HARTFORD STOCK FUND INC /CT/, 497, 1996-08-13

HARTFORD STOCK FUND INC /CT/
497, 1996-08-13

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<PAGE>

HARTFORD MUTUAL FUNDS
P.O. BOX 2999
HARTFORD, CT 06104-2999
PROSPECTUS -- MAY 1, 1996
REVISED EFFECTIVE AUGUST 9, 1996

This Prospectus contains information relating to twelve mutual funds offered
hereby (individually, a "Fund," collectively, the "Funds" or "Hartford Mutual
Funds"), each registered as a diversified open-end management investment company
with the Securities and Exchange Commission, that are made available to serve as
the underlying investment vehicles for certain variable annuity and variable
life insurance separate accounts of Hartford Life Insurance Company and ITT
Hartford Life and Annuity Insurance Company (collectively, the "ITT Hartford
Life Insurance Companies"). The Funds, which have different investment
objectives and policies, are: Hartford Capital Appreciation Fund, Inc., Hartford
Dividend and Growth Fund, Inc., Hartford Index Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford Small Company Fund, Inc.,
Hartford Stock Fund, Inc., Hartford Advisers Fund, Inc., Hartford International
Advisers Fund, Inc., Hartford Bond Fund, Inc., Hartford Mortgage Securities
Fund, Inc., HVA Money Market Fund, Inc. and Hartford U.S. Government Money
Market Fund, Inc. The investment objective of each Fund is the first sentence of
each of the following:

STOCK FUNDS

HARTFORD CAPITAL APPRECIATION FUND, INC. seeks to achieve growth of capital
by investing in securities selected solely on the basis of potential for capital
appreciation; income, if any, is an incidental consideration. The Capital
Appreciation Fund invests primarily in equity securities and securities
convertible into equity securities.

HARTFORD DIVIDEND AND GROWTH FUND, INC. seeks to achieve a high level of
current income consistent with growth of capital and reasonable investment risk.
The Dividend and Growth Fund invests primarily in equity securities and
securities convertible into equity securities that typically have above average
income yield and favorable prospects for capital appreciation.

HARTFORD INDEX FUND, INC. seeks to provide investment results which
approximate the price and yield performance of publicly-traded common stocks in
the aggregate. The Index Fund attempts to approximate the capital performance
and the dividend income of the Standard & Poor's 500 Composite Stock Price
Index.

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC. seeks to achieve long-term
total rate of return consistent with prudent investment risk through investment
primarily in equity securities issued by non-U.S. companies.

HARTFORD SMALL COMPANY FUND, INC. seeks growth of capital by investing
primarily in equity securities selected on the basis of potential for capital
appreciation. The Fund invests primarily in equity securities of companies with
less than $2 billion in market capitalization.

HARTFORD STOCK FUND, INC. seeks to achieve long-term capital growth
primarily through capital appreciation, with income a secondary consideration,
by investing in primarily equity securities. Its portfolio emphasizes
high-quality growth companies.

ASSET ALLOCATION FUNDS
HARTFORD ADVISERS FUND, INC. seeks to achieve maximum long-term total rate
of return consistent with prudent investment risk by investing in common stock
and other equity securities, bonds and other debt securities, and money market
instruments. The Advisers Fund actively allocates its assets among these asset
categories based on fundamental analysis, not on short-term market timing.

HARTFORD INTERNATIONAL ADVISERS FUND, INC. seeks to achieve maximum
long-term total rate of return consistent with prudent investment risk. The
International Advisers Fund's assets will be diversified among at least five
countries, and will be allocated among equity and debt securities and money
market instruments based on fundamental analysis, not on short-term market
timing.

BOND FUNDS

HARTFORD BOND FUND, INC. seeks to achieve maximum current income consistent
with preservation of capital by investing primarily in fixed-income securities.

HARTFORD MORTGAGE SECURITIES FUND, INC. seeks to achieve maximum current
income consistent with safety of principal and maintenance of liquidity by
investing primarily in mortgage-related securities, including securities issued
by the Government National Mortgage Association.

MONEY MARKET FUNDS

HVA MONEY MARKET FUND, INC. seeks to achieve maximum current income
consistent with liquidity and preservation of capital. This Fund invests in
short-term money market instruments.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC. seeks to achieve maximum
current income consistent with preservation of capital. This Fund invests in
short-term money market instruments.
- --------------------------------------------------------------------------------
<PAGE>
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
- --------------------------------------------------------------------------------

THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT A FUND THAT A
PROSPECTIVE INVESTOR SHOULD KNOW BEFORE INVESTING. PLEASE READ AND RETAIN THIS
PROSPECTUS FOR FUTURE REFERENCE. ADDITIONAL INFORMATION ABOUT THE FUNDS HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN A STATEMENT OF ADDITIONAL
INFORMATION DATED MAY 1, 1996, REVISED EFFECTIVE AUGUST 9, 1996, WHICH HAS BEEN
INCORPORATED BY REFERENCE INTO THIS PROSPECTUS AND WILL BE PROVIDED ON REQUEST
AND WITHOUT CHARGE. WRITE "HARTFORD FAMILY OF FUNDS, C/O INDIVIDUAL ANNUITY
OPERATIONS," P.O. BOX 2999, HARTFORD, CT 06104-2999.

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

NO DEALER, SALESPERSON OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, IN CONNECTION WITH THE OFFER CONTAINED IN THIS PROSPECTUS AND, IF
GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON
AS HAVING BEEN AUTHORIZED BY THE FUNDS. THIS PROSPECTUS DOES NOT CONSTITUTE AN
OFFER BY THE FUNDS TO SELL OR A SOLICITATION OF ANY OFFER TO BUY ANY OF THE
SECURITIES OFFERED HEREBY IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS
UNLAWFUL FOR THE FUNDS TO MAKE SUCH OFFER.
- --------------------------------------------------------------------------------

AN INVESTMENT IN EITHER OF THE MONEY MARKET FUNDS IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT EITHER OF THE
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00
PER SHARE.
- --------------------------------------------------------------------------------

HARTFORD INTERNATIONAL ADVISERS FUND, INC. MAY INVEST UP TO 15% OF ITS ASSETS IN
HIGH YIELD DEBT SECURITIES. INVESTMENTS OF THIS TYPE INVOLVE COMPARATIVELY
HIGHER RISKS, INCLUDING PRICE VOLATILITY AND RISK OF DEFAULT IN THE PAYMENT OF
INTEREST AND PRINCIPAL, THAN HIGHER-QUALITY DEBT SECURITIES. SEE "COMMON
INVESTMENT POLICIES AND RISK FACTORS."
- --------------------------------------------------------------------------------
<PAGE>
2 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

HARTFORD MUTUAL FUNDS
TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Glossary.............................................................. 3
Financial Highlights.................................................. 4
The Funds............................................................. 15
Investment Objectives and Policies of the Funds....................... 15
Common Investment Policies and Risk Factors........................... 23
Repurchase Agreements............................................... 23
Illiquid Securities................................................. 23
When-Issued and Delayed-Delivery Securities......................... 24
Other Investment Companies.......................................... 24
Currency Transactions............................................... 24
Options and Futures Contracts....................................... 25
Small Capitalization Securities..................................... 27
Mortgage-Related Securities......................................... 27
Asset-Backed Securities............................................. 28
Swap Agreements..................................................... 28
Money Market Instruments............................................ 29
Investment Grade Securities......................................... 29
High Yield Securities............................................... 29
Other Risk Factors.................................................. 29
Management of the Funds............................................... 30
Investment Advisory and Management Services......................... 30
Investment Sub-Advisory Services.................................... 31
Portfolio Managers.................................................. 32
Administrative Services for the Funds................................. 32
Expenses of the Funds................................................. 32
Performance Related Information....................................... 33
Dividends............................................................. 33
Net Asset Value....................................................... 33
Purchase of Fund Shares............................................... 34
Sale and Redemption of Shares......................................... 34
Federal Income Taxes.................................................. 34
Ownership and Capitalization of the Funds............................. 34
Capital Stock....................................................... 34
Voting.............................................................. 35
Other Rights........................................................ 35
General Information................................................... 35
Reports to Shareholders............................................. 35
Custodian, Transfer and Dividend Disbursing Agents.................. 35
"Majority" Defined.................................................. 35
Pending Legal Proceedings........................................... 35
Requests for Information............................................ 35
Appendix -- Ratings of Bonds and Commercial Paper..................... 36
</TABLE>

There is the possibility that an individual Fund may be held liable for a
misstatement, inaccuracy or incomplete disclosure in this Prospectus concerning
the other Fund(s).

Additional information about the performance of each Fund, including
Management's Discussion and Analysis of results, is contained in the Funds'
annual report to shareholders, which may be obtained without charge by calling
1-800-862-6668.
<PAGE>
HARTFORD MUTUAL FUNDS 3
- --------------------------------------------------------------------------------

GLOSSARY

ADRs: American Depository Receipts
CFTC: Commodity Futures Trading Commission
CMOs: Collateralized Mortgage Obligations
Code: Internal Revenue Code of 1986, as amended
FHLMC: Federal Home Loan Mortgage Corporation
FNMA: Federal National Mortgage Association
GDRs: Global Depository Receipts
GNMA: Government National Mortgage Association
IMF: International Monetary Fund
Moody's: Moody's Investors Service, Inc.
NYSE: New York Stock Exchange
1940 Act: Investment Company Act of 1940, as amended
SEC: Securities and Exchange Commission
S&P: Standard & Poor's Corporation
World Bank: International Bank for Reconstruction and Development
<PAGE>
4

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

FINANCIAL HIGHLIGHTS

The following information, insofar as it relates to each of the five years
in the period ended December 31, 1995, has been audited by Arthur Andersen LLP,
independent public accountants, whose report thereon is included in the
Statement of Additional Information, which is incorporated by reference to this
prospectus.

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
----------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
AT BEGINNING OF
PERIOD......... $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482 $ 1.423
NET INVESTMENT
INCOME......... 0.030 0.011 0.003 0.008 $ 0.021 $ 0.029 $ 0.023 $ 0.015 $ 0.025 $ 0.019
NET REALIZED AND
UNREALIZED
GAINS (LOSSES)
ON
INVESTMENTS.... 0.785 0.070 0.526 0.388 0.898 (0.246) 0.376 0.337 (0.075) 0.106
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
TOTAL FROM
INVESTMENT
OPERATIONS..... 0.815 0.081 0.529 0.396 0.919 (0.217) 0.399 0.352 (0.050) 0.125
DIVIDENDS FROM
NET INVESTMENT
INCOME......... (0.030) (0.011) (0.003) (0.008) (0.021) (0.029) (0.023) (0.015) (0.025) (0.019)
DISTRIBUTION
FROM NET
REALIZED GAINS
ON
SECURITIES..... (0.155) (0.262) (0.108) (0.361) 0.000 (0.065) (0.034) 0.000 (0.066) (0.047)
RETURN OF
CAPITAL........ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
TOTAL FROM
DISTRIBUTIONS... (0.185) (0.273) (0.111) (0.369) (0.021) (0.094) (0.057) (0.015) (0.091) (0.066)
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
NET INCREASE
(DECREASE) IN
NET ASSETS..... 0.630 (0.192) 0.418 0.027 0.898 (0.311) 0.342 0.337 (0.141) 0.059
NET ASSET VALUE
AT END OF
PERIOD......... $ 3.490 $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
TOTAL RETURN.... 30.25% 2.50% 20.80% 16.98% 53.99% (10.90)% 24.11% 26.37% (4.31)% 9.03%
NET ASSETS (IN
THOUSANDS)..... 2,157,892 1,158,644 778,904 300,373 158,046 56,032 59,922 34,226 26,123 22,556
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS......... 0.68% 0.72% 0.76% 0.87% 0.92% 0.96% 0.94% 0.97% 1.01% 1.12%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSET.......... 0.95% 0.40% 0.12% 0.36% 0.92% 1.58% 1.25% 0.91% 1.27% 1.23%
PORTFOLIO
TURNOVER
RATE........... 78.6% 73.3% 91.4% 100.3% 107.2% 51.8% 35.0% 48.9% 68.7% 53.9%
</TABLE>

<PAGE>
HARTFORD DIVIDEND & GROWTH FUND, INC. 5
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The following information has been audited by Arthur Andersen LLP,
independent public accountants, whose report thereon is included in the
Statement of Additional Information, which is incorporated by reference to this
prospectus.

<TABLE>
<CAPTION>
(FOR A SHARE
OUTSTANDING THROUGHOUT
THE INDICATED PERIOD)
-----------------------
YEAR
ENDED 03/08/94-
1995 12/31/94(A)
--------- -----------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD............ $ 0.994 $ 1.000
NET INVESTMENT INCOME............................. 0.033 0.024
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS...................................... 0.317 (0.005)
--------- -----------
TOTAL FROM INVESTMENT OPERATIONS.................. 0.350 0.019
DIVIDENDS FROM NET INVESTMENT INCOME.............. (0.033) (0.024)
DISTRIBUTION FROM NET REALIZED GAINS ON
SECURITIES....................................... 0.000 (0.001)
RETURN OF CAPITAL................................. 0.000 0.000
--------- -----------
TOTAL FROM DISTRIBUTIONS.......................... (0.033) (0.025)
--------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............. 0.317 (0.006)
NET ASSET VALUE AT END OF PERIOD.................. $ 1.311 $ 0.994
--------- -----------
--------- -----------
TOTAL RETURN...................................... 36.37% 1.96%
NET ASSETS (IN THOUSANDS)......................... 265,070 55,066
RATIO OF OPERATING EXPENSES TO AVERAGE NET
ASSETS........................................... 0.77% 0.83%*
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSET............................................ 2.91% 3.52%*
PORTFOLIO TURNOVER RATE........................... 41.4% 27.8%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission on
March 8, 1994.

* Annualized
<PAGE>
6 HARTFORD INDEX FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 05/01/87-
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87(A)
--------- --------- --------- -------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $ 1.522 $ 1.546 $ 1.450 $ 1.390 $ 1.134 $ 1.220 $ 0.960 $ 0.854 $ 1.000
NET INVESTMENT INCOME.... 0.044 0.038 0.035 0.033 0.036 0.037 0.029 0.030 0.016
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS............. 0.507 (0.024) 0.096 0.060 0.294 (0.086) 0.260 0.106 (0.144)
--------- --------- --------- -------- -------- -------- -------- -------- -----------
TOTAL FROM INVESTMENT
OPERATIONS.............. 0.551 0.014 0.131 0.093 0.330 (0.049) 0.289 0.136 (0.128)
DIVIDENDS FROM NET
INVESTMENT INCOME....... (0.044) (0.038) (0.035) (0.033) (0.036) (0.037) (0.029) (0.030) (0.016)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES.............. (0.001) 0.000 0.000 0.000 (0.038) 0.000 0.000 0.000 (0.002)
RETURN OF CAPITAL........ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- -------- -------- -------- -------- -------- -----------
TOTAL FROM
DISTRIBUTIONS........... (0.045) (0.038) (0.035) (0.033) (0.074) (0.037) (0.029) (0.030) (0.018)
--------- --------- --------- -------- -------- -------- -------- -------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS........... 0.506 (0.024) 0.096 0.060 0.256 (0.086) 0.260 0.106 (0.146)
NET ASSET VALUE AT END OF
PERIOD.................. $ 2.028 $ 1.522 $ 1.546 $ 1.450 $ 1.390 $ 1.134 $ 1.220 $ 0.960 $ 0.854
--------- --------- --------- -------- -------- -------- -------- -------- -----------
--------- --------- --------- -------- -------- -------- -------- -------- -----------

TOTAL RETURN............. 36.55% 0.94% 9.12% 6.82% 29.53% (3.99)% 30.47% 16.35% (12.91)%
NET ASSETS (IN
THOUSANDS).............. 318,253 157,660 140,396 82,335 47,770 26,641 19,456 10,050 7,212
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS.................. 0.39% 0.45% 0.49% 0.60% 0.67% 0.91% 1.10% 1.23% 1.35%*
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSET................... 2.46% 2.50% 2.36% 2.48% 2.89% 3.27% 2.60% 3.29% 2.39%*
PORTFOLIO TURNOVER
RATE.................... 1.5% 1.8% 0.8% 1.2% 6.7% 25.5% 12.9% 20.9% 1.9%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on May 1, 1987.

* Annualized
<PAGE>
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC. 7
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
---------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED 07/02/90-
1995 1994 1993 1992 1991 12/31/90(A)
--------- --------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD.................... $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871 $ 1.000
NET INVESTMENT INCOME......... 0.020 0.016 0.009 0.013 0.011 0.015
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS.................. 0.141 (0.039) 0.298 (0.056) 0.102 (0.129)
--------- --------- --------- -------- -------- -----------
TOTAL FROM INVESTMENT
OPERATIONS................... 0.161 (0.023) 0.307 (0.043) 0.113 (0.114)
DIVIDENDS FROM NET INVESTMENT
INCOME....................... (0.020) (0.016) (0.009) (0.013) (0.011) (0.015)
DISTRIBUTION FROM NET REALIZED
GAINS ON SECURITIES.......... (0.011) 0.000 0.000 0.000 0.000 0.000
RETURN OF CAPITAL............. 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- -------- -------- -----------
TOTAL FROM DISTRIBUTIONS...... (0.031) (0.016) (0.009) (0.013) (0.011) (0.015)
--------- --------- --------- -------- -------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS....................... 0.130 (0.039) 0.298 (0.056) 0.102 (0.129)
NET ASSET VALUE AT END OF
PERIOD....................... $ 1.306 $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871
--------- --------- --------- -------- -------- -----------
--------- --------- --------- -------- -------- -----------
TOTAL RETURN.................. 13.93% (1.94)% 33.73% (4.43)% 13.00% (11.76)%
NET ASSETS (IN THOUSANDS)..... 686,475 563,765 281,608 47,560 22,854 9,352
RATIO OF OPERATING EXPENSES TO
AVERAGE NET ASSETS........... 0.86% 0.85% 1.00% 1.23% 1.24% 1.04%*
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSET......... 1.60% 1.42% 0.84% 1.40% 1.17% 2.65%*
PORTFOLIO TURNOVER RATE....... 55.6% 46.4% 31.8% 25.1% 24.7% 3.0%
</TABLE>

- ------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on July 2, 1990.

