TAX-FREE INSTRUMENTS TRUST
Investment Shares
Institutional Service Shares
Supplement to Prospectuses dated May 31, 1994
Under the subsection entitled "Federal Income Tax" which begins on page 19
of the Investment Shares prospectus and page 17 of the Institutional Service
Shares prospectus, please delete the last sentence of the fourth paragraph
which currently reads as follows:
"Thus, while the Trust has no present intention of purchasing
any private activity bonds, should it purchase any such bonds, a
portion of the Trust's dividends may be treated as a tax
preference item."
December 30, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
876924101
876924200
G00273-02 (12/94)
