

6
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after receipt. The Fund is generally open for business, and its NAV is
computed, on each day the NYSE is open for trading (except the Friday after
Thanksgiving Day and the weekdays before and after Christmas Day (in 1999) and
the weekday after New Year's Day (in 2000)). The Fund reserves the right to
reject any purchase order and to change the minimum purchase requirements at
any time.

INITIAL PURCHASE

The minimum initial purchase is $500, except there is no minimum initial
investment for retirement accounts and accounts opened under bona fide
payroll deduction plans. There is no sales charge. An Application may be
obtained from the Fund or from a registered representative of EquiTrust
Marketing Services, LLC. The proper form for initial purchase orders is as
follows:

By Mail:

Complete the Application and mail it with your check payable to "EquiTrust
Money Market Fund, Inc." to: EquiTrust Money Market Fund, Inc., 5400
University Avenue, West Des Moines, Iowa 50266-5997.

By Wire:

Call our toll-free number (800) 247-4170 (in Iowa call toll-free (800)
422-3175, or in the Des Moines metropolitan area call 225-5586) to obtain an
Account Number and to provide the Fund with your name, address and social
security or tax identification number. Then, simply instruct your bank to
"wire transfer" funds to: DEUTSCHE BANK, ABA #021001033, DDA ACCOUNT
#00220644 EQUITRUST MONEY MARKET FUND, INC., FOR FURTHER CREDIT TO YOUR
ACCOUNT REGISTRATION AND ACCOUNT NUMBER. Finally, complete the Application
and mail it to the Fund at the address listed above under "Initial
Purchase--By Mail."

SUBSEQUENT PURCHASES

The proper form for subsequent purchase orders is as follows:

By Mail (no minimum):

Send the Fund a check payable to the Fund accompanied by a letter indicating
the dollar value of the shares to be purchased, the account number and the
registered owner(s).

By Wire (no minimum):

Instruct your bank to "wire transfer" funds as outlined above under "Initial
Purchase--By Wire."

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HOW TO REDEEM SHARES
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Upon receipt of an executed redemption request in proper form as described
below, the Fund will redeem your shares at the next determined NAV. The Fund
intends to pay redemption proceeds within one business day after receipt of an
executed redemption request in proper form. If you sell shares you recently
purchased with a check, the Fund may delay sending you redemption proceeds
until your check has cleared, which may take up to 15 days. YOU MAY NOT USE
EXPEDITED REDEMPTION PROCEDURES (DRAFT OR TELEPHONE REDEMPTION) IF SHARES WERE
PURCHASED BY CHECK UNTIL THE SHARES BEING REDEEMED HAVE BEEN ON THE FUND'S
BOOKS FOR AT LEAST FOUR BUSINESS DAYS. There is no such delay when redeeming
shares that were purchased by wire.

7
<PAGE>

Due to the high cost of maintaining small accounts, the Fund reserves the
right to redeem your account if it is reduced to a value of less than $500.
You will be notified accordingly and permitted 60 days to make additional
share purchases before the liquidating redemption is processed.

BY MAIL (NO MINIMUM)

Send a letter to the Fund, 5400 University Avenue, West Des Moines, Iowa
50266-5997, requesting redemption of either the number or dollar value of
shares to be redeemed. Your letter must be signed exactly as your account is
registered and must be accompanied by such other documentation of authority
as the Fund deems necessary in the case of estates, trusts, guardianships,
corporations, unincorporated associations and pension and profit sharing
plans. On a jointly owned account, all owners must sign. FOR REDEMPTIONS
GREATER THAN $5,000, OR FOR REDEMPTIONS IN ANY AMOUNT BEING DIRECTED TO A
DESTINATION OTHER THAN THE ADDRESS OF RECORD, SIGNATURES OF ACCOUNT OWNERS
MUST BE GUARANTEED. THE FOLLOWING INSTITUTIONS MAY PROVIDE SIGNATURE
GUARANTEES: PARTICIPATING COMMERCIAL BANKS, TRUST COMPANIES, MEMBERS OF A
NATIONAL SECURITIES EXCHANGE, SAVINGS AND LOAN ASSOCIATIONS OR CREDIT
UNIONS, OR A REGISTERED REPRESENTATIVE OF EQUITRUST MARKETING SERVICES, LLC
OR EQUITRUST INVESTMENT MANAGEMENT SERVICES, INC. SIGNATURES MAY NOT BE
GUARANTEED BY A NOTARY PUBLIC.

BY DRAFT (NO MINIMUM)

You may redeem shares by writing drafts drawn on Norwest Bank Iowa, N.A.,
payable to the order of any person in any amount. If you wish to use this
method of redemption you must complete the appropriate portion of the
Application including a signature card. You can order drafts for a charge of
$12.00 per 175 drafts ordered, after all necessary application forms have
been received in proper form. The cost of the drafts ordered will be
collected by redemption of shares, or fractions thereof, from your account.
If your entire account is redeemed by draft, dividends credited to your
account from the beginning of the month through the day of redemption will
be paid by a separate check mailed to the address of record. Payment of
drafts is subject to acceptance by the Fund, and the Fund may refuse to
honor drafts whenever the right of redemption has been suspended or
postponed, or whenever your account is otherwise impaired. When the draft is
presented for payment and accepted, a sufficient number of shares in your
account will be redeemed to pay the amount of the draft. When a draft is
presented to redeem Fund shares in excess of the value of the account OR TO
REDEEM SHARES PURCHASED BY CHECK WITHIN FOUR BUSINESS DAYS, the draft will
be returned marked "insufficient funds" and a service charge of $10.00 will
be levied on all drafts so marked. Redemption by draft is not available for
retirement accounts.

You may obtain copies of cleared drafts by calling the Fund at its toll-free
number, (800) 247-4170 (in Iowa, call toll-free (800) 422-3175, or in the
Des Moines metropolitan area, call 225-5586), or by writing a letter to the
Fund. The first five copies of drafts per year will be provided to you at no
charge; thereafter, there will be a charge of $3 per copy. The costs of the
copies will be collected by redemption of shares, or fractions thereof, from
your account.

BY TELEPHONE (MINIMUM: $1,000 BY WIRE, LESSER OF $100 OR ACCOUNT BALANCE BY
CHECK)

You may redeem shares by telephone. The proceeds of shares redeemed by
telephone will be sent by check to you at your address of record. If you
wish to use this method of redemption you must complete the appropriate
portions of the Application and it must be on file with the Fund. All
applications for telephone redemption must have signatures of shareholders
guaranteed and must be accompanied by such other documentation of authority
as the Fund deems necessary in the case of estates, trusts, guardianships,
corporations, unincorporated associations and pension and profit

8
<PAGE>

sharing plans. The following institutions may provide signature guarantees:
participating commercial banks, trust companies, members of a national
securities exchange, savings and loan associations or credit unions, or a
registered representative of EquiTrust Marketing Services, LLC or EquiTrust
Investment Management Services, Inc. SIGNATURES MAY NOT BE GUARANTEED BY A
NOTARY PUBLIC.

Once the completed form is on file, the Fund will honor redemption requests
by ANY PERSON by telephone, using the toll-free numbers listed on the cover
page, facsimile or other methods without a signature guarantee from you or
any other person. Proceeds may also be paid to you by wire transfer, but
only to the financial institution and account on file as designated by you,
which must be a domestic financial institution that is a member of the
Federal Reserve System. Although the Fund does not charge for wiring funds,
you will be responsible for wire fees, if any, charged by the receiving
bank. The Adviser employs procedures designed to confirm that instructions
communicated by telephone are genuine, including requiring certain
identifying information prior to acting upon instructions, recording all
telephone instructions and sending written confirmations of instructions. To
the extent such procedures are reasonably designed to prevent unauthorized
or fraudulent instructions, neither the Adviser nor the Fund would be liable
for any losses from unauthorized or fraudulent instructions. The Fund
reserves the right to terminate this telephone redemption privilege at any
time. THIS PRIVILEGE WILL BE INACTIVE FOR TEN BUSINESS DAYS FOLLOWING A
CHANGE OF ADDRESS. This procedure is not available for retirement accounts.

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OTHER SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------

The Fund offers a number of shareholder services designed to facilitate the
purchase and redemption of shares. Full details as to each of such services
and copies of the various plans described below can be obtained from the Fund.

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PERIODIC WITHDRAWAL PLAN

If you own $5,000 or more of Fund shares in a single account, you may
establish a Periodic Withdrawal Plan to provide for regular monthly,
quarterly or annual payments of a fixed dollar amount or fixed percent of
the account balance ($100 annual minimum) to be sent to you or a designated
payee. (Account balance and withdrawal limitations may be waived if the plan
is established using life expectancy factors to calculate a required minimum
distribution.) Fund shares held in your account having an NAV of the amount
of the requested payment will be redeemed on or around the fifth business
day before the end of the applicable month and a check will be mailed to you
within seven days thereafter.

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AUTOMATIC INVESTMENT PLAN

You may elect to participate in the Fund's Automatic Investment Plan. This
plan enables you to automatically purchase shares of the Fund on a monthly
basis. A minimum initial investment of $50 per account is required to
establish an automatic investment plan. Minimum monthly investments of $25
per account are necessary to maintain the plan. The Fund will debit your
financial institution account and subsequently purchase shares of the Fund
having an NAV of the

9
<PAGE>

amount of the requested deposit on or around the 16th day of the month. If
you are interested in this plan you must complete an automatic investment
form, available from the Fund. If you elect to participate in the Automatic
Investment Plan, and all shares of an account with that option are exchanged
for shares of any portfolio of EquiTrust Series Fund, Inc., the Automatic
Investment Plan will continue under the account(s) to which the shares were
exchanged, until such time as that fund is notified in writing to
discontinue the Plan.

- --------------------------------------------------------------------------------

EXCHANGE PRIVILEGE

You may exchange all or some Fund shares for shares of any portfolio of
EquiTrust Series Fund, Inc., provided your accounts have like registrations,
if that fund's shares are eligible for sale in your state of residence.
EquiTrust Series Fund, Inc. currently offers six portfolios: Value Growth
Portfolio, High Grade Bond Portfolio, High Yield Bond Portfolio, Managed
Portfolio, Money Market Portfolio and Blue Chip Portfolio. You may obtain a
prospectus for EquiTrust Series Fund, Inc. by writing or calling that fund
at the same address or phone numbers as shown on the cover page of this
prospectus. Traditional Shares of that fund are subject to a contingent
deferred sales charge of up to 5%, as described in its prospectus. Exchanges
may be for any amount, except that if a new account is established by the
exchange privilege, an application for that account must be completed and
mailed to the fund, and the minimum initial purchase amount must be met.
Exercise of the exchange privilege is treated as a sale for federal income
tax purposes and, depending on the circumstances, you may realize a gain or
loss. If you are interested in exercising the exchange privilege, you must
first obtain a prospectus and an exchange form from the Fund. Once your
completed exchange form is on file with the Fund, exchanges may be
authorized by telephone (by ANY PERSON) or by letter. This privilege may be
modified or terminated by the Fund at any time.

You may also request exchanges to any portfolio of EquiTrust Series Fund,
Inc. on a monthly or quarterly basis using the automatic exchange privilege.
Automatic exchanges occur on the 20th day of the month of the elected
schedule or the following business day if the 20th is a holiday or weekend
day. If you are interested in the automatic exchange privilege, you must
first obtain a prospectus and an automatic exchange form from that fund.
Automatic exchanges are subject to the considerations listed in the above
paragraph.

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FACSIMILE REQUESTS

Facsimile requests (faxes) will be accepted for redemption of shares and for
changes to shareholder account information. Faxes must contain the
appropriate signature(s), signature guarantee(s) and necessary accompanying
documents. The transmission should also include account number(s) and a
return fax number and telephone number. The Application for Shares,
Automatic Investment Form (ACH Agreement), Application for Expedited
Redemption, and any change or redemption that requires the submission of a
certified document must be delivered in original form. Fax requests will be
accepted at 515-226-6209.