* Annualized
<PAGE>
8 HARTFORD STOCK FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
AT BEGINNING
OF PERIOD..... $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177 $ 2.107
NET INVESTMENT
INCOME........ 0.070 0.061 0.053 0.051 $ 0.059 $ 0.070 $ 0.065 $ 0.045 $ 0.045 $ 0.049
NET REALIZED
AND UNREALIZED
GAINS (LOSSES)
ON
INVESTMENTS... 0.840 (0.111) 0.339 0.219 0.532 (0.179) 0.522 0.327 0.084 0.196
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL FROM
INVESTMENT
OPERATIONS.... 0.910 (0.050) 0.392 0.270 0.591 (0.109) 0.587 0.372 0.129 0.245
DIVIDENDS FROM
NET INVESTMENT
INCOME........ (0.070) (0.061) (0.053) (0.051) (0.059) (0.070) (0.065) (0.045) (0.045) (0.049)
DISTRIBUTION
FROM NET
REALIZED GAINS
ON
SECURITIES.... (0.114) (0.187) (0.205) (0.181) (0.057) (0.144) (0.051) 0.000 (0.284) (0.126)
RETURN OF
CAPITAL....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL FROM
DISTRIBUTIONS... (0.184) (0.248) (0.258) (0.232) (0.116) (0.214) (0.116) (0.045) (0.329) (0.175)
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
NET INCREASE
(DECREASE) IN
NET ASSETS.... 0.726 (0.298) 0.134 0.038 0.475 (0.323) 0.471 0.327 (0.200) 0.070
NET ASSET VALUE
AT END OF
PERIOD........ $ 3.527 $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------
---------- ---------- --------- --------- --------- --------- --------- --------- --------- ---------

TOTAL RETURN... 34.10% (1.89)% 14.34% 10.04% 24.58% (3.87)% 26.02% 19.00% 5.41% 12.33%
NET ASSETS (IN
THOUSANDS).... 1,876,884 1,163,158 968,425 569,903 406,489 257,553 266,756 187,511 170,319 148,126
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS........ 0.48% 0.50% 0.53% 0.57% 0.60% 0.66% 0.64% 0.65% 0.65% 0.66%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSET......... 2.23% 2.17% 1.86% 1.90% 2.14% 2.76% 2.31% 2.08% 1.83% 2.24%
PORTFOLIO
TURNOVER
RATE.......... 52.9% 63.8% 69.0% 69.8% 24.3% 20.2% 24.4% 22.9% 27.0% 25.7%
</TABLE>

<PAGE>
HARTFORD ADVISERS FUND, INC. 9
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
AT BEGINNING
OF PERIOD..... $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227 $ 1.179
NET INVESTMENT
INCOME........ 0.064 0.054 0.050 0.059 $ 0.063 $ 0.074 $ 0.062 $ 0.051 $ 0.051 $ 0.054
NET REALIZED
AND UNREALIZED
GAINS (LOSSES)
ON
INVESTMENTS... 0.377 (0.100) 0.145 0.070 0.223 (0.059) 0.221 0.119 0.025 0.089
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
TOTAL FROM
INVESTMENT
OPERATIONS.... 0.441 (0.046) 0.195 0.129 0.286 0.015 0.283 0.170 0.076 0.143
DIVIDENDS FROM
NET INVESTMENT
INCOME........ (0.064) (0.054) (0.050) (0.059) (0.063) (0.074) (0.062) (0.051) (0.051) (0.054)
DISTRIBUTION
FROM NET
REALIZED GAINS
ON
SECURITIES.... (0.019) (0.052) (0.069) (0.043) (0.010) (0.048) (0.010) 0.000 (0.039) (0.041)
RETURN OF
CAPITAL....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
TOTAL FROM
DISTRIBUTIONS... (0.083) (0.106) (0.119) (0.102) (0.073) (0.122) (0.072) (0.051) (0.090) (0.095)
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
NET INCREASE
(DECREASE) IN
NET ASSETS.... 0.358 (0.152) 0.076 0.027 0.213 (0.107) 0.211 0.119 (0.014) 0.048
NET ASSET VALUE
AT END OF
PERIOD........ $ 1.958 $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
---------- ---------- ---------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN... 28.34% (2.74)% 12.25% 8.30% 20.33% 1.26% 21.72% 14.24% 6.08% 12.70%
NET ASSETS (IN
THOUSANDS).... 4,262,769 3,034,034 2,426,550 985,747 631,424 416,839 371,917 264,750 239,704 127,214
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS........ 0.65% 0.65% 0.69% 0.78% 0.81% 0.89% 0.89% 0.90% 0.91% 0.98%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSET......... 3.57% 3.34% 3.07% 3.55% 4.13% 4.65% 4.14% 3.93% 4.00% 4.36%
PORTFOLIO
TURNOVER
RATE.......... 63.5% 60.0% 55.3% 72.8% 42.1% 35.7% 33.5% 30.9% 28.3% 23.3%
</TABLE>

<PAGE>
10 HARTFORD INTERNATIONAL ADVISERS FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE
OUTSTANDING THROUGHOUT
THE INDICATED PERIOD)
----------------------
03/01/95-
12/31/95(A)
----------------------
<S> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD............ $ 1.000
NET INVESTMENT INCOME............................. 0.030
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS...................................... 0.126
-------
TOTAL FROM INVESTMENT OPERATIONS.................. 0.156
DIVIDENDS FROM NET INVESTMENT INCOME.............. (0.030)
DISTRIBUTION FROM NET REALIZED GAINS ON
SECURITIES....................................... (0.017)
RETURN OF CAPITAL................................. 0.000
-------
TOTAL FROM DISTRIBUTIONS.......................... (0.047)
-------
NET INCREASE (DECREASE) IN NET ASSETS............. 0.109
NET ASSET VALUE AT END OF PERIOD.................. $ 1.109
-------
-------
TOTAL RETURN...................................... 15.84%
NET ASSETS (IN THOUSANDS)......................... 31,264
RATIO OF OPERATING EXPENSES TO AVERAGE NET
ASSETS........................................... 0.65%*
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSET............................................ 3.36%*
PORTFOLIO TURNOVER RATE........................... 47.2%
</TABLE>

- ------------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on March 1, 1995.

* Annualized. In 1995, a portion of the International Advisers Fund's
management fees were waived. Without this waiver, the ratio of operating
expenses to average net assets would have been 1.229%.

<PAGE>
HARTFORD BOND FUND, INC. 11
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF
PERIOD.................. $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033 $ 1.007
NET INVESTMENT INCOME.... 0.064 0.060 0.062 0.074 $ 0.072 $ 0.075 $ 0.079 $ 0.077 $ 0.080 $ 0.091
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS............. 0.102 (0.100) 0.039 (0.019) 0.082 0.003 0.031 (0.007) (0.081) 0.026
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS.............. 0.166 (0.040) 0.101 0.055 0.154 0.078 0.110 0.070 (0.001) 0.117
DIVIDENDS FROM NET
INVESTMENT
INCOME.................. (0.064) (0.060) (0.062) (0.074) (0.072) (0.075) (0.079) (0.077) (0.080) (0.091)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES.............. 0.000 (0.018) (0.019) (0.018) 0.000 0.000 0.000 0.000 0.000 0.000
RETURN OF CAPITAL........ 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
TOTAL FROM
DISTRIBUTIONS........... (0.064) (0.078) (0.081) (0.092) (0.072) (0.075) (0.079) (0.077) (0.080) (0.091)
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE)
IN NET ASSETS........... 0.102 (0.118) 0.020 (0.037) 0.082 0.003 0.031 (0.007) (0.081) 0.026
NET ASSET VALUE AT END OF
PERIOD.................. $ 1.028 $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------

TOTAL RETURN............. 18.49% (3.95)% 10.24% 5.53% 16.43% 8.39% 12.10% 7.60% (0.01)% 12.19%
NET ASSETS (IN
THOUSANDS).............. 342,495 247,458 239,602 128,538 97,377 70,915 61,602 54,215 50,037 57,160
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS.................. 0.53% 0.55% 0.57% 0.64% 0.66% 0.67% 0.67% 0.69% 0.69% 0.71%
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSET................... 6.51% 6.23% 5.93% 7.21% 7.29% 7.82% 8.09% 8.12% 8.15% 8.93%
PORTFOLIO TURNOVER
RATE.................... 215.0% 328.8% 494.3% 434.1% 337.0% 161.6% 225.0% 230.3% 53.3% 46.7%
CURRENT YIELD *.......... 6.46% 7.19% 4.93% 6.48% 6.62% 8.17% 7.92% 9.15% 8.67% 8.82%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
12 HARTFORD MORTGAGE SECURITIES FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
---------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF PERIOD.... $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087 $ 1.077
NET INVESTMENT INCOME... 0.068 0.068 0.071 0.086 $ 0.088 $ 0.087 $ 0.088 $ 0.087 $ 0.093 $ 0.104
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS............ 0.087 (0.086) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.067) 0.010
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
TOTAL FROM INVESTMENT
OPERATIONS............. 0.155 (0.018) 0.067 0.050 0.149 0.096 0.127 0.082 0.026 0.114
DIVIDENDS FROM NET
INVESTMENT INCOME...... (0.068) (0.068) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.093) (0.104)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES............. 0.000 (0.005) 0.000 0.000 0.000 0.000 0.000 0.000 (0.009) 0.000
RETURN OF CAPITAL....... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
TOTAL FROM
DISTRIBUTIONS.......... (0.068) (0.073) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.102) (0.104)
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
NET INCREASE (DECREASE)
IN NET ASSETS.......... 0.087 (0.091) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.076) 0.010
NET ASSET VALUE AT END
OF PERIOD.............. $ 1.071 $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------

TOTAL RETURN............ 16.17% (1.61)% 6.31% 4.64% 14.71% 9.70% 13.13% 8.38% 2.64% 11.13%
NET ASSETS (IN
THOUSANDS)............. 327,565 304,147 365,198 258,711 162,484 105,620 85,908 85,075 84,075 100,518
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS................. 0.47% 0.48% 0.49% 0.56% 0.58% 0.58% 0.58% 0.60% 0.61% 0.62%
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSET.................. 6.50% 6.65% 6.49% 7.96% 8.25% 8.42% 8.64% 8.56% 9.02% 9.57%
PORTFOLIO TURNOVER
RATE................... 489.4% 365.7% 183.4% 277.2% 152.2% 85.6% 91.3% 185.0% 143.6% 103.1%
CURRENT YIELD *......... 6.90% 7.84% 5.73% 7.51% 8.16% 8.21% 8.28% 9.12% 9.41% 8.90%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
HVA MONEY MARKET FUND, INC. 13
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
-----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF
PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
NET INVESTMENT
INCOME............... 0.056 0.039 0.029 0.036 $ 0.059 $ 0.078 $ 0.088 $ 0.071 $ 0.063 $ 0.066
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS.......... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
TOTAL FROM INVESTMENT
OPERATIONS........... 0.056 0.039 0.029 0.036 0.059 0.078 0.088 0.071 0.063 0.066
DIVIDENDS FROM NET
INVESTMENT INCOME.... (0.056) (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063) (0.066)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES........... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
RETURN OF CAPITAL..... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
TOTAL FROM
DISTRIBUTIONS........ (0.056) (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063) (0.066)
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
NET INCREASE
(DECREASE) IN NET
ASSETS............... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
NET ASSET VALUE AT END
OF
PERIOD............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------
TOTAL RETURN.......... 5.74% 3.95% 2.94% 3.63% 6.01% 8.09% 9.10% 7.40% 6.49% 6.77%

NET ASSETS (IN
THOUSANDS)........... 339,709 321,465 234,088 190,246 177,483 194,462 129,808 127,346 104,002 79,683
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS........... 0.45% 0.47% 0.48% 0.53% 0.54% 0.57% 0.58% 0.58% 0.58% 0.58%
RATIO OF NET
INVESTMENT INCOME TO
AVERAGE NET ASSET.... 5.57% 3.99% 2.91% 3.60% 5.88% 7.80% 8.75% 7.19% 6.36% 6.56%
PORTFOLIO TURNOVER
RATE................. -- -- -- -- -- -- -- -- -- --
CURRENT YIELD *....... 5.40% 5.43% 2.89% 3.09% 4.66% 7.73% 8.21% 8.49% 7.17% 5.45%
EFFECTIVE YIELD *..... 5.54% 5.58% 2.93% 3.14% 4.79% 8.03% 8.55% 8.85% 7.43% 5.60%
</TABLE>

- ------------------------------
* The yield information will fluctuate and publication of yield may not provide
a basis for comparison with bank deposits, other investments which are insured
and/or pay a fixed yield for a stated period of time, or other investment
companies. In addition, information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.
<PAGE>
14 HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
--------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET
VALUE AT
BEGINNING OF
PERIOD....... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
NET INVESTMENT
INCOME....... 0.054 0.036 0.027 0.032 $ 0.055 $ 0.073 $ 0.081 $ 0.067 $ 0.056 $ 0.061
NET REALIZED
AND
UNREALIZED
GAINS
(LOSSES) ON
INVESTMENTS... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
TOTAL FROM
INVESTMENT
OPERATIONS... 0.054 0.036 0.027 0.032 0.055 0.073 0.081 0.067 0.056 0.061
DIVIDENDS FROM
NET
INVESTMENT
INCOME....... (0.054) (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056) (0.061)
DISTRIBUTION
FROM NET
REALIZED
GAINS ON
SECURITIES... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
RETURN OF
CAPITAL...... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
TOTAL FROM
DISTRI
BUTIONS...... (0.054) (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056) (0.061)
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
NET INCREASE
(DECREASE) IN
NET ASSETS... 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
NET ASSET
VALUE AT END
OF
PERIOD....... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------
-------- ----------- ----------- -------- -------- -------- ----------- ----------- ----------- -----------

TOTAL
RETURN....... 5.52% 3.67% 2.68% 3.22% 5.61% 7.52% 8.43% 6.92% 5.75% 6.29%
NET ASSETS (IN
THOUSANDS)... 10,070 9,619 9,449 10,525 11,257 10,496 7,814 7,262 5,688 5,812
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS....... 0.57% 0.58% 0.58% 0.75% 0.73% 0.73% 0.77% 0.75% 0.66% 0.60%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSET........ 5.38% 3.63% 2.65% 3.19% 5.48% 7.29% 8.14% 6.76% 5.57% 6.08%
PORTFOLIO
TURNOVER
RATE......... -- -- -- -- -- -- -- -- -- --
CURRENT YIELD
*............ 5.47% 5.14% 2.67% 2.69% 4.24% 7.59% 7.53% 8.27% 6.17% 5.26%
EFFECTIVE
YIELD *...... 5.62% 5.27% 2.71% 2.72% 4.31% 7.88% 7.82% 8.62% 6.36% 5.40%
</TABLE>

- ------------------------------
* THE YIELD INFORMATION WILL FLUCTUATE AND PUBLICATION OF YIELD MAY NOT PROVIDE
A BASIS FOR COMPARISON WITH BANK DEPOSITS, OTHER INVESTMENTS WHICH ARE INSURED
AND/OR PAY A FIXED YIELD FOR A STATED PERIOD OF TIME, OR OTHER INVESTMENT
COMPANIES. IN ADDITION, INFORMATION MAY BE OF LIMITED USE FOR COMPARATIVE
PURPOSES BECAUSE IT DOES NOT REFLECT CHARGES IMPOSED AT THE SEPARATE ACCOUNT
LEVEL WHICH, IF INCLUDED, WOULD DECREASE THE YIELD.
<PAGE>
HARTFORD MUTUAL FUNDS 15
- --------------------------------------------------------------------------------

THE FUNDS

The Funds are made available to serve as the underlying investment vehicles
for certain variable annuity and variable life insurance separate accounts of
ITT Hartford Life Insurance Companies. The Hartford Investment Management
Company, Inc. ("HIMCO" or the "Adviser") serves as investment adviser to
Hartford Index Fund, Inc., Hartford Bond Fund, Inc., Hartford Mortgage
Securities Fund, Inc., HVA Money Market Fund, Inc. and Hartford U.S. Government
Money Market Fund, Inc. and as investment manager to Hartford Capital
Appreciation Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford
International Opportunities Fund, Inc., Hartford Small Company Fund, Inc.,
Hartford Stock Fund, Inc., Hartford Advisers Fund, Inc., and Hartford
International Advisers Fund, Inc. Wellington Management Company ("WMC" or the
"Sub-Adviser") serves as investment sub-adviser to Hartford Capital Appreciation
Fund, Inc., Hartford Dividend and Growth Fund, Inc., Hartford International
Opportunities Fund, Inc., Hartford Small Company Fund, Inc., Hartford Stock
Fund, Inc., Hartford Advisers Fund, Inc., and Hartford International Advisers
Fund, Inc.

INVESTMENT OBJECTIVES AND
POLICIES OF THE FUNDS

The Funds have different investment objectives and policies, as described
below. The differences in objectives and policies among the Funds can be
expected to affect the return of each Fund and the degree of market and
financial risk to which each Fund is subject. For more information about the
investment strategies employed by the Funds, see "Common Investment Policies and
Risk Factors." The investment objective of each Fund is fundamental and cannot
be changed without the affirmative vote of a majority of the outstanding voting
securities of the particular Fund. All other policies not specifically
designated as fundamental are nonfundamental and may be changed by the Board of
Directors of the particular Fund. See the Statement of Additional Information
for a complete listing of investment restrictions.
HARTFORD CAPITAL APPRECIATION FUND, INC.

Hartford Capital Appreciation Fund, Inc. (the "Capital Appreciation Fund")
was incorporated in 1983 under Maryland law.

INVESTMENT OBJECTIVE.

The Capital Appreciation Fund seeks to achieve growth of capital by
investing in securities selected solely on the basis of potential for capital
appreciation; income, if any, is an incidental consideration.

INVESTMENT POLICIES.

The Capital Appreciation Fund seeks to achieve its objective by investing
primarily in equity securities and securities convertible into equity
securities. The Sub-Adviser identifies, through fundamental analysis, companies
that it believes have substantial near-term capital appreciation potential
regardless of company size or industry sector. This approach is sometimes
referred to as a "stock picking" approach and results in having all market
capitalization sectors (i.e., small, medium, and large companies) represented in
the portfolio. Small and medium companies are selected primarily on the basis of
dynamic earnings growth potential. Larger companies are selected primarily based
on the expectation for a catalyst event that will trigger stock price
appreciation. Fundamental analysis involves the assessment of a company through
such factors as its business environment, management, balance sheet, income
statement, anticipated earnings, revenues, dividends, and other related measures
of value.

The Capital Appreciation Fund will invest primarily in securities issued by
U.S. companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Capital Appreciation Fund's total assets. The Capital Appreciation Fund's
investments in securities of non-U.S. companies may include ADRs and GDRs. When
selecting securities of non-U.S. issuers, the Sub-Adviser also will evaluate the
economic and political climate and the principal securities markets of the
country in which an issuer is located. The Capital Appreciation Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

From time to time, the Capital Appreciation Fund may invest in debt
securities. The non-convertible debt securities in which the Capital
Appreciation Fund may invest include debt securities assigned within the four
highest bond rating categories by Moody's or S&P, i.e., investment grade, or
considered to be of comparable quality as determined by the Sub-Adviser. In
addition, the Capital Appreciation Fund may invest up to 5% of total assets in
high yield debt securities, commonly known as "junk bonds." Such securities are
rated as low as "C" by Moody's and S&P, or if unrated, are of comparable quality
as determined by the Sub-Adviser. See "Common Investment Policies and Risk
Factors."

Although the Capital Appreciation Fund intends to be fully invested in
equity and debt securities, it may hold cash or cash equivalents and may invest
any portion or all of its assets in high quality money market instruments in the
following circumstances: (1) during periods when the Sub-Adviser deems it
necessary for temporary defensive
<PAGE>
16 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

purposes; (2) to meet liquidity needs; or (3) in anticipation of investment of
its assets.

The Capital Appreciation Fund may invest up to 10% of its total assets in
illiquid securities and may from time to time purchase securities on a
when-issued or delayed delivery basis. In addition, the Capital Appreciation
Fund may invest to a limited extent in other investment companies and may enter
into certain currency transactions. Finally, the Capital Appreciation Fund may
invest in options, futures, and options on futures. See "Common Investment
Policies and Risk Factors."
HARTFORD DIVIDEND AND GROWTH FUND, INC.

Hartford Dividend and Growth Fund, Inc. (the "Dividend and Growth Fund") was
incorporated in 1993 under Maryland law.

INVESTMENT OBJECTIVE.

The Dividend and Growth Fund seeks to achieve a high level of current income
consistent with growth of capital and reasonable investment risk.

INVESTMENT POLICIES.

The Dividend and Growth Fund seeks to achieve its objective by investing
primarily in equity securities and securities convertible into equity securities
that typically have above average income yield and whose prospects for capital
appreciation are considered favorable by the Sub-Adviser. The Sub-Adviser uses
fundamental analysis to evaluate a security for purchase or sale by the Dividend
and Growth Fund. Fundamental analysis involves the assessment of a company
through such factors as its business environment, management, balance sheet,
income statement, anticipated earnings, revenues, dividends, and other related
measures of value. As a key component of the fundamental analysis done for the
Dividend and Growth Fund, the Sub-Adviser evaluates a company's ability to
sustain and potentially increase its dividend. The Dividend and Growth Fund's
portfolio will be broadly diversified by industry and company; the Fund seeks to
diversify its investments over a carefully selected list of securities in order
to moderate the risks inherent in equity investments.

The Dividend and Growth Fund will invest primarily in securities issued by
U.S. companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Dividend and Growth Fund's total assets. The Dividend and Growth Fund's
investments in securities of non-U.S. companies may include ADRs and GDRs. When
selecting securities of non-U.S. issuers, the Sub-Adviser also will evaluate the
economic and political climate and the principal securities markets of the
country in which an issuer is located. The Dividend and Growth Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

From time to time, the Dividend and Growth Fund may invest in debt
securities. The non- convertible debt securities in which the Dividend and
Growth Fund may invest include debt securities assigned within the four highest
bond rating categories by Moody's or S&P, i.e., investment grade, or considered
to be of comparable quality as determined by the Sub-Adviser.

