<PAGE>
Command Tax-Free Fund
Supplement dated February 26, 1996 to
Prospectus dated August 31, 1995
How the Fund Invests--Investment Objectives and Policies
To increase its investment flexibility, Command Tax-Free Fund (the Fund) no
longer intends to avoid purchases of Municipal Bonds and Municipal Notes, the
interest on which may be a preference item for purpose of the federal
Alternative Minimum Tax (AMT paper). The Fund may invest not more than 20% of
its net assets in AMT paper. For further tax information, see ``Taxes, Dividends
and Distributions -- Taxation of Shareholders.''
MF960A-1