- --------------------------------------------------------------------------------

RETIREMENT PLANS

Eligible shareholders of the Fund may participate in a variety of qualified
retirement plans which are available from EquiTrust Investment Management
Services, Inc. Some of the plans currently

10
<PAGE>

offered are: Individual Retirement Accounts (IRAs), Roth IRAs, Simplified
Employee Pension Plans (SEPs), Savings Incentive Match Plans for Employees
(SIMPLEs), Tax Sheltered 403(b) Plans, Qualified Pension and Profit Sharing
Plans (Keogh Plans), and Public Employer Deferred Compensation Plans. The
initial investment to establish any such plan, and subsequent investments,
may be in any amount (subject to Automatic Investment Plan limitations).
Investors Fiduciary Trust Company ("IFTC") of Kansas City, Missouri, serves
as custodian and provides the required services for IRAs, Roth IRAs, SEPs,
SIMPLEs and Qualified Pension and Profit Sharing Plans. A custodial fee,
currently $10.00, will be collected annually by redemption of shares, or
fractions thereof, from each participant's account(s). Information with
respect to these plans is available upon request from the Fund.

Trustees of qualified retirement plans and 403(b)(7) custodial accounts are
required by law to withhold 20% of the taxable portion of any distribution
that is eligible to be "rolled over." The 20% withholding requirement does
not apply to distributions from IRAs or any part of a distribution which is
transferred directly to another qualified retirement plan, 403(b)(7) account
or IRA. You should consult your tax adviser regarding this 20% withholding
requirement.

- --------------------------------------------------------------------------------

EDUCATION PLAN

Eligible shareholders of the Fund may participate in Education IRAs, which
are available from the Distributor. The initial investment to establish this
plan, and subsequent investments, may be in any amount (subject to Automatic
Investment Plan limitations). IFTC serves as custodian and provides the
required services for Education IRAs. A custodial fee, currently $10.00,
will be collected annually by liquidating shares, or fractions thereof, from
each participant's account(s). Information with respect to this plan is
available upon request from the Fund.

- --------------------------------------------------------------------------------

PORTFOLIO MANAGEMENT
- --------------------------------------------------------------------------------

EquiTrust Investment Management Services, Inc. (the "Adviser"), 5400
University Avenue, West Des Moines, Iowa 50266, serves as the Fund's
investment adviser and manager pursuant to an Investment Advisory and
Management Services Agreement. This relationship has existed since the Fund
commenced operations in 1981.

The Adviser is an indirect subsidiary of FBL Financial Group, Inc., an Iowa
corporation. The following individuals are officers and/or directors of the
Adviser and are officers and/or directors of the Fund: Stephen M. Morain,
Thomas R. Gibson, William J. Oddy, Timothy J. Hoffman, Dennis M. Marker,
James W. Noyce, Lou Ann Sandburg, Sue A. Cornick, Kristi Rojohn and Elaine
A. Followwill. The Adviser also acts as the investment adviser to
individuals, institutions and two other investment companies: EquiTrust
Series Fund, Inc. and EquiTrust Variable Insurance Series Fund. Personnel of
the Adviser also manage investments for the portfolios of insurance
companies.

The Adviser handles the investment and reinvestment of the Fund's assets,
and is responsible for the overall management of the Fund's business
affairs, subject to the review of the Board of Directors.

11
<PAGE>

As compensation for the advisory and management services provided by the
Adviser, the Fund has agreed to pay the Adviser an annual management fee of
.25% of the average daily net assets, accrued daily and payable monthly. The
Adviser has agreed to reimburse the Fund for its total expenses, excluding
brokerage, interest, and extraordinary expenses, in excess of 1.50% of the
Fund's average daily net assets for any fiscal year. However, the amount
reimbursed shall not exceed the amount of the advisory fee paid by the Fund
for such services.

- --------------------------------------------------------------------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

YEAR 2000

Many data processing systems were designed using only two digits to signify
the year (for example, "99" for "1999"). On January 1, 2000, if these data
processing systems are not corrected, they may incorrectly interpret "00" as
the year 1900 rather than the year 2000, leading to computer shutdowns and
errors (commonly known as "year 2000 problems"). To the extent that these
systems conduct forward-looking calculations, such problems may occur prior
to January 1, 2000. In providing investment advisory and other services to
the Fund, the Adviser utilizes data processing systems that may be affected
by year 2000 problems. The Adviser and the Fund also rely on service
providers, including banks, custodians and transfer agents, that also may be
affected. Like other mutual funds and financial and business organizations,
the Adviser and other service providers could be adversely affected in their
ability to process securities trades, price securities, provide shareholder
account services and otherwise conduct the Fund's normal business operations
if data processing systems that they use experience year 2000 problems. The
Adviser has developed, and is in the process of implementing, a year 2000
transition plan with respect to systems that it operates, and is confirming
that the Fund's other service providers are also so engaged. The resources
that are being devoted to this effort are substantial. It is difficult to
predict with precision whether the amount of resources ultimately devoted,
or the outcome of these efforts, will have any negative impact on the
Adviser and the Fund. As of the date of this prospectus, the Adviser does
not anticipate that Shareholders will experience negative effects on
investments in the Fund, or on the services provided to them on behalf of
the Fund, as a result of year 2000 problems. However, there can be no
assurance that the Adviser will be successful, or that interaction with
other service providers will not impair the Adviser's and the Fund's
services on or before January 1, 2000.

- --------------------------------------------------------------------------------

DISTRIBUTOR

The Adviser is also the sole distributor and principal underwriter of the
Fund's shares.

- --------------------------------------------------------------------------------

NET ASSET VALUE

The net asset value ("NAV") per share of the Fund is determined as of the
earlier of 3:00 p.m. (Central Time) or the close of the New York Stock
Exchange (the "NYSE"), on each day that (i) the NYSE is open for business
(except the day after Thanksgiving, the weekdays before and after Christmas
Day (in 1999), the weekday after New Year's Day (in 2000) and any day on
which the Fund offices are closed because of a weather-related or comparable
type of emergency); and

12
<PAGE>

(ii) an order for purchase or redemption of shares of the Fund is received.
The NAV per share of the Fund is computed by dividing the total value of the
Fund's securities and other assets, less liabilities, by the total number of
fund shares outstanding.

If the Fund offices should be closed because of a weather-related or
comparable type of emergency and the Fund is unable to segregate orders and
redemption requests received on that day, the Fund will price those orders
and redemptions at the NAV next determined for the Fund.

The Fund's securities are valued using the amortized cost method of
valuation. This involves valuing a security at cost on the date of
acquisition and thereafter assuming a constant accretion of a discount or
amortization of a premium to maturity. For a further discussion of the
manner in which such values are determined, see the SAI under the heading
"Net Asset Value."

- --------------------------------------------------------------------------------

DISTRIBUTIONS

- --------------------------------------------------------------------------------

On each day that the NAV per share of the Fund is determined, the Fund's net
investment income will be declared, as of the close of the NYSE, as a
dividend to shareholders of record prior to the declaration. Dividends are
payable monthly and are automatically reinvested and distributed on the last
business day of each month in shares of the Fund at the then current NAV,
unless you request payment in cash; provided, however, that no cash payment
will be made for dividends in an amount under $10. Any such dividend amount
under $10 will be reinvested in shares of the Fund.

If you elect to receive dividends and/or capital gain distributions in cash,
from an account that remains open, and the postal or other delivery service
is unable to deliver those monies to your address of record, or the check
remains uncashed for over one year, your distribution option will
automatically be converted to having all dividends and other distributions
reinvested in additional shares, and the outstanding check will be voided
and reinvested in your account. If you have elected to receive dividends
and/or capital gain distributions in cash, from an account that is
subsequently closed, and the postal or other delivery service is unable to
deliver checks to your address of record, such check will remain outstanding
until it is turned over to the appropriate state agency for escheat
purposes. No interest will accrue on amounts represented by uncashed
distribution or redemption checks.

Each non-qualified account shareholder will receive a monthly summary of
account activity, including information on dividends paid or reinvested.
Qualified account shareholders will receive a quarterly statement reflecting
dividend activity. If you redeem all shares at any time during a month,
dividends credited to your account from the beginning of the month through
the day of redemption will be paid in addition to the proceeds of the
redemption.

The Fund's net investment income, for dividend purposes, consists of (1)
accrued interest income, plus or minus amortized purchase discount or
premium, (2) plus or minus all short-term realized gains or losses and
unrealized appreciation or depreciation on portfolio assets, and (3) minus
all accrued expenses of the Fund. Expenses of the Fund are accrued daily. So
long as the Fund's portfolio securities are valued at amortized cost there
will be no unrealized appreciation or depreciation on portfolio securities.

13
<PAGE>
- --------------------------------------------------------------------------------

TAXES
- --------------------------------------------------------------------------------

TAXATION OF THE FUND. As a regulated investment company, the Fund generally
pays no federal income tax on the income and gains that it distributes to
you.

TAXATION OF SHAREHOLDERS. To avoid taxation, the Internal Revenue Code
requires the Fund to distribute net income and any net capital gains
realized on its investments annually. The Fund's income from dividends and
interest and any net realized short-term gains are paid to shareholders as
ordinary income dividends. Net realized long-term gains are paid to
shareholders as capital gains distributions.

Except for those shareholders exempt from federal income taxes, dividends
and capital gain distributions will be taxable to shareholders, whether paid
in cash or reinvested in additional shares of the Fund. You will be notified
annually as to the federal income tax status of dividends and capital gains
distributions. Such dividends and distributions may also be subject to state
and local taxes.

Long-term capital gain distributions are taxable as long-term capital gains
regardless of how long you have held shares of the Fund. Long-term capital
gain distributions (relating to assets held by the Fund for more than 12
months) made to individual shareholders are currently taxed at the maximum
rate of 20%. Dividends representing net investment income and net realized
short-term capital gains are taxed as ordinary income at rates up to a
maximum marginal rate of 39.6% for individuals. Any dividends and
distributions declared in October, November or December to shareholders of
record as of a date in one of those months and paid during the following
January are treated for federal income tax purposes as paid on December 31
of the calendar year in which they are declared.

DISTRIBUTIONS TO RETIREMENT PLANS. Fund distributions received by your
qualified retirement plan, such as a 401(k) Plan or IRA, are generally tax
deferred. This means that you are not required to report Fund distributions
on your income tax return, but, rather, when your plan makes payments to
you. Special rules apply to payments from Roth and Education IRAs.

BACKUP WITHHOLDING. When you open an account, Internal Revenue Service
("IRS") regulations require that you provide your taxpayer identification
number ("TIN"), certify that it is correct, and certify that you are not
subject to backup withholding under IRS rules. If you fail to provide a
correct TIN or the proper tax certifications, the Fund is required to
withhold 31% of all the distributions (including dividends and capital
distributions) and redemption proceeds paid to you. The Fund is also
required to begin backup withholding on your account if the IRS instructs it
to do so. Amounts withheld are applied to your federal income tax liability
and you may obtain a refund from the IRS if withholding results in
overpayment of taxes.

You are advised to consult your own tax adviser as to the tax consequences
of owning shares of the Fund.

14
<PAGE>
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The financial highlights table is intended to help you understand the Fund's
financial performance for the past five years through July 31st of each fiscal
year shown. Certain information reflects financial results for a single Fund
share. The total returns in the tables represent the rate that you would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions). This information has been derived from financial
statements that have been audited by Ernst & Young LLP, whose report, along
with the Fund's financial statements, is included in the Annual Report, which
is available upon request and incorporated by reference into the SAI.

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations
Net investment income......................... 0.039 0.043 0.040 0.040 0.041
------- ------- ------- ------- -------
Total from investment operations................ 0.039 0.043 0.040 0.040 0.041
Less Distributions
Dividends from net investment income.......... (0.039) (0.043) (0.040) (0.040) (0.041)
------- ------- ------- ------- -------
Total distributions............................. (0.039) (0.043) (0.040) (0.040) (0.041)
------- ------- ------- ------- -------
Net asset value, end of year...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total Return:
Total investment return based on net asset value
(1)........................................... 3.91% 4.44% 3.99% 4.05% 4.17%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted)......... $31,374 $26,364 $23,054 $24,574 $19,977
Ratio of total expenses to average net assets... 1.30% 1.27% 1.55% 1.72% 2.01%
Ratio of net expenses to average net assets..... 1.23% 1.27% 1.51% 1.50% 1.51%
Ratio of net income to average net assets....... 3.83% 4.40% 3.90% 3.92% 4.06%
Information assuming no voluntary reimbursement by
EquiTrust Investment Management Services, Inc.
of excess operating expenses:
Per share net investment income............... $ 0.040 $ 0.038 $ 0.036
Ratio of expenses to average net assets....... 1.55% 1.72% 2.01%
Amount reimbursed............................. $10,590 $51,886 $96,398
</TABLE>

Note: Per share amounts have been calculated on the basis of monthly per
share amounts (using average monthly outstanding shares) accumulated
for the period.

