HARTFORD STOCK FUND INC /CT/, 497, 1997-05-06

HARTFORD STOCK FUND INC /CT/
497, 1997-05-06

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<PAGE>

Hartford Mutual Funds
PROSPECTUS -- MAY 1, 1997

The Hartford Mutual Funds is a family of funds comprised of twelve separate
diversified open-end management investment companies (each a "Fund" and together
the "Funds"). The Funds 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 "The Hartford Life Insurance Companies"). The Funds, which
have different investment objectives and policies, are described below.

- --------------------------------------------------------------------------------
STOCK FUNDS
<TABLE>
<CAPTION>
FUND NAME GOAL
- ------------------------------- ------------------------------
<S> <C> <C>
Capital Appreciation Growth of capital
Dividend and Growth High level of income, growth
of capital
Index To track general stock market
performance
International Opportunities Growth of capital
Small Company Growth of capital
Stock Growth of capital, income is
secondary

<CAPTION>
FUND NAME INVESTMENT STYLE

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

<S> <C>
Capital Appreciation Equity: Invests in small, medium, and large companies; portfolio is

comprised primarily of a blend of growth and value stocks and is

broadly diversified across industries.

Dividend and Growth Equity: Invests primarily in large, well-known U.S. companies that

have historically paid above average dividends and have the ability to

sustain and potentially increase dividends; portfolio is broadly

diversified across industries.

Index Equity: Seeks investment results which approximate the price and yield

performance of publicly-traded common stocks in the aggregate;

attempts to approximate the capital performance and the dividend

income of the Standard & Poor's 500 Composite Stock Index.

International Opportunities International Equity: Invests primarily in large, high-quality non-

U.S. companies in established markets, and on a limited basis, in

smaller companies and emerging markets; portfolio is broadly

diversified across industries and countries.

Small Company Equity: Invests primarily in stocks of companies with market

capitalizations of less than $2 billion; portfolio is broadly

diversified across industries.

Stock Equity: Invests primarily in large, high quality U.S. companies;

portfolio is broadly diversified across industries which are expected

to grow faster than the overall economy.

</TABLE>

- --------------------------------------------------------------------------------
ASSET ALLOCATION FUNDS
<TABLE>
<CAPTION>
FUND NAME GOAL
- ------------------------------- ------------------------------
<S> <C> <C>
Advisers Long-term total return
International Advisers Long-term total return

<CAPTION>
FUND NAME INVESTMENT STYLE

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

<S> <C>
Advisers Asset Allocation: Invests in a mix of stocks, bonds and money market

instruments; portfolio assets are allocated gradually among the asset

classes based upon the portfolio manager's view of the economy and

valuation of the market sectors; short-term market timing is not used.

International Advisers International Asset Allocation: Invests in a mix of stocks, bonds and

money market instruments; portfolio assets are diversified among at

least five countries and are allocated gradually among the asset

classes based upon the portfolio manager's view of the economy and

valuation of the market sectors; short term market timing is not used.

</TABLE>

- --------------------------------------------------------------------------------
BOND FUNDS
<TABLE>
<CAPTION>
FUND NAME GOAL
- ------------------------------- ------------------------------
<S> <C> <C>
Bond High level of income, total
return
Mortgage Securities Maximum current income
consistent with preservation
of principal

<CAPTION>
FUND NAME INVESTMENT STYLE

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

<S> <C>
Bond Bond: Invests primarily in investment grade bonds; up to 20% may be

invested in the highest quality tier of the high yield rating

category.

Mortgage Securities Mortgage-Related Securities: Invests primarily in high quality

mortgage-related securities, including securities issued or guaranteed

by government agencies, instrumentalities or sponsored corporations.

</TABLE>

- --------------------------------------------------------------------------------
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
FUND NAME GOAL
- ------------------------------- ------------------------------
<S> <C> <C>
Money Market Maximum current income
consistent with preservation
of capital
U.S. Government Maximum current income
Money Market consistent with preservation
of capital

<CAPTION>
FUND NAME INVESTMENT STYLE
- ------------------------------- ----------------------------------------------------------------------
<S> <C>
Money Market Money Market: Invests in short-term money market instruments.
U.S. Government Money Market: Invests in short-term money market instruments issued or
Money Market guaranteed by U.S. government agencies or instrumentalities.
</TABLE>

<PAGE>
AN INVESTMENT IN EITHER OF THE MONEY MARKET FUNDS IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. WHILE EACH MONEY MARKET FUND SEEKS TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE, THERE CAN BE NO ASSURANCE
THAT EITHER OF THE MONEY MARKET FUNDS WILL ACHIEVE THIS GOAL.
- --------------------------------------------------------------------------------

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, 1997 ("SAI"), WHICH HAS BEEN INCORPORATED BY REFERENCE
INTO THIS PROSPECTUS. TO OBTAIN A COPY WITHOUT CHARGE CALL 1-800-862-6668 OR
WRITE TO "HARTFORD FAMILY OF FUNDS, C/O INDIVIDUAL ANNUITY OPERATIONS," P.O. BOX
2999, HARTFORD, CT 06104-2999.
- --------------------------------------------------------------------------------

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.

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

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.
- --------------------------------------------------------------------------------
<PAGE>
2 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
HARTFORD MUTUAL FUNDS
TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Financial Highlights.................................................. 3
Introduction to the Hartford Mutual Funds............................. 15
Investment Objectives and Styles of the Funds......................... 15
Common Investment Policies and Risk Factors........................... 20
Management of the Funds............................................... 26
Administrative Services for the Funds................................. 28
Expenses of the Funds................................................. 28
Performance Related Information....................................... 29
Dividends............................................................. 29
Determination of Net Asset Value...................................... 29
Purchase of Fund Shares............................................... 30
Sale and Redemption of Shares......................................... 30
Federal Income Taxes.................................................. 30
Ownership and Capitalization of the Funds............................. 30
General Information................................................... 31
Appendix A: Description of Securities Ratings......................... 32
Appendix B: Credit Quality Distribution............................... 34
</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 and semi-annual reports to shareholders, which may be obtained without
charge by calling 1-800-862-6668.
<PAGE>
HARTFORD CAPITAL APPRECIATION FUND, INC. 3
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

The following information, insofar as it relates to each of the five years
in the period ended December 31, 1996, 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.

(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
12/31/96 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
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
AT BEGINNING
OF PERIOD...... $ 3.490 $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341 $ 1.482
NET INVESTMENT
INCOME......... 0.022 0.030 0.011 0.003 0.008 $ 0.021 $ 0.029 $ 0.023 $ 0.015 $ 0.025
NET REALIZED AND
UNREALIZED
GAINS (LOSSES)
ON
INVESTMENTS.... 0.655 0.785 0.070 0.526 0.388 0.898 (0.246) 0.376 0.337 (0.075)
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
TOTAL FROM
INVESTMENT
OPERATIONS..... 0.677 0.815 0.081 0.529 0.396 0.919 (0.217) 0.399 0.352 (0.050)
DIVIDENDS FROM
NET INVESTMENT
INCOME......... (0.025) (0.030) (0.011) (0.003) (0.008) (0.021) (0.029) (0.023) (0.015) (0.025)
DISTRIBUTION
FROM NET
REALIZED GAINS
ON
SECURITIES..... (0.228) (0.155) (0.262) (0.108) (0.361) 0.000 (0.065) (0.034) 0.000 (0.066)
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... (0.253) (0.185) (0.273) (0.111) (0.369) (0.021) (0.094) (0.057) (0.015) (0.091)
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
NET INCREASE
(DECREASE) IN
NET ASSETS..... 0.424 0.630 (0.192) 0.418 0.027 0.898 (0.311) 0.342 0.337 (0.141)
NET ASSET VALUE
AT END OF
PERIOD......... $ 3.914 $ 3.490 $ 2.860 $ 3.052 $ 2.634 $ 2.607 $ 1.709 $ 2.020 $ 1.678 $ 1.341
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------
---------- ---------- --------- --------- --------- -------- -------- -------- -------- --------