Although the Dividend and Growth Fund intends to be fully invested in equity
and debt securities, it may hold cash or cash equivalents and may invest any
portion or all of its assets in high quality money market instruments in the
following circumstances: (1) during periods when the Sub-Adviser deems it
necessary for temporary defensive purposes; (2) to meet liquidity needs; or (3)
in anticipation of investment of its assets.

The Dividend and Growth Fund may invest up to 15% of its total assets in
illiquid securities and may from time to time purchase securities on a
when-issued or delayed delivery basis. In addition, the Dividend and Growth Fund
may invest to a limited extent in other investment companies and may engage in
certain currency transactions. Finally, the Dividend and Growth Fund may invest
in options, futures, and options on futures. See "Common Investment Policies and
Risk Factors."
HARTFORD INDEX FUND, INC.

Hartford Index Fund, Inc. (the "Index Fund") was incorporated in 1983 under
Maryland law.

INVESTMENT OBJECTIVE.

The Index Fund seeks to provide investment results which approximate the
price and yield performance of publicly-traded common stocks in the aggregate.

INVESTMENT POLICIES.

The Index Fund uses the Standard & Poor's 500 Composite Stock Price Index
(the "Index") as its standard performance comparison because it represents a
significant proportion of the total market value of all common stocks, is well
known to investors and, in the opinion of the management of the Index Fund, is
representative of the performance of publicly-traded common stocks. Therefore,
the Index Fund attempts to approximate the capital performance and dividend
income of the Index.

The Index Fund will generally invest in no fewer than 475 stocks. The
Adviser will select stocks for the Index Fund's portfolio after taking into
account their individual weights in the Index. Temporary cash balances, normally
not expected to exceed 2% of the Index Fund's net assets, may be invested in
short-term money market instruments. The Index Fund may invest in ADRs and GDRs.
The Index
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HARTFORD MUTUAL FUNDS 17
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Fund may also from time to time enter into stock index futures contracts and
options on such futures contracts to maintain optimal exposure to the Index and
to hedge against changes in security prices. See "Common Investment Policies and
Risk Factors."

The Index is composed of 500 selected common stocks, most of which are
listed on the New York Stock Exchange. S&P chooses the stocks to be included in
the Index on a proprietary basis. The weightings of stocks in the Index are
based on each stock's relative total market value, that is, its market price per
share times the number of shares outstanding. Because of this weighting, as of
December 31, 1995, approximately fifty percent of the Index was composed of the
fifty-nine largest companies, the five largest being General Electric Co., AT&T
Corp., Exxon Corp., Coca-Cola Company and Merck and Co.

No attempt is made to "manage" the Index Fund's portfolio in the traditional
sense, using economic, financial and market analysis, nor will the adverse
financial situation of a company directly result in its elimination from the
Index Fund's portfolio unless, of course, the company is removed from the Index.
From time to time administrative adjustments may be made in the Index Fund's
portfolio because of mergers, changes in the composition of the Index and
similar reasons.

The Index Fund's management believes that the "indexing" approach described
above is an effective method of substantially duplicating percentage changes in
the Index. It is a reasonable expectation that the correlation between the
performance of the Index Fund (before expenses) and that of the Index will be
above 98%; a figure of 100% would indicate perfect correlation. The Index Fund
is regularly monitored to determine if it is meeting its targeted performance.
In the event of any deviation from the targeted performance, the security
holdings of the Index Fund are rebalanced to better replicate the index. At some
time in the future, the Board of Directors of the Index Fund may, subject to
shareholder approval, select another index if such a standard of comparison is
deemed to be more representative of the performance of common stocks.

The Index Fund's ability to approximate the performance of the Index will
depend to some extent on the size of cash flows into and out of the Index Fund.
Investment changes to accommodate these cash flows will be made to maintain the
similarity of the Index Fund's portfolio to the Index, to the maximum
practicable extent.

"Standard & Poor's-Registered Trademark-", "S&P-Registered Trademark-", "S&P
500-Registered Trademark-", "Standard & Poor's 500", and "500" are trademarks of
The McGraw-Hill Companies, Inc. and have been licensed for use by the Hartford
Life Insurance Company. The Index Fund is not sponsored, endorsed, sold or
promoted by S&P. S&P makes no representation or warranty, express or implied, to
the shareholders of the Index Fund, regarding the advisability of investing in
securities generally or in the Index Fund particularly or the ability of the S&P
500 Index to track general stock market performance. S&P's only relationship to
Hartford Life Insurance Company is the licensing of certain trademarks and trade
names of S&P and of the S&P 500 Index which is determined, composed and
calculated by S&P without regard to the Index Fund or Hartford Life Insurance
Company. S&P has no obligation to take the needs of the Index Fund or its
shareholders, or Hartford Life Insurance Company, into consideration in
determining, composing or calculating the S&P 500 Index. S&P is not responsible
for and has not participated in the determination of the net asset value of the
Index Fund or the timing of the issuance or sale of shares in the Index Fund.
S&P has no obligation or liability in connection with the administration,
marketing or trading of the Index Fund.

In addition, S&P does not guarantee the accuracy and/ or the completeness of
the S&P 500 Index or any data included therein and S&P shall have no liability
for any errors, omissions, or interruptions therein. S&P makes no warranty,
express or implied, as to results to be obtained by the Index Fund, its
shareholders or any other person or entity from the use of the S&P 500 Index or
any data included therein. S&P makes no express or implied warranties, and
expressly disclaims all warranties of merchantability or fitness for a
particular purpose or use with respect to the S&P 500 Index or any data included
therein. Without limiting any of the foregoing, in no event shall S&P have any
liability for any special, punitive, indirect, or consequential damages
(including lost profits), even if notified of the possibility of such damages.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.

Hartford International Opportunities Fund, Inc. (the "International
Opportunities Fund") was incorporated in 1990 under Maryland law.

INVESTMENT OBJECTIVE.

The International Opportunities Fund seeks to achieve long-term total rate
of return consistent with prudent investment risk through investment primarily
in equity securities issued by non-U.S. companies.

INVESTMENT POLICIES.

The International Opportunities Fund seeks to achieve its investment
objective by investing in a diversified portfolio of primarily equity securities
which covers a broad range of countries, industries, and companies. The
International Opportunities Fund anticipates that, under normal market
conditions, it will diversify its investments among a minimum of five countries;
the Fund will not invest more than 20% of its net assets in securities of
issuers located in any one country, except that it may invest up to 35% of its
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18 HARTFORD MUTUAL FUNDS
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net assets in securities of issuers located in any one of the following
countries: Australia, Canada, France, Japan, the United Kingdom or Germany.

Securities in which the International Opportunities Fund invests are
denominated in both U.S. dollars and non-U.S. currencies (including the European
Currency Unit) and generally are traded on non-U.S. markets.

Under normal market conditions, at least 70% of the International
Opportunities Fund's total assets will be invested in equity securities issued
by non-U.S. companies. Equity securities in which the International
Opportunities Fund invests include common stocks, preferred stocks, convertible
securities, and warrants and rights to acquire such securities. The
International Opportunities Fund may invest in ADRs and GDRs. See "Common
Investment Policies and Risk Factors." Equity investments are selected on the
basis of fundamental analysis to identify those markets and securities that
provide capital appreciation potential. Fundamental analysis involves the
assessment of a company through such factors as its business environment,
management, balance sheet, income statement, anticipated earnings, revenues,
dividends and other related measures of value. In analyzing companies for
investment, the Sub-Adviser looks for, among other things, a strong balance
sheet, attractive industry dynamics, strong competitive advantages, and
attractive relative value within the context of a security's primary trading
market. In addition to fundamental analysis of companies and industries, the
Sub-Adviser evaluates the economic and political environments of the countries
in which the securities are traded. The International Opportunities Fund's
investments in debt securities will be substantially similar to the debt
securities investments permitted for the International Advisers Fund. See
"Hartford International Advisers Fund, Inc. -- Investment Policies."

Although the International Opportunities Fund intends to be fully invested
in equity and debt securities, it may hold cash and cash equivalents (U.S.
dollars, non-U.S. currencies, multinational currency units) and may invest any
portion or all of its assets in high quality money market instruments of U.S.,
non-U.S., or supranational issuers in the following circumstances: (1) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (2) to meet liquidity needs; or (3) in anticipation of investment of
its assets. The International Opportunities Fund may invest in non-U.S. money
market funds and commingled pools offered by non-U.S. banks.

The International Opportunities Fund will be subject to certain risks as a
result of its ability to invest in the securities of non-U.S. companies. The
International Opportunities Fund is permitted to invest up to 15% of its total
assets in illiquid securities and may from time to time purchase securities on a
when- issued or delayed delivery basis. In addition, the International
Opportunities Fund may invest to a limited extent in other investment companies
and enter into certain currency transactions. Finally, the International
Opportunities Fund is permitted to invest in options, futures and options on
futures. See "Common Investment Policies and Risk Factors."

HARTFORD SMALL COMPANY FUND, INC.

Hartford Small Company Fund, Inc. (the "Small Company Fund") was
incorporated under Maryland law in 1996.

INVESTMENT OBJECTIVE.

The Small Company Fund seeks growth of capital by investing primarily in
equity securities selected on the basis of potential for capital appreciation.

INVESTMENT POLICIES.

Under normal market and economic conditions at least 65% of the Small
Company Fund's total assets are invested in equity securities of companies which
have less than $2 billion in market capitalization ("Small Capitalization
Securities"). The Sub-Adviser identifies, through fundamental analysis,
companies that it believes have substantial near-term capital appreciation
potential regardless of industry sector. However, overall industry exposure is
monitored by the Sub-Adviser so as to maintain broad industry diversification.
In selecting investments the Sub-Adviser considers securities of companies that,
in its opinion, have potential for above-average earnings growth, are
undervalued in relation to their investment potential, have business and/or
fundamental financial characteristics that are misunderstood by investors, or
are relatively obscure i.e., undiscovered by the overall investment community.
Fundamental analysis involves the assessment of a company through such factors
as its business environment, management, balance sheet, income statement,
anticipated earnings, revenues, dividends, and other related measures of value.

The Small Company Fund will invest primarily in securities issued by U.S.
companies but also may invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. Companies will not exceed 20% of the Small
Company Fund's total assets. The Small Company Fund's investments in securities
of non-U.S. companies may include ADRs and GDRs. Under normal market and
economic conditions, the Small Company Fund may invest up to 35% of the Fund's
assets in debt securities and securities issued or guaranteed by the U.S.
Government and its agencies or instrumentalities when the Sub-Adviser determines
that such investments are attractive relative to common stocks.

Although the Small Company Fund intends to be fully invested in equity and
debt securities, it may hold cash or

<PAGE>
HARTFORD MUTUAL FUNDS 19
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cash equivalents and may invest any portion or all of its assets in high quality
money market instruments in the following circumstances: (1) during periods when
the Sub-Adviser deems it necessary for temporary defensive purposes; (2) to meet
liquidity needs; or (3) in anticipation of investment of its assets.

The Small Company Fund is permitted to invest up to 15% of its total assets
in illiquid securities and may purchase securities on a when-issued or delayed
delivery basis. The Small Company Fund may also invest in initial public
offerings. In addition, the Small Company Fund may invest to a limited extent in
other investment companies and may enter into certain currency transactions.
Finally, the Small Company Fund may invest in options, futures, and options on
futures. See "Common Investment Policies and Risk Factors" for information
regarding additional investment policies and risks of the Fund.

HARTFORD STOCK FUND, INC.

Hartford Stock Fund, Inc. (the "Stock Fund") was incorporated in 1976 under
Maryland law.

INVESTMENT OBJECTIVE.

The Stock Fund seeks to achieve long-term capital growth primarily through
capital appreciation, with income a secondary consideration, by investing in
primarily equity securities.

INVESTMENT POLICIES.

The Stock Fund seeks to achieve its objective by investing primarily in
equity securities and securities convertible into equity securities, using a
two-tiered investment approach. First, under what is sometimes referred to as a
"top down" approach, the Sub-Adviser analyzes the macro economic and investment
environment. This includes an evaluation of economic conditions, U.S. fiscal and
monetary policy, demographic trends, and investor sentiment. Through top down
analysis, the Sub-Adviser anticipates secular and cyclical changes and
identifies industries and economic sectors that are expected to grow faster than
the overall economy.

Second, top down analysis is followed by what is sometimes referred to as a
"bottom up" approach, which is the use of fundamental analysis to identify
specific securities for purchase or sale. The Stock Fund's portfolio emphasizes
high-quality growth companies. The key characteristics of high-quality growth
companies include a leadership position within an industry, a strong balance
sheet, a high return on equity, sustainable or increasing dividends, a strong
management team, and a globally competitive position. Fundamental analysis
involves the assessment of a company through such factors as its business
environment, management, balance sheet, income statement, anticipated earnings,
revenues, dividends, and other related measures of value.

The Stock Fund will invest primarily in securities issued by U.S. companies
but may also invest in securities issued by non-U.S. companies, including those
traded in U.S. markets and non-U.S. markets. Under normal circumstances,
securities of non-U.S. companies will not exceed 20% of the Stock Fund's total
assets. The Stock Fund's investments in securities of non-U.S. companies may
include ADRs and GDRs. When selecting securities of non-U.S. issuers, the Sub-
Adviser also will evaluate the economic and political climate and the principal
securities markets of the country in which an issuer is located. The Stock Fund
will be subject to certain risks as a result of its ability to invest in the
securities of non-U.S. companies. See "Common Investment Policies and Risk
Factors." From time to time, the Stock Fund may invest in debt securities. The
non-convertible debt securities in which the Stock Fund may invest include debt
securities assigned within the four highest bond rating categories by Moody's or
S&P, i.e., investment grade, or considered to be of comparable quality as
determined by the Sub-Adviser.

Although the Stock Fund intends to be fully invested primarily in equity
securities and securities convertible into equity securities it may hold cash or
cash equivalents and may invest any portion or all of its assets in high quality
money market instruments in the following circumstances: (1) during periods when
the Sub-Adviser deems it necessary for temporary defensive purposes; (2) to meet
liquidity needs; or (3) in anticipation of investment of its assets.

The Stock Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Stock Fund may invest to a limited
extent in other investment companies and may enter into certain currency
transactions. Finally, the Stock Fund may invest in options, futures and options
on futures. See "Common Investment Policies and Risk Factors."
HARTFORD ADVISERS FUND, INC.

Hartford Advisers Fund, Inc. (the "Advisers Fund") was incorporated in 1982
under Maryland law.

INVESTMENT OBJECTIVE.

The Advisers Fund seeks to achieve maximum long-term total rate of return
consistent with prudent investment risk by investing in common stock and other
equity securities, bonds and other debt securities, and money market
instruments.

INVESTMENT POLICIES.

The Advisers Fund seeks to achieve its objective through the active
allocation of its assets among the asset categories of equity and debt
securities and money market instruments, based upon the Sub-Adviser's judgment
of the projected investment environment for financial assets, relative
fundamental values and attractiveness of each asset category, and expected
future returns of each asset category.
<PAGE>
20 HARTFORD MUTUAL FUNDS
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The Sub-Adviser will base its asset allocation decisions on fundamental analysis
and will not attempt to make short-term market timing decisions among asset
categories. As a result, shifts in asset allocation are expected to be gradual
and continuous and the Advisers Fund will normally have some portion of its
assets invested in each asset category. The Advisers Fund does not have
percentage limitations on the amount allocated to each asset category.

The Advisers Fund's investments in equity securities and securities that are
convertible into equity securities will be substantially similar to the
investments permitted for the Stock Fund. See "Hartford Stock Fund, Inc. --
Investment Policies." The Advisers Fund's investments in debt securities will be
substantially similar to the investments permitted for the Bond Fund. See
"Hartford Bond Fund, Inc. -- Investment Policies." In the event a security owned
by the Advisers Fund is downgraded to a rating category below investment grade,
the Advisers Fund generally will sell it within a reasonable period thereafter
based on the Sub-Adviser's outlook for the issuer and the security.

The Advisers Fund will invest primarily in securities issued by U.S.
companies but may also invest in securities issued by non-U.S. companies,
including those traded in U.S. markets and non-U.S. markets. Under normal
circumstances, securities of non-U.S. companies will not exceed 20% of the
Advisers Fund's total assets. The Advisers Fund's investments in securities of
non-U.S. companies may include ADRs and GDRs. When selecting securities of non-
U.S. issuers, the Sub-Adviser also will evaluate the economic and political
climate and the principal securities markets of the country in which an issuer
is located. The Advisers Fund will be subject to certain risks as a result of
its ability to invest in the securities of non-U.S. companies. See "Common
Investment Policies and Risk Factors."

The Advisers Fund may hold cash and cash equivalents and may invest any
portion or all of its assets in high quality money market instruments in the
following circumstances: (1) when the Sub-Adviser expects returns on such
instruments to be attractive relative to investments in equity and debt
securities; (2) during periods when the Sub-Adviser deems it necessary for
temporary defensive purposes; (3) to meet liquidity needs; or (4) in
anticipation of investment of its assets.

The Advisers Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Advisers Fund may invest to a limited
extent in other investment companies and enter into certain currency
transactions. Finally, the Advisers Fund may invest in options, futures, and
options on futures. See "Common Investment Policies and Risk Factors."
HARTFORD INTERNATIONAL ADVISERS FUND, INC.

Hartford International Advisers Fund, Inc. (the "International Advisers
Fund") was incorporated in 1994 under Maryland law.

INVESTMENT OBJECTIVE.

The International Advisers Fund seeks to achieve maximum long-term total
rate of return consistent with prudent investment risk.

INVESTMENT POLICIES.

The International Advisers Fund seeks to achieve its objective through the
active allocation of its assets among the asset categories of equity and debt
securities and money market instruments, based upon its judgment of the
projected investment environment for financial assets, relative fundamental
values and attractiveness of each asset category, and expected future returns of
each asset category. The Sub-Adviser will base its asset allocation decisions on
fundamental analysis and will not attempt to make short-term timing decisions
among asset categories. As a result, shifts in asset allocation are expected to
be gradual and continuous and the International Advisers Fund will normally have
some portion of its assets invested in each asset category at all times. The
International Advisers Fund does not have percentage limitations on the amount
allocated to each asset category.

The International Advisers Fund will consist of a diversified portfolio of
securities covering a broad range of countries, industries, and companies. The
International Advisers Fund anticipates that, under normal market conditions, it
will diversify its investments among a minimum of five countries; the Fund will
not invest more than 20% of its net assets in securities of issuers located in
any one country, except that it may invest up to 35% of its net assets in
securities of issuers located in any one of the following countries: Australia,
Canada, France, Japan, the United Kingdom or Germany.

Securities in which the International Advisers Fund invests are denominated
in both U.S. dollars and non-U.S. currencies (including the European Currency
Unit) and generally are traded on non-U.S. markets.

The International Advisers Fund's investments in equity securities will be
substantially similar to the equity securities investments permitted for the
International Opportunities Fund. See "Hartford International Opportunities
Fund, Inc. -- Investment Policies."

The International Advisers Fund's investments in debt securities include,
but are not limited to: (1) debt securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities; (2) debt obligations issued or
guaranteed by a non-U.S. sovereign government or one of its agencies or
political subdivisions, including Brady Bonds
<PAGE>
HARTFORD MUTUAL FUNDS 21
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(see "Common Investment Policies and Risk Factors"); (3) debt obligations issued
or guaranteed by supranational organizations such as the World Bank; (4) debt
obligations of non-U.S. banks and bank holding companies; (5) non-U.S. corporate
debt securities; (6) debt obligations of U.S. banks and corporations; (7)
non-U.S. commercial paper; (8) asset-backed securities and mortgage-related
securities, including CMOs; these debt securities will be rated investment grade
by Moody's or S&P, or, if unrated, will be determined by the Sub-Adviser to be
of comparable quality (see "Common Investment Policies and Risk Factors"); and
(9) repurchase agreements involving any of the foregoing. The International
Advisers Fund's investments in debt securities will be based on an analysis of
such factors as yield, credit quality, economic policies, inflation rates, and
the pace of economic growth in various markets.