(1) Total investment return is calculated assuming an initial investment
made at the net asset value at the beginning of the period, reinvestment
of all dividends and distributions at net asset value during the period,
and redemption on the last day of the period.

15
<PAGE>
- --------------------------------------------------------------------------------

ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

SHAREHOLDER INQUIRIES

You may make inquiries either by contacting your registered representative
or by writing or calling the Fund at the address or phone numbers as shown
on the front cover. You may obtain copies of year-end account statements by
calling the Fund at our toll-free number (800) 247-4170 (in Iowa call
toll-free (800) 422-3175, or in the Des Moines metropolitan area call
225-5586), or by writing a letter to the Fund. The prior year statement for
regular accounts, and prior two year statements for fiduciary accounts, will
be provided to you at no charge; thereafter, there will be a charge of $3
per copy. The costs of the copies will be collected by redemption of shares,
or fractions thereof, from your account. If your account has been closed,
the applicable fees must be remitted with the request.

- --------------------------------------------------------------------------------

ANNUAL/SEMI-ANNUAL REPORTS TO SHAREHOLDERS

Additional information about the Fund's investments is available in the
Fund's annual and semi-annual reports to shareholders. The Fund's annual
report to shareholders contains a discussion of the market conditions and
investment strategies that significantly affected the Fund's performance
during the fiscal year covered by the report.

- --------------------------------------------------------------------------------

STATEMENT OF ADDITIONAL INFORMATION

The SAI, which contains additional information about the Fund, has been
filed with the SEC and is incorporated herein by reference. Information
about the Fund (including the SAI) can be reviewed and copied at the SEC's
Public Reference Room in Washington, D.C. You may obtain information about
the Public Reference Room by calling the SEC at 1-800-SEC-0330. Reports and
other information about the Fund are available on the SEC's Internet site at
http://www.sec.gov. and copies of this information are available, upon
paying a duplication fee, by writing the Public Reference Section of the
SEC, Washington, D.C. 20549-6009.

You may obtain a free copy of the Fund's SAI and annual and semi-annual
reports and you may make further inquiries by calling the Fund at
1-800-247-4170 or by writing the Fund at 5400 University Avenue, West Des
Moines, Iowa 50266.

Investment Company Act of 1940, File Number 811-3121.

- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT ADVISER, UNDERWRITER, AND CUSTODIAN
SHAREHOLDER SERVICE, DIVIDEND DISBURSING AND Deutsche Bank
TRANSFER AGENT Global Assets -- Insurance Group
EquiTrust Investment Management Services, Inc. 16 Wall Street
5400 University Avenue New York, New York 10005
West Des Moines, Iowa 50266
LEGAL COUNSEL INDEPENDENT AUDITORS
Vedder, Price, Kaufman & Kammholz Ernst & Young LLP
222 North LaSalle Street 801 Grand Avenue
Suite 2600 Suite 3400
Chicago, Illinois 60601 Des Moines, Iowa 50309
</TABLE>

16
<PAGE>
APPLICATION FOR SHARES

PLEASE COMPLETE AND MAIL TO:
EQUITRUST MONEY MARKET FUND, INC.
5400 UNIVERSITY AVENUE
WEST DES MOINES, IOWA 50266-5997

If you have any questions, please call toll-free at 1-800-422-3175 (in Iowa) or
1-800-247-4170 (outside Iowa).

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

DESIGNATE TYPE OF ACCOUNT & OWNER NAME(S)

/ / INDIVIDUAL OR JOINT ACCOUNT*
- ------------------------------------------------------

Owner's Name

- -------------------------------------------------------------------

Joint Owner's Name

*Joint tenants with Right of Survivorship. The Fund does not accept accounts
registered tenants-in-common.

/ / CUSTODIAL ACCOUNT
Uniform Gift or Transfer to Minors Act

/ / EDUCATION IRA ACCOUNT
- ------------------------------------------------------

Custodian's or Responsible Individual's Name

- -------------------------------------------------------------------

Minor's Name

/ / TRUST, CORPORATION OF OTHER ENTITY ACCOUNT

- -------------------------------------------------------------------

Name of Trust, Corporation or Other Entity

- -------------------------------------------------------------------

Trustee(s') Name or Type of Entity

- -------------------------------------------------------------------

Date of Trust Agreement

PROVIDE YOUR TAX IDENTIFICATION NUMBER

- -------------------------------------------------------------------

Social Security or Tax ID Number
(Use minor's Social Security number for gifts/transfers to minors and Education
IRAs)

- -------------------------------------------------------------------

Joint Owner's or Custodian's Social Security or Tax ID Number

PROVIDE YOUR ADDRESS

- -------------------------------------------------------------------

Street or PO Box

- -------------------------------------------------------------------

City, State, Zip Code

PROVIDE YOUR DATE(S) OF PROVIDE YOUR MEMBERSHIP
BIRTH NUMBER

- ---------------------- ------------------------

- ------------------------------------------------------

INITIAL INVESTMENT

- -------------------------------------------------------------------

Amount ($500 minimum)

- -------------------------------------------------------------------

TO REINVEST YOUR DISTRIBUTIONS

Your dividends and capital gains will be reinvested unless you indicate
otherwise. (No cash payments will be made for dividends in an amount less than
$10.)

/ / Cash Dividends / / Cash Capital Gains

SPECIAL SHAREHOLDER PRIVILEGES

Expedited Redemption (minimums: $1,000 by wire, lesser of $100 or account
balance by check)

/ / REDEMPTION BY TELEPHONE

I authorize EquiTrust Investment Management Services, Inc. ("EquiTrust") to
honor telephone requests FROM ANY PERSON without signature guarantee for the
redemption of Fund shares from my account. The proceeds shall be wired only to
the account designated below or, if none, mailed to the address of record. This
privilege will be terminated by the Fund without prior notice if EquiTrust
receives written notice from any account owner of revocation of this authority.
This privilege will be inactive for ten business days following a change of
address. SIGNATURE GUARANTEE REQUIRED.

- -------------------------------------------------------------------

Name of your domestic financial institution

- -------------------------------------------------------------------

Address of Financial Institution, City, State, Zip Code

- -------------------------------------------------------------------

Account Number Account Registration

- -------------------------------------------------------------------

Routing Number

/ / REDEMPTION BY DRAFT (no minimum)

I authorize Norwest Bank Iowa, N.A. (the "Bank") to honor drafts drawn by me on
the Bank and the redemption of a sufficient number of Fund shares to pay such
drafts. This privilege is subject to the additional terms on the signature card.

/ / Enclosed is a completed signature card.

/ / Please send card for completion.

Please send information on the following:

/ / Exchange Between Funds
/ / Automatic Investment Plan
- ------------------------------------------------------

TAX QUALIFIED PLANS ONLY

A qualified application must be submitted in addition to this form.

/ / SIMPLE / / IRA / / Education IRA

/ / Tax Deferred 403(b) / / SEP / / Roth IRA

/ / Qualified Pension and Profit Sharing

DESIGNATED BENEFICIARY
(for use with tax qualified plans only)

- -------------------------------------------------------------------

Primary Beneficiary

- -------------------------------------------------------------------

Social Security Number Date of Birth

- -------------------------------------------------------------------

Contingent Beneficiary

- -------------------------------------------------------------------

Social Security Number Date of Birth

- -------------------------------------------------------------------

Contingent Beneficiary

- -------------------------------------------------------------------

Social Security Number Date of Birth

- -------------------------------------------------------------------

Spousal Consent of Non-Spouse Beneficiary

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

SIGNATURES
By signing this form, I certify that:

I have received, have read and agree to the terms of the prospectus for
EquiTrust Money Market Fund, Inc. I have the authority and legal capacity to
purchase mutual fund shares, am of legal age in my state and believe each
investment is suitable for me. Under penalties of perjury, I certify that the
number shown on this form is a true and correct social security or tax
identification number and, to the best of my knowledge, I am not subject to
backup withholding.

- -------------------------------------------------------------------

Signature of Applicant

- -------------------------------------------------------------------

Signature of Joint Applicant

- -------------------------------------------------------------------

Rep's Signature Number

- -------------------------------------------------------------------

Date

SIGNATURE GUARANTEE*
Complete for Expedited Redemption Privilege
- -------------------------------------------------------------------

Signature Guaranteed By

- -------------------------------------------------------------------

Authorized Signature

*Signatures of account owners must be guaranteed. The following institutions may
provide signature guarantees: participating commercial banks, trust companies,
members of a national securities exchange, savings and loan associations, or
credit unioins, or a registered representative of EquiTrust Marketing Services,
LLC or EquitTrust Investment Management Services, Inc. Signatures may not be
guaranteed by a notary public.

737-118A (12/99) This application must be accompanied or preceded by a current
prospectus.
<PAGE>
INSTITUTIONAL ACCOUNTS

Please execute the applicable sections below (all blanks should be completed
with the requested information and inappropriate alternatives should be
deleted).

CORPORATION/ASSOCIATION
I, ________________________________________, Secretary of
________________________, a (corporation) (unincorporated association),
organized under the laws of ____________________________________________________
(the "Organization"), certify that the following resolutions have been adopted
by the (board of directors) (trustees) (other managing body) of said
Organization and are now in full force and effect:

"RESOLVED, that the Organization establish an account in EquiTrust Money
Market Fund, Inc. (the "Fund") and purchase shares of the Fund from time to
time, and the officers of this Organization are authorized to execute the
Application for such account presented for approval (being the form on which
this certificate is set forth) and select the draft redemption privilege and
telephone redemption privilege related to such account in accordance with the
terms on such Application;
FURTHER RESOLVED, that any ______________ (insert number of signatures
selected on the signature card) of the following officers of the Organization:
________________________________________________________________________________
_____________________________________________________ (insert titles) (is) (are)
authorized to execute drafts drawn pursuant to the Fund's draft redemption
privilege and the Fund, Norwest Bank Iowa, N.A. (the "Bank"), EquiTrust
Investment Management Services, Inc. ("EquiTrust") and their representatives are
authorized to honor as genuine and authorized all redemption drafts drawn
pursuant to said draft redemption privilege on behalf of the Organization signed
with the actual or facsimile signatures of said officers as certified to the
Fund by the Secretary of this Organization without inquiry as to the
circumstances of their issue or the disposition of any proceeds;

FURTHER RESOLVED, that in the case of facsimile signatures, redemption drafts
bearing the facsimile specimens or signatures resembling the facsimile specimens
may be honored as genuine and authorized regardless of by whom or by what means
the facsimile signatures thereon have been affixed thereto;

FURTHER RESOLVED, that any one of the aforesaid officers is authorized to act
for the Organization in all other cases in connection with the account of the
Organization with the Fund including providing instructions to the Fund, the
Bank, EquiTrust or their representatives;

FURTHER RESOLVED, that these appointments and authorizations shall remain in
effect and the Fund, the Bank, EquiTrust and their representatives may act
thereon until a revocation or modification thereof by this managing body,
certified by the Secretary of this Organization, shall be delivered to
EquiTrust."