TOTAL RETURN.... 20.70% 30.25% 2.50% 20.80% 16.98% 53.99% (10.90)% 24.11% 26.37% (4.31)%
NET ASSETS (IN
THOUSANDS)..... $3,386,670 $2,157,892 $1,158,644 $778,904 $300,373 $158,046 $56,032 $59,922 $34,226 $26,123
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS......... 0.65% 0.68% 0.72% 0.76% 0.87% 0.92% 0.96% 0.94% 0.97% 1.01%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSETS......... 0.60% 0.95% 0.40% 0.12% 0.36% 0.92% 1.58% 1.25% 0.91% 1.27%
PORTFOLIO
TURNOVER
RATE........... 85.4% 78.6% 73.3% 91.4% 100.3% 107.2% 51.8% 35.0% 48.9% 68.7%
AVERAGE
COMMISSION
RATE*.......... $ 0.06650

</TABLE>

- ------------------------
* Not required for years prior to 1996.
<PAGE>
4 HARTFORD DIVIDEND & GROWTH FUND, INC.
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
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.

(FOR A SHARE OUTSTANDING
THROUGHOUT THE INDICATED PERIOD)
-----------------------------------
YEAR YEAR
ENDED ENDED 03/08/94-
12/31/96 12/31/95 12/31/94(A)
--------- --------- -----------
<S> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD............ $ 1.371 $ 0.994 $ 1.000
NET INVESTMENT INCOME............................. 0.034 0.033 0.024
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS...................................... 0.258 0.323 (0.005)
--------- --------- -----------
TOTAL FROM INVESTMENT OPERATIONS.................. 0.292 0.356 0.019
DIVIDENDS FROM NET INVESTMENT INCOME.............. (0.034) (0.033) (0.024)
DISTRIBUTION FROM NET REALIZED GAINS ON
SECURITIES....................................... (0.028) 0.000 (0.001)
RETURN OF CAPITAL................................. 0.000 0.000 0.000
--------- --------- -----------
TOTAL FROM DISTRIBUTIONS.......................... (0.062) (0.033) (0.025)
--------- --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............. 0.230 0.323 (0.006)
NET ASSET VALUE AT END OF PERIOD.................. $ 1.547 $ 1.817 $ 0.994
--------- --------- -----------
--------- --------- -----------
TOTAL RETURN...................................... 22.91% 36.37% 1.96%
NET ASSETS (IN THOUSANDS)......................... $879,980 $265,070 $55,066
RATIO OF OPERATING EXPENSES TO AVERAGE NET
ASSETS........................................... 0.73% 0.77% 0.83%*
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSETS........................................... 2.52% 2.91% 3.52%*
PORTFOLIO TURNOVER RATE........................... 56.9% 41.4% 27.8%
AVERAGE COMMISSION RATE**......................... $0.07150

</TABLE>

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

* Annualized. Management fees were waived until assets (excluding assets
contributed by companies affiliated with HL Advisors) reached $20 million.
The ratio of operating expenses to average net assets would have been higher
if management fees were not waived. The ratio of net investment income to
average net assets would have been lower if management fees were not waived.

** Not required for years prior to 1996.
<PAGE>
HARTFORD INDEX FUND, INC. 5
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

TOTAL RETURN............. 22.09% 36.55% 0.94% 9.12% 6.82% 29.53% (3.99)% 30.47% 16.35%
NET ASSETS (IN
THOUSANDS).............. $621,065 $318,253 $157,660 $140,396 $82,335 $47,770 $26,641 $19,456 $10,050
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS.................. 0.39% 0.39% 0.45% 0.49% 0.60% 0.67% 0.91% 1.10% 1.23%
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSETS.................. 2.07% 2.46% 2.50% 2.36% 2.48% 2.89% 3.27% 2.60% 3.29%
PORTFOLIO TURNOVER
RATE.................... 19.3% 1.5% 1.8% 0.8% 1.2% 6.7% 25.5% 12.9% 20.9%
AVERAGE COMMISSION
RATE**.................. $0.05000

<CAPTION>
05/01/87-
12/31/87(A)
-----------
<S> <C>
NET ASSET VALUE AT
BEGINNING
OF PERIOD............... $ 1.000
NET INVESTMENT INCOME.... 0.016
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS............. (0.144)
-----------
TOTAL FROM INVESTMENT
OPERATIONS.............. (0.128)
DIVIDENDS FROM NET
INVESTMENT INCOME....... (0.016)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES.............. (0.002)
RETURN OF CAPITAL........ 0.000
-----------
TOTAL FROM
DISTRIBUTIONS........... (0.018)
-----------
NET INCREASE (DECREASE)
IN NET ASSETS........... (0.146)
NET ASSET VALUE AT END
OF PERIOD............... $ 0.854
-----------
-----------
TOTAL RETURN............. (12.91)%
NET ASSETS (IN
THOUSANDS).............. $ 7,212
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS.................. 1.35%*
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSETS.................. 2.39%*
PORTFOLIO TURNOVER
RATE.................... 1.9%
AVERAGE COMMISSION
RATE**..................

</TABLE>

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

* Annualized.

** Not required for years prior to 1996.
<PAGE>
6 HARTFORD INTERNATIONAL OPPORTUNITIES FUND, INC.
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

(FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
---------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED 07/02/90-
12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90(A)
--------- --------- --------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD.................... $ 1.306 $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871 $ 1.000
NET INVESTMENT INCOME......... 0.023 0.020 0.016 0.009 0.013 0.011 0.015
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS.................. 0.140 0.141 (0.039) 0.298 (0.056) 0.102 (0.129)
--------- --------- --------- --------- -------- -------- -----------
TOTAL FROM INVESTMENT
OPERATIONS................... 0.163 0.161 (0.023) 0.307 (0.043) 0.113 (0.114)
DIVIDENDS FROM NET INVESTMENT
INCOME....................... (0.025) (0.020) (0.016) (0.009) (0.013) (0.011) (0.015)
DISTRIBUTION FROM NET REALIZED
GAINS ON SECURITIES.......... (0.037) (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 0.000
--------- --------- --------- --------- -------- -------- -----------
TOTAL FROM DISTRIBUTIONS...... (0.062) (0.031) (0.016) (0.009) (0.013) (0.011) (0.015)
--------- --------- --------- --------- -------- -------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS....................... 0.101 0.130 (0.039) 0.298 (0.056) 0.102 (0.129)
NET ASSET VALUE AT END OF
PERIOD....................... $ 1.407 $ 1.306 $ 1.176 $ 1.215 $ 0.917 $ 0.973 $ 0.871
--------- --------- --------- --------- -------- -------- -----------
--------- --------- --------- --------- -------- -------- -----------

TOTAL RETURN.................. 12.91% 13.93% (1.94)% 33.73% (4.43)% 13.00% (11.76)%
NET ASSETS (IN THOUSANDS)..... $996,543 $686,475 $563,765 $281,608 $47,560 $22,854 $ 9,352
RATIO OF OPERATING EXPENSES TO
AVERAGE NET ASSETS........... 0.79% 0.86% 0.85% 1.00% 1.23% 1.24% 1.04%*
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS........ 1.74% 1.60% 1.42% 0.84% 1.40% 1.17% 2.65%*
PORTFOLIO TURNOVER RATE....... 70.0% 55.6% 46.4% 31.8% 25.1% 24.7% 3.0%
AVERAGE COMMISSION RATE**..... $ .00446

</TABLE>

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

* Annualized.