Debt securities in which the International Advisers Fund may invest include
investment grade, non-convertible debt securities assigned within the four
highest bond rating categories by Moody's or S&P, or, if unrated, which are
determined by the Sub-Adviser to be of comparable quality. In addition, the
International Advisers Fund may invest up to 15% of its total assets in high
yield debt securities, commonly known as "junk bonds." Such securities are rated
as low as "C" by Moody's and by S&P, or, if unrated, are of comparable quality
as determined by the Sub-Adviser. See "Common Investment Policies and Risk
Factors."

The International Advisers Fund may hold cash and cash equivalents (U.S.
dollars, non-U.S. currencies, multinational currency units) and may invest any
portion or all of its assets in high quality money market instruments,
including, but not limited to, instruments of U.S., non-U.S., or supranational
issuers. These money market instruments may also include non-U.S. money market
funds and commingled pools offered by non-U.S. banks. The International Advisers
Fund may invest in high quality money market instruments in the following
circumstances: (1) when the Sub-Adviser expects returns on such instruments to
be attractive relative to investments in equity and debt securities; (2) during
periods when the Sub-Adviser deems it necessary for temporary defensive
purposes; (3) to meet liquidity needs; or (4) in anticipation of investment of
its assets.

The International Advisers Fund will be subject to certain risks as a result
of its ability to invest in the securities of non-U.S. companies. The
International Advisers Fund may invest up to 15% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the International Advisers Fund may invest
to a limited extent in other investment companies and may enter into certain
currency transactions. Finally, the International Advisers Fund may invest in
options, futures, and options on futures. See "Common Investment Policies and
Risk Factors."
HARTFORD BOND FUND, INC.

Hartford Bond Fund, Inc. (the "Bond Fund") was incorporated in 1982 under
Maryland law.

INVESTMENT OBJECTIVE.

The Bond Fund seeks to achieve maximum current income consistent with
preservation of capital by investing primarily in fixed-income securities.

INVESTMENT POLICIES.

The Bond Fund's investments in bonds and other debt securities include: (i)
securities issued or guaranteed as to principal or interest by the U.S.
Government, its agencies or instrumentalities; (ii) publicly-traded,
non-convertible debt securities issued or guaranteed by U.S. corporations or
other issuers and rated investment grade by Moody's or S&P, or, if unrated,
determined by the Adviser to be of comparable quality; (iii) asset-backed
securities and mortgage-related securities, including CMOs, which are rated
investment grade by Moody's or S&P, or, if unrated, which are determined by the
Adviser to be of comparable quality (see "Common Investment Policies and Risk
Factors"); (iv) securities issued or guaranteed as to principal or interest by a
sovereign government or one of its agencies or political subdivisions,
supranational entities such as development banks, non-U.S. corporations, banks
or bank holding companies, or other non-U.S. issuers and rated investment grade
by Moody's or S&P, or, if unrated, which are determined by the Adviser to be of
comparable quality. In addition, up to 20% of the total assets of the Bond Fund
may be invested in debt securities rated in the highest category below
investment grade ("Ba" by Moody's or "BB" by S&P) or, if unrated, are determined
to be of comparable quality by the Adviser. Securities rated below investment
grade are commonly referred to as "high yield-high risk securities" or "junk
bonds". Bonds and other debt securities owned by the Bond Fund will be
denominated in U.S. dollars. In the event a security owned by the Bond Fund is
downgraded to a rating category below "Ba" or "BB", the Bond Fund generally will
sell it within a reasonable period thereafter based on the Adviser's outlook for
the issuer and the security.

The Bond Fund will invest primarily in securities issued by U.S. companies
but may also invest in securities issued by non-U.S. companies, including those
traded in U.S. markets and non-U.S. markets. Under normal circumstances,
securities of non-U.S. companies will not exceed 20% of the Bond Fund's total
assets. When selecting securities of non-U.S. issuers, the Adviser also will
evaluate the economic and political climate, and the principal securities
markets of the country in which an issuer is located. The Bond Fund will be
subject to certain risks as a result of its ability to invest in the securities
of non-U.S. companies. See "Common Investment Policies and Risk Factors."

<PAGE>
22 HARTFORD MUTUAL FUNDS
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The Bond Fund will invest at least 65% of its total assets in bonds and debt
securities with a maturity of at least one year. The Bond Fund may invest up to
15% of its total assets in preferred stocks, convertible securities, and
securities carrying warrants to purchase equity securities. The Bond Fund will
not invest in common stocks directly, but may retain, for reasonable periods of
time, common stocks acquired upon conversion of debt securities or upon exercise
of warrants acquired with debt securities.

Although the Bond Fund intends to be fully invested in equity and debt
securities, it may hold cash or cash equivalents and may invest any portion or
all of its assets in high quality money market instruments in the following
circumstances: (1) during periods when the Adviser deems it necessary for
temporary defensive purposes; (2) to meet liquidity needs; or (3) in
anticipation of investment of its assets.

The Bond Fund may invest up to 10% of its total assets in illiquid
securities and may from time to time purchase securities on a when-issued or
delayed delivery basis. In addition, the Bond Fund may invest to a limited
extent in other investment companies.
HARTFORD MORTGAGE SECURITIES FUND, INC.
Hartford Mortgage Securities Fund, Inc. (the "Mortgage Securities Fund") was
incorporated in 1984 under Maryland law.

INVESTMENT OBJECTIVE.

The Mortgage Securities Fund seeks maximum current income consistent with
safety of principal and maintenance of liquidity by investing primarily in
mortgage-related securities, including securities issued by the Government
National Mortgage Association.

INVESTMENT POLICIES.

The Mortgage Securities Fund seeks to achieve its objective by investing,
under normal circumstances, at least 65% of its total assets in high quality
mortgage-related securities either (i) issued by U.S. Government agencies,
instrumentalities or sponsored corporations or (ii) rated A or better by Moody's
or S&P or, if not rated, which are of equivalent investment quality as
determined by the Adviser. At times the Mortgage Securities Fund may invest in
mortgage-related securities not meeting the foregoing investment quality
standards when the Adviser deems such investments to be consistent with the
Fund's investment objective; however, no such investments will be made in excess
of 20% of the value of the Fund's total assets. Such investments will be
considered mortgage-related securities for purposes of the policy that the Fund
invest at least 65% of the value of its total assets in mortgage-related
securities, including securities issued by the GNMA. See "Common Investment
Policies and Risk Factors."

Consistent with its objective, the Mortgage Securities Fund may seek to
increase its current return by writing covered call or covered put options with
respect to some or all of the securities held in its portfolio. In addition,
through the writing and purchase of options and the purchase and sale of
interest rate futures contracts and related options, the Mortgage Securities
Fund may at times seek to reduce fluctuations in net asset value by hedging
against a decline in the value of securities owned by the Fund or an increase in
the price of securities which the Fund plans to purchase. The Mortgage
Securities Fund may also invest up to 10% of its total assets in illiquid
securities, purchase asset-backed securities, and enter into swap transactions.
See "Common Investment Policies and Risk Factors."

Although the Mortgage Securities Fund intends to be fully invested in debt
securities, it may hold cash or cash equivalents and invest any portion or all
of its assets in high quality money market instruments in the following
circumstances: (1) during periods when the Sub-Adviser deems it necessary for
temporary defensive purposes; (2) to meet liquidity needs; or (3) in
anticipation of investment of its assets.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.

Hartford U.S. Government Money Market Fund, Inc. (the "U.S. Government Money
Market Fund") was incorporated in 1982 under Maryland law.

INVESTMENT OBJECTIVE.

The U.S. Government Money Market Fund seeks to achieve maximum current
income consistent with preservation of capital.

INVESTMENT POLICIES.

The U.S. Government Money Market Fund's portfolio will consist entirely of
cash and investments permitted by Rule 2a-7 under the 1940 Act. Each has an
effective maturity date of 397 days or less, computed in accordance with Rule
2a-7, from date of purchase. The average maturity of the portfolio will vary
according to the Adviser's appraisal of money market conditions and will not
exceed 90 days.

The U.S. Government Money Market Fund seeks to achieve its objective by
investing in short-term, marketable obligations issued or guaranteed by the U.S.
Government or by agencies or instrumentalities of the U.S. Government, whether
or not they are guaranteed by the full faith and credit of the U.S. government.
HVA MONEY MARKET FUND, INC.

HVA Money Market Fund, Inc. (the "Money Market Fund") was incorporated in
1982 under Maryland law.
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HARTFORD MUTUAL FUNDS 23
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INVESTMENT OBJECTIVE.

The Money Market Fund seeks to achieve maximum current income consistent
with liquidity and preservation of capital.

INVESTMENT POLICIES.

The Money Market Fund's portfolio will consist entirely of cash and
investments permitted under Rule 2a-7 of the 1940 Act. Each has an effective
maturity date of 397 days or less computed in accordance with Rule 2a-7. The
average maturity of the portfolio will vary according to the Adviser's appraisal
of money market conditions and will not exceed 90 days.

The Money Market Fund seeks to achieve its objective by investing in money
market securities such as, but not limited to: (a) banker's acceptances; (b)
obligations of governments (whether U.S. or non-U.S.) and their agencies and
instrumentalities; (c) short-term corporate obligations, including commercial
paper, notes, and bonds; (d) other short- term debt obligations; (e) obligations
of U.S. banks, non-U.S. branches of U.S. banks (Eurodollars), U.S. branches and
agencies of non-U.S. banks (Yankee dollars), and non-U.S. branches of non-U.S.
banks; and (f) asset-backed securities. See "Common Investment Policies and Risk
Factors." Under normal circumstances, foreign securities will not exceed 25% of
the Money Market Fund's total assets.

The Money Market Fund will make portfolio investments primarily in
anticipation of or in response to changing economic and money market conditions
and trends. However, it is anticipated that from time to time the Money Market
Fund will take advantage of temporary disparities in the yield relationships
among the different segments of the money market or among particular instruments
within the same segment of the market, to make purchases and sales when the
Adviser deems that such transactions will improve the yield or return of the
portfolio.
COMMON INVESTMENT POLICIES AND RISK FACTORS
REPURCHASE AGREEMENTS

The Funds may enter into repurchase agreements with respect to securities
issued or guaranteed by the U.S. Government, with commercial banks having a
minimum capital base of $500 million and assets in excess of $1 billion or with
recognized government securities dealers with a minimum capital base of $100
million. The Funds' Boards of Directors have established standards for
evaluation of the creditworthiness of the banks and securities dealers with
which the Funds will engage in repurchase agreements and monitors on a quarterly
basis the Adviser's and Sub-Adviser's compliance with such standards.

A repurchase agreement is an agreement by which the seller of a security
agrees to repurchase the security sold at a mutually agreed upon time and price.
It may also be viewed as the loan of money by a Fund to the seller. The resale
price normally is in excess of the purchase price, reflecting an agreed upon
market rate. The rate is effective for the period of time a Fund is invested in
the agreement and is not related to the coupon rate on the underlying security.
The period of these repurchase agreements will usually be short, from overnight
to one week, and at no time will a Fund invest in repurchase agreements for a
period of more than one year. The securities which are subject to repurchase
agreements, however, may have maturity dates in excess of one year from the
effective date of the repurchase agreement. A Fund will always receive as
collateral securities whose market value, including accrued interest, will be at
least equal to 100% of the dollar amount invested by a Fund in each agreement,
and a Fund will make payment for such securities only upon physical delivery or
evidence of book entry transfer. If the seller defaults, a Fund might incur a
loss if the value of the collateral securing the repurchase agreement declines
and may incur disposition costs in connection with liquidating the collateral. A
Fund may not enter into a repurchase agreement with more than seven days to
maturity if, as a result, more than 10% of the Fund's total assets would be
invested in such repurchase agreements together with any other investment for
which market quotations are not readily available.
ILLIQUID SECURITIES

Each Fund, except the Index Fund, is permitted to invest in illiquid
securities. No illiquid securities will be acquired if upon the purchase more
than 10% or 15% of the value of a Fund's total assets, varying by Fund (15% for
the Dividend and Growth Fund, International Advisers Fund, International
Opportunities Fund and Small Company Fund, 10% for the Advisers Fund, Capital
Appreciation Fund, Bond Fund, Mortgage Securities Fund, Stock Fund, U.S.
Government Money Market Fund and the Money Market Fund), would consist of these
securities. "Illiquid securities" are securities that may not be sold or
disposed of in the ordinary course of business within seven days at
approximately the price used to determine a Fund's net asset value.

Under current interpretations of the SEC Staff, the following securities in
which a Fund may invest will be considered illiquid: (1) repurchase agreements
maturing in more than seven days; (2) certain restricted securities (securities
whose public resale is subject to legal or contractual restrictions); (3)
options, with respect to specific securities, not traded on a national
securities exchange that are not
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24 HARTFORD MUTUAL FUNDS
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readily marketable; and (4) any other securities in which a Fund may invest that
are not readily marketable.
These Funds may purchase without limit, however, certain restricted
securities that can be resold to qualifying institutions pursuant to a
regulatory exemption under Rule 144A under the 1933 Act ("Rule 144A
securities"). If a dealer or institutional trading market exists for Rule 144A
securities, such securities are deemed to be liquid and thus treated as exempt
from a Fund's 10% or 15% limitation on the investment in illiquid securities.
Under the supervision of the Board of Directors, the Adviser or Sub-Adviser
determines the liquidity of Rule 144A securities and, through reports from the
Adviser or Sub-Adviser, the Board of Directors monitors trading activity in
these securities. In reaching liquidity decisions, the Adviser or Sub-Adviser
will consider, among other things, the following factors: (1) the frequency of
trades and price quotes for the security; (2) the number of dealers willing to
purchase or sell the security and the number of other potential purchasers; (3)
dealer undertakings to make a market in the security; and (4) the nature of the
security and the marketplace trades (e.g., the time needed to dispose of the
security, the method of soliciting offers, and the procedures for transfer).
Because institutional trading in Rule 144A securities is relatively new, it is
difficult to predict accurately how these markets will develop. If institutional
trading in Rule 144A securities declines, a Fund's liquidity could be adversely
affected to the extent that a Fund is invested in such securities.
WHEN-ISSUED AND DELAYED-DELIVERY SECURITIES

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Small Company Fund, the Stock Fund, the
Index Fund, the Advisers Fund, the International Advisers Fund, the Bond Fund
and the Mortgage Securities Fund may purchase or sell securities on a
when-issued or delayed-delivery basis. When-issued or delayed-delivery
transactions arise when securities are purchased or sold with payment and
delivery taking place in the future in order to secure what is considered to be
an advantageous price and yield at the time of entering into the transaction.
While these Funds generally purchase securities on a when-issued or
delayed-delivery basis with the intention of acquiring the securities, the Funds
may sell the securities before the settlement date, if the Adviser or
Sub-Adviser deems it advisable. At the time a Fund makes the commitment to
purchase securities on a when-issued or delayed-delivery basis, the Fund will
record the transaction and thereafter reflect the value, each day, of such
security in determining the net asset value of the Fund. At the time of delivery
of the securities, the value may be more or less than the purchase price. The
Funds' custodian will maintain, in a segregated account of the Fund, cash, U.S.
Government securities or other liquid, high-grade debt obligations having a
value equal to or greater than the Fund's purchase commitments; the custodian
will likewise segregate securities sold on a delayed-delivery basis.

OTHER INVESTMENT COMPANIES

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Small Company Fund, the Bond Fund, the
Stock Fund, the Advisers Fund, and the International Advisers Fund are permitted
to invest in other investment companies. Securities issued in certain countries
are currently accessible to the Funds only through such investments. The
investment in other investment companies is limited in amount by the 1940 Act,
and will involve the indirect payment of a portion of the expenses, including
advisory fees, of such other investment companies. No Fund may acquire more than
3% of the outstanding voting securities of any other investment company, and no
Fund may have more than 5% of its total assets invested in any other investment
company. See "Investment Restrictions of the Funds" in the Statement of
Additional Information.

CURRENCY TRANSACTIONS

The Capital Appreciation Fund, the Dividend and Growth Fund, the
International Opportunities Fund, the Small Company Fund, the Stock Fund, the
Advisers Fund and the International Advisers Fund may engage in currency
transactions to hedge the value of portfolio securities denominated in
particular currencies against fluctuations in relative value. Currency
transactions include forward currency contracts, exchange-listed and over-the-
counter ("OTC") currency futures contracts and options thereon, exchange listed
and OTC options on currencies, and currency swaps.

These Funds may invest in forward currency contracts, which involve a
privately negotiated obligation to purchase or sell a specific currency at a
future date, which may be any fixed number of days from the date of the contract
agreed upon by the parties, at a price set at the time of the contract. In
addition, these Funds may engage in currency swaps, which are agreements to
exchange cash flows based on the notional difference among two or more
currencies. See "Swap Agreements." These Funds also may engage in
exchange-listed and OTC currency futures contracts and options thereon, and
exchange listed and OTC options on currencies. See "Options and Futures
Contracts."

These Funds may cross-hedge currencies by entering into transactions to
purchase or sell one or more currencies that are expected to increase or decline
in value relative to other currencies to which the Funds have, or in which the
Funds expect to have, exposure. To reduce the effect of currency fluctuation on
the value of existing or anticipated holdings of their securities, these Funds
may also engage in proxy hedging. Proxy hedging is used when the currency to
<PAGE>
HARTFORD MUTUAL FUNDS 25
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which a portfolio holding is exposed is difficult to hedge generally or
difficult to hedge against the U.S. dollar. Proxy hedging entails entering into
a forward contract to buy U.S. dollars and to sell a currency, the changes in
the value of which generally are considered to be linked to the currency to
which the portfolio holding is exposed. The amount of the contract would not
exceed the market value of the Fund's securities denominated in the linked
currency.

The use of currency transactions to protect the value of a Fund's assets
against a decline in the value of a currency does not eliminate fluctuations in
the value of the Fund's underlying securities. Further, these Funds may enter
into currency transactions only with counterparties that the Sub-Adviser deems
to be creditworthy.
OPTIONS AND FUTURES CONTRACTS

In seeking to protect against the effect of changes in equity market values,
currency exchange rates or interest rates that are adverse to the present or
prospective position of the Funds, for cash flow management, and, to a lesser
extent, to enhance returns, the Capital Appreciation Fund, the Dividend and
Growth Fund, the Index Fund, the International Opportunities Fund, the Small
Company Fund, the Stock Fund, the Advisers Fund, the International Advisers
Fund, the Bond Fund and the Mortgage Securities Fund may employ certain hedging,
income enhancement and risk management techniques, including the purchase and
sale of options, futures and options on futures involving equity and debt
securities and foreign currencies, aggregates of equity and debt securities,
indices of prices of equity and debt securities, and other financial indices. A
Fund's ability to engage in these practices may be limited by tax considerations
and certain other legal considerations.

These Funds may write covered call options or purchase covered put options
on portfolio securities as a partial hedge (to the extent of the premium
received less transaction costs) against a decline in the value of portfolio
securities and in circumstances in which the Adviser or the Sub-Adviser
anticipates that the price of the underlying securities will not increase above
the exercise price of the option by an amount greater than the premium received
(less transaction costs incurred) by the Fund. This strategy limits potential
capital appreciation in the portfolio securities subject to the put or call
option.

These Funds may also write covered put and call options and purchase put and
call options on foreign currencies to hedge against the risk of foreign exchange
fluctuations on foreign securities the particular Fund holds in its portfolio or
that it intends to purchase. For example, if a Fund enters into a contract to
purchase securities denominated in foreign currency, it could effectively
establish the maximum U.S. dollar cost of the securities by purchasing call
options on that foreign currency. Similarly, if a Fund held securities
denominated in a foreign currency and anticipated a decline in the value of that
currency against the U.S. dollar, the Fund could hedge against such a decline by
purchasing a put option on the foreign currency involved.