The undersigned Secretary further certifies that the officers of this
Organization listed on the signature card as persons authorized to sign drafts
are now acting in the capacities listed and that the signatures of said persons
set forth on the signature card are genuine and authorized.
IN WITNESS WHEREOF, I have set my hand and the seal of this Organization this
____ day of ______________, 19____.
(SEAL) _________________________________________________________________________
Secretary

- --------------------------------------------------------------------------------

PARTNERSHIP/TRUST/FIDUCIARY

In connection with the establishment of an account with EquiTrust Money Market
Fund, Inc. (the "Fund") under the name _________________________________________
_______________________, the undersigned certify that they are all of the (part-
ners) (trustees) (other fiduciaries) under the (partnership agreement) (trust)
(will) (court order) (other instrument) described as follows ___________________
_________________________________________________________________ (give detailed
description and dates) and certify that they have full power and authority to
establish an account with the Fund (the "Account") and to select the draft
redemption and telephone redemption privileges in accordance with the
Application to which this certification is attached. The undersigned further
certify that the execution of the Application and the selection of the
privileges noted above and the purchase from time to time of shares of the Fund
in connection therewith have been duly authorized. The undersigned agree to be
bound by the terms and conditions contained in the Application, signature card
and the Fund's current prospectus. The undersigned agree that the persons listed
on the signature card acting with the number of signatures indicated on said
signature card are authorized to execute drafts drawn pursuant to the Fund's
draft redemption privilege and the Fund, Norwest Bank Iowa, N.A. (the "Bank"),
EquiTrust Investment Management Services, Inc. ("EquiTrust") and their
representatives are authorized to honor as genuine and authorized all redemption
drafts drawn pursuant to said draft redemption privilege in connection with the
Account signed with the signatures of said persons described above as certified
herein without inquiry as to the circumstances of their issue or the disposition
of any proceeds. The undersigned certify that the signatures set forth on the
front of the Application and signature card are genuine and authorized. The
undersigned agree that any one of the aforesaid persons is authorized to act for
the owner of the Account in all other cases, including providing instructions to
the Fund, the Bank, EquiTrust or their representatives. This certification shall
remain in effect and the Fund, the Bank, EquiTrust and their representatives may
act in reliance thereon until a revocation or modification thereof certified to
by the undersigned or their successors is delivered to EquiTrust. All
certifications and agreements herein are made jointly and severally.

<TABLE>
<S> <C> <C>
Dated: -------------------
---------------------------- ----------------------------
Signature Title or Capacity

----------------------------- -----------------------------
Signature Title or Capacity

----------------------------- -----------------------------
Signature Title or Capacity
</TABLE>
<PAGE>
----------------------------

[LOGO]

EquiTrust Money
Market Fund, Inc.
PROSPECTUS
DECEMBER 1, 1999
INVESTMENT MANAGER AND
PRINCIPAL UNDERWRITER
EQUITRUST INVESTMENT
MANAGEMENT SERVICES, INC.
5400 UNIVERSITY AVENUE
WEST DES MOINES, IA 50266
1-800-247-4170 (OUTSIDE IOWA)
1-800-422-3175 (IN IOWA)
1-515-225-5586 (DES MOINES)

737-118(12/99)
<PAGE>
- --------------------------------------------------------------------------------

EQUITRUST MONEY MARKET FUND, INC.

- --------------------------------------------------------------------------------

STATEMENT OF ADDITIONAL INFORMATION

December 1, 1999

This Statement of Additional Information ("SAI") is not a prospectus and should
be read in conjunction with the Prospectus of the Fund dated December 1, 1999.
The audited financial statements of the Fund, including the notes thereto,
contained in the Annual Report to Shareholders of the Fund for the fiscal year
ended July 31, 1999 were filed with the Securities and Exchange Commission (the
"Commission") on September 22, 1999 and are incorporated by reference.

A copy of the Prospectus or Annual Report may be obtained without charge by
writing or calling the Fund at the address or telephone number shown below.
Terms not defined herein shall have the meanings given them in the Prospectus.

EquiTrust Mutual Funds
5400 University Avenue
West Des Moines, Iowa 50266
800-247-4170
<PAGE>
- --------------------------------------------------------------------------------

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT OBJECTIVES, POLICIES AND TECHNIQUES.... 1
The Fund.................................... 1
Investment Objective........................ 1
Investment Strategies and Techniques........ 2
INVESTMENT RESTRICTIONS........................... 5
OFFICERS AND DIRECTORS............................ 6
INVESTMENT ADVISER................................ 11
UNDERWRITING AND DISTRIBUTION..................... 13
NET ASSET VALUE................................... 13
RETIREMENT PLANS.................................. 14
REDEMPTIONS....................................... 14
PERFORMANCE INFORMATION........................... 15
Performance Calculation..................... 15
ORGANIZATION OF THE FUND.......................... 16
SHAREHOLDER VOTING RIGHTS......................... 16
OTHER INFORMATION................................. 16
Custodian................................... 16
Independent Auditors........................ 16
Accounting Services......................... 17
Shareholder Service, Dividend Disbursing and
Transfer Agent............................. 17
Legal Matters............................... 17
Registration Statement...................... 17
FINANCIAL STATEMENTS.............................. 17
</TABLE>

i
<PAGE>
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVES, POLICIES AND TECHNIQUES

- --------------------------------------------------------------------------------

THE FUND

The Fund was incorporated under Maryland law on November 5, 1980. The Fund
is a no-load, open-end, diversified management investment company.

- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

The investment objective of the Fund is maximum current income consistent
with liquidity and stability of principal and may not be changed without
shareholder approval.

The Fund limits its investments to securities that meet the quality and
diversification requirements of Rule 2a-7 under the Investment Company Act
of 1940 (the "Investment Company Act"). Under Rule 2a-7, the Fund may only
purchase United States denominated instruments that are determined to
present minimal credit risks and at the time of acquisition are rated in the
top two rating categories by the required number of nationally recognized
statistical rating organizations (at least two or, if only one such
organization has rated the security, that one organization) or, if unrated,
are deemed comparable in quality. The diversification requirements of Rule
2a-7 provide generally that the Fund may not at the time of acquisition
invest more than 5% of its assets in securities of any one issuer or invest
more than 5% of its assets in securities that have not been rated in the
highest category by the required number of rating organizations or, if
unrated, have not been deemed comparable, except U.S. Government securities
and repurchase agreements of such securities.

It is the Fund's intention, as a general policy, to hold securities to
maturity. Nevertheless, the Fund may sell portfolio securities prior to
maturity in order to realize gains or losses or to shorten the average
maturity and may reduce or withhold dividends if it deems such actions
appropriate to maintain a stable net asset value. In addition, the Fund may
attempt, from time to time, to increase its yield by trading to take
advantage of variations in the markets for short-term money market
instruments. Redemptions of Fund shares could also necessitate the sale of
portfolio securities at times when such sales would not be otherwise
desirable. While the Fund intends to invest in high quality money market
instruments, these investments are not entirely without risk. An increase in
interest rates will generally reduce the market value of the Fund's
portfolio investments and a decline in interest rates will generally
increase the value of the Fund's portfolio investments. Securities which are
not issued or guaranteed by the U.S. Government are subject to the
possibility of default by the issuer. Those obligations having the maximum
degree of security tend to have proportionately lower yields. Since the
Fund's assets will be invested in securities with short maturities and the
Fund will manage its portfolio as described above, the Fund's portfolio of
money market instruments may be expected to turn over several times a year.
Since securities with maturities of less than one year are excluded from
required portfolio turnover calculations, the Fund's portfolio turnover rate
for reporting purposes is zero. Of course, there can be no assurance that
the Fund will achieve its objective.

1
<PAGE>
- --------------------------------------------------------------------------------

INVESTMENT STRATEGIES AND TECHNIQUES

The Fund seeks to achieve its objective by investing in the following money
market instruments maturing in 13 months or less from the time of
investment, thereby allowing the Fund to maintain a dollar-weighted average
portfolio maturity of 90 days or less. A description of the money market
instruments in which the Fund may invest is set forth in the Prospectus
under "Description of Principal Security Types." The following is intended
to augment that description.

OBLIGATIONS OF BANKS OR SAVINGS INSTITUTIONS. Certificates of deposit,
bankers' acceptances and other short-term debt obligations of commercial
banks or savings and loan associations. The Fund will not invest in any
instruments issued by a commercial bank unless the bank has total assets of
at least $100 million and has its deposits insured by the Federal Deposit
Insurance Corporation ("FDIC"). Similarly, the Fund will not invest in any
instrument issued by a savings and loan association unless the savings and
loan association has total assets of at least $100 million, has been issued
a charter by the Office of Thrift Supervision ("OTS") or was formerly a
member of the Federal Home Loan Bank System and is now subject to regulation
by the OTS, and is insured by the FDIC. However, the Fund may invest in an
obligation of a bank or savings and loan association with assets of less
than $100 million if the principal amount of such obligation is fully
covered by FDIC insurance. The limit of such coverage is currently $100,000.

In addition, the Fund will invest in commercial paper issued by major
corporations in reliance on the so-called "private placement" exemption from
registration by Section 4(2) of the Securities Act of 1933 ("Section 4(2)
paper"), subject to the above noted requirements with respect to ratings.
Section 4(2) paper is restricted as to disposition under the federal
securities laws, and generally is sold to an institutional investor such as
the Fund, who agrees that it is purchasing the paper for investment and not
with a view to public distribution. Any resale by the purchaser must be in
an exempt transaction. Section 4(2) paper normally is resold to other
institutional investors through or with the assistance of the issuer or
investment dealers who make a market in the Section 4(2) paper, thus
providing liquidity. EquiTrust Investment Management Services, Inc. (the
"Adviser") considers the legally restricted but readily saleable Section
4(2) paper to be liquid; however, the paper will be treated as illiquid
unless, pursuant to procedures approved by the Board of

2
<PAGE>

Directors, a particular investment in Section 4(2) paper is determined to be
liquid. The Adviser monitors the liquidity of the Fund's investments in
Section 4(2) paper on a continuing basis.

REPURCHASE AGREEMENTS. A repurchase agreement is an instrument under which
the Fund acquires a security from the seller who agrees, at the time of the
sale, to repurchase the security at a predetermined time and price, thereby
determining the yield during the Fund's holding period. That yield is
established by reference to current short-term rates and may be more or less
than the interest rate on the underlying security. The value of the
underlying security is marked-to-market daily. If the value of the
underlying security declined, the seller would be required to provide the
Fund with additional securities so that the aggregate value of the
underlying securities would be at least equal to the repurchase price.

The Fund may also enter into a special type of repurchase agreement known as
an "open repurchase agreement." An open repurchase agreement varies from the
typical agreement in the following respects: (1) the agreement has no set
maturity, but instead matures upon 24 hours' notice to the seller; and (2)
the repurchase price is not determined at the time the agreement is entered
into, but instead is based on a variable interest rate and the duration of
the agreement.

Repurchase agreements maturing in more than seven days will not exceed 10%
of the net assets of the Fund, and no more than 25% of the net assets of the
Fund may be invested in repurchase agreements in which the underlying
securities have maturities in excess of one year, although there is no limit
to the percentage of the Fund's assets which may be invested in repurchase
agreements that mature in seven days or less and have underlying securities
with maturities of one year or less. Net assets are taken at market value at
the time of purchase for purposes of the foregoing limitations. Open
repurchase agreements are considered to mature in one day.

If a seller of a repurchase agreement were to default, the Fund might
experience losses, including delays and expenses in enforcing its rights. To
minimize this risk, the Adviser (under the review of the Board of Directors)
will review the creditworthiness of the seller, and must find such
creditworthiness satisfactory before the Fund may enter into the repurchase
agreement. Repurchase agreements may be entered into with banks or
securities dealers and the underlying securities will consist only of
securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.

FLOATING AND VARIABLE RATE SECURITIES. The Fund may invest in instruments
having rates of interest that are adjusted periodically or that float
continuously or periodically according to formulas intended to minimize
fluctuation in the value of the instruments ("Variable Rate Securities").
The interest rate on a Variable Rate Security is ordinarily determined by
reference to, or is a percentage of, a specified market rate such as a
bank's prime rate, the 90-day U.S. Treasury Bill rate, or the rate of return
on commercial paper or bank certificates of deposit. Generally, the changes
in the interest rate on Variable Rate Securities reduce the fluctuation in
the market value of such securities. Accordingly, as interest rates decrease
or increase, the potential for capital appreciation or depreciation is less
than for fixed rate obligations. Some Variable Rate Securities have a demand
feature ("Variable Rate Demand Securities") entitling the purchaser to
resell the securities at an amount approximately equal to the principal
amount thereof plus accrued interest.

3
<PAGE>

As in the case for other Variable Rate Securities, the interest rate on
Variable Rate Demand Securities varies according to some specified market
rate intended to minimize fluctuation in the value of the instruments. Some
of these Variable Rate Demand Securities are unrated, their transfer is
restricted by the issuer and there is little, if any, secondary market for
the securities. Thus, any inability of the issuers of such securities to pay
on demand could adversely affect the liquidity of these securities. The Fund
determines the maturity of Variable Rate Securities in accordance with
Commission rules which allow the Fund to consider certain of such
instruments as having maturities shorter than the maturity date on the face
of the instrument.

