FOUNDERS FUNDS, INC.
Supplement to Prospectus Dated August 12, 1996
FOUNDERS BALANCED FUND
Balanced Fund has implemented the practice of writing covered call options on
stocks in appropriate circumstances as determined by Founders. Accordingly, the
last paragraph of the description of the Balanced Fund appearing on page 24 of
the Funds' prospectus is hereby amended to read as follows:
Furthermore, the Fund has the ability to write covered call options on
stocks. For a further explanation of this Fund's investment policies,
see the sections entitled "Investment Policies Involving Special Risks"
and "Other Investment Policies."
The date of this Supplement is September 20, 1996.