** Not required for years prior to 1996.
<PAGE>
HARTFORD SMALL COMPANY FUND, INC. 7
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

(FOR A SHARE
OUTSTANDING THROUGHOUT
THE INDICATED PERIOD)
----------------------
08/09/96-
12/31/96(A)
----------------------
<S> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD............ $ 1.000
NET INVESTMENT INCOME............................. 0.002
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS...................................... 0.069
--------
TOTAL FROM INVESTMENT OPERATIONS.................. 0.071
DIVIDENDS FROM NET INVESTMENT INCOME.............. (0.002)
DISTRIBUTION FROM NET REALIZED GAINS ON
SECURITIES....................................... 0.000
RETURN OF CAPITAL................................. 0.000
--------
TOTAL FROM DISTRIBUTIONS.......................... (0.002)
--------
NET INCREASE (DECREASE) IN NET ASSETS............. 0.069
NET ASSET VALUE AT END OF PERIOD.................. $ 1.069
--------
--------

TOTAL RETURN...................................... 18.12%*
NET ASSETS (IN THOUSANDS)......................... $42,812
RATIO OF OPERATING EXPENSES TO AVERAGE NET
ASSETS........................................... 0.72%*
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSETS........................................... 0.31%*
PORTFOLIO TURNOVER RATE........................... 31.8%
AVERAGE COMMISSION RATE........................... $0.02900

</TABLE>

- ------------------------------
(a) The Fund was declared effective by the Securities and Exchange Commission
on August 9, 1996.

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

(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
12/31/96 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
---------- ---------- ----------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
AT BEGINNING
OF PERIOD..... $ 3.527 $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977 $ 2.177
NET INVESTMENT
INCOME........ 0.060 0.070 0.061 0.053 0.051 $ 0.059 $ 0.070 $ 0.065 $ 0.045 $ 0.045
NET REALIZED
AND UNREALIZED
GAINS (LOSSES)
ON
INVESTMENTS... 0.763 0.840 (0.111) 0.339 0.219 0.532 (0.179) 0.522 0.327 0.084
---------- ---------- ----------- --------- --------- --------- --------- --------- --------- ---------
TOTAL FROM
INVESTMENT
OPERATIONS.... 0.823 0.910 (0.050) 0.392 0.270 0.591 (0.109) 0.587 0.372 0.129
DIVIDENDS FROM
NET INVESTMENT
INCOME........ (0.059) (0.070) (0.061) (0.053) (0.051) (0.059) (0.070) (0.065) (0.045) (0.045)
DISTRIBUTION
FROM NET
REALIZED GAINS
ON
SECURITIES.... (0.148) (0.114) (0.187) (0.205) (0.181) (0.057) (0.144) (0.051) 0.000 (0.284)
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... (0.207) (0.184) (0.248) (0.258) (0.232) (0.116) (0.214) (0.116) (0.045) (0.329)
---------- ---------- ----------- --------- --------- --------- --------- --------- --------- ---------
NET INCREASE
(DECREASE) IN
NET ASSETS.... 0.616 0.726 (0.298) 0.134 0.038 0.475 (0.323) 0.471 0.327 (0.200)
NET ASSET VALUE
AT END OF
PERIOD........ $ 4.143 $ 3.527 $ 2.801 $ 3.099 $ 2.965 $ 2.927 $ 2.452 $ 2.775 $ 2.304 $ 1.977
---------- ---------- ----------- --------- --------- --------- --------- --------- --------- ---------
---------- ---------- ----------- --------- --------- --------- --------- --------- --------- ---------

TOTAL RETURN... 24.33% 34.10% (1.89)% 14.34% 10.04% 24.58% (3.87)% 26.02% 19.00% 5.41%
NET ASSETS (IN
THOUSANDS).... $2,994,209 $1,876,884 $ 1,163,158 $968,425 $569,903 $406,489 $257,553 $266,756 $187,511 $170,319
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS........ 0.46% 0.48% 0.50% 0.53% 0.57% 0.60% 0.66% 0.64% 0.65% 0.65%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSETS........ 1.59% 2.23% 2.17% 1.86% 1.90% 2.14% 2.76% 2.31% 2.08% 1.83%
PORTFOLIO
TURNOVER
RATE.......... 42.3% 52.9% 63.8% 69.0% 69.8% 24.3% 20.2% 24.4% 22.9% 27.0%
AVERAGE
COMMISSION
RATE*......... $ 0.04900

</TABLE>

- ------------------------------
* Not required for years prior to 1996.
<PAGE>
HARTFORD ADVISERS FUND, INC. 9
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

(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
12/31/96 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
---------- ---------- ---------- ---------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
AT BEGINNING
OF PERIOD..... $ 1.958 $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213 $ 1.227
NET INVESTMENT
INCOME........ 0.059 0.064 0.054 0.050 0.059 $ 0.063 $ 0.074 $ 0.062 $ 0.051 $ 0.051
NET REALIZED
AND UNREALIZED
GAINS (LOSSES)
ON
INVESTMENTS... 0.255 0.377 (0.100) 0.145 0.070 0.223 (0.059) 0.221 0.119 0.025
---------- ---------- ---------- ---------- --------- --------- --------- --------- --------- ---------
TOTAL FROM
INVESTMENT
OPERATIONS.... 0.314 0.441 (0.046) 0.195 0.129 0.286 0.015 0.283 0.170 0.076
DIVIDENDS FROM
NET INVESTMENT
INCOME........ (0.059) (0.064) (0.054) (0.050) (0.059) (0.063) (0.074) (0.062) (0.051) (0.051)
DISTRIBUTION
FROM NET
REALIZED GAINS
ON
SECURITIES.... (0.044) (0.019) (0.052) (0.069) (0.043) (0.010) (0.048) (0.010) 0.000 (0.039)
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... (0.103) (0.083) (0.106) (0.119) (0.102) (0.073) (0.122) (0.072) (0.051) (0.090)
---------- ---------- ---------- ---------- --------- --------- --------- --------- --------- ---------
NET INCREASE
(DECREASE) IN
NET ASSETS.... 0.211 0.358 (0.152) 0.076 0.027 0.213 (0.107) 0.211 0.119 (0.014)
NET ASSET VALUE
AT END OF
PERIOD........ $ 2.169 $ 1.958 $ 1.600 $ 1.752 $ 1.676 $ 1.649 $ 1.436 $ 1.543 $ 1.332 $ 1.213
---------- ---------- ---------- ---------- --------- --------- --------- --------- --------- ---------
---------- ---------- ---------- ---------- --------- --------- --------- --------- --------- ---------