WHEN-ISSUED OR DELAYED DELIVERY TRANSACTIONS. From time to time, in the
ordinary course of business, the Fund may purchase newly issued securities
on a "when-issued" basis and may purchase or sell securities on a "delayed
delivery" basis. When-issued or delayed delivery transactions involve a
commitment by the Fund to purchase or sell particular securities with
payment and delivery to take place at a future date. These transactions
allow the Fund to lock in an attractive purchase price or yield on a
security it intends to purchase or an attractive sale price on a security it
intends to sell. Normally, settlement occurs within one month of the
purchase or sale. During the period between purchase or sale and settlement,
no payment is made or received by the Fund and, for delayed delivery
purchases, no interest accrues to the Fund. The Fund will only make
commitments to purchase securities on a when-issued or delayed delivery
basis with the intention of actually acquiring the securities, but it
reserves the right to sell such securities before the settlement date if
deemed advisable.

At the time the Fund makes the commitment to purchase a security on a
when-issued or delayed delivery basis, it will segregate the security on the
Fund's accounting records, record the transaction and reflect the amount due
and the value of the security in determining its net asset value. Likewise,
at the time the Fund makes the commitment to sell a security on a delayed
delivery basis, it will segregate the security on the Fund's accounting
records, record the transaction and include the proceeds to be received in
determining its net asset value; accordingly, any fluctuations in the value
of the security sold pursuant to a delayed delivery commitment are ignored
in calculating net asset value so long as the commitment remains in effect.
The market value of the when-issued or delayed delivery securities at any
time may be more or less than the purchase price to be paid or the sale
price to be received at the settlement date. To the extent that the Fund
engages in when-issued or delayed delivery transactions, it will do so for
the purpose of acquiring or selling securities consistent with its
investment objectives and policies and not for the purpose of investment
leverage or to speculate on interest rate changes.

The Adviser does not believe that the Fund's net asset value ("NAV") or
income will be adversely affected overall by the purchase of securities on a
when-issued or delayed delivery basis. The Fund will segregate on its
accounting records cash, U.S. Government securities or other high-grade debt
obligations at least equal in value to commitments to purchase securities on
a when-issued or delayed delivery basis without limit. To the extent that
assets of the Fund are held in cash pending the settlement of a purchase of
securities, the Fund would earn no income. In the case of a commitment to
sell portfolio securities on a delayed delivery basis, the Fund will
segregate the securities on its accounting records while the commitment is
outstanding.

Stability of principal is a primary investment objective of the Fund and,
while the types of money market securities in which the Fund invests
generally are considered to have low principal risk, such securities are not
completely risk free. There is some risk that issuers will fail to meet
their principal and interest obligations on a timely basis; therefore there
can be no guarantee that the

4
<PAGE>

Fund will achieve its objective or that it will maintain an NAV of $1.00 per
share. The NAV of $1.00 per share has, however, been maintained by the Fund
since its inception. Thus, no shareholder has ever lost any principal from
an investment in the Fund.

- --------------------------------------------------------------------------------

INVESTMENT RESTRICTIONS
- --------------------------------------------------------------------------------

In seeking to achieve its investment objective, the Fund has adopted the
following investment restrictions. These are fundamental policies and may not
be changed without a majority vote of the outstanding shares of the Fund. As
used in this SAI and in the Prospectus, the phrase "majority vote" of the
Fund means the vote of the lesser of (i) 67% of the shares of the Fund
present at a meeting if the holders of more than 50% of the outstanding
shares are present in person or by proxy, or (ii) more than 50% of the
outstanding shares of the Fund. The Fund will not:

1. Purchase securities of any issuer (other than securities issued
or guaranteed by the U.S. Government, its agencies or
instrumentalities) if, as a result, more than 5% of the value of the
Fund's assets (taken at current value at the time of investment) would be
invested in securities of that issuer.

2. Purchase more than 10% of any class of securities of any issuer
other than securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities. (For this purpose, all
outstanding debt securities of an issuer are considered one class.)

3. Engage in puts, calls, straddles, spreads or any combination
thereof; nor engage in margin purchases, except for use of
short-term credits necessary for clearance of purchases and sales of
portfolio securities.

4. Make short sales of securities or maintain a short position in
securities.

5. Invest in real estate, including interests in real estate
investment trusts (although it may invest in securities secured
by real estate or interests therein or securities issued by companies
which invest in real estate or interests therein) or invest in
commodities or commodity contracts, including futures contracts.

6. Invest more than 5% of the value of the Fund's total assets
(taken at current value at the time of investment) in securities
of issuers, other than securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities, which have a record of
less than three years' continuous operations, including predecessors.

7. Purchase or retain the securities of any issuer if any of the
officers or directors of the Fund or the Adviser own individually
more than 1/2 of 1% of the securities of such issuer and together own
more than 5% of the securities of such issuer.

8. Concentrate its investments in any one industry by investing 25%
or more of the value of the Fund's total assets (taken at current
value at the time of investment) in any one industry, other than
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities, obligations of banks or savings institutions, or
instruments secured by these money market instruments, such as repurchase
agreements for U.S. Government securities.

9. Make loans to others (except through the purchase of debt
obligations or repurchase agreements referred to in the
Prospectus and this SAI). In addition, the Fund may not invest

5
<PAGE>
more than 10% of its net assets (taken at current value at the time of
investment) in repurchase agreements maturing in more than seven days.

10. Borrow money, except from banks for temporary or emergency
purposes and in no event in excess of 10% of its gross assets
taken at the lesser of cost or market or other fair value (the Fund will
not borrow in order to increase income (leveraging) but may borrow to
facilitate meeting redemption requests which might otherwise require
untimely disposition of portfolio securities; interest paid on any such
borrowings will reduce net investment income); nor will it pledge or
mortgage more than 15% of its gross assets taken at cost, except in
connection with permissible borrowings discussed immediately above; nor
purchase money market instruments while any such permissible borrowings
are outstanding.

11. Act as an underwriter in securities. In this connection, the Fund
will not invest more than 10% of the value of its total assets in
securities (except repurchase agreements) which are subject to legal or
contractual restrictions on resale, or are not readily marketable.

12. Purchase securities of other investment companies, except in
connection with a merger, consolidation, acquisition or
reorganization.

13. Invest in companies for the purpose of exercising management or
control.

14. Purchase any common stocks or other equity securities, or
securities convertible into stock.

15. Issue senior securities.

In addition, the Fund may not: (a) purchase securities which are subject to
legal or contractual restrictions on resale in excess of 5% of the value of
the Fund's net assets; (b) invest in interests in oil, gas or other mineral
exploration or development programs or invest in oil, gas, or other mineral
leases; (c) pledge, mortgage or hypothecate its portfolio securities to the
extent that at any time the percentage of pledged securities would exceed
10% of the Fund's total net assets; or (d) invest in real estate limited
partnerships. These restrictions, (a) through (d), may be changed by the
Board of Directors without shareholder approval.

- --------------------------------------------------------------------------------

OFFICERS AND DIRECTORS
- --------------------------------------------------------------------------------

The Board of Directors is responsible for the overall supervision of the
operations of the Fund and performs the various duties imposed on the
directors of investment companies by the Investment Company Act. The Board
of Directors elects officers of the Fund annually. The officers and
directors of the Fund and their principal occupations for the past five
years are set forth below. Corporate positions may, in some instances, have
changed during this period. The three directors listed with an asterisk are
"interested persons" as defined in the Investment Company Act.

EDWARD M. WIEDERSTEIN*, PRESIDENT AND DIRECTOR (51)

5400 University Avenue
West Des Moines, Iowa 50266

Farmer; Chairman and Director, FBL Financial Group, Inc.; President and
Director, Iowa Farm Bureau Federation, Farm Bureau Life Insurance Company,
FBL Insurance Brokerage, Inc., Farm

6
<PAGE>

Bureau Mutual Insurance Company and other affiliates of the foregoing;
Director, Multi-Pig Corporation, Western Agricultural Insurance Company,
Western Ag Insurance Agency, Inc., Western Farm Bureau Life Insurance
Company, American Ag Insurance Company, and WellMark Blue Cross/Blue Shield
of Iowa.

RICHARD D. HARRIS*, SENIOR VICE PRESIDENT, SECRETARY-TREASURER AND DIRECTOR (55)

5400 University Avenue
West Des Moines, Iowa 50266

Senior Vice President, Secretary-Treasurer and Director, FBL Financial
Group, Inc.; Senior Vice President and Secretary-Treasurer, Farm Bureau Life
Insurance Company and other affiliates of the foregoing; holds other
positions with various affiliates of the foregoing. Former Director, Public
Policy Division, Iowa Farm Bureau Federation; Director, Iowa FFA Foundation
and Iowa Make-A-Wish Foundation.

STEPHEN M. MORAIN, SENIOR VICE PRESIDENT, GENERAL COUNSEL AND ASSISTANT
SECRETARY (54)

5400 University Avenue
West Des Moines, Iowa 50266

General Counsel and Assistant Secretary, Iowa Farm Bureau Federation;
General Counsel, Secretary and Director, Farm Bureau Management Corporation;
Senior Vice President, General Counsel and Director, FBL Financial Group,
Inc., EquiTrust Investment Management Services, Inc. and EquiTrust Marketing
Services, LLC; Senior Vice President and General Counsel, Farm Bureau Life
Insurance Company, FBL Insurance Brokerage, Inc. and other affiliates of the
foregoing; Director, Iowa Agricultural Finance Corporation and Iowa Business
Development Finance Corporation; Chairman, Edge Technologies, Inc.

THOMAS R. GIBSON, CHIEF EXECUTIVE OFFICER (55)

5400 University Avenue
West Des Moines, Iowa 50266

Chief Executive Officer and Director, FBL Financial Group, Inc., EquiTrust
Investment Management Services, Inc. and EquiTrust Marketing Services, LLC;
Chief Executive Officer, Farm Bureau Life Insurance Company, Western Farm
Bureau Life Insurance Company, FBL Insurance Brokerage, Inc. and other
affiliates of the foregoing.

TIMOTHY J. HOFFMAN, VICE PRESIDENT (49)

5400 University Avenue
West Des Monies, Iowa 50266

Chief Property/Casualty Officer, FBL Financial Group, Inc.; Executive Vice
President and General Manager, Farm Bureau Mutual Insurance Company and
other affiliates of the foregoing; Vice President, Farm Bureau Life
Insurance Company, Western Farm Bureau Life Insurance Company and other
affiliates of the foregoing; Vice President and Director, EquiTrust
Investment Management Services, Inc. and EquiTrust Marketing Services, LLC.

7
<PAGE>

WILLIAM J. ODDY, CHIEF OPERATING OFFICER (55)

5400 University Avenue
West Des Moines, Iowa 50266

Chief Operating Officer, FBL Financial Group, Inc.; Executive Vice President
and General Manager, Farm Bureau Life Insurance Company, and other
affiliates of the foregoing; Vice President, Farm Bureau Mutual Insurance
Company and other affiliates of the foregoing; Chief Operating Officer and
Director, EquiTrust Marketing Services, LLC; President and Director,
EquiTrust Investment Management Services, Inc., FBL Real Estate Ventures,
Ltd. and RIK, Inc.; Chief Executive Officer, Western Computer Services, Inc,
Director, American Equity Investment Life Insurance Company, Berthel Fisher
& Company, Inc. and Berthel Fisher & Company Financial Services, Inc.

JAMES W. NOYCE, CHIEF FINANCIAL OFFICER (44)

5400 University Avenue
West Des Moines, Iowa 50266

Chief Financial Officer, FBL Financial Group, Inc., Farm Bureau Life
Insurance Company, and other affiliates of the foregoing; Chief Financial
Officer, Treasurer and Director, EquiTrust Investment Management Services,
Inc. and EquiTrust Marketing Services, LLC. He holds other positions with
various affiliates of the foregoing.

LOU ANN SANDBURG, VICE PRESIDENT-INVESTMENTS AND ASSISTANT TREASURER (52)

5400 University Avenue
West Des Moines, Iowa 50266

Vice President-Investments and Assistant Treasurer, FBL Financial Group,
Inc., Farm Bureau Life Insurance Company, and other affiliates of the
foregoing. Vice President-Investments, EquiTrust Investment Management
Services, Inc. and EquiTrust Marketing Services, LLC. She holds other
positions with various affiliates of the foregoing.

