FOUNDERS FUNDS, INC.
Supplement to Prospectus Dated May 1, 1996
The section of the Fund's prospectus entitled "Investment Management of the
Funds - Portfolio Management" is hereby amended on page 25 by deleting the
paragraph concerning Charles Hooper, who no longer is associated with Founders.
Effective July 22, 1996, Michael K. Haines and Edward F. Keely assumed
responsibility as co-lead portfolio managers for Founders Special Fund.
The section of the Fund's prospectus entitled "Investment Management of the
Funds - Portfolio Management" is hereby further amended by deleting the second
paragraph of the section, and adding the following new paragraph on page 26:
Margaret Danuser, Fixed-Income Manager
Ms. Danuser has been the lead portfolio manager for the Government
Securities and Money Market Funds since 1996, and has served as
Founders' fixed-income specialist since 1995. Previously, she was an
investment officer with LaSalle Street Capital Management from 1989 to
1994. Ms. Danuser received her BA from the University of Colorado.
The date of this Supplement is July 30, 1996.