TOTAL RETURN... 16.62% 28.34% (2.74)% 12.25% 8.30% 20.33% 1.26% 21.72% 14.24% 6.08%
NET ASSETS (IN
THOUSANDS).... $5,879,529 $4,262,769 $3,034,034 $2,426,550 $985,747 $631,424 $416,839 $371,917 $264,750 $239,704
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS........ 0.63% 0.65% 0.65% 0.69% 0.78% 0.81% 0.89% 0.89% 0.90% 0.91%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSETS........ 2.92% 3.57% 3.34% 3.07% 3.55% 4.13% 4.65% 4.14% 3.93% 4.00%
PORTFOLIO
TURNOVER
RATE.......... 53.8% 63.5% 60.0% 55.3% 72.8% 42.1% 35.7% 33.5% 30.9% 28.3%
AVERAGE
COMMISSION
RATE*......... $ 0.04870

</TABLE>

- ----------------------------------
* Not required for years prior to 1996.
<PAGE>
10 HARTFORD INTERNATIONAL ADVISERS FUND, INC.
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

(FOR A SHARE
OUTSTANDING THROUGHOUT
THE INDICATED PERIOD)
---------------------------
YEAR
ENDED 03/01/95-
12/31/96 12/31/95(A)
---------- ------------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD............ $ 1.109 $ 1.000
NET INVESTMENT INCOME............................. 0.040 0.030
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS...................................... 0.093 0.126
-------- -------
TOTAL FROM INVESTMENT OPERATIONS.................. 0.133 0.156
DIVIDENDS FROM NET INVESTMENT INCOME.............. (0.051) (0.030)
DISTRIBUTION FROM NET REALIZED GAINS ON
SECURITIES....................................... (0.024) (0.017)
RETURN OF CAPITAL................................. 0.000 0.000
-------- -------
TOTAL FROM DISTRIBUTIONS.......................... (0.075) (0.047)
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS............. 0.058 0.109
NET ASSET VALUE AT END OF PERIOD.................. $ 1.167 $ 1.109
-------- -------
-------- -------

TOTAL RETURN...................................... 12.25% 15.84%
NET ASSETS (IN THOUSANDS)......................... $104,486 $31,264
RATIO OF OPERATING EXPENSES TO AVERAGE NET
ASSETS........................................... 0.96% 0.65%*
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET
ASSETS........................................... 3.24% 3.36%*
PORTFOLIO TURNOVER RATE........................... 95.2% 47.2%
AVERAGE COMMISSION RATE**......................... $0.00640

</TABLE>

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

** Not required for years prior to 1996.
<PAGE>
HARTFORD BOND FUND, INC. 11
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

(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
12/31/96 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
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING
OF PERIOD............... $ 1.028 $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952 $ 1.033
NET INVESTMENT INCOME.... 0.064 0.064 0.060 0.062 0.074 $ 0.072 $ 0.075 $ 0.079 $ 0.077 $ 0.080
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS............. (0.029) 0.102 (0.100) 0.039 (0.019) 0.082 0.003 0.031 (0.007) (0.081)
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS.............. 0.035 0.166 (0.040) 0.101 0.055 0.154 0.078 0.110 0.070 (0.001)
DIVIDENDS FROM NET
INVESTMENT
INCOME.................. (0.063) (0.064) (0.060) (0.062) (0.074) (0.072) (0.075) (0.079) (0.077) (0.080)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES.............. 0.000 0.000 (0.018) (0.019) (0.018) 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........... (0.063) (0.064) (0.078) (0.081) (0.092) (0.072) (0.075) (0.079) (0.077) (0.080)
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE)
IN NET ASSETS........... (0.028) 0.102 (0.118) 0.020 (0.037) 0.082 0.003 0.031 (0.007) (0.081)
NET ASSET VALUE AT END OF
PERIOD.................. $ 1.000 $ 1.028 $ 0.926 $ 1.044 $ 1.024 $ 1.061 $ 0.979 $ 0.976 $ 0.945 $ 0.952
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------
--------- --------- --------- --------- -------- -------- -------- -------- -------- --------

TOTAL RETURN............. 3.54% 18.49% (3.95)% 10.24% 5.53% 16.43% 8.39% 12.10% 7.60% (0.01)%
NET ASSETS (IN
THOUSANDS).............. $402,548 $342,495 $247,458 $239,602 $128,538 $97,377 $70,915 $61,602 $54,215 $50,037
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS.................. 0.52% 0.53% 0.55% 0.57% 0.64% 0.66% 0.67% 0.67% 0.69% 0.69%
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSETS.................. 6.37% 6.51% 6.23% 5.93% 7.21% 7.29% 7.82% 8.09% 8.12% 8.15%
PORTFOLIO TURNOVER
RATE.................... 212.0% 215.0% 328.8% 494.3% 434.1% 337.0% 161.6% 225.0% 230.3% 53.3%
CURRENT YIELD*........... 6.25% 6.46% 7.19% 4.93% 6.48% 6.62% 8.17% 7.92% 9.15% 8.67%

</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

(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
12/31/96 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
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING
OF PERIOD.............. $ 1.071 $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011 $ 1.087
NET INVESTMENT INCOME... 0.069 0.068 0.068 0.071 0.086 $ 0.088 $ 0.087 $ 0.088 $ 0.087 $ 0.093
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON
INVESTMENTS............ (0.018) 0.087 (0.086) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.067)
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
TOTAL FROM INVESTMENT
OPERATIONS............. 0.051 0.155 (0.018) 0.067 0.050 0.149 0.096 0.127 0.082 0.026
DIVIDENDS FROM NET
INVESTMENT INCOME...... (0.066) (0.068) (0.068) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.093)
DISTRIBUTION FROM NET
REALIZED GAINS ON
SECURITIES............. 0.000 0.000 (0.005) 0.000 0.000 0.000 0.000 0.000 0.000 (0.009)
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.......... (0.066) (0.068) (0.073) (0.071) (0.086) (0.088) (0.087) (0.088) (0.087) (0.102)
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
NET INCREASE (DECREASE)
IN NET ASSETS.......... (0.015) 0.087 (0.091) (0.004) (0.036) 0.061 0.009 0.039 (0.005) (0.076)
NET ASSET VALUE AT END
OF PERIOD.............. $ 1.056 $ 1.071 $ 0.984 $ 1.075 $ 1.079 $ 1.115 $ 1.054 $ 1.045 $ 1.006 $ 1.011
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------
--------- --------- --------- --------- --------- --------- -------- -------- -------- ---------

TOTAL RETURN............ 4.99% 16.17% (1.61)% 6.31% 4.64% 14.71% 9.70% 13.13% 8.38% 2.64%
NET ASSETS (IN
THOUSANDS)............. $325,495 $327,565 $304,147 $365,198 $258,711 $162,484 $105,620 $85,908 $85,075 $ 84,075
RATIO OF OPERATING
EXPENSES TO AVERAGE NET
ASSETS................. 0.45% 0.47% 0.48% 0.49% 0.56% 0.58% 0.58% 0.58% 0.60% 0.61%
RATIO OF NET INVESTMENT
INCOME TO AVERAGE NET
ASSETS................. 6.67% 6.50% 6.65% 6.49% 7.96% 8.25% 8.42% 8.64% 8.56% 9.02%
PORTFOLIO TURNOVER
RATE................... 200.0% 489.4% 365.7% 183.4% 277.2% 152.2% 85.6% 91.3% 185.0% 143.6%
CURRENT YIELD*.......... 6.67% 6.90% 7.84% 5.73% 7.51% 8.16% 8.21% 8.28% 9.12% 9.41%