DENNIS M. MARKER, INVESTMENT VICE PRESIDENT, ADMINISTRATION AND ASSISTANT
SECRETARY (48)

5400 University Avenue
West Des Moines, Iowa 50266

Investment Vice President, Administration, FBL Financial Group, Inc. and
Farm Bureau Life Insurance Company; Investment Vice
President-Administration, Secretary and Director, EquiTrust Investment
Management Services, Inc. and EquiTrust Marketing Services, LLC. He holds
other positions with various affiliates of the foregoing.

SUE A. CORNICK, MARKET CONDUCT AND MUTUAL FUNDS VICE PRESIDENT AND ASSISTANT
SECRETARY (39)

5400 University Avenue
West Des Moines, Iowa 50266

Market Conduct and Mutual Funds Vice President and Assistant Secretary,
EquiTrust Investment Management Services, Inc. and EquiTrust Marketing
Services, LLC.

8
<PAGE>

KRISTI ROJOHN, ASSISTANT SECRETARY (36)

5400 University Avenue
West Des Moines, Iowa 50266

Assistant Mutual Funds Manager and Assistant Secretary, EquiTrust Investment
Management Services, Inc. and EquiTrust Marketing Services, LLC.

ELAINE A. FOLLOWWILL, ASSISTANT SECRETARY (29)

5400 University Avenue
West Des Moines, Iowa 50266

Compliance Assistant and Assistant Secretary, EquiTrust Investment
Management Services, Inc. and EquiTrust Marketing Services, LLC.

DONALD G. BARTLING, DIRECTOR (72)

25718 CR6
Herman, Nebraska 68029

Farmer; Partner, Bartling Brothers Partnership (farming business).

JOHN R. GRAHAM*, DIRECTOR (54)

1512 Country Club Place
Manhattan, Kansas 66502

Executive Vice President, Kansas Farm Bureau, Kansas Farm Bureau Services,
Kansas Agricultural Marketing Association, FB Services Insurance Agency,
Kansas Farm Bureau Life Insurance Company, Farm Bureau Mutual Insurance
Company, and KFB Insurance Company, Inc.; Chairman, Chief Executive Officer
and Director, FB Capital Management of Kansas, Inc. and Graham Capital
Management, Inc.; Director, National Association of Independent Insurers,
Didde Corporation, Graham Enterprises, Fannar Corporation and Farm Bureau
Mutual Insurance Agency of Kansas; Partner, Arthur-Graham Rental Properties,
CM Brass and G&H Real Estate Investments; Trustee, Master Teacher Employee
Benefit Pension Trust.

ERWIN H. JOHNSON, DIRECTOR (56)

1841 March Avenue
Charles City, Iowa 50616

Farmer; Owner and Manager, Center View Farms Co.; Director, First Security
Bank and Trust Co., Charles City, Iowa; Farm Financial Planner, Iowa State
University Cooperative Extension Service; Financial and Farm Management
Consultant, Iowa State University Overseas Projects.

KENNETH KAY, DIRECTOR (56)

R.R. 2, Box 75
Atlantic, Iowa 50022

Farmer; Salesman, Pioneer Seed Corn; Voting Delegate, Vice President and
former President, Cass County Farm Bureau; Director, First Whitney Bank &
Trust; Board Member, Transportation Committee Chairman, Cass Atlantic
Development Corporation.

9
<PAGE>

CURTIS C. PIETZ, DIRECTOR (68)

R.R. 3 Box 79
Lakefield, Minnesota 56150

Retired Farmer; Investor and Co-Owner, Storden Seed and Chemical Service,
Inc.; Director, Minnesota Rural Finance Authority and Minnesota Farm Bureau
Federation; previous Farm Bureau leadership; active in Farm Management.

The officers and directors of the Fund also serve in similar capacities as
officers and directors of EquiTrust Series Fund, Inc. and as officers and
trustees of EquiTrust Variable Insurance Series Fund. Several of the officers
and directors also are officers and directors of the Adviser. The Fund pays no
direct remuneration to any officer of the Fund. Each of the directors not
affiliated with the Adviser will be compensated by the Fund. Each of these
unaffiliated directors will receive a fee of $115 plus expenses for each
directors' meeting attended.

The following table sets forth compensation received by all directors of the
Fund for the fiscal year ended July 31, 1999. The information in the last column
of the table sets forth the total compensation received by all directors for
calendar year 1998 for services as a director of the Fund and other funds in the
EquiTrust family.

TABLE OF DIRECTOR COMPENSATION

AGGREGATE PENSION AND RETIREMENT TOTAL COMPENSATION
NAME OF COMPENSATION FROM BENEFITS ACCRUED AS PART FROM ALL FUNDS IN THE
DIRECTOR THE FUND OF FUND EXPENSES EQUITRUST FAMILY
<S> <C> <C> <C>
Mr. Bartling $ 460 $ 0 $ 1,380
Mr. Graham 0 0 0
Mr. Harris 0 0 0
Mr. Johnson 460 0 1,380
Mr. Kay 460 0 1,380
Mr. Pietz 460 0 1,380
Mr. Wiederstein 0 0 0
</TABLE>

Directors and officers of the Fund do not receive any benefits from the Fund
upon retirement, nor does the Fund accrue any expenses for pension or
retirement benefits.

As of September 15, 1999, the officers and directors as a group owned of
record or beneficially less than 1% of the then outstanding shares of the
Fund, and EquiTrust Investment Management Services, Inc., 5400 University
Avenue, West Des Moines, Iowa, the Adviser, owned of record and beneficially
12.82% of the Fund's outstanding shares.

10
<PAGE>

COMMITTEES OF BOARD OF DIRECTORS

The Board of Directors has established an Audit Committee. The Audit
Committee of the Fund recommends the selection of independent auditors for
the Fund, reviews with such independent public accountants the planning,
scope and results of their audit of the Fund's financial statements and the
fees for services performed, reviews the financial statements of the Fund
and receives audit reports. The Audit Committee consists of four members,
Messrs. Bartling, Johnson, Kay and Pietz. The Audit Committee met two times
during the fiscal year ending July 31, 1999.

- --------------------------------------------------------------------------------

INVESTMENT ADVISER
- --------------------------------------------------------------------------------

The following information supplements the information set forth in the
Prospectus under the caption "Portfolio Management." Pursuant to an
Investment Advisory and Management Services Agreement dated February 23,
1981 (the "Agreement"), EquiTrust Investment Management Services, Inc.
("EquiTrust" or "Adviser") acts as the Fund's investment adviser and manager
subject to the supervision of the Fund's Board of Directors. EquiTrust has
served as investment adviser and manager since the Fund commenced operations
in March, 1981. EquiTrust is a wholly owned subsidiary of FBL Financial
Services, Inc., which is a wholly owned subsidiary of FBL Financial Group,
Inc., an Iowa corporation, 67% of whose outstanding voting shares are in
turn owned by Iowa Farm Bureau Federation, an Iowa not-for-profit
corporation. The Adviser also acts as the investment adviser to individuals,
institutions and two other mutual funds: EquiTrust Series Fund, Inc. and
EquiTrust Variable Insurance Series Fund. Personnel of the Adviser also
manage investments for the portfolios of insurance companies.

The Adviser subscribes to leading bond information services and receives
published reports and statistical compilations from issuers directly, as
well as analyses from brokers and dealers who may execute portfolio
transactions for the Fund or the Adviser's other clients. The Adviser
regards this information and material, however, as an adjunct to its own
research activities.

Under the Agreement, the Adviser handles the investment and reinvestment of
the Fund's assets and provides for the Fund, at the Adviser's expense,
office space and facilities, simple business equipment, advisory, research
and statistical facilities, clerical services and personnel as may be
necessary to administer the business affairs of the Fund. The Adviser also
has agreed to arrange for any of its officers and directors to serve without
salary as directors, officers or agents of the Fund if duly elected to such
positions.

As compensation for the investment advisory and management services and the
aforementioned facilities and administrative services to be provided by the
Adviser, the Fund has agreed to pay the Adviser an annual management fee of
.25% of the average daily net assets, accrued daily and payable monthly. For
the fiscal years ended July 31, 1999, 1998 and 1997, the Fund's investment
advisory and management fee expense was $74,472, $63,950 and $81,111,
respectively.

The Adviser is not required to pay expenses of the Fund other than as set
forth above. The Fund pays other expenses, which include net asset value
calculations; portfolio transaction costs; interest on Fund obligations;
miscellaneous reports; membership dues; all expenses of registration of its
shares under federal and state securities laws; all expenses of
shareholders' and directors' meetings and of preparing, printing and mailing
proxy statements, reports and notices to shareholders; investor services
(including allocable telephone and personnel expenses incurred by the
Adviser);

11
<PAGE>

all taxes and fees payable to federal, state or other governmental
authorities; the fees and expenses of independent auditors, legal counsel,
custodian, transfer and dividend disbursing agent and any fees of directors
who are not affiliated with the Adviser; and insurance premiums for fidelity
bond and other coverage of the Fund's operations.

The Agreement continues in effect from year-to-year as long as its
continuation is approved annually by vote of a majority of the Fund's
outstanding shares or by its Board of Directors, including, in either event,
a majority of those directors who are not parties to such agreement or
"interested persons" (as such term is defined in the Investment Company Act)
of any such party except in their capacities as directors of the Fund. It
may be terminated without penalty at any time upon 60 days' notice by the
Adviser, or by the Fund by vote of the Fund's Board of Directors, or by a
majority vote of the Fund's outstanding shares, and would terminate
automatically upon assignment. The Agreement may be amended only with the
approval of a majority of the outstanding voting securities of the Fund.

The Agreement provides that the Adviser shall not be liable for error of
judgment or mistake of law or for any loss suffered by the Fund in
connection with matters to which the Agreement relates, except loss
resulting from bad faith, gross negligence or willful misfeasance of the
Adviser.

PORTFOLIO TRANSACTIONS. Purchases and sales of portfolio securities are
normally principal transactions. Portfolio securities are normally purchased
directly from the issuer or from an underwriter or market maker for the
securities. There are usually no brokerage commissions paid by the Fund for
such purchases and none were paid during the last three fiscal years.
Purchases from underwriters will include a commission or concession paid by
the issuer to the underwriter, and purchases from dealers serving as market
makers include the spread between the bid and asked prices. The primary
consideration in the allocation of transactions is the most favorable price
and execution of orders.

Subject to this primary consideration, while there is no understanding or
arrangement to do so, EquiTrust may place the Fund's portfolio transactions
with firms that furnish research, statistical and other services. EquiTrust
regards information which is customarily available only in return for
brokerage as among the many elements to be considered in determining
placement of securities transactions. No specific value can be determined
for most such information and services and they are deemed supplemental to
EquiTrust's own efforts in the performance of its duties under the
investment advisory agreement. Any research benefits derived are available
for all clients of EquiTrust.

The investment decisions for the Fund are reached independently from those
for the other mutual funds and other clients whose investments are managed
by EquiTrust. Such other clients may also make investments in money market
instruments at the same time as the Fund. When both the Fund and one or more
of such clients have amounts available for investment in money market
instruments, available investments are allocated as to amount in a manner
considered equitable to each. In some cases, this procedure may affect the
size or price of the position obtainable for the Fund. It is the opinion of
the Board of Directors that the benefits available because of EquiTrust's
organization outweigh any disadvantages that may arise from exposure to
simultaneous transactions. Purchase and sale orders for the Fund may be
combined with those of other clients of the Adviser in the interest of the
most favorable net results to the Fund.

12
<PAGE>
- --------------------------------------------------------------------------------

UNDERWRITING AND DISTRIBUTION

- --------------------------------------------------------------------------------

Pursuant to an underwriting agreement dated December 31, 1983, EquiTrust
Investment Management Services, Inc. (the "Distributor") serves as principal
underwriter and sole distributor of the Fund's shares, acting as the
exclusive agent of the Fund in the sale of its shares to securities dealers
who in turn sell the shares to the public. The Distributor has agreed to use
its best efforts to distribute shares of the Fund. The Distributor pays
expenses incident to the sale and distribution of Fund shares, including
preparation and distribution of literature relating to the Fund and its
investment performance, and circulation of advertising and public relations
material.