In addition, these Funds may purchase put and call options and write covered
put and call options on aggregates of equity and debt securities, indices of
prices of equity and debt securities and other financial indices, and may enter
into futures contracts and options thereon for the purchase or sale of
aggregates of equity and debt securities, indices of equity and debt securities
and other financial indices, all for the purpose of protecting against potential
changes in the market value of portfolio securities or in interest rates.
Aggregates are composites of equity or debt securities that are not tied to a
commonly known index. An index is a measure of the value of a group of
securities or other interests. An index assigns relative values to the
securities included in that index, and the index fluctuates with changes in the
market value of those securities.

These Funds may write covered options only. "Covered" means that, so long as
a Fund is obligated as the writer of a call option, it will own either the
underlying securities or currency or an option to purchase the same underlying
securities or currency having an expiration date not earlier than the expiration
date of the covered option and an exercise price equal to or less than the
exercise price of the covered option, or will establish or maintain with its
custodian for the term of the option a segregated account consisting of cash,
U.S. Government securities or other liquid, high grade debt obligations having a
value equal to the fluctuating market value of the optioned securities or
currencies. A Fund will cover any put option it writes by maintaining a
segregated account with its custodian as described above. A Fund will not write
covered call options on portfolio securities representing more than 25% of the
value of its total assets.

To hedge against fluctuations in currency exchange rates, these Funds may
purchase or sell foreign currency futures contracts, and write put and call
options and purchase put and call options on such futures contracts. For
example, a Fund may use foreign currency futures contracts when it anticipates a
general weakening of the foreign currency exchange rate that could adversely
affect the market values of the Fund's foreign securities holdings. In this
case, the sale of futures contracts on the underlying currency may reduce the
risk of the Fund of a reduction in market value caused by foreign currency
variations and, by so doing, provide an alternative to the liquidation of
securities positions in the Fund and resulting transaction costs. When the Fund
anticipates a significant foreign exchange rate increase while intending to
invest in a non-U.S. security, the Fund may purchase a foreign currency futures
contract to hedge against a rise in foreign exchange rates pending
<PAGE>
26 HARTFORD MUTUAL FUNDS
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completion of the anticipated transaction. Such a purchase of a futures contract
would serve as a temporary measure to protect the Fund against any rise in the
foreign exchange rate that may add additional costs to acquiring the non-U.S.
security position. The Fund similarly may use futures contracts on equity and
debt securities to hedge against fluctuations in the value of securities it owns
or expects to acquire.

These Funds also may purchase call or put options on foreign currency
futures contracts to obtain a fixed foreign exchange rate at limited risk. A
Fund may purchase a call option on a foreign currency futures contract to hedge
against a rise in the foreign exchange rate while intending to invest in a
non-U.S. security of the same currency. A Fund may purchase put options on
foreign currency futures contracts to hedge against a decline in the foreign
exchange rate or the value of its non-U.S. portfolio securities. A Fund may
write a call option on a foreign currency futures contract as a partial hedge
against the effects of declining foreign exchange rates on the value of non-U.S.
securities and in circumstances in which the Fund anticipates that the foreign
exchange rate will not increase above the exercise price of the option by an
amount greater than the premium received (less transaction costs incurred by the
Fund). This strategy will limit potential capital appreciation in the underlying
currency.

To the extent that a Fund enters into futures contracts, options on futures
contracts and options on foreign currencies that are traded on an exchange
regulated by the CFTC, in each case that are not for BONA FIDE hedging purposes
(as defined by the CFTC), the aggregate initial margin and premiums required to
establish those positions may not exceed 5% of the liquidation value of the
Fund's portfolio, after taking into account the unrealized profits and
unrealized losses on any such contracts the Fund has entered into. However, the
"in-the-money" amount of such options may be excluded in computing the 5% limit.
Adoption of this guideline will not limit the percentage of the Fund's assets at
risk to 5%.

Although any one Fund may not employ all or any of the foregoing strategies,
its use of options, futures and options thereon and forward currency contracts
(as described under "Currency Transactions") would involve certain investment
risks and transaction costs to which it might not be subject were such
strategies not employed. Such risks include: (1) dependence on a Fund's ability
to predict movements in the prices of individual securities, fluctuations in the
general securities markets or market sections and movements in interest rates
and currency markets; (2) imperfect correlation between movements in the price
of the securities or currencies hedged or used for cover; (3) the fact that
skills and techniques needed to trade options, futures contracts and options
thereon or to use forward currency contracts are different from those needed to
select the securities in which a Fund invests; (4) lack of assurance that a
liquid secondary market will exist for any particular option, futures contract,
option thereon or forward contract at any particular time, which may affect a
Fund's ability to establish or close out a position; (5) possible impediments to
effective portfolio management or the ability to meet current obligations caused
by the segregation of a large percentage of a Fund's assets to cover its
obligations; and (6) the possible need to defer closing out certain options,
futures contracts, options thereon and forward contracts in order to continue to
qualify for the beneficial tax treatment afforded "regulated investment
companies" under the Code. In the event that the anticipated change in the price
of the securities or currencies that are the subject of such a strategy does not
occur, it may be that a Fund would have been in a better position had it not
used such a strategy at all.
NON-U.S. SECURITIES, INCLUDING ADRS AND GDRS

Each Fund, except the Mortgage Securities Fund and the U.S. Government Money
Market Fund, is permitted to invest a portion of its assets in non-U.S.
securities, including, in the case of permitted equity investments, ADRs and
GDRs, as described under each Fund's investment objective and policies. ADRs are
certificates issued by a U.S. bank or trust company and represent the right to
receive securities of a non-U.S. issuer deposited in a domestic bank or non-U.S.
branch of a U.S. bank. ADRs are traded on a U.S. securities exchange, or in an
over-the-counter market, and are denominated in U.S. dollars. GDRs are
certificates issued globally and evidence a similar ownership arrangement. GDRs
are traded on non-U.S. securities exchanges and are denominated in non-U.S.
currencies. The value of an ADR or a GDR will fluctuate with the value of the
underlying security, will reflect any changes in exchange rates and otherwise
will involve risks associated with investing in non-U.S. securities.

The International Opportunities Fund and the International Advisers Fund are
permitted to invest in Brady Bonds, which are debt securities issued under the
framework of the Brady Plan, an initiative announced by former U.S. Treasury
Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to
restructure their outstanding external commercial bank debt. In restructuring
its external debt under the Brady Plan framework, a debtor nation negotiates
with its existing bank lenders as well as multilateral institutions such as the
World Bank and the IMF. The Brady Plan framework, as it has developed,
contemplates the exchange of commercial bank debt for newly issued bonds ("Brady
Bonds"). Brady Bonds may also be issued in respect of new money being advanced
by existing lenders in connection with debt restructuring. Agreements
implemented under the Brady Plan to date are designed to achieve debt and
debt-service reduction through specific options negotiated by a debtor nation
with its creditors. As a result, the financial
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HARTFORD MUTUAL FUNDS 27
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packages offered by each country differ. Brady Bonds issued to date may be
purchased and sold in the secondary markets through U.S. securities dealers and
other financial institutions and are generally maintained through European
securities depositories. See also "High Yield Securities."

Investing in securities issued by non-U.S. companies involves considerations
and potential risks not typically associated with investing in obligations
issued by U.S. companies. Less information may be available about non-U.S.
companies than about U.S. companies and non-U.S. companies generally are not
subject to uniform accounting, auditing and financial reporting standards or to
other regulatory practices and requirements comparable to those applicable to
U.S. companies. The values of non-U.S. investments are affected by changes in
currency rates or exchange control regulations, restrictions or prohibition on
the repatriation of non-U.S. currencies, application of non-U.S. tax laws,
including withholding taxes, changes in governmental administration or economic
or monetary policy (in the U.S. or outside the U.S.) or changed circumstances in
dealings between nations. Costs are also incurred in connection with conversions
between various currencies.

Investing in non-U.S. sovereign debt will expose a Fund to the direct or
indirect consequences of political, social or economic changes in the developing
and emerging countries that issue the securities. The ability and willingness of
sovereign obligors in developing and emerging countries or the governmental
authorities that control repayment of their external debt to pay principal and
interest on such debt when due may depend on general economic and political
conditions within the relevant country. Countries such as those in which the
Funds may invest have historically experienced, and may continue to experience,
high rates of inflation, high interest rates, exchange rate trade difficulties
and unemployment. Some of these countries are also characterized by political
uncertainty or instability. Additional factors which may influence the ability
or willingness to service debt include, but are not limited to, a country's cash
flow situation, the availability of sufficient foreign exchange on the date a
payment is due, the relative size of its debt service burden to the economy as a
whole, and its government's policy towards the IMF, the World Bank and other
international agencies.

SMALL CAPITALIZATION SECURITIES

All Funds except the Bond Fund, Mortgage Securities Fund, Money Market Fund
and U.S. Government Money Market Fund may invest in equity securities (including
securities issued in initial public offerings) of companies which have less than
$2 billion in market capitalization ("Small Capitalization Securities"). Because
the issuers of Small Capitalization Securities tend to be smaller or less
well-established companies, they may have limited product lines, market share or
financial resources and may have less historical data with respect to operations
and management. As a result, Small Capitalization Securities are often less
marketable and experience a higher level of price volatility than securities of
larger or more well-established companies. In addition, companies whose
securities are offered in initial public offerings may be more dependant on a
limited number of key employees. Because securities issued in initial public
offerings are being offered to the public for the first time, the market for
such securities may be inefficient and less liquid.

MORTGAGE-RELATED SECURITIES

The mortgage-related securities in which the International Opportunities
Fund, International Advisers Fund, Advisers Fund and Bond Fund may invest, and
the Mortgage Securities Fund principally invests, provide funds for mortgage
loans made to residential home buyers. These include securities which represent
interests in pools of mortgage loans made by lenders such as savings and loan
institutions, mortgage bankers, commercial banks and others. Pools of mortgage
loans are assembled for sale to investors (such as the Funds) by various
governmental, government-related and private organizations. These Funds may also
invest in similar mortgage-related securities which provide funds for
multi-family residences or commercial real estate properties. CMOs will also be
considered mortgage-related securities.

Interests in pools of mortgage-related securities differ from other forms of
debt securities, which normally provide for periodic payment of interest in
fixed amounts with principal payments at maturity or specified call dates.
Instead, these securities provide a monthly payment which consists of both
interest and principal payments. In effect, these payments are a "pass-through"
of the monthly payments made by the individual borrowers on their mortgage
loans, net of any fees paid to the issuer, servicer, insurer or guarantor of
such securities. Additional payments are caused by repayments of principal
resulting from the sale of the underlying property, refinancing or foreclosure,
net of fees or costs which may be incurred. Some mortgage-related securities
(such as GNMA securities) are described as "modified pass-through." These
securities entitle the holder to receive all interest and principal payments
owed on the mortgage pool, net of certain fees, regardless of whether or not the
mortgagor actually makes the payment.

The principal governmental (i.e., backed by the full faith and credit of the
U.S. Government) guarantor of mortgage-related securities is the GNMA. GNMA is a
wholly-owned United States Government corporation within the Department of
Housing and Urban Development. GNMA is authorized to guarantee, with the full
faith and credit of the U.S. Government, the timely payment of principal and
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28 HARTFORD MUTUAL FUNDS
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interest on securities known as Ginnie Maes issued by institutions approved by
GNMA (such as savings and loan institutions, commercial banks and mortgage
bankers) and backed by pools of FHA-insured or VA-guaranteed mortgages.

Government-related (i.e., not backed by the full faith and credit of the
U.S. Government) guarantors include the FNMA and the FHLMC. FNMA is a
government-sponsored corporation owned entirely by private stockholders. It is
subject to general regulation by the Secretary of Housing and Urban Development.
FNMA purchases residential mortgages from a list of approved seller/servicers
which include state and federally-chartered savings and loan associations,
mutual savings banks, commercial banks and credit unions and mortgage bankers.
Pass-through securities known as Fannie Maes issued by FNMA are guaranteed as to
timely payment of principal and interest by FNMA but are not backed by the full
faith and credit of the U.S. Government. FHLMC is a corporate instrumentality of
the U.S. Government created by Congress in 1970 for the purpose of increasing
the availability of mortgage credit for residential housing. Its stock is owned
by the twelve Federal Home Loan Banks. FHLMC issues Participation Certificates
("PCs") known as Freddy Macs which represent interests in mortgages from
portfolios created by FHLMC. FHLMC guarantees the timely payment of interest and
ultimate collection of principal but PCs are not backed by the full faith and
credit of the United States Government.

Commercial banks, savings and loan institutions, private mortgage insurance
companies, investment banks, mortgage bankers and other secondary market issuers
also create pass-through pools of conventional residential mortgage loans. Such
issuers may in addition be the originators of the underlying mortgage loans as
well as the guarantors of the mortgage-related securities. Pools created by such
non-governmental issuers generally offer a higher rate of interest than
government and government-related pools because there are no direct or indirect
government guarantees of payments in the former pools. However, timely payment
of interest and principal in these pools is supported by various forms of
insurance or guarantees, including individual loan, title, pool and hazard
insurance. The insurance and guarantees are issued by government entities,
private insurers and the mortgage poolers. Such insurance and guarantees and the
credit worthiness of the issuers thereof will be considered in determining
whether a mortgage-related security meets a Fund's investment quality standards.
There can be no assurance that the private insurers can meet their obligations
under the policies. These Funds may buy mortgage-related securities without
insurance or guarantees if through an examination of the loan experience and
practices of the poolers the Adviser or Sub-Adviser determines that the
securities meet the Fund's quality standards. Although the market for such
securities is becoming increasingly liquid, securities issued by certain private
organizations may not be readily marketable.

These Funds may invest in CMOs, which are securities collateralized by
mortgages or mortgage-backed securities. CMOs are issued with a variety of
classes or series, which have different maturities.

These Funds expect that governmental, government-related or private entities
may create mortgage loan pools offering pass-through investments in addition to
those described above. The mortgages underlying these securities may be
alternative mortgage instruments, that is, mortgage instruments whose principal
or interest payments may vary or whose terms to maturity may differ from
customary long-term fixed rate mortgages. These Funds may invest in stripped
mortgage-backed securities, which security is separated into the interest and
principal component of a mortgage backed security and are sold as separate
securities. As new types of mortgage-related securities are developed and
offered to investors, the Adviser or Sub-Adviser will, consistent with a Fund's
investment objective, policies and quality standards, consider making
investments in such new types of securities.
ASSET-BACKED SECURITIES

The International Opportunities Fund, the International Advisers Fund, the
Advisers Fund, the Bond Fund, the Mortgage Securities Fund, and the Money Market
Fund may invest in asset-backed securities. The securitization techniques used
for asset-backed securities are similar to those used for mortgage-related
securities. The collateral for these securities has included home equity loans,
automobile and credit card receivables, boat loans, computer leases, airplane
leases, mobile home loans, recreational vehicle loans and hospital account
receivables. These Funds may invest in these and other types of asset-backed
securities that may be developed in the future.
SWAP AGREEMENTS

Each Fund, except the Index Fund, the U.S. Government Money Market Fund and
the Money Market Fund, may enter into interest rate swaps, currency swaps, and
other types of swap agreements such as caps, collars, and floors. In a typical
interest rate swap, one party agrees to make regular payments equal to a
floating interest rate multiplied by a "notional principal amount," in return
for payments equal to a fixed rate multiplied by the same amount, for a
specified period of time. If a swap agreement provides for payments in different
currencies, the parties might agree to exchange the notional principal amount as
well. Swaps may also depend on other prices or rates, such as the value of an
index or mortgage prepayment rates.
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HARTFORD MUTUAL FUNDS 29
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In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by the
other party. For example, the buyer of an interest rate cap obtains the right to
receive payments to the extent that a specified interest rate exceeds an
agreed-upon level, while the seller of an interest rate floor is obligated to
make payments to the extent that a specified interest rate falls below an
agreed-upon level. An interest rate collar combines elements of buying a cap and
selling a floor.

Swap agreements will tend to shift a Fund's investment exposure from one
type of investment to another. For example, if a Fund agreed to exchange
floating rate payments for fixed rate payments, the swap agreement would tend to
decrease the Fund's exposure to rising interest rates. Caps and floors have an
effect similar to buying or writing options. Depending on how they are used,
swap agreements may increase or decrease the overall volatility of a Fund's
investments and its share price and yield.
MONEY MARKET INSTRUMENTS

The Funds may invest in high quality money market instruments, including,
but not limited to: (1) securities issued or guaranteed by governments, their
agencies or instrumentalities; (2) commercial paper; (3) certificates of
deposit; (4) bankers' acceptances and other bank obligations; and (5) repurchase
agreements involving any of the foregoing. The U.S. Government Money Market Fund
may only invest in high quality money market instruments, issued or guaranteed
by the U.S. Government, its agencies or instrumentalities.
INVESTMENT GRADE SECURITIES

The U.S. Government Money Market Fund and the Money Market Fund are
permitted to invest only in high-quality short-term instruments as defined by
Rule 2a-7 under the 1940 Act. Each of the other Funds is permitted to invest in
investment grade securities (i.e., rated as low as "Baa" by Moody's and as low
as "BBB" by S&P, and unrated securities of comparable quality as determined by
the Adviser or Sub-Adviser). Debt securities carrying the fourth highest rating
(i.e., "Baa" by Moody's and "BBB" by S&P, and unrated securities of comparable
quality as determined by the Adviser or Sub-Adviser) are viewed to have adequate
capacity for payment of principal and interest, but do involve a higher degree
of risk than that associated with investments in debt securities in the higher
rating categories and such bonds lack outstanding investment characteristics and
do have speculative characteristics.
HIGH YIELD SECURITIES

To the extent described in their investment policies, the Capital
Appreciation Fund, the International Opportunities Fund and the International
Advisers Fund are permitted to invest in high yield securities, commonly known
as "junk bonds" (i.e., rated as low as "C" by Moody's and by S&P, and unrated
securities of comparable quality as determined by the Sub-Adviser). In addition,
up to 20% of the total assets of the Bond Fund may be invested in debt
securities rated in the highest category below investment grade ("Ba" by Moody's
or "BB" by S&P) or, if unrated, are determined to be of comparable quality by
the Adviser. Securities in the rating categories below Baa as determined by
Moody's and BBB as determined by S&P are considered to be of poor standing and
predominantly speculative. The rating services' descriptions of securities in
the lower rating categories, including their speculative characteristics, are
set forth in the Appendix to this Prospectus. These securities are considered to
have extremely poor prospects of ever attaining any real investment standing, to
have a current identifiable vulnerability to default, to be unlikely to have the
capacity to pay interest and repay principal when due in the event of adverse
business, financial or economic conditions, and/or to be in default or not
current in the payment of interest or principal. These securities are considered
speculative with respect to the issuer's capacity to pay interest and repay
principal in accordance with the terms of the obligations. Accordingly, it is
possible that these types of factors could, in certain instances, reduce the
value of securities held by a Fund with a commensurate effect on the value of
the Fund's shares.

OTHER RISK FACTORS

As mutual funds that primarily invest in equity and/or debt securities, each
Fund is subject to market risk, i.e., the possibility that equity and/or debt
prices in general will decline over short or even extended periods of time. The
financial markets tend to be cyclical, with periods when security prices
generally rise and periods when security prices generally decline.

The value of the debt securities in which the Funds invest will tend to
increase when interest rates are falling and to decrease when interest rates are
rising.

No Fund should be considered to be a complete investment program in and of
itself. Each prospective purchaser should take into account his or her own
investment objectives as well as his or her other investments when considering
the purchase of shares of any investment company.

There can be no assurance that the investment objectives of the Funds will
be met. In addition, the risk inherent in investing in the Funds is common to
any security -- the
<PAGE>
30 HARTFORD MUTUAL FUNDS
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net asset value will fluctuate in response to changes in economic conditions,
interest rates and the market's perception of the underlying portfolio
securities of each Fund.