</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

(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
12/31/96 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
--------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<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............... 0.050 0.056 0.039 0.029 0.036 $ 0.059 $ 0.078 $ 0.088 $ 0.071 $ 0.063
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........... 0.050 0.056 0.039 0.029 0.036 0.059 0.078 0.088 0.071 0.063
DIVIDENDS FROM NET
INVESTMENT INCOME.... (0.050) (0.056) (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063)
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........ (0.050) (0.056) (0.039) (0.029) (0.036) (0.059) (0.078) (0.088) (0.071) (0.063)
--------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
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.......... 5.09% 5.74% 3.95% 2.94% 3.63% 6.01% 8.09% 9.10% 7.40% 6.49%
NET ASSETS (IN
THOUSANDS)........... $542,586 $339,709 $321,465 $234,088 $190,246 $177,483 $194,462 $129,808 $127,346 $104,002
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS........... 0.44% 0.45% 0.47% 0.48% 0.53% 0.54% 0.57% 0.58% 0.58% 0.58%
RATIO OF NET
INVESTMENT INCOME TO
AVERAGE NET ASSETS... 5.04% 5.57% 3.99% 2.91% 3.60% 5.88% 7.80% 8.75% 7.19% 6.36%
PORTFOLIO TURNOVER
RATE................. -- -- -- -- -- -- -- -- -- --
CURRENT YIELD*........ 5.1% 5.40% 5.43% 2.89% 3.09% 4.66% 7.73% 8.21% 8.49% 7.17%
EFFECTIVE YIELD*...... 5.23% 5.54% 5.58% 2.93% 3.14% 4.79% 8.03% 8.55% 8.85% 7.43%

</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

(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
12/31/96 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
----------- -------- ----------- ----------- -------- -------- -------- ----------- ----------- -----------
<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....... 0.048 0.054 0.036 0.027 0.032 $ 0.055 $ 0.073 $ 0.081 $ 0.067 $ 0.056
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... 0.048 0.054 0.036 0.027 0.032 0.055 0.073 0.081 0.067 0.056
DIVIDENDS FROM
NET
INVESTMENT
INCOME....... (0.048) (0.054) (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056)
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...... (0.048) (0.054) (0.036) (0.027) (0.032) (0.055) (0.073) (0.081) (0.067) (0.056)
----------- -------- ----------- ----------- -------- -------- -------- ----------- ----------- -----------
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....... 4.87% 5.52% 3.67% 2.68% 3.22% 5.61% 7.52% 8.43% 6.92% 5.75%
NET ASSETS (IN
THOUSANDS)... $11,730 $10,070 $ 9,619 $ 9,449 $10,525 $11,257 $10,496 $ 7,814 $ 7,262 $ 5,688
RATIO OF
OPERATING
EXPENSES TO
AVERAGE NET
ASSETS....... 0.58% 0.57% 0.58% 0.58% 0.75% 0.73% 0.73% 0.77% 0.75% 0.66%
RATIO OF NET
INVESTMENT
INCOME TO
AVERAGE NET
ASSETS....... 4.77% 5.38% 3.63% 2.65% 3.19% 5.48% 7.29% 8.14% 6.76% 5.57%
PORTFOLIO
TURNOVER
RATE......... -- -- -- -- -- -- -- -- -- --
CURRENT
YIELD*....... 4.88% 5.47% 5.14% 2.67% 2.69% 4.24% 7.59% 7.53% 8.27% 6.17%
EFFECTIVE
YIELD*....... 4.995% 5.62% 5.27% 2.71% 2.72% 4.31% 7.88% 7.82% 8.62% 6.36%

</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
- --------------------------------------------------------------------------------

- -------------------------------------------
INTRODUCTION TO THE
HARTFORD MUTUAL FUNDS

The Funds are made available to serve as the underlying investment vehicles
for certain variable annuity and variable life insurance separate accounts of
The Hartford Life Insurance Companies. Each Fund is an open-end management
investment company, commonly known as a mutual fund, organized as a Maryland
corporation. Each Fund has different investment objectives, styles and policies.
These differences affect the types of securities in which each fund may invest
and, therefore, the potential return of each Fund and the associated risks.
There is no assurance, however, that any Fund will meet its investment goals.
Whether an investment in a particular Fund is appropriate for you depends on
your investment goals, including the return you seek, the expected duration of
your investment and the level of risk you are willing to bear.

HL Investment Advisors, Inc. ("HL Advisors") is the investment manager to
each Fund. In addition, under HL Advisors' general management, Wellington
Management Company, LLP ("Wellington Management") serves as sub-adviser to the
Capital Appreciation Fund, Dividend and Growth Fund, International Advisers
Fund, International Opportunities Fund, Small Company Fund, Stock Fund, and
Advisers Fund. In addition, under HL Advisors' general management, the Hartford
Investment Management Company ("HIMCO") provides investment management services
for the Index Fund, Bond Fund, Mortgage Securities Fund, U.S. Government Money
Market Fund and HVA Money Market Fund.

HL Advisors was incorporated in Connecticut in 1981 and is a majority-owned
indirect subsidiary of The Hartford Financial Services Group, Inc. ("The
Hartford"), a Connecticut insurance holding company with over $100 billion in
assets. Wellington Management, a Massachusetts limited liability partnership, is
a professional investment counseling firm that provides services to investment
companies, employee benefit plans, endowments, foundations and other
institutions and individuals. Wellington Management and its predecessor
organizations have provided investment advisory services since 1928. HIMCO is a
professional money management firm that provides services to investment
companies, employee benefit plans and its affiliated insurance companies. HIMCO
was incorporated in 1996 and is a wholly-owned subsidiary of The Hartford. As of
December 31, 1996, HL Advisors, HIMCO and their affiliates had investment
management authority with respect to approximately $47 billion of assets for
various clients. As of the same date, Wellington Management had investment
management authority with respect to approximately $133 billion of assets for
various clients.

- ---------------------------------------------------
INVESTMENT OBJECTIVES AND
STYLES 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 and certain other
investment restrictions enumerated in detail in the SAI are considered
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 SAI for a complete
listing of investment restrictions. Stated below is the investment objective and
investment style for each Fund. For a description of each Fund's investment
policies and risk factors, see "Common Investment Policies and Risk Factors."

- ---------------------------------------------------
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 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 STYLE.

The Capital Appreciation Fund invests in a diversified portfolio of
primarily equity securities. Wellington Management 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. Small and medium sized 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. Up to 20% of the Capital Appreciation
<PAGE>
16 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

Fund's total assets may be invested in securities of non-U.S. companies.

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

INVESTMENT STYLE.

The Dividend and Growth Fund invests in a diversified portfolio of primarily
equity securities that typically have above average income yield and whose
prospects for capital appreciation are considered favorable by Wellington
Management. Under normal market and economic conditions at least 65% of the
Dividend and Growth Fund's total assets are invested in dividend paying equity
securities. Wellington Management 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,
Wellington Management evaluates a company's ability to sustain and potentially
increase its dividend. The Dividend and Growth Fund's portfolio is broadly
diversified by industry and company. Up to 20% of the Dividend and Growth Fund's
total assets may be invested in securities of non-U.S. companies.

- ---------------------------------------------------
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 STYLE.

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 generally invests in no fewer than 499 stocks. HIMCO selects
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 is comprised of 500 selected common stocks, most of which are
listed on the New York Stock Exchange. Standard & Poor's Corporation ("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, 1996, approximately
fifty percent of the Index was composed of the fifty-six largest companies, the
five largest being General Electric Co., Coca-Cola Company, Exxon Corp., Intel
Corp. and Microsoft Corp.