The terms of termination and assignment under the underwriting agreement are
the same as those under the investment advisory agreement except that
termination for reasons other than assignment of the agreement requires six
months' notice.

The Fund bears the expenses of registration of its shares with the
Commission and the cost of qualifying and maintaining the qualification of
the Fund's shares under securities laws of the various states. The Fund also
pays expenses incident to the issuance of its shares, such as taxes and
transfer and dividend disbursing fees.

- --------------------------------------------------------------------------------

NET ASSET VALUE

- --------------------------------------------------------------------------------

The NAV per share of the Fund is determined as of the earlier of the close
of the New York Stock Exchange (the "NYSE") or 3:00 p.m. (Central Time), on
each day that (i) the NYSE is open for business (except the Friday after
Thanksgiving Day, the weekdays before and after Christmas Day, (in 1999) the
weekday after New Year's Day (in 2000) and any day on which the Fund's
offices are closed because of a weather-related or comparable type of
emergency) and (ii) an order for purchase or redemption of shares of the
Fund is received. If the Fund offices should be closed because of a
weather-related or comparable type of emergency, and the Fund is unable to
segregate orders and redemption requests received on the emergency closed
day, then the Fund will price those orders and redemptions at the NAV next
determined.

The Fund's NAV is computed by dividing the total value of the Fund's
securities and other assets, less liabilities (including dividends payable),
by the number of Fund shares outstanding. The NAV per share is ordinarily
$1.00. The Fund's total assets are determined by valuing the portfolio
securities at amortized cost, pursuant to Rule 2a-7 under the Investment
Company Act. While this method provides certainty in valuation, it may
result in periods during which the value, as determined by amortized cost,
is higher or lower than the price the Fund would receive if it sold its
portfolio securities. Under the direction of the Board of Directors, certain
procedures have been adopted to monitor and stabilize the price per share.
Calculations are made to compare the value of the Fund's portfolio valued at
amortized cost with market values. Market valuations are obtained by using
actual quotations provided by market makers, estimates of market value, or
values obtained from yield data relating to classes of money market
instruments published by reputable sources at the mean between the bid and
asked prices for those instruments. If a deviation of 1/2 of 1% or more were
to occur between the Fund's $1.00 per share NAV and the NAV calculated by
reference to market valuations, or if there were any other deviation which
the Board of Directors believed would result in dilution or other unfair
results material to

13
<PAGE>

shareholders or purchasers, the Board of Directors would promptly consider
what action, if any, should be initiated. The Fund reserves the right to
calculate or estimate the NAV more frequently than once a day if it is
deemed desirable.

The market value of debt securities usually reflects yields generally
available on securities of similar quality. When yields decline, the market
value of a portfolio holding higher yielding securities increases, and when
yields increase, the market value of the portfolio invested at lower yields
can be expected to decline. In addition, if the Fund has net redemptions at
a time when interest rates have increased, the Fund may have to sell
portfolio securities prior to maturity at a price below the Fund's carrying
value. Also, because the portfolio generally will be valued at amortized
cost rather than market, any yield quoted may be different if the entire
portfolio were valued at market since amortized cost does not take market
fluctuations into consideration.

- --------------------------------------------------------------------------------

RETIREMENT PLANS

- --------------------------------------------------------------------------------

Investors Fiduciary Trust Company of Kansas City, Missouri, serves as
custodian and provides the services required for Individual Retirement Plans
(IRAs), Roth IRAs, Simplified Employee Pension Plans (SEPs), Savings
Incentive Match Plans for Employees (SIMPLEs), Section 403(b) Plans and
Qualified Pension and Profit Sharing Plans. An annual maintenance fee,
currently $10, will be collected annually by redemption of shares or
fractions thereof from each participant's account(s). EquiTrust Investment
Management Services, Inc. performs plan services for a portion of the fee
and during the fiscal year ended July 31, 1999 received $1,560 for its
services. Unusual administrative responsibilities will be subject to such
additional charges as will reasonably compensate the custodian for the
service involved.

Since a retirement investment program involves a commitment covering future
years, it is important that the investor consider his or her needs and
whether the investment objective of the Fund as described in the Prospectus
is likely to fulfill them. Premature termination or curtailment of the plan
may result in adverse tax consequences. Consultation with an attorney or
other tax adviser regarding these plans is recommended. For further
information regarding these plans, contact the Fund.

- --------------------------------------------------------------------------------

REDEMPTIONS

- --------------------------------------------------------------------------------

The Fund may suspend the right of redemption or postpone the date of payment
during any period when (a) trading on the NYSE is restricted as determined
by the Commission or the NYSE is closed for trading (other than customary
weekend and holiday closings); (b) an emergency exists, as determined by the
Commission, as a result of which (i) disposal by the Fund of securities
owned by it is not reasonable or practicable, or (ii) it is not reasonably
practicable for the Fund to determine fairly the value of its net assets; or
(c) the Commission by order permits such suspension for the protection of
the Fund's investors. In such event, redemption will be effected at the NAV
next determined after the suspension has been terminated unless the
shareholder has withdrawn the redemption request in writing and the request
has been received by EquiTrust Investment Management Services, Inc., 5400
University Avenue, West Des Moines, Iowa 50266, prior to the day of such
determination of NAV.

14
<PAGE>
- --------------------------------------------------------------------------------

PERFORMANCE INFORMATION

- --------------------------------------------------------------------------------

From time to time, the Fund may advertise "yield" and "effective yield."
Each of these figures is based upon historical results and is not necessarily
representative of the future performance of the Fund. Yield is a measure of
the net investment income per share earned over a specific seven-day period
expressed as a percentage of the Fund's NAV per share at the beginning of
the period. Yield is an annualized figure, meaning that it is assumed that
the Fund generates the same level of investment income over a one-year
period. The effective yield is computed similarly, but the net investment
income earned is assumed to be compounded when annualized. The Fund's
effective yield will be slightly higher than its yield due to this
compounding.

Additionally, from time to time, in advertisements or reports to
shareholders, the Fund may compare its performance to that of the Consumer
Price Index or various unmanaged indexes. The Fund may also use mutual fund
quotation services such as Lipper Analytical Services, Inc., an independent
mutual fund reporting service, or similar industry services, for purposes of
comparing the Fund's rank or performance with that of the other mutual funds
having similar investment objectives. Performance comparisons should not be
considered representative of the future performance of the Fund.

- --------------------------------------------------------------------------------

PERFORMANCE CALCULATION

The Fund's yield is computed in accordance with a standard method prescribed
by rules of the Commission. Under that method, the yield quotation is based
on a seven-day period and is computed as follows: The Fund's net investment
income per share (accrued interest on portfolio securities, plus or minus
amortized premium or discount, less accrued expenses) for the period is
divided by the price per share (expected to remain constant at $1.00) at the
beginning of the period ("base period return") and the result is divided by
seven and multiplied by 365. The resulting yield figure is carried to the
nearest one-hundredth of one percent. Realized capital gains or losses and
unrealized appreciation or depreciation of investments are not included in
the calculation. The Fund's yield for the seven-day period ended July 30,
1999 was 3.57%.

The Fund's effective yield is determined by taking the base period return
(computed as described above) and calculating the effect of the assumed
compounding. The formula for the effective yield is (base period return +1)
to the power of (365/7) - 1. The Fund's effective yield for the seven-day
period ended July 30, 1999 was 3.64%.

The Fund's yield fluctuates, and the publication of an annualized yield
quotation is not a representation as to what an investment in the Fund will
actually yield for any given future period. Actual yields will depend not
only on changes in interest rates on money market instruments during the
period in which the investment in the Fund is held, but also on such matters
as any realized gains and losses, unrealized appreciation and depreciation
and changes in Fund expenses.

15
<PAGE>
- --------------------------------------------------------------------------------

ORGANIZATION OF THE FUND

- --------------------------------------------------------------------------------

The Fund is a no-load, open-end, diversified management investment company
incorporated under Maryland law on November 5, 1980. The Fund has authorized
capital of 500,000,000 shares of capital stock, $0.001 par value per share.
All shares of capital stock have equal voting rights and equal rights with
respect to dividends, assets, liquidation and redemption. They are fully
paid and nonassessable when issued and have no preemptive, conversion or
exchange rights. The shares are transferable without restriction. Full and
fractional shares may be issued and each fractional share has
proportionately the same rights, including voting, as are provided for a
full share.

- --------------------------------------------------------------------------------

SHAREHOLDER VOTING RIGHTS

- --------------------------------------------------------------------------------

Under the Fund's corporate charter and by-laws, the Fund is not required to
hold, and does not anticipate that it will hold, annual shareholders'
meetings. However, it will hold special meetings of shareholders as required
or deemed desirable for such purposes as electing directors, changing
fundamental policies or approving an investment management agreement.

Each member of the Board of Directors serves for a term of unlimited
duration, subject to the right to remove a director by the Board of
Directors or the shareholders. The Board of Directors has the power to alter
the number of directors and to appoint successor directors, provided that
immediately after the appointment of any successor director, at least
two-thirds of the directors have been elected by the shareholders of the
Fund. However, if at any time less than a majority of the directors holding
office has been elected by the shareholders, the directors are required to
call a special meeting of shareholders for the purpose of electing directors
to fill any existing vacancies on the Board.

- --------------------------------------------------------------------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

CUSTODIAN

Deutsche Bank, 16 Wall Street, New York, New York 10005 currently serves as
custodian of all cash and securities owned by the Fund. The custodian
performs no managerial or policy-making functions for the Fund.

- --------------------------------------------------------------------------------

INDEPENDENT AUDITORS

The Fund's independent auditors are Ernst & Young LLP, 801 Grand Avenue,
Suite 3400, Des Moines, Iowa 50309. The independent auditors audit and
report on the Fund's annual financial statements, review certain regulatory
reports and perform other professional accounting, auditing, tax and
advisory services when engaged to do so by the Fund.

16
<PAGE>
- --------------------------------------------------------------------------------

ACCOUNTING SERVICES

The Fund has entered into an accounting services agreement with EquiTrust
Investment Management Services, Inc. pursuant to which EquiTrust performs
accounting services for the Fund. In addition, the Agreement provides that
EquiTrust shall calculate the Fund's NAV in accordance with the Fund's
current Prospectus and prepare for Fund approval and use various tax returns
and other reports. For such services, the Fund pays EquiTrust an annual fee,
payable monthly, of .05% of the Fund's average daily net assets, with the
annual fee payable by the Fund not to exceed $30,000. During the fiscal year
ended July 31, 1999, the aggregate amount of such fees paid to EquiTrust was
$14,894.

- --------------------------------------------------------------------------------

SHAREHOLDER SERVICE, DIVIDEND DISBURSING AND TRANSFER AGENT

EquiTrust Investment Management Services, Inc. serves as the Fund's
Shareholder Service, Dividend Disbursing and Transfer Agent. EquiTrust in
turn has contracted with DST Systems, Inc. ("DST"), an unrelated party, to
perform certain services incident to the maintenance of shareholder
accounts. The Fund pays EquiTrust an annual fee of $9.00 per account and
miscellaneous activity fees plus out-of-pocket expenses, a portion of which
is paid to DST. During the fiscal year ended July 31, 1999, the aggregate
amount of such fees paid to EquiTrust was $111,567 of which $30,495 was paid
to DST.

- --------------------------------------------------------------------------------

LEGAL MATTERS

The firm of Vedder, Price, Kaufman & Kammholz, Chicago, Illinois, is counsel
for the Fund.

- --------------------------------------------------------------------------------

REGISTRATION STATEMENT

The Fund's Prospectus and this SAI omit certain information contained in the
Registration Statement, which the Fund has filed with the Commission under
the Securities Act of 1933, and reference is hereby made to the Registration
Statement for further information with respect to the Fund and the
securities offered hereby. This Registration Statement is available for
inspection by the public at the Commission in Washington, D.C.

- --------------------------------------------------------------------------------

FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

The audited financial statements of the Fund, including the notes thereto,
contained in the Annual Report to Shareholders of EquiTrust Money Market
Fund, Inc. for the fiscal year ended July 31, 1999, were filed with the
Securities and Exchange Commission on September 22, 1999, and are
incorporated by reference. Shareholders will receive the Fund's audited
annual report and the unaudited semi-annual report. Additional copies of
such reports may be obtained without charge by contacting the Fund.