HIMCO, as Adviser to certain Funds, and WMC, as Sub-Adviser to certain
Funds, attempt, in pursuit of a Fund's investment objective, to select
appropriate individual securities for inclusion in a Fund's portfolio. In
addition, HIMCO and WMC attempt to successfully forecast market trends and
increase investments in the types of securities best suited to take advantage of
such trends. Thus, the investor is dependent on HIMCO's and WMC's success not
only in selecting individual securities, but also in identifying attractive
asset classes to determine the total mix of invested assets.
MANAGEMENT OF THE FUNDS

Each Fund's Board of Directors manages the business and affairs of that Fund
and takes action on all matters not reserved for the shareholders, including the
annual election of officers of the Fund who carry out all orders and resolutions
of the Board of Directors and carry out functions relating to the day to day
management of the affairs of the Fund.
INVESTMENT ADVISORY AND MANAGEMENT SERVICES

HIMCO serves as investment adviser or manager to each Fund pursuant to
written agreements entered into between HIMCO and each Fund. HIMCO serves as
investment adviser to the Bond Fund, Money Market Fund, U.S. Government Money
Market Fund, Mortgage Securities Fund, and Index Fund. HIMCO serves as
investment manager to the Capital Appreciation Fund, Dividend and Growth Fund,
International Opportunities Fund, Stock Fund, Advisers Fund, International
Advisers Fund and Small Company Fund.

For 1995, the advisory and management fees for the Funds were as follows:
Advisers Fund, $16,044,763; Capital Appreciation Fund, $7,715,873; Bond Fund,
$906,000; Dividend and Growth Fund, $757,373; Index Fund, $447,326;
International Opportunities Fund, $3,213,660; International Advisers Fund $0;
Money Market Fund, $762,534; Mortgage Securities Fund, $790,058; Stock Fund,
$4,134,925; and U.S. Government Money Market Fund, $24,282.

Under the terms of the Investment Advisory Agreements, HIMCO has
responsibility for the investment decisions with respect to the assets of the
Bond Fund, the Money Market Fund, the U.S. Government Money Market Fund, the
Mortgage Securities Fund and the Index Fund. HIMCO continuously provides the
Funds' Board of Directors with an investment program for its consideration and,
upon approval of the program by the Board, HIMCO implements the same by placing
orders for the purchase or sale of securities.

The investment advisory fee for the Money Market Fund, the U.S. Government
Money Market Fund and the Mortgage Securities Fund is .25% annually of the value
of the average daily net assets of each Fund. The investment advisory fee for
the Index Fund is .20% annually of the value of the average daily net assets of
the Fund. The investment advisory fee for the Bond Fund is:

.325% annually of the value of the average daily net assets of the Fund up
to $250,000,000;

.30% annually of the value of the next $250,000,000 of the average daily net
assets of the Fund;

.275% annually of the value of the next $500,000,000 of the average daily
net assets of the Fund;

.25% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

Under the terms of the Investment Management Agreements, HIMCO, subject to
the supervision of the Funds' Board of Directors, provides investment management
supervision to the Stock Fund, the Advisers Fund, the Capital Appreciation Fund,
the International Opportunities Fund, the Small Company Fund, the Dividend and
Growth Fund and the International Advisers Fund in accordance with the Funds'
investment objectives, policies and restrictions. HIMCO's responsibilities
include: (1) Engaging, subject to consultation with the Funds' Board of
Directors, the services of one or more firms to serve as investment sub-adviser
to the Funds; (2) Reviewing from time to time the investment policies and
restrictions of the Funds in light of the Funds' performance and otherwise and,
after consultation with the investment sub-adviser, recommending any appropriate
changes to the Funds' Board of Directors; (3) Supervising the investment program
prepared for the Funds by the investment sub-adviser; (4) Monitoring on a
continuing basis the performance of the Funds' portfolio securities; (5)
Arranging for the provision of such economic and statistical data as HIMCO shall
determine or as may be requested by the Funds' Board of Directors; (6) Providing
the Funds' Board of Directors with such information concerning important
economic and political developments as HIMCO shall deem appropriate or as shall
be requested by the Funds' Board of Directors.

For services rendered to the Funds, HIMCO charges a monthly fee based on the
following annual rates as applied to the average of the calculated daily net
asset value of the Funds.

Advisers Fund, Capital Appreciation Fund, Dividend and Growth Fund,
International Advisers Fund, International Opportunities Fund and Small Company
Fund:

.575% annually of the value of the average daily net assets of the Fund up
to $250,000,000;
<PAGE>
HARTFORD MUTUAL FUNDS 31
- --------------------------------------------------------------------------------

.525% annually of the next $250,000,000 of the value of the average daily
net assets of the Fund;

.475% annually of the next $500,000,000 of the value of the average daily
net assets of the Fund;

.425% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

HIMCO has agreed to waive its fees for the Small Company Fund until the
assets of this Fund (excluding assets contributed by companies affiliated with
HIMCO) first reach $20 million.

Stock Fund:

.325% annually of the value of the average daily net assets of the Fund up
to $250,000,000;

.300% annually of the value of the next $250,000,000 of the average daily
net assets of the Fund;

.275% annually of the next $500,000,000 of the value of the average daily
net assets of the Fund;

.250% annually of the value of the average daily net assets of the Fund in
excess of $1,000,000,000.

HIMCO, Hartford Plaza, Hartford, Connecticut 06115, is a wholly-owned
subsidiary of Hartford Life Insurance Company ("HL") and was organized under the
laws of the State of Connecticut in 1981. HIMCO also serves as investment
adviser to several other HL-sponsored funds which are also registered with the
SEC. HL is ultimately owned by Hartford Fire Insurance Company, one of the
largest multiple lines insurance carriers in the United States. Hartford Fire
Insurance Company is a subsidiary of ITT Hartford Group, Inc.

Certain officers of the Funds are also officers and/or directors of HIMCO;
Joseph H. Gareau is a Director and the President of HIMCO; Andrew W. Kohnke is a
Managing Director and a Director of HIMCO; J. Richard Garrett is the Treasurer
of HIMCO; and Charles M. O'Halloran is a Director, Secretary and General Counsel
of HIMCO.

INVESTMENT SUB-ADVISORY SERVICES

WMC serves as Sub-Adviser to the Capital Appreciation Fund, Dividend and
Growth Fund, International Opportunities Fund, Stock Fund, Advisers Fund,
International Advisers Fund and Small Company Fund pursuant to written contracts
entered into between HIMCO and WMC.

In connection with its service as sub-adviser to these Funds, WMC makes all
determinations with respect to the purchase and sale of portfolio securities
(subject to the terms and conditions of the investment objectives, policies and
restrictions of these Funds and to the general supervision of the Company's
Board of Directors and HIMCO) and places, in the name of the Funds, all orders
for execution of these Funds' portfolio transactions. In conjunction with such
activities, WMC regularly furnishes reports to the Company's Board of Directors
concerning economic forecasts, investment strategy, portfolio activity and
performance of the Funds.

Under the terms of the Investment Sub-Advisory Agreements, WMC provides an
investment program to HIMCO for use by HIMCO in rendering services to these
Funds. WMC makes all determinations with respect to the purchase and sale of
portfolio securities (subject to the terms and conditions of the investment
objectives, policies and restrictions of these Funds and to the supervision of
the Funds' Board of Directors and HIMCO) and places, in the name of the Funds,
all orders for execution of these Funds' portfolio transactions. In conjunction
with such activities, WMC regularly furnishes reports to these Funds' Board of
Directors concerning economic forecasts, investment strategy, portfolio activity
and performance of the Funds.

For services rendered to these Funds, WMC charges a quarterly fee to HIMCO.
The Funds will not pay WMC's fee nor any part thereof, nor will the Funds have
any obligation or responsibility to do so. WMC's quarterly fee is based upon the
following annual rates as applied to the average of the calculated daily net
asset value of each Fund.

Advisers Fund, Stock Fund and Dividend and Growth Fund:

.325% annually of the value of the average daily net assets of the Fund up
to $50,000,000;

.25% annually of the next $100,000,000 of the value of the average daily net
assets of the Fund;

.20% annually of the next $350,000,000 of the value of the average daily net
assets of the Fund;

.15% annually of the value of the average daily net assets of the Fund in
excess of $500,000,000.

Capital Appreciation Fund, International Opportunities Fund, Small Company Fund
and International Advisers Fund:

.40% annually of the value of the average daily net assets of the Fund up to
$50,000,000;

.30% annually of the next $100,000,000 of the value of the average daily net
assets of the Fund;

.25% annually of the next $350,000,000 of the value of the average daily net
assets of the Fund;

.20% annually of the value of the average daily net assets of the Fund in
excess of $500,000,000.

WMC has agreed to waive its fees for the Small Company Fund until the assets
of the Fund (excluding assets contributed by companies affiliated with HIMCO)
first reach $20 million.

<PAGE>
32 HARTFORD MUTUAL FUNDS
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WMC is a professional investment counseling firm which provides investment
services to investment companies, employee benefit plans, endowments,
foundations, and other institutions and individuals. As of December 31, 1995,
WMC held discretionary management authority with respect to approximately $109
billion of client assets. WMC and its predecessor organizations have provided
investment advisory services to investment companies since 1933 and to
investment counseling clients since 1960. WMC, 75 State Street, Boston, MA
02109, is a Massachusetts general partnership, of which the following persons
are managing partners: Robert W. Doran, Duncan M. McFarland, and John R. Ryan.
PORTFOLIO MANAGERS

Saul J. Pannell, Senior Vice President of WMC, serves as portfolio manager
to the Capital Appreciation Fund. Mr. Pannell has been a portfolio manager with
WMC since 1979.

Laurie A. Gabriel, CFA and Senior Vice President of WMC, serves as portfolio
manager to the Dividend and Growth Fund. Ms. Gabriel joined WMC in 1976. She has
been a quantitative research analyst with WMC since 1986, and took on portfolio
management responsibilities in 1987.

The International Opportunities Fund is managed by WMC's Global Equity
Strategy Group, headed by Trond Skramstad, Senior Vice President of WMC. The
Global Equity Strategy Group is comprised of global portfolio managers and
senior investment professionals. No person or persons is primarily responsible
for making recommendations to or within the Global Equity Strategy Group. Prior
to joining WMC in 1993, Mr. Skramstad was a global equity portfolio manager at
Scudder, Stevens & Clark since 1990.

Kenneth L. Abrams, Senior Vice President of WMC, serves as portfolio manager
to the Small Company Fund. Mr. Abrams has been an emerging company research
analyst with WMC since 1986 and has been a portfolio manager with WMC since
1990.

Rand L. Alexander, Senior Vice President of WMC, serves as portfolio manager
to the Stock Fund. Mr. Alexander has been a portfolio manager with WMC since
1990.

Paul D. Kaplan, Senior Vice President of WMC, serves as portfolio manager to
the Advisers Fund. Mr. Kaplan manages the fixed income component of the Advisers
Fund. He has been a portfolio manager with WMC since 1982. Rand L. Alexander,
who is portfolio manager to the Stock Fund, manages the equity component of the
Advisers Fund.

The equity component of the International Advisers Fund is managed by WMC's
Global Equity Strategy Group, headed by Trond Skramstad. The debt component of
the International Advisers Fund is managed by Robert Evans, Vice President of
WMC. Prior to joining WMC as a portfolio manager in 1995, Mr. Evans was a Senior
Global Fixed Income Portfolio Manager with Pacific Investment Management Company
from 1991 through 1994, and in the Global Fixed Income Department of Lehman
Brothers International in London, England and New York City, New York from 1985
through 1990.

The Bond Fund is managed by Alison D. Granger. Ms. Granger, a Senior Vice
President of HIMCO and Assistant Vice President of Hartford Life Insurance
Company, joined ITT Hartford in 1993 as a senior corporate bond trader. She
became Director of Trading in 1994 and a portfolio manager in 1995. Prior to
joining ITT Hartford, Ms. Granger was a corporate bond portfolio manager at The
Home Insurance Company and Axe-Houghton Management. Ms. Granger has over fifteen
years of experience with fixed income investments.

The Mortgage Securities Fund is managed by Timothy J. Wilhide. Mr. Wilhide
is a Portfolio Manager and Vice President of HIMCO. He has 17 years of
experience in the fixed income markets. Prior to joining ITT Hartford in June
1994, Mr. Wilhide was vice president and fixed income manager for J.P. Morgan &
Co. He received his B.A. from Gannon University and his MBA from the University
of Delaware.
ADMINISTRATIVE SERVICES
FOR THE FUNDS

An Administrative Services Agreement between each Fund and HL provides that
HL will manage the business affairs and provide administrative services to each
Fund. Under the terms of these Agreements, HL will provide the following:
administrative personnel, services, equipment and facilities and office space
for proper operation of the Funds. HL has also agreed to arrange for the
provision of additional services necessary for the proper operation of the
Funds, although the Funds pay for these services directly. See "Expenses of the
Funds." As compensation for the services to be performed by HL, each Fund pays
to HL, as promptly as possible after the last day of each month, a monthly fee
equal to the annual rate of .175% of the average daily net assets of the Fund.
EXPENSES OF THE FUNDS

Each Fund shall assume and pay the following costs and expenses: interest;
taxes; brokerage charges (which may be to affiliated broker-dealers); costs of
preparing, printing
<PAGE>
HARTFORD MUTUAL FUNDS 33
- --------------------------------------------------------------------------------

and filing any amendments or supplements to the registration forms of each Fund
and its securities; all federal and state registration, qualification and filing
costs and fees, (except the initial costs and fees, which will be borne by HL),
issuance and redemption expenses, transfer agency and dividend and distribution
disbursing agency costs and expenses; custodian fees and expenses; accounting,
auditing and legal expenses; fidelity bond and other insurance premiums; fees
and salaries of directors, officers and employees of each Fund other than those
who are also officers of HL; industry membership dues; all annual and semiannual
reports and prospectuses mailed to each Fund's shareholders as well as all
quarterly, annual and any other periodic report required to be filed with the
SEC or with any state; any notices required by a federal or state regulatory
authority, and any proxy solicitation materials directed to each Fund's
shareholders as well as all printing, mailing and tabulation costs incurred in
connection therewith, and any expenses incurred in connection with the holding
of meetings of each Fund's shareholders and other miscellaneous expenses related
directly to the Funds' operations and interest.

The total expenses of each Fund including administrative and investment
advisory fees for 1995 as a percentage of the Funds' average net assets were as
follows: Stock Fund, .48%; Bond Fund, .53%; Money Market Fund, .45%; U.S.
Government Money Market Fund, .57%; Advisers Fund, .66%; Capital Appreciation
Fund, .68%; Mortgage Securities Fund, .68%; Index Fund .39%; International
Opportunities Fund, .86%; Dividend and Growth Fund, .77%; International Advisers
Fund, .65%. The Small Company Fund did not commence operations in 1995.

PERFORMANCE RELATED INFORMATION

The Funds may advertise certain performance related information. Performance
information about a Fund is based on the Fund's past performance only and is no
indication of future performance.

Each Fund may include its total return in advertisements or other sales
material. When a Fund advertises its total return, it will usually be calculated
for one year, five years, and ten years or some other relevant periods if the
Fund has not been in existence for at least ten years. Total return is measured
by comparing the value of an investment in the Fund at the beginning of the
relevant period to the value of the investment at the end of the period
(assuming immediate reinvestment of any dividends or capital gains
distributions).

The U.S. Government Money Market Fund and the Money Market Fund may
advertise yield and effective yield. The yield of each of those Funds is based
upon the income earned by the Fund over a seven-day period and then annualized,
i.e. the income earned in the period is assumed to be earned every seven days
over a 52-week period and stated as a percentage of the investment. Effective
yield is calculated similarly but when annualized, the income earned by the
investment is assumed to be reinvested in Fund shares and thus compounded in the
course of a 52-week period.
DIVIDENDS

The shareholders of each Fund shall be entitled to receive such dividends as
may be declared by each Fund's Board of Directors, from time to time based upon
the investment performance of the assets making up that Fund's portfolio. The
policy with respect to each Fund, except the U.S. Government Money Market Fund
and the Money Market Fund, is to pay dividends from net investment income
monthly and to make distributions of realized capital gains, if any, once each
year. The U.S. Government Money Market Fund and the Money Market Fund declare
dividends on a daily basis and pay them monthly.

Such dividends and distributions will be automatically invested in
additional full or fractional shares monthly on the last business day of each
month at the per share net asset value on that date. Provision is also made to
pay such dividends and distributions in cash if requested. Such dividends and
distributions will be in cash or in full or fractional shares of the Fund at net
asset value.
NET ASSET VALUE

The net asset value of each Fund's shares will be determined as of the close
of business (currently 4:00 P.M. Eastern Time) on each day the NYSE is open for
trading. Orders for the purchase of a Fund's shares received prior to the close
of the NYSE on any day on which the Fund is open for business will be priced at
the per-share net asset value determined as of the close of the NYSE. Orders
received after the close of the NYSE or on a day on which the NYSE or a Fund are
not open for business will be priced at the per-share net asset value next
determined. The per-share net asset value of the shares each Fund will be
determined by dividing the value of the Fund's assets, less the liabilities, by
the number of outstanding shares issued by the Fund.

Equity securities are valued at the last sales price as of the time when the
valuation is being made. If no sales took place on such day and in the case of
certain equity securities traded over-the-counter, then such securities are
valued at the mean between the bid and the asked prices. Debt securities (other
than short-term obligations) including
<PAGE>
34 HARTFORD MUTUAL FUNDS
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mortgage-backed securities, are valued on the basis of valuations furnished by
an unaffiliated pricing service which determines valuations for normal
institutional size trading units of debt securities. Short-term investments with
a maturity of 60 days or less when purchased are valued at cost plus interest
earned (amortized cost), which approximates market value. Short-term investments
with a maturity of more than 60 days when purchased are valued based on market
quotations until the remaining days to maturity become less than 61 days.

From such time, until maturity, the investments are valued at amortized cost
using the value of the investment on the 61st day. Options are valued at the
last sales price; if no sale took place on such day, then options are valued at
the mean between the bid and asked prices.

Assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of a Fund's
Board of Directors.
PURCHASE OF FUND SHARES

Fund shares are made available to serve as the underlying investment
vehicles for variable annuity and variable life insurance separate accounts of
ITT Hartford Life Insurance Companies. Shares of the Funds are sold on a no-load
basis at their net asset values. See "Net Asset Value" and "Sale and Redemption
of Shares."

It is conceivable that in the future it may be disadvantageous for variable
annuity separate accounts and variable life insurance separate accounts to
invest in the Funds simultaneously. Although ITT Hartford Life Insurance
Companies and the Funds do not currently foresee any such disadvantages either
to variable annuity contract owners or variable life insurance policy owners,
each Fund's Board of Directors intends to monitor events in order to identify
any material conflicts between such contract owners and policy owners and to
determine what action, if any, should be taken in response thereto. If the Board
of Directors of a Fund were to conclude that separate funds should be
established for variable life and variable annuity separate accounts, the
variable life and variable annuity contract holders would not bear any expenses
attendant to the establishment of such separate funds.
SALE AND REDEMPTION
OF SHARES
The shares of each Fund are sold and redeemed by the Fund at their net asset
value next determined after receipt of a purchase or redemption order in good
order in writing at its home office, P.O. Box 2999, Hartford, CT 06104-2999.
Hartford Equity Sales Company, Inc., Hartford, Connecticut, is the Fund's
principal underwriter. The value of shares redeemed may be more or less than
original cost, depending upon the market value of the portfolio securities at
the time of redemption. Payment for shares redeemed will be made within seven
days after the redemption request is received in proper form by the Funds.
However, the right to redeem Fund shares may be suspended or payment therefor
postponed for any period during which: (1) trading on the NYSE is closed for
other than weekends and holidays; (2) an emergency exists, as determined by the
SEC, as a result of which (a) disposal by a Fund of securities owned by it is
not reasonably practicable, or (b) it is not reasonably practicable for a Fund
to determine fairly the value of its net assets; or (3) the SEC by order so
permits for the protection of stockholders of the Funds.
FEDERAL INCOME TAXES

Each Fund has elected and intends to qualify under Part I of Subchapter M of
the Code. Each Fund intends to distribute all of its net income and gains to
shareholders. Such distributions are taxable income and capital gains. Each Fund
will inform shareholders of the amount and nature of such income and gains. Each
Fund may be subject to a 4% nondeductible excise tax as well as an income tax
measured with respect to certain undistributed amounts of income and capital
gain. Each Fund expects to make such additional distributions of net investment
income as are necessary to avoid the application of these taxes. For a
discussion of the tax implications of a purchase or sale of the Funds' shares by
the insurer, reference should be made to the section entitled "Federal Tax
Considerations" in the appropriate separate account prospectus.