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 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 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
<PAGE>
HARTFORD MUTUAL FUNDS 17
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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 long-term total rate of return
consistent with prudent investment risk through investment primarily in equity
securities issued by non-U.S. companies.

INVESTMENT STYLE.

The International Opportunities Fund invests in a diversified portfolio of
primarily equity securities covering a broad range of countries, industries, and
companies. 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 in non-U.S. markets. Under normal market
conditions, at least 65% of the International Opportunities Fund's total assets
are invested in equity securities issued by non-U.S. companies. Wellington
Management uses a three-pronged approach. First, Wellington Management
determines the relative attractiveness of the many countries in which the
International Opportunities Fund may invest based upon the economic and
political environment of each country. Second, Wellington Management evaluates
industries on a global basis to determine which industries offer the most value
and potential for capital appreciation given current and projected global and
local economic and market conditions. Finally, Wellington Management conducts
fundamental research on individual companies and considers companies for
inclusion in the International Opportunities Fund's portfolio that are typically
larger, high quality companies that operate in established markets. 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, Wellington Management 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. The International Opportunities Fund may also invest on
a limited basis in smaller companies and less developed markets. The
International Opportunities Fund anticipates that, under normal market
conditions, it will diversify its investments in at least three countries other
than the United States. The International Opportunities Fund will be subject to
certain risks because it invests primarily in securities issued by non-U.S.
companies.

- ---------------------------------------------------
HARTFORD SMALL COMPANY FUND, INC.

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

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 STYLE.

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"). Wellington Management 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 Wellington Management so as to maintain broad industry
diversification. In selecting investments, Wellington Management 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. Up to 20% of the Small Company Fund's total assets may be
invested in securities of non-U.S. companies. Investing in Small Capitalization
Securities involves special risks. See "Common Investment Policies and Risk
Factors -- Small Capitalization Securities."
<PAGE>
18 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

- ---------------------------------------------------
HARTFORD STOCK FUND, INC.

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

INVESTMENT OBJECTIVE.

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

INVESTMENT STYLE.

Under normal market and economic conditions at least 65% of the Stock Fund's
total assets are invested in stocks. The Stock Fund invests in a diversified
portfolio of primarily equity securities using a two-tiered investment approach.
First, under what is sometimes referred to as a "top down" approach, Wellington
Management 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,
Wellington Management 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.
Up to 20% of the Stock Fund's total assets may be invested in securities of
non-U.S. companies.

- ---------------------------------------------------
HARTFORD ADVISERS FUND, INC.

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

INVESTMENT OBJECTIVE.

The Advisers Fund seeks 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 STYLE.

The Advisers Fund seeks to achieve its objective through the active
allocation of its assets among the asset categories of equity securities, debt
securities and money market instruments based upon Wellington Management'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. Wellington Management bases its asset
allocation decisions on fundamental analysis and does 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
that may be 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." The debt securities in which the Advisers Fund may
invest include securities issued or guaranteed by the U.S. Government and its
agencies or instrumentalities, securities rated investment grade, or if unrated,
are deemed by Wellington Management to be of comparable quality, and with
respect to 5% of the Advisers Fund's assets, securities rated below investment
grade which are known as high yield-high risk securities or junk bonds. The
money market instruments in which the Adviser's Fund may invest are described
under "Common Investment Policies and Risk Factors -- Money Market Instruments
and Temporary Investment Strategies." Up to 20% of the Advisers Fund's total
assets may be invested in securities of non-U.S. companies.

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

INVESTMENT STYLE.

The International Advisers Fund seeks to achieve its objective through the
active allocation of its assets among the asset categories of equity securities,
debt securities and money market instruments based upon Wellington Management'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. Wellington Management bases its asset
allocation decisions on fundamental analysis and does 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
International Advisers Fund will normally have some portion of its assets
invested in each asset category. The International
<PAGE>
HARTFORD MUTUAL FUNDS 19
- --------------------------------------------------------------------------------

Advisers Fund does not have percentage limitations on the amount that may be
allocated to each asset category. The International Advisers Fund's investments
in equity securities are substantially similar to the equity securities
investments permitted for the International Opportunities Fund. See "Hartford
International Opportunities Fund, Inc. -- Investment Style."

The International Advisers Fund consists 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 in at least three countries other than the United
States.

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.

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 Investors Service, Inc. ("Moody's") or
S&P, or, if unrated, which are determined by Wellington Management to be of
comparable quality. In addition, the International Advisers Fund may invest up
to 15% of its total assets in high yield-high risk securities, commonly known as
"junk bonds." Such securities may be rated as low as "C" by Moody's and by S&P,
or, if unrated, are of comparable quality as determined by Wellington
Management.

- ---------------------------------------------------
HARTFORD BOND FUND, INC.

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

INVESTMENT OBJECTIVE.

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

INVESTMENT STYLE.

The Bond Fund is comprised of a diversified portfolio of fixed-income
securities. Under normal circumstances at least 80% of the Bond Fund's portfolio
is invested in investment grade bond-type securities. Up to 20% of the Bond Fund
may be invested in securities rated in the highest category of below investment
grade bonds ("Ba" by Moody's or "BB" by S&P, or securities which, if unrated,
are determined by HIMCO to be of comparable quality. Securities rated below
investment grade are commonly referred to as "high yield-high risk securities"
or "junk bonds". No investments are made in debt securities rated below "Ba" and
"BB", or if unrated, determined to be of comparable quality by HIMCO.
Investments in securities rated in the highest category below investment grade
may offer an attractive risk/reward trade-off and investment in this sector may
enhance the current yield and total return of the bond fund over time. Investing
in securities within this rating category combined with the investment grade
portion of the portfolio is designed to provide investors with both a high level
of current income and attractive relative total returns.

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. Under normal circumstances, up to 20%
of the Bond Fund's total assets may be invested in securities of non-U.S.
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 STYLE.

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 HIMCO. At times the Mortgage Securities Fund may invest in
mortgage-related securities not meeting the foregoing investment quality
standards when HIMCO 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.

- ---------------------------------------------------
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.
<PAGE>
20 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE.

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

INVESTMENT STYLE.

The U.S. Government Money Market Fund seeks to maintain a stable net asset
value of $1.00 per share; however, there can be no assurance that the Fund will
achieve this goal. The U.S. Government Money Market Fund's portfolio will
consist entirely of cash, cash equivalents and high quality debt securities as
permitted under Rule 2a-7 of the Investment Company Act of 1940 (the "1940
Act"). Each investment will have 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 HIMCO's appraisal of money market conditions and will not
exceed 90 days. All securities purchased by the U.S. Government Money Market
Fund will be U.S. dollar denominated.

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.

INVESTMENT OBJECTIVE.

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

INVESTMENT STYLE.

The Money Market Fund seeks to maintain a stable net asset value of $1.00
per share; however, there can be no assurance that the Fund will achieve this
goal. The Money Market Fund's portfolio will consist entirely of cash, cash
equivalents and high quality debt securities as permitted under Rule 2a-7 of the
Investment Company Act of 1940 (the "1940 Act"). Each investment will have 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 HIMCO's
appraisal of money market conditions and will not exceed 90 days. All securities
purchased by the Money Market Fund will be U.S. dollar denominated.