17
<PAGE>
EQUITRUST MONEY MARKET FUND, INC.
PART C
OTHER INFORMATION

ITEM 23. EXHIBITS

<TABLE>
<S> <C>
(a) (1) Restated Articles of Incorporation of Registrant. (1)

(2) Articles of Amendment which became effective on May 1, 1998. (3)

(b) (1) By-Laws of Registrant, as amended. (1)

(2) By-Laws, as amended August 15, 1996. (2)

(d) (1) Conformed copy of Investment Advisory and Management Agreement with Registrant's
Adviser. (1)

(2) Amendment to Management Fee Schedule dated December 1, 1996. (2)

(e) (1) Conformed copy of Underwriting Agreement. (1)

(2) Conformed copy of Dealer Agreement. (1)

(f) Inapplicable.

(g) Conformed copy of Custodian Agreement. (1)

(h) (1) Fidelity Bond Joint Insureds Agreement. (2)

(2) Joint Insureds D&O and E&O Agreement. (1)

(3) Accounting Services Agreement. (1)

(4) Shareholder Service, Dividend Disbursing and Transfer Agent Agreement. (1)

*(i) Opinion of Vedder, Price, Kaufman & Kammholz.

*(j) Consent of Ernst & Young LLP.

(k) Inapplicable.

(l) Conformed copy of Subscription Agreement. (1)

(m) Inapplicable

(n) Inapplicable

(o) Inapplicable.
</TABLE>

- ------------------------

* Filed herewith

(1) Incorporated by reference from Post-Effective Amendment No. 15 to the
Registration Statement under the Securities Act of 1933 on Form N-1A, filed
on December 1, 1995.

(2) Incorporated by reference from Post-Effective Amendment No. 16 to the
Registration Statement under the Securities Act of 1933 on Form N-1A, filed
on November 27, 1996.

(3) Incorporated by reference from Post-Effective Amendment No. 18 to the
Registration Statement under the Securities Act of 1933 on Form N-1A, filed
on November 25, 1998.

ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT

Inapplicable.

C-1
<PAGE>
ITEM 25. INDEMNIFICATION

The Maryland Code, Corporations and Associations, Section 2-418 provides for
indemnification of directors, officers, employees and agents. Article IX of the
Registrant's Articles of Incorporation restricts indemnification for officers
and directors in cases of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of his office. Article
XV of the Registrant's By-Laws also provides for indemnification under certain
circumstances.

The Investment Advisory and Management Services Agreement between the
Registrant and EquiTrust Investment Management Services, Inc. ("Adviser")
provides that, in the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard of obligations or duties thereunder on the part
of the Adviser, the Adviser shall not be liable for any error of judgment or
mistake of law, or for any loss suffered by the Fund in connection with the
matters to which such Agreement relates.

In addition, the Registrant maintains a directors and officers "errors and
omissions" liability insurance policy under which the Registrant and its
directors and officers are named insureds.

Insofar as indemnification for liabilities arising under the Securities Act
of 1933 ("Act") may be permitted to directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.

ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER

Registrant's investment adviser is EquiTrust Investment Management Services,
Inc. ("EquiTrust"). In addition to its services to Registrant as investment
adviser, underwriter and shareholder service, transfer and dividend disbursing
agent, all as set forth in Parts A and B of this Registration Statement on Form
N-1A, EquiTrust acts as adviser, underwriter and shareholder service, transfer
and dividend disbursing agent for EquiTrust Series Fund, Inc. and EquiTrust
Variable Insurance Series Fund, diversified open-end series management
investment companies.

The principal executive officers and directors of EquiTrust are Stephen M.
Morain, Senior Vice President, General Counsel and Director; William J. Oddy,
President and Director; Dennis M. Marker, Investment Vice President,
Administration, Secretary and Director; Thomas R. Gibson, Chief Executive
Officer and Director; Timothy J. Hoffman, Vice President and Director; James W.
Noyce, Chief Financial Officer, Treasurer and Director; and Lou Ann Sandburg,
Vice President-Investments, Assistant Treasurer and Director. A description of
their services as officers and employees of FBL Financial Group, Inc. and its
affiliates is incorporated herein by reference to Part B -- Statement of
Additional Information of this Registration Statement on Form N-1A.

ITEM 27. PRINCIPAL UNDERWRITERS

(a) EquiTrust Investment Management Services, Inc., the principal
underwriter for Registrant, also acts as the principal investment adviser,
underwriter and shareholder service, transfer and dividend disbursing agent for
EquiTrust Series Fund, Inc. and EquiTrust Variable Insurance Series Fund,
diversified, open-end series management investment companies.

(b) The principal business address of each director and principal officer of
the principal underwriter is 5400 University Avenue, West Des Moines, Iowa
50266. See Item 28 for information on the principal officers

C-2
<PAGE>
of EquiTrust Investment Management Services, Inc., investment manager and
principal underwriter for the Registrant.

ITEM 28. LOCATION OF ACCOUNTS AND RECORDS

All such accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder are
maintained at the offices of the Registrant and the offices of the Investment
Adviser, EquiTrust Investment Management Services, Inc., 5400 University Avenue,
West Des Moines, Iowa 50266.

ITEM 29. MANAGEMENT SERVICES

Inapplicable.

ITEM 30. UNDERTAKINGS

Inapplicable.

C-3
<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Fund has duly caused this registration
statement to be signed on its behalf by the undersigned, duly authorized, in the
City of West Des Moines and State of Iowa, on the 27th day of September, 1999.

<TABLE>
<S> <C> <C>
EQUITRUST MONEY MARKET FUND, INC.

By: /s/ EDWARD M. WIEDERSTEIN
------------------------------------------
Edward M. Wiederstein
PRESIDENT
</TABLE>

Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities and on the date indicated.

<TABLE>
<C> <S> <C>
/s/ EDWARD M. WIEDERSTEIN President and Director
- ------------------------------ (Principal Executive September 27, 1999
Edward M. Wiederstein Officer) (dated)

Senior Vice President,
/s/ RICHARD D. HARRIS Secretary-Treasurer and
- ------------------------------ Director (Principal September 27, 1999
Richard D. Harris Financial and Accounting (dated)
Officer)

/s/ DONALD G. BARTLING
- ------------------------------ Director September 27, 1999
Donald G. Bartling* (dated)

/s/ JOHN R. GRAHAM
- ------------------------------ Director September 27, 1999
John R. Graham* (dated)

/s/ ERWIN H. JOHNSON
- ------------------------------ Director September 27, 1999
Erwin H. Johnson* (dated)

/s/ KENNETH KAY
- ------------------------------ Director September 27, 1999
Kenneth Kay* (dated)

/s/ CURTIS C. PIETZ
- ------------------------------ Director September 27, 1999
Curtis C. Pietz* (dated)
</TABLE>

<TABLE>
<S> <C> <C> <C>
*By /s/ STEPHEN M. MORAIN
-------------------------
Stephen M. Morain
ATTORNEY-IN-FACT,
PURSUANT TO
POWER OF ATTORNEY
</TABLE>

C-4

<PAGE>

September 29, 1999
EquiTrust Money Market Fund, Inc.
5400 University Avenue
West Des Moines, Iowa 50266-5997

Ladies and Gentlemen:

Reference is made to Post-Effective Amendment No. 19 to the Registration
Statement on Form N-1A under the Securities Act of 1933 being filed by EquiTrust
Money Market Fund, Inc., a Maryland corporation (the "Fund") in connection with
the public offering from time to time of any or all of those 500 million
authorized shares of common stock, par value $.001 per share ("Shares").

We are counsel to the Fund, and in such capacity are familiar with the
Fund's organization and have counseled the Fund regarding various legal matters.
We have examined such Fund records and other documents and certificates as we
have considered necessary or appropriate for the purposes of this opinion. In
our examination of such materials, we have assumed the genuineness of all
signatures and the conformity to original documents of all copies submitted to
us.

Based upon the foregoing, and assuming that the Fund's Articles of
Incorporation dated November 5, 1980, as amended by the Articles of
Restatement dated February 24, 1981, the Articles of Amendment dated February
24, 1981, and the Articles of Amendment dated May 1, 1998, (the "Articles")
and the Bylaws adopted November 6, 1980, as amended August 13, 1986, August
12, 1987, and August 15, 1996, are presently in full force and effect and
have not been amended in any respect except as provided in the
above-referenced documents; that the resolutions adopted by the Board of
Directors of the Fund set forth on the attached list, relating to
organizational matters, securities matters and the issuance of shares are
presently in full force and effect and have not been amended in any respect,
we advise you and opine that (a) the Fund is a validly existing corporation
under the laws of the State of Maryland and is authorized to issue the
Shares; and (b) presently and upon such further issuance of the Shares in
accordance with the Fund's Articles and the receipt by the Fund of a purchase
price not less than the net asset value per Share, and when the pertinent
provisions of the Securities Act of 1933 and such "blue-sky" and securities
laws as may be applicable have been complied with, assuming that the Fund
continues to validly exist as provided in (a) above and assuming that the
number of Shares issued by the Fund does not exceed the number of Shares
authorized, the Shares are and will be legally issued and outstanding, fully
paid and nonassessable.

<PAGE>

EquiTrust Money Market Fund, Inc.
September 29, 1999
Page 2

This opinion is solely for the benefit of the Fund, the Fund's Board of
Directors and the Fund's officers and may not be relied upon by any other person
without our prior written consent. We hereby consent to the use of this opinion
in connection with said Post-Effective Amendment.

Very truly yours,

/s/ Vedder, Price, Kaufman & Kammholz

VEDDER, PRICE, KAUFMAN & KAMMHOLZ

COK/RJM/CAS

<PAGE>

EQUITRUST MONEY MARKET FUND, INC.

BOARD RESOLUTIONS REGARDING ORGANIZATIONAL AND SECURITIES MATTERS AND ISSUANCE
OF SHARES

DATE BOARD ACTION
8/12/99 Annual Blue Sky resolution; approve annual PEA

8/13/98 Annual Blue Sky resolution; approve annual PEA

1/1/98 Change name of fund to "EquiTrust Money Market Fund, Inc."

8/14/97 Annual Blue Sky resolution; approve annual PEA

8/15/96 Annual Blue Sky resolution; approve annual PEA; approve
amendment to Bylaws to eliminate offering of stock
certificates

8/17/95 Annual Blue Sky resolution; approve annual PEA

8/9/94 Annual Blue Sky resolution; approve annual PEA

8/12/93 Annual Blue Sky resolution; approve annual PEA

8/6/92 Annual Blue Sky resolution; approve annual PEA

8/15/91 Annual Blue Sky resolution; approve annual PEA

8/21/90 Annual Blue Sky resolution; approve annual PEA

8/16/89 Annual Blue Sky resolution; approve annual PEA

8/10/88 Annual Blue Sky resolution; approve annual PEA

8/12/87 Annual Blue Sky resolution; approve annual PEA

8/13/86 Annual Blue Sky resolution; approve annual PEA

8/7/85 Annual Blue Sky resolution; approve annual PEA

8/9/84 Annual Blue Sky resolution; approve annual PEA

8/11/83 Annual Blue Sky resolution; approve annual PEA

8/12/82 Annual Blue Sky resolution; approve annual PEA

8/13/81 Annual Blue Sky resolution; approve annual PEA

1/11/81 Approve Amendment to Article FIFTH of Articles of
Incorporation to authorize issuance of additional shares

11/6/80 Organizational meeting (adopt Bylaws; approve federal
registration of shares; approve state registration of
shares; authorize initial issuance and further offering of
shares)

<PAGE>

Exhibit 99-j

[LETTERHEAD]
CONSENT OF INDEPENDENT AUDITORS

We consent to the reference to our firm under the captions "Financial
Highlights" and "Additional Information" in the Prospectus for EquiTrust
Money Market Fund, Inc. in Part A and "Other Information - Independent
Auditors" in Part B and to the incorporation by reference of our report dated
August 27, 1999 on the financial statements and financial highlights of
EquiTrust Money Market Fund, Inc. in Post Effective Amendment No. 19 to Form
N-1A Registration Statement under the Securities Act of 1933 (No. 2-70162)
and related Prospectus of EquiTrust Money Market Fund, Inc.

/s/ Ernst & Young LLP

Des Moines, Iowa
September 27, 1999