If eligible, each Fund may make an election to pass through to its
shareholders, ITT Hartford Life Insurance Companies, a credit for any foreign
taxes paid during the year. If such election is made, the pass-through of the
foreign tax credit will result in additional taxable income and income tax to
ITT Hartford Life Insurance Companies. The amount of additional tax may be more
than offset by the foreign tax credits which are passed through. These foreign
tax credits may provide a benefit to ITT Hartford Life Insurance Companies.
OWNERSHIP AND CAPITALIZATION OF THE FUNDS
CAPITAL STOCK

As of the date of this prospectus, the authorized capital stock of the Funds
consisted of the following shares at a par value of $.10 per share: Advisers
Fund, 4 billion; Capital

<PAGE>
HARTFORD MUTUAL FUNDS 35
- --------------------------------------------------------------------------------

Appreciation Fund, 2 billion; Bond Fund, 800 million; Dividend and Growth Fund,
750 million; Index Fund, 400 million; International Opportunities Fund, 1.5
billion; Small Company Fund, 750 million; Money Market Fund, 800 million;
Mortgage Securities Fund, 800 million; Stock Fund, 2 billion; U.S. Government
Money Market Fund, 100 million; International Advisers Fund, 750 million.

As of December 31, 1995, Hartford Life Insurance Company owned 10,000,000
shares (35.5%) of the International Advisers Fund.

At December 31, 1995, certain HL group pension contracts held direct
interests in shares of the Funds as follows:

<TABLE>
<CAPTION>
SHARES %
------------ ---------
<S> <C> <C>
Hartford Advisers Fund, Inc................ 11,995,216 .55
Hartford Capital Appreciation Fund, Inc.... 9,760,293 1.58
Hartford Index Fund, Inc................... 12,029,208 7.67
Hartford International Opportunities Fund,
Inc....................................... 5,692,699 1.07
Hartford Mortgage Securities Fund, Inc..... 15,512,929 5.07
Hartford Stock Fund, Inc................... 70,084 .01
</TABLE>

VOTING

Each shareholder shall be entitled to one vote for each share of the Funds
held upon all matters submitted to the shareholders generally. With respect to
the Funds' shares, issued as described above under "Purchase of Fund Shares," as
well as Fund shares which are not otherwise attributable to variable annuity
contract owners or variable life policy holders, the ITT Hartford Life Insurance
Companies shall be the shareholders of record. Each of the ITT Hartford Life
Insurance Companies will vote all Fund shares, pro rata, according to the
written instructions of the contract owners of the variable annuity contracts
and the policy holders of the variable life contracts issued by it using the
Funds as investment vehicles. This position is consistent with the policy of the
SEC Staff.

OTHER RIGHTS

Each share of Fund stock, when issued and paid for in accordance with the
terms of the offering, will be fully paid and non-assessable. Shares of Fund
stock have no pre-emptive, subscription or conversion rights and are redeemable
as set forth under "Sale and Redemption of Shares." There are no shareholder
pre-emptive rights. Upon liquidation of a Fund, the shareholders of that Fund
shall be entitled to share, pro rata, in any assets of the Fund after discharge
of all liabilities and payment of the expenses of liquidation.
GENERAL INFORMATION
REPORTS TO SHAREHOLDERS

The Funds will issue unaudited semiannual reports showing current
investments in each Fund and other information and annual financial statements
examined by independent auditors for the Funds.
CUSTODIAN, TRANSFER AND
DIVIDEND DISBURSING AGENTS

State Street Bank and Trust Company, Boston, Massachusetts, serves as
custodian of the Funds' assets. Hartford Life Insurance Company, P.O. Box 2999,
Hartford, Connecticut 06104-2999, serves as Transfer and Dividend Disbursing
Agent for the Funds.

"MAJORITY" DEFINED

As used in this Prospectus, the term "majority of the Fund's outstanding
shares" means the vote of: (1) 67% or more of each Fund's shares present at a
meeting, if the holders of more than 50% of the outstanding shares of each Fund
are present or represented by proxy, or (2) more than 50% of each Fund's
outstanding shares, whichever is less.
PENDING LEGAL PROCEEDINGS

As of the date of this Prospectus, there are no pending legal proceedings
involving the Funds or the Adviser or Sub-Adviser as a party.
REQUESTS FOR INFORMATION

This Prospectus does not contain all the information included in the
Registration Statement filed with the SEC. The Registration Statement, including
the exhibits filed therewith, may be examined at the SEC's office in Washington,
D.C. Statements contained in the Prospectus as to the contents of any contract
or other document referred to herein are not necessarily complete, and, in each
instance, reference is made to the copy of such contract or other document filed
as an exhibit to the Registration Statement of which this Prospectus forms a
part, each such statement being qualified, in all respects by such reference.

For additional information, write to "Hartford Family of Funds", c/o
Individual Annuity Operations, P.O. Box 2999, Hartford, CT 06104-2999.
<PAGE>
36 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

APPENDIX

The rating information which follows describes how the rating services
mentioned presently rate the described securities. No reliance is made upon the
rating firms as "experts" as that term is defined for securities purposes.
Rather, reliance on this information is on the basis that such ratings have
become generally accepted in the investment business.
RATING OF BONDS

Moody's Investors Service, Inc. ("Moody's")

Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa -- Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long term risks appear somewhat larger than in Aaa securities.

A -- Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements may be
present which suggest a susceptibility to impairment sometime in the future.

Baa -- Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba -- Bonds which are rated Ba are judged to have speculative elements;
their future cannot be considered as well assured. Often the protection of
interest and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.

B -- Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa -- Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca -- Bonds which are rated Ca represent obligations which are speculative
in a high degree. Such issues are often in default or have other marked
shortcomings.

C -- Bonds which are rated C are the lowest rated class of bonds and issues
so rated can be regarded as having extremely poor prospects of ever earning any
real investment standing.

Standard & Poor's Corporation. ("Standard & Poor's")

AAA -- Bonds rated AAA are the highest grade obligations. Capacity to pay
interest and repay principal is extremely strong.

AA -- Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from AAA issues only in small degree.

A -- Bonds rated A have a very strong capacity to pay interest and repay
principal although they are somewhat more susceptible to the considerable
investment strength but are not entirely free from adverse effects of changes in
circumstances and economic conditions than debt in the highest rated categories.

BBB -- Bonds rated BBB and regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category then in higher rated categories.

BB, B, CCC, CC, C -- Debt rated BB, B, CCC, CC, and C is regarded, on
balance, as predominantly speculative with respect to the issuer's capacity to
pay interest and repay principal in accordance with the terms of the obligation.
While such debt will likely have some quality and protective characteristics,
these are outweighed by large uncertainties or major risk exposures to adverse
conditions.
<PAGE>
HARTFORD MUTUAL FUNDS 37
- --------------------------------------------------------------------------------

RATING OF COMMERCIAL PAPER

Purchases of corporate debt securities used for short-term investment,
generally called commercial paper, will be limited to the top two grades of
Moody's, Standard & Poor's, Duff & Phelps, Fitch Investor Services and Thomson
Bank Watch or other NRSROs (nationally recognized statistical rating
organizations) rating services and will be an eligible security under Rule 2a-7.

MOODY'S

Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:

- Leading market positions in well-established industries.

- High rates of return on funds employed.

- Conservative capitalization structures with moderate reliance
on debt and ample asset protection.

- Broad margins in earnings coverage of fixed financial charges
and high internal cash generation.

- Well-established access to a range of financial markets and
assured sources of alternate liquidity.

Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.

Issuers rated Prime-3 (or related supporting institutions) have an
acceptable capacity for repayment of short-term promissory obligations. The
effect of industry characteristics and market composition may be more
pronounced. Variability in earnings and profitability may result in changes in
the level of debt protection measurements and the requirement for relatively
high financial leverage. Adequate alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the Prime rating
categories.

STANDARD & POOR'S

The relative strength or weakness of the following factors determines
whether the issuer's commercial paper is rated A-1 or A-2.

- Liquidity ratios are adequate to meet cash requirements.

Liquidity ratios are basically as follows, broken down by the type of
issuer:

Industrial Company: acid test ratio, cash flow as a percent of current
liabilities, short-term debt as a percent of current liabilities, short-term
debt as a percent of current assets.

Utility: current liabilities as a percent of revenues, cash flow as a
percent of current liabilities, short-term debt as a percent of capitalization.

Finance Company: current ratio, current liabilities as a percent of net
receivables, current liabilities as a percent of total liabilities.

- The long-term senior debt rating is "A" or better; in some
instances "BBB" credits may be allowed if other factors
outweigh the "BBB".

- The issuer has access to at least two additional channels of
borrowing.

- Basic earnings and cash flow have an upward trend with
allowances made for unusual circumstances.

- Typically, the issuer's industry is well established and the
issuer has a strong position within its industry.

- The reliability and quality of management are unquestioned.
<PAGE>

PART B

STATEMENT OF ADDITIONAL INFORMATION

HARTFORD CAPITAL APPRECIATION FUND, INC.
HARTFORD DIVIDEND AND GROWTH FUND, INC.
HARTFORD INDEX FUND, INC.
HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
HARTFORD SMALL COMPANY FUND, INC.
HARTFORD STOCK FUND, INC.
HARTFORD ADVISERS FUND, INC.
HARTFORD INTERNATIONAL ADVISERS FUND, INC.
HARTFORD BOND FUND, INC.
HARTFORD MORTGAGE SECURITIES FUND, INC.
HVA MONEY MARKET FUND, INC.
HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.

P.O. Box 2999
Hartford, CT 06104-2999

This Statement of Additional Information is not a prospectus. The
information contained herein should be read in conjunction with the prospectus.
To obtain a prospectus send a written request to: "Hartford Family of Funds,"
c/o Individual Annuity Operations, P.O. Box 2999, Hartford, Connecticut
06104-2999.

Date of Prospectus: May 1, 1996 revised effective August 9, 1996
Date of Statement of Additional Information: May 1, 1996 revised effective
August 9, 1996

Form HV-1743-11

<PAGE>

TABLE OF CONTENTS PAGE

INVESTMENT OBJECTIVES OF THE FUNDS. . . . . . . . . . . .

INVESTMENT RESTRICTIONS OF THE FUNDS. . . . . . . . . . .

PORTFOLIO TURNOVER . . . . . . . . . . . . . . . . . . .

MANAGEMENT OF THE FUNDS. . . . . . . . . . . . . . . . . .

CUSTODIAN AND TRANSFER AGENT. . . . . . . . . . . . . . .

INDEPENDENT PUBLIC ACCOUNTANTS. . . . . . . . . . . . . .

PORTFOLIO BROKERAGE. . . . . . . . . . . . . . . . . . . .

DETERMINATION OF YIELD. . . . . . . . . . . . . . . . . .

CALCULATION OF TOTAL RETURN. . . . . . . . . . . . . . . . .

PERFORMANCE COMPARISONS. . . . . . . . . . . . . . . . . .

FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . .

<PAGE>

INVESTMENT OBJECTIVES OF THE FUNDS

HARTFORD CAPITAL APPRECIATION FUND, INC.:

To achieve growth of capital by investing in securities selected solely on
the basis of potential for capital appreciation; income, if any, is an
incidental consideration.

HARTFORD DIVIDEND AND GROWTH FUND, INC.:

To achieve a high level of current income consistent with growth of capital
and reasonable investment risk.

HARTFORD INDEX FUND, INC.:

To provide investment results that approximate the price and yield
performance of publicly-traded common stocks in the aggregate.

HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.:

To achieve long-term total return consistent with prudent investment risk
through investment primarily in equity securities issued by non-U.S. companies

HARTFORD SMALL COMPANY FUND, INC.:

To achieve growth of capital by investing primarily in equity securities
selected on the basis of potential for capital appreciation.

HARTFORD STOCK FUND, INC.:

To achieve long-term capital growth primarily through capital appreciation,
with income a secondary consideration, by investing in primarily equity
securities.

HARTFORD ADVISERS FUND, INC.:

To achieve maximum long term total rate of return consistent with prudent
investment risk by investing in common stock and other equity securities, bonds
and other debt securities, and money market instruments.

HARTFORD INTERNATIONAL ADVISERS FUND, INC.:

To achieve maximum long-term total rate of return consistent with prudent
investment risk.

<PAGE>

HARTFORD BOND FUND, INC.:

To achieve maximum current income consistent with preservation of capital
by investing primarily in fixed-income securities.

HARTFORD MORTGAGE SECURITIES FUND, INC.:

To achieve maximum current income consistent with safety of principal and
maintenance of liquidity by investing primarily in mortgage-related securities,
including securities issued by the Government National Mortgage Association.

HVA MONEY MARKET FUND, INC.:

To achieve maximum current income consistent with liquidity and
preservation of capital.

HARTFORD U.S. GOVERNMENT MONEY MARKET FUND, INC.:

To achieve maximum current income consistent with preservation of capital.

INVESTMENT RESTRICTIONS OF THE FUNDS

Each of the Funds is governed by a number of investment restrictions -
investment practices which are prohibited or which are only permitted to a
limited extent. Under the 1940 Act, investment restrictions must be designated
either "fundamental" or "nonfundamental." "Fundamental" restrictions may only be
changed with the approval of a majority of the outstanding voting securities of
a Fund. "Nonfundamental" restrictions may be changed with the approval of a
majority of a Fund's Board of Directors. Some restrictions are common to all
Funds, usually because governing law so requires. Others vary because of
differences in the objectives of the Funds or for historical reasons.

A. FUNDAMENTAL RESTRICTIONS

1. Issuer Concentration. At least 75% of the assets of each Fund will be
represented by securities limited in respect of any one issuer (except U.S.
Government securities) to an amount not greater in value than 5% of the value of
the total assets of such Fund. Not more than 10% of the assets of a Fund will
be invested in the securities of any one issuer (except U.S. Government
securities). Except for the Capital Appreciation Fund and Small Company Fund,
no Fund will acquire more than 5% of the outstanding voting securities of any
one issuer.

2. Industry Concentration. No Fund will invest more than 25% of its
assets in the securities of issuers primarily engaged in any one industry;
however, this restriction shall not apply to investments in obligations of the
U.S. Government and its agencies and instrumentalities, bank certificates of
deposit, bankers' acceptances or instruments secured by these money market
instruments. In addition, for the Dividend and Growth Fund only, electric
utilities, natural gas

<PAGE>

utilities, water utilities and telecommunications issuers will be considered
separate, distinct industries.

3. Senior Securities. No Fund will issue senior securities, but for this
purpose transactions in futures contracts and options thereon shall not be
deemed the issuance of senior securities.

4. Borrowings. Except for the Dividend and Growth Fund, the International
Advisers Fund and the International Opportunities Fund, none of the Funds may
borrow amounts in excess of 5% of its assets, and borrowings by each of the
Funds can be only from banks or through reverse repurchase agreements and as a
temporary measure for extraordinary or emergency purposes. For the Dividend and
Growth Fund and the International Advisers Fund, the percentage limit on
borrowing is 15%, for the International Opportunities Fund the percentage limit
is 20% and for the Small Company Fund the percentage limit is 33 1/3%. In
addition, the Dividend and Growth Fund will not purchase securities when its
borrowings exceed 5% of its assets.

5. Underwriting. No Fund will underwrite securities of other issuers.

6. Commodities. No Fund will purchase commodities or commodity contracts,
except for transactions in futures contracts and options on futures contracts.

7. Real Estate. No Fund will invest in real estate, except that each of
the Advisers Fund, Bond Fund, Index Fund and Stock Fund may invest up to 10% of
its assets in interests in real estate which are readily marketable, and except
that the Dividend and Growth Fund, the International Opportunities Fund and the
International Advisers Fund may hold up to 5% of its assets in real estate or
mineral leases acquired through the ownership of securities, but such Funds
will not acquire securities for the purpose of acquiring real estate or mineral
leases, commodities or commodity contracts. Notwithstanding the above
restriction, the Mortgage Securities Fund may invest up to 100% of its assets in
mortgage-related securities.

8. Loans. No Fund will make loans, except through the acquisition of (a)
publicly distributed bonds, debentures or other evidences of indebtedness of a
type customarily purchased by institutional investors; (b) money market
instruments as permitted in accordance with the Fund's investment policies; and
(c) repurchase agreements and except that the Small Company Fund may lend
portfolio securities in accordance with the Fund's investment policies in
amounts up to 33 1/3% of the Fund's total assets.

B. NONFUNDAMENTAL RESTRICTIONS

9. Short Sales and Margin. No Fund will purchase securities on margin or
make short sales of securities, except that a Fund may obtain such short-term
credit as may be necessary for the clearance of purchases and sales of
securities and except for transactions in futures contracts and options thereon.

10. Illiquid Securities. No Fund will invest more than 10% of its assets in
illiquid securities, except that the Dividend and Growth Fund, the International
Advisers Fund, the International Opportunities Fund and the Small Company Fund
may each invest up to 15% of its

<PAGE>

assets in illiquid securities, and except that the Index Fund may not invest in
illiquid securities at all.

11. Control. No Fund will, alone or together with any other of the Hartford
Mutual Funds, make investments for the purpose of exercising control over or
management of any issuer.

12. Pledges. No Fund will mortgage, pledge, hypothecate, or in any manner
transfer, as security for indebtedness, any securities owned or held by it,
except to secure reverse repurchase agreements; however, for purposes of this
restriction, collateral arrangements with respect to transactions in futures
contracts and options thereon are not deemed to be a pledge of securities.

13. Other Investment Companies. The Index Fund, the Mortgage Securities
Fund and the money market funds will not purchase securities of other investment
companies. Each of the other Funds may not invest more than 5% of its assets in
securities of other investment companies and will not acquire more than 3% of
the total outstanding voting securities of any one investment company.

14. Geographic Concentration. Each of the International Advisers Fund and
the International Opportunities Fund will not invest more than 20% of its assets
in securities of issuers located in any one country, except that it may invest
up to 35% of its assets in any one of the following countries: Australia,
Canada, France, Japan, the United Kingdom or Germany.

ALL FUNDS

U.S. TREASURY DEPARTMENT DIVERSIFICATION REGULATIONS. The U.S. Treasury
Department has issued diversification regulations under Section 817 of the
Internal Revenue Code. If a mutual fund underlying a variable contract, other
than a pension plan contract, is not adequately diversified within the terms of
these regulations, the contract owner will have adverse income tax consequences.
These regulations provide, among other things, that a mutual fund shall be
considered adequately diversified if (i) no more than 55% of the value of the
assets in the fund is represented by any one investment; (ii) no more than 70%
of the value of the assets in the fund is represented by any two investments;
(iii) no more than 80% of the value of the assets in the fund is represented by
any three investments and (iv) no more than 90% of the value of the total assets
of the fund is represented by any four investments. In determining whether the
diversification standards are met, each United States Government Agency or
instrumentality shall be treated as a separate issuer.

PORTFOLIO TURNOVER

The portfolio turnover rates for the Bond Fund for 1993, 1994 and 1995 were
494.3%, 328.8% and 215%, respectively.

The portfolio turnover rates for the Stock Fund for 1993, 1994 and 1995
were 69.0%, 63.8% and 52.9%, respectively.

<PAGE>

The portfolio turnover rates for the Advisers Fund for 1993, 1994 and 1995
were 55.3%, 60.0% and 63.5%, respectively.

The portfolio turnover rates for the Capital Appreciation Fund for 1993,
1994 and 1995 were 91.4%, 73.3% and 78.6%, respectively.

The portfolio turnover rates for the Mortgage Securities Fund for 1993,
1994 and 1995 were 183.4%, 365.7% and 489.4%, respectively.

The portfolio turnover rates for the Index Fund for 1993, 1994 and 1995
were .8%, 1.8% and 1.5%, respectively.

The portfolio turnover rates for the International Advisers Fund for the
period February 28, 1995 to December 31, 1995 was 47.2 %.

The portfolio turnover rates for the International Opportunities Fund for
1993, 1994 and 1995 were 31.8%, 46.4% and 55.6%, respectively.