- ---------------------------------------------------
COMMON INVESTMENT POLICIES
AND RISK FACTORS

- --------------------------------
MONEY MARKET INSTRUMENTS AND
TEMPORARY INVESTMENT STRATEGIES

In addition to the Money Market Fund and the U.S. Government Money Market
Fund, which may invest in cash, cash equivalents and money market instruments at
any time, all other Funds may hold cash or cash equivalents and invest in high
quality money market instruments under appropriate circumstances as determined
by HIMCO or Wellington Management. Such Funds may invest up to 100 % of their
assets in cash, cash equivalents or money market instruments only for temporary
defensive purposes.

Money market instruments include: (1) banker's acceptances; (2) obligations
of governments (whether U.S. or non-U.S.) and their agencies and
instrumentalities; (3) short-term corporate obligations, including commercial
paper, notes, and bonds; (4) other short-term debt obligations; (5) 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; (6) asset-backed securities; and (7) repurchase agreements.

- ---------------------------------------------------
REPURCHASE AGREEMENTS

Each Fund is permitted to enter into fully collateralized repurchase
agreements. 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 would be in excess of the purchase price, reflecting an agreed
upon market interest rate. Delays or losses could result if the other party to
the agreement defaults or becomes insolvent. The Fund's Board of Directors has
established standards for evaluation of the creditworthiness of the banks and
securities dealers with which the Funds may engage in repurchase agreements and
monitors on a quarterly basis HIMCO'S and Wellington Management's compliance
with such standards. Presently, each Fund may enter into repurchase agreements
only with commercial banks with at least $500 million in capital and $1 billion
in assets or with recognized government securities dealers with a minimum net
capital of $100 million.

- ---------------------------------------------------
REVERSE REPURCHASE AGREEMENTS

Each Fund may also enter into reverse repurchase agreements. Reverse
repurchase agreements involve sales by a Fund of portfolio assets concurrently
with an agreement by a Fund to repurchase the same assets at a later date at a
<PAGE>
HARTFORD MUTUAL FUNDS 21
- --------------------------------------------------------------------------------

fixed price. Reverse repurchase agreements carry the risk that the market value
of the securities which a Fund is obligated to repurchase may decline below the
repurchase price. A reverse repurchase agreement is viewed as a collateralized
borrowing by a Fund. Borrowing magnifies the potential for gain or loss on the
portfolio securities of a Fund and, therefore, increases the possibility of
fluctuation in a Fund's net asset value. A Fund will establish a segregated
account with the Fund's custodian bank in which a Fund will maintain liquid
assets equal in value to a Fund's obligations in respect of reverse repurchase
agreements. As a non-fundamental policy, a Fund will not enter into reverse
repurchase transactions if the combination of all borrowings from banks and the
value of all reverse repurchase agreements for the particular Fund equals more
than 33 1/3% of the value of the Fund's total assets.

- ---------------------------------------------------
DEBT SECURITIES

Each Fund is permitted to invest in debt securities including: (1)
securities issued or guaranteed as to principal or interest by the U.S.
Government, its agencies or instrumentalities; (2) debt securities issued or
guaranteed by U.S. corporations or other issuers (including foreign governments
or corporations); (3) asset-backed securities (International Opportunities Fund,
International Advisers Fund, Advisers Fund, Bond Fund, Mortgage Securities Fund
and Money Market Fund only); (4) mortgage-related securities, including
collateralized mortgage obligations ("CMO's") (International Opportunities Fund,
International Advisers Fund, Advisers Fund, Bond Fund and Mortgage Securities
Fund only); and (5) 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.

- ---------------------------------------------------
INVESTMENT GRADE DEBT SECURITIES

Each Fund is permitted to invest in debt securities rated within the four
highest rating categories (i.e., Aaa, Aa, A or Baa by Moody's or AAA, AA, A or
BBB by S&P), or, if unrated, securities of comparable quality as determined by
HIMCO or Wellington Management. These securities are generally referred to as
"investment grade securities." Each rating category has within it different
gradations or sub-categories. If a Fund is authorized to invest in a certain
rating category, the Fund is also permitted to invest in any of the
sub-categories or gradations within that rating category. If a security is
downgraded to a rating category which does not qualify for investment, HIMCO or
Wellington Management will use its discretion on whether to hold or sell based
upon its opinion on the best method to maximize value for shareholders over the
long term. 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 HIMCO or Wellington Management) are viewed as having 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.

- ---------------------------------------------------
HIGH YIELD-HIGH RISK DEBT SECURITIES

The Capital Appreciation Fund, Advisers Fund and International Opportunities
Fund may invest up to 5% of their assets and the International Advisers Fund may
invest up to 15% of its assets in high yield debt securities (i.e., rated as low
as "C" by Moody's or S&P, and unrated securities of comparable quality as
determined by Wellington Management). The Bond Fund may invest up to 20% of its
assets in securities rated in the highest level below investment grade ("Ba" by
Moody's or "BB" by S&P) or if unrated, determined to be of comparable quality by
HIMCO. Securities rated below investment grade are commonly referred to as "high
yield-high risk securities" or "junk bonds". Each rating category has within it
different gradations or sub-categories. If a Fund is authorized to invest in a
certain rating category, the Fund is also permitted to invest in any of the
sub-categories or gradations within that rating category. If a security is
downgraded to a rating category which does not qualify for investment, HIMCO or
Wellington Management will use its discretion on whether to hold or sell based
upon its opinion on the best method to maximize value for shareholders over the
long term. 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 are
set forth in Appendix A. High yield- high risk 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.

- ---------------------------------------------------
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES

The Advisers Fund, International Advisers Fund, International Opportunities
Fund, Bond Fund and Mortgage Securities Fund may invest in mortgage-backed
securities and the Advisers Fund, International Advisers Fund, International
Opportunities Fund, Bond Fund, Mortgage Securities Fund and Money Market Fund
may invest in asset-backed securities. Mortgage-backed securities represent a
participation in, or are secured by, mortgage loans and include securities
issued or guaranteed by the U.S. Government or one of its agencies or
instrumentalities; securities issued by private issuers that represent an
interest in, or are collateralized by, mortgage-backed securities issued or
guaranteed by the U.S. Government or one or its agencies or instrumentalities;
or securities issued by private issuers that
<PAGE>
22 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

represent an interest in or are collateralized by mortgage loans or
mortgage-backed securities without a government guarantee but usually having
some form of private credit enhancement. Asset-backed securities are structured
like mortgage-backed securities, but instead of mortgage loans or interests in
mortgage loans, the underlying assets may include motor vehicle installment
sales or installment loan contracts, leases of various types of real and
personal property, and receivables from credit card agreements.

Due to the risk of prepayment, especially when interest rates decline,
mortgage-backed and asset-backed securities are less effective than other types
of securities as a means of "locking in" attractive long-term interest rates
and, as a result, may have less potential for capital appreciation during
periods of declining interest rates than other securities of comparable
maturities. The ability of an issuer of asset-backed securities to enforce its
security interest in the underlying assets may be limited.

- ---------------------------------------------------
EQUITY SECURITIES

All Funds except the Bond Fund, Mortgage Securities Fund, U.S. Government
Money Market Fund and Money Market Fund may invest in equity securities
including common stocks, preferred stocks, convertible preferred stock and
rights to acquire such securities. In addition, these Funds may invest in
securities such as bonds, debentures and corporate notes which are convertible
into common stock at the option of the holder. 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.

- ---------------------------------------------------
SMALL CAPITALIZATION SECURITIES

All Funds except the Bond Fund, Mortgage Securities Fund, U.S. Government
Money Market Fund and 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.