The portfolio turnover rates for the Dividend and Growth Fund for the
period March 8, 1994 to December 31, 1994 was 27.8%, and for 1995 was 41.4%.

Because of the short-term nature of their portfolio securities and market
conditions, no meaningful or accurate prediction can be made of the portfolio
turnover rate for the Money Market and U.S. Government Money Market Funds.

It is anticipated that the portfolio turnover rate of the Small Company
Fund will not exceed 100%.

Turnover rate is computed by determining the percentage relationship of the
lesser of purchases and sales of securities to the monthly average of the value
of securities owned for the fiscal year, exclusive of securities whose
maturities at the time of acquisition were one year or less. A high turnover
rate will result in increased brokerage expenses and the likelihood of some
short term gains which may be taxable to shareholders at ordinary income tax
rates (see "Federal Income Taxes" in the prospectus).

MANAGEMENT OF THE FUNDS

The directors and officers of the Funds and their principal business
occupations for the last five years are set forth below. Those directors who are
deemed to be "interested persons" of Hartford Life Insurance Company ("HL") as
that term is defined in the Investment Company Act of 1940, as amended, are
indicated by an asterisk next to their respective names.

Pursuant to a provision of each Fund's Bylaws, an Audit Committee has been
appointed for each of the Funds. This Committee is made up of those directors
who are not "interested persons" of HL. The functions of the Audit Committee
include, but are not limited to: (1)

<PAGE>

recommending to the Board of Directors the engagement of an independent auditor;
(2) reviewing the plan and results of such auditor's engagement; and (3)
reviewing the Fund's internal audit arrangements.

JOSEPH ANTHONY BIERNAT (age 68)
Director
30 Hurdle Fence Drive
Avon, CT 06001

Mr. Biernat served as Senior Vice President and Treasurer of United
Technologies Corporation from 1984 until March, 1987, when he retired. He
subsequently served as Executive Vice President of Boston Security Counselors,
Inc., Hartford, Connecticut, and served as Vice President-Client Services of
Wright Investors' Service, Bridgeport, Connecticut. Mr. Biernat presently is
consulting to organizations on financial matters, with the majority of time
spent with T.O. Richardson & Co., Farmington, Connecticut.

WINIFRED ELLEN COLEMAN (age 63)
Director
27 Buckingham Lane
West Hartford, CT 06117

Ms. Coleman has served as President of Saint Joseph College, West Hartford,
Connecticut since 1991.

JOSEPH HARRY GAREAU (age 48)*
Director and President
Hartford Plaza
Hartford, CT 06116

Mr. Gareau has served as the Executive Vice President and Chief Investment
Officer of ITT Hartford Insurance Group since April, 1993. Formerly, he served
as Senior Vice President (September, 1992 - April, 1993) and Vice President
(October, 1987 - September, 1992).

WILLIAM ATCHISON O'NEILL (age 65)
Director
Box 360
East Hampton, CT 06424

The Honorable William A. O'Neill served as Governor of the State of
Connecticut from 1980 until 1991. He is presently retired.

MILLARD HANDLEY PRYOR, JR. (age 62)
Director
90 State House Square
Hartford, CT 06103

Mr. Pryor has served as Managing Director of Pryor & Clark Company,
Hartford, Connecticut since June, 1992. He served as Chairman of the Board of
Lydall, Inc. from 1985 until October, 1991 and formerly served as President and
Chief Executive Officer.

<PAGE>

LOWNDES ANDREW SMITH (age 56)*
Director and Chairman
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Smith has served as President, Chief Operating Officer, and Director of
ITT Hartford Insurance Group-Life Companies and as a Director of ITT Hartford
Insurance Group since November, 1989.

JOHN KELLEY SPRINGER (age 64)
Director
55 Farmington Avenue
Hartford, CT 06105

Mr. Springer has served as President and Chief Executive Officer of
Connecticut Health System, Inc., a hospital holding company, since 1986.
Formerly, he served as the President and Chief Executive Officer of Hartford
Hospital, Hartford, Connecticut.

PETER CUMMINS (age 58)
Vice President
Hartford Plaza
Hartford, CT 06115

Mr. Cummins has been Vice President of sales and marketing of the
Individual Life and Annuity Division of ITT Hartford Insurance Group-Life
Companies since 1989.

JAMES RICHARD GARRETT (age 50)
Vice President and Treasurer
Hartford Plaza
Hartford, CT 06115

Mr. Garrett has served as a Vice President of ITT Hartford Insurance Group
since 1989 and as Treasurer since 1983. Mr. Garrett is also the Treasurer of
HIMCO.

JOHN PHILIP GINNETTI (age 51)
Vice President
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Ginnetti has served as Executive Vice President and Director of Asset
Management Services, a division of ITT Hartford Insurance Group-Life Companies,
since 1994. From 1988 to 1994, he served as Senior Vice President and Director
of the Individual Life and Annuities Division of ITT Hartford Insurance
Group-Life Companies.

9
<PAGE>

ANDREW WILLIAM KOHNKE (age 37)
Vice President
P. O. Box 2999
Hartford, CT 06104-2999

Mr. Kohnke has served as a Vice President since 1992, and as an Investment
Manager since 1983, of the ITT Hartford Insurance Group-Life Companies. Mr,
Kohnke is also a Director and Managing Director of HIMCO.

THOMAS MICHAEL MARRA (age 37)
Vice President
P. O. Box 2999
Hartford, CT 06104-2999

Mr. Marra has served as Executive Vice President since 1996, Senior Vice
President since 1994, and Director of the Individual Life and Annuity Division
of ITT Hartford Insurance Group-Life Companies, since 1980.

CHARLES MINER O'HALLORAN (age 49)
Vice President, Secretary, and General Counsel
Hartford Plaza
Hartford, CT 06115

Mr. O'Halloran has served as Corporate Secretary since 1996, Vice President
since 1994, and Senior Associate General Counsel since 1988, of ITT Hartford
Insurance Group.

GEORGE RICHARD JAY (age 43)
Controller
P.O. Box 2999
Hartford, CT 06104-2999

Mr. Jay has served as Secretary and Director, Life and Equity Accounting
and Financial Control of ITT Hartford Insurance Group-Life Companies since 1987.

<PAGE>

JAMES CUBANSKI (age 36)
Assistant Secretary
Hartford Plaza
Hartford, CT 06115

Mr. Cubanski has served as Director of Tax Administration of ITT Hartford
Insurance Group since July 1995. Formerly, he served as Director of Federal Tax
Administration (July, 1993-July, 1995), and Manager of Federal Taxes (February,
1991 - July, 1993).

COMPENSATION OF OFFICERS AND DIRECTORS.

None of the Funds pays salaries or any other compensation to any of its
officers or directors who are affiliated with ITT Hartford. The officers and
directors serve in the same capacity for each of the Funds and the unaffiliated
directors receive compensation for serving on the Board of all of the Funds.
The chart below sets forth the fees paid by the Funds to the unaffiliated
directors for the fiscal year ended December 31, 1995:
<TABLE>
<CAPTION>

JOSEPH A. WINIFRED E. WILLIAM A. MILLARD H. JOHN K.
BIERNAT COLEMAN O'NEILL PRYOR SPRINGER
<S> <C> <C> <C> <C> <C>
TOTAL
COMPENSATION
RECEIVED FROM
THE FUNDS $ 18,000 $ 13,500 $ 18,000 $ 16,000 $ 16,000

</TABLE>

CUSTODIAN AND TRANSFER AGENT

State Street Bank and Trust Company, Boston, Massachusetts, serves as
Custodian of the Funds' assets. The Custodian is not involved in determining
investment policies of the Funds or their portfolio securities transactions. Its
services do not protect shareholders against possible depreciation of their
assets. The fees of State Street Bank are paid by the Funds and thus borne by
the Funds' shareholders. The Custodian maintains actual custody of the
securities of the Funds.

Hartford Life Insurance Company, Hartford Plaza, Hartford, Connecticut
06115, serves as Transfer and Dividend Disbursing Agent for the Funds. The
Transfer Agent issues and redeems shares of the Funds and disburses any
dividends declared by the Funds.

INDEPENDENT PUBLIC ACCOUNTANTS

The financial statements and financial highlights included in this SAI and
elsewhere in the registration statement have been audited by Arthur Andersen
LLP, independent public accountants, as indicated in their reports with respect
thereto, and are included herein in reliance upon the authority of said firm as
experts in giving said reports.

<PAGE>

PORTFOLIO BROKERAGE

In accordance with the terms of the Investment Advisory Agreements and
Sub-Investment Advisory Agreements, the investment adviser or sub-investment
adviser (the "Adviser") places all portfolio brokerage on behalf of the Funds.
The Adviser attempts to obtain, in all instances, the best price and execution
on all portfolio transactions. In some instances portfolio brokerage may be
through affiliated persons of the Funds.

Purchases and sales of debt securities issued or guaranteed by the U.S.
Government will usually be effected on a net basis with a securities dealer
acting as principal. Principal transactions may involve the payment of a fee or
commission. Securities transactions may also be effected directly with the
issuer without the payment of a fee or commission. The Adviser may also place
orders for the purchase of part of an issue of securities, on behalf of the
Funds, that is being underwritten at prices which will include the payment of an
underwriting fee or a commission to the members of the underwriting group from
whom the securities are purchased.

The Adviser has been authorized by the Boards of Directors of the Funds to
pay an execution-plus-research commission rate which is higher than an
execution-only commission rate in connection with portfolio securities
transactions executed on behalf of the Funds. Research services may include
statistical analysis and economic, market and individual security research. The
Adviser has been authorized by the Funds' Board of Directors to pay higher
commissions than other broker-dealers may charge for such transactions so long
as the Adviser determines in good faith (in accordance with the requirements of
the Securities Exchange Act of 1934, as amended) that the commissions paid are
reasonable in relation to the value of the brokerage and research and
statistical services provided either in terms of the particular transaction or
with respect to its overall account responsibilities. Evaluation of the
reasonableness of brokerage commissions is based on a broker's standard of
efficiency in executing and clearing a trade, and its ability to provide
information and services which help in the areas of research and portfolio
selection. There is no certainty that any research services thus acquired will
be beneficial to the Funds and under certain circumstances, other clients of the
Adviser may benefit from research and statistical services so received. Further,
by paying a higher commission to a broker-dealer under the circumstances
described, the amount of brokerage commissions which the Funds pay may tend to
increase.

Subject to applicable laws and regulations, the Adviser may also consider
the willingness of particular brokers to sell ITT Hartford's variable annuity or
variable life insurance contracts as a factor in the selection of brokers for
its portfolio transactions. At all times, the Adviser attempts to obtain best
price and execution.

The aggregate amount of brokerage commissions paid by the Stock Fund for
1993, 1994 and 1995 was $1,556,000, $1,872,000 and $1,839,000 , respectively.

The aggregate amount of brokerage commissions paid by the Advisers Fund in
1993, 1994 and 1995 was $2,366,000, $2,771,000 and $2,608,000, respectively.

<PAGE>

The aggregate amount of brokerage commissions paid by the Capital
Appreciation Fund in 1993, 1994 and 1995 was $1,595,000, $2,045,000 and
$3,069,000, respectively.

The aggregate amount of brokerage commissions paid by the Index Fund in
1993, 1994 and 1995 was $48,000, $24,000 and $66,000, respectively.

The aggregate amount of brokerage commissions paid by the International
Advisers Fund in 1995 was $76,000. The International Advisers Fund commenced
operations in 1995.

The aggregate amount of brokerage commissions paid by the International
Opportunities Fund in 1993, 1994 and 1995 was $785,000, $1,940,000 and
$1,986,000, respectively.

The aggregate amount of brokerage commissions paid by the Dividend and
Growth Fund in 1994 and 1995 was $65,000 and $303,000, respectively. The
Dividend and Growth Fund commenced operations in 1994.

Changes in the amounts of brokerage commissions paid reflect changes in
portfolio turnover rates.

No brokerage commissions were paid in 1993, 1994 or 1995 by the Bond Fund,
Money Market Fund, Mortgage Securities Fund, or U.S. Government Money Market
Fund. The Small Company Fund did not commence operations in 1995.

DETERMINATION OF YIELD

HVA Money Market Fund, Inc.

The Fund's yield quotations as they appear in advertising and sales
materials are calculated by a method prescribed by the rules of the Securities
and Exchange Commission.

Yield calculations of the Fund used for illustration purposes are based on
the consideration of a hypothetical account having a balance of exactly one
share at the beginning of a seven day period, which period will end on the date
of the most recent financial statements. The yield for the fund during this
seven day period will be the change in the value of the hypothetical account,
including dividends declared on the original share, dividends declared on any
shares purchased with dividends on that share, and any monthly account charges
or sales charges that would affect an account of average size, but excluding any
capital changes. The following is an example of this yield calculation for the
Fund based on a seven day period ending December 31, 1995.

Example:

Assumptions:

Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.000000

<PAGE>

Value of the same account* (excluding capital changes) at the end of the
seven day period: $1.001035

*This value would include the value of any additional shares purchased with
dividends from the original share, and all dividends declared on both the
original share and any such additional shares.

Calculation:

Ending account value $1.001035
Less beginning account value 1.000000

$ .001035

---------
Net change in account value
Base period return:
(adjusted change/beginning account value)
$.001035/$1.000000 = $.001035

$.001035 X (365/7) =
5.40%

---------

Current yield =

Effective yield = (1 +.001035)365/7 - 1 = 5.44%

The current yield and effective yield information will fluctuate, and
publication of yield information may not provide a basis for comparison with
bank deposits, other investments which are insured and/or pay a fixed yield for
a stated period of time, or other investment companies. In addition, the current
yield and effective yield information may be of limited use for comparative
purposes because it does not reflect charges imposed at the Separate Account
level which, if included, would decrease the yield.

Hartford U.S. Government Money Market Fund, Inc.

The Fund's yield quotations as they appear in advertising and sales
materials are calculated by a method prescribed by the rules of the Securities
and Exchange Commission.

Yield calculations of the Fund used for illustrations purposes are based on
the consideration of a hypothetical account having a balance of exactly one
share at the beginning of a seven day period, which period will end on the date
of the most recent financial statements. The yield for the Fund during this
seven day period will be the change in the value of the hypothetical account,
including dividends declared on the original share, dividends declared on any
shares purchased with dividends on that share, and any monthly account charges
or sales charges that would affect an account of average size, but excluding any
capital changes. The following is an example of this yield calculation for the
fund based on a seven day period ending December 31, 1995.

<PAGE>

Example:

Assumptions:

Value of a hypothetical pre-existing account with exactly one share at the
beginning of the period: $1.000000000

Value of the same account* (excluding capital changes) at the end of the
seven day period: $1.001049.

*This value would include the value of any additional shares purchased with
dividends from the original share, and all dividends declared on both the
original share and any such additional shares.

Calculation:

Ending account value $1.001049
Less beginning account value 1.000000

$ .001049
---------
Net change in account value
Base period return:
(adjusted change/beginning account value)
$.001049/$1.000000 = `$.001049

$.001049 X (365/7) =
5.47%

---------

Current yield =

Effective yield = (1 +.001049)365/7 - 1 =
5.62%

In addition, the current yield and effective yield information may be of
limited use for comparative purposes because it does not reflect charges imposed
at the Separate Account level which, if included, would decrease the yield.

At any time in the future, yields and total return may be higher or lower
than past yields and there can be no assurance that any historical results will
continue.

CALCULATION OF TOTAL RETURN

<PAGE>

As summarized in the Prospectus under the heading "Performance Related
Information", total return is a measure of the change in value of an investment
in a Fund over the period covered, which assumes any dividends or capital gains
distributions are reinvested in that Fund immediately rather than paid to the
investor in cash. The formula for total return used herein includes four steps:
(1) adding to the total number of shares purchased by a hypothetical $1,000
investment in the Fund all additional shares which would have been purchased if
all dividends and distributions paid or distributed during the period had been
immediately reinvested; (2) calculating the value of the hypothetical initial
investment of $1,000 as of the end of the period by multiplying the total number
of shares owned at the end of the period by the net asset value per share on the
last trading day of the period; (3) assuming redemption at the end of the period
and deducting any applicable contingent deferred sales charge and (4) dividing
this account value for the hypothetical investor by the initial $1,000
investment. Total return will be calculated for one year, five years and ten
years or some other relevant periods if a Fund has not been in existence for at
least ten years.

PERFORMANCE COMPARISONS

YIELD AND TOTAL RETURN

Each Fund may from time to time include its yield and/or total return in
advertisements or information furnished to present or prospective shareholders.
Each Fund may also from time to time include in advertisements the ranking of
those performance figures as categorized by recognized rating firms such as
Lipper Analytical Services and Morningstar, Inc.

The total return and yield may also be used to compare the performance of
the Funds against certain widely acknowledged outside standards or indices for
stock and bond market performance including those described below.

The Standard & Poor's 500 Stock Price Index (the "S&P 500") is a market
value-weighted and unmanaged index showing the changes in the aggregate market
value of 500 stocks. The S&P 500 represents about 80% of the market value of all
issues traded on the New York Stock Exchange.

The NASDAQ Composite OTC Price Index (the "NASDAQ Index") is a market
value-weighted and unmanaged index showing the changes in the aggregate market
value of approximately 3,500 stocks. The NASDAQ Index is composed entirely of
common stocks of companies traded over-the-counter and often through the
National Association of Securities Dealers Automated Quotations ("NASDAQ")
system. Only those over-the-counter stocks having only one market maker or
traded on exchanges are excluded.

The Lehman Government Bond Index (the "Lehman Government Index") is a
measure of the market value of all public obligations of the U.S. Treasury; all
publicly issued debt of all agencies of the U.S. Government and all
quasi-federal corporations; and all corporate debt guaranteed by the U.S.
Government. Mortgage backed securities, flower bonds and foreign targeted
issues are not included in the Lehman Government Index.

<PAGE>

The Morgan Stanley Capital International EAFE Index (the "EAFE Index")
is an unmanaged index, which includes over 1,000 companies representing the
stock markets of Europe, Australia, New Zealand, and the Far East., The EAFE
Index is weighted by market capitalization, and therefore, it has a heavy
representation in countries with large stock markets, such as Japan.

The Lehman Government/Corporate Bond Index (the "Lehman
Government/Corporate Index") is a measure of the market value of approximately
5,300 bonds with a face value currently in excess of $1.3 trillion. To be
included in the Lehman Government/Corporate Index, an issue must have amounts
outstanding in excess of $1 million, have at least one year to maturity and be
rated "Baa" or higher ("investment grade") by a nationally recognized rating
agency.

The Composite Index for Hartford Advisers Fund is comprised of the S&P
500 (55%), the Lehman Government/Corporate Bond Index (35%), both mentioned
above, and 90 Day U.S. Treasury Bills (10%).

The Russell 2500 Index is a market value-weighted, unmanaged index
showing total return (i.e., principal changes with income) in the aggregate
market value of 2,500 stocks of publicly traded companies domiciled in the
United States. The Index includes stocks traded on the New York Stock Exchange
and the American Stock Exchange as well as in the over-the-counter market.

The Composite Index for the Capital Appreciation Fund is the Russell 2500
Index (60%)/S&P 500 Index (40%), both of which are mentioned above.

The manner in which total return and yield are calculated is described
above. The following table sets forth the average annual total return, and yield
where applicable, for each Fund through December 31, 1995.

TOTAL RETURN/YIELD

SINCE
1 YEAR 5 YEARS INCEPTION YIELD
------- ------- ------- -------

Capital Appreciation 30.25% 23.77% 15.50%
Dividend and Growth 36.37% ---- 19.93%
Index 36.55% 15.78% 11.81%
International Opportunities 13.93% 10.04% 6.75%
Stock 34.10% 15.59% 13.42%
Advisers 28.34% 12.80% 11.85%
International Advisers ---- ---- 15.84%
Bond 18.49% 9.06% 8.51% 6.46%

<PAGE>

SINCE
1 YEAR 5 YEARS INCEPTION YIELD
------- ------- ------- -------

Mortgage Securities 16.17% 7.84% 8.38% 6.90%
HVA Money Market 5.74% 4.45% 6.00%

US Government Money Market 5.52% 4.14% 5.55%