- ---------------------------------------------------
NON-U.S. SECURITIES

Under normal circumstances the International Opportunities Fund and
International Advisers Fund intend to invest at least 65% of their assets in
securities issued by non-U.S. companies ("non- U.S. securities"). In addition,
the International Opportunities Fund and International Advisers Fund may invest
in commingled pools offered by non-U.S. banks. Each other Fund, except the
Mortgage Securities Fund and the U.S. Government Money Market Fund, is permitted
to invest up to 20% of its assets, and the Money Market Fund is permitted to
invest up to 25% of its assets, in non-U.S. securities. The Bond Fund intends to
purchase securities denominated in U.S. dollars, or if not so denominated, to
use currency transactions to reflect U.S. dollar valuation at the time of
purchase or while the security is held by the Fund. Each Fund except the Bond
Fund, U.S. Government Money Market Fund and Money Market Fund may invest in
American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs").
ADRs are certificates issued by a U.S. bank or trust company and represent the
right to receive non-U.S. securities. 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.

When selecting non-U.S. securities HIMCO or Wellington Management will
evaluate the economic and political climate and the principal securities markets
of the country in which the company is located. Investing in non-U.S. securities
involves considerations and potential risks not typically associated with
investing in securities 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.
securities are affected by changes in currency rates or exchange control
regulations, restrictions or prohibitions 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. Although the International Opportunities Fund and International
Advisers Fund will focus on companies that operate
<PAGE>
HARTFORD MUTUAL FUNDS 23
- --------------------------------------------------------------------------------

in established markets, from time to time the Funds may invest up to 25% of
their assets in companies located in emerging countries. Compared to the United
States and other developed countries, developing countries may have relatively
unstable governments, economies based on only a few industries, and securities
markets that are less liquid and trade a small number of securities. Prices on
these exchanges tend to be volatile and, in the past, securities in these
countries have offered greater potential for gain (as well as loss) than
securities of companies located in developed countries. See the SAI for
additional risk disclosure concerning non-U.S. securities.

- ---------------------------------------------------
CURRENCY TRANSACTIONS

Each Fund, except the Index Fund, Mortgage Securities Fund, U.S. Government
Money Market Fund and Money Market 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, currency swaps, exchange-listed and over-the-counter ("OTC")
currency futures contracts and options thereon and exchange listed and OTC
options on currencies.

Forward currency contracts 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. Currency swaps are agreements to exchange
cash flows based on the notional difference between or among two or more
currencies. See "Swap Agreements."

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 potential losses
arising from fluctuations in the value of the Fund's underlying securities.
Further, the Funds may enter into currency transactions only with counterparties
that HIMCO or Wellington Management deem to be creditworthy.

The Funds may also enter into options and futures contracts relative to
foreign currency to hedge against fluctuations in foreign currency rates. See
"Options and Futures Contracts" for a discussion of risk factors relating to
foreign currency transactions including related options and futures contracts.

- ---------------------------------------------------
OPTIONS AND FUTURES CONTRACTS

Each Fund, except the U.S. Government Money Market Fund and Money Market
Fund, may employ certain hedging, income enhancement and risk management
techniques involving options and futures contracts, though such techniques may
also result in losses to the Fund. The Funds may write covered call options or
purchase put and call options on individual securities, write covered put and
call options and purchase put and call options on foreign currencies, aggregates
of equity and debt securities, indices of prices of equity and debt securities
and other financial indices, and 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.

A Fund may write covered options only. "Covered" means that, so long as a
Fund is obligated as the writer of an option, it will own either the underlying
securities or currency or an option to purchase or sell 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 receives a premium from writing a call or put option, which
increases the Fund's return if the option expires unexercised or is closed out
at a net profit.

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. 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 Commodities Futures Trading Commission ("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 non-hedging positions may not
exceed 5% of the liquidation value of Fund's portfolio, after taking into
account the unrealized profits and unrealized losses on any such contracts the
Fund has entered into.

A Fund's 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 the ability
of HIMCO or Wellington Management 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,
<PAGE>
24 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

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 Internal Revenue Code of 1986, as
amended (the "Code"). See the SAI for additional information on options and
futures contracts. Options and futures contracts are commonly known as
"derivative" securities.

- ---------------------------------------------------
SWAP AGREEMENTS

Each Fund, except the Index Fund, U.S. Government Money Market Fund and
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.

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. Swap agreements are commonly known as
"derivative" securities.

The successful utilization of hedging and risk management transactions
requires skills different from those needed in the selection of a Fund's
portfolio securities and depends on HIMCO's or Wellington Management's ability
to predict correctly the direction and degree of movement in interest rates.
Although the Funds believe that the use of the hedging and risk management
techniques described above will benefit the Funds, if HIMCO's or Wellington
Management's judgment about the direction or extent of the movement in interest
rates is incorrect, a Fund's overall performance would be worse than if it had
not entered into any such transactions. These activities are commonly used when
managing derivative investments.

- ---------------------------------------------------
ILLIQUID SECURITIES

Each Fund is permitted to invest in illiquid securities. The maximum
percentage of illiquid securities which may be purchased by each Fund is 15%
except for the U.S. Government Money Market Fund and Money Market Fund for which
the limit is 10% of their net assets. "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. Each
Fund may purchase certain restricted securities commonly known as Rule 144A
securities that can be resold to institutions and which may be determined to be
liquid pursuant to policies and guidelines of the Board of Directors.

Under current interpretations of the Securities and Exchange Commission
("SEC") staff, the following securities may 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 readily marketable; and (4) any other
securities in which a Fund may invest that are not readily marketable.

- ---------------------------------------------------
WHEN-ISSUED AND DELAYED-DELIVERY SECURITIES

Each Fund is permitted to 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 the Funds generally
purchase securities on a when-issued basis with the intention of acquiring the
securities, the Funds may sell the securities before the settlement date if
HIMCO or Wellington Management deems it advisable. At the time a Fund makes the
commitment to purchase securities on a when-issued basis, the Fund will record
the transaction and thereafter reflect the value, each day, of such security in
determining net asset value. At the time of delivery of the securities, the
value may be more or less than the purchase price.
<PAGE>
HARTFORD MUTUAL FUNDS 25
- --------------------------------------------------------------------------------

- ---------------------------------------------------
OTHER INVESTMENT COMPANIES

Each Fund, except the Index Fund, U.S. Government Money Market Fund and
Money Market Fund, is permitted to invest in other investment companies.
Securities 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. A Fund will not purchase a security if, as a result, (1) more than
10% of the Fund's assets would be invested in securities of other investment
companies, (2) such purchase would result in more than 3% of the total
outstanding voting securities of any one such investment company being held by
the Fund or (3) more than 5% of the Fund's assets would be invested in any one
such investment company.

- ---------------------------------------------------
PORTFOLIO SECURITIES LENDING

Each Fund may lend its portfolio securities to broker/ dealers and other
institutions as a means of earning interest income. Delays or losses could
result if a borrower of portfolio securities becomes bankrupt or defaults on its
obligation to return the loaned securities. A Fund may lend securities only if:
(1) the loan is fully secured by appropriate collateral at all times as
determined by HL Advisors; and (2) the value of all loaned securities of the
Fund is not more than 33 1/3% of the Fund's total assets.

- ---------------------------------------------------
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 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.

In pursuit of a Fund's investment objective, HIMCO and Wellington Management
attempt to select appropriate individual securities for inclusion in a Fund's
portfolio. In addition, HIMCO and Wellington Management 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 or Wellington Management's success not only in selecting individual
securities, but also in identifying the appropriate mix of securities consistent
with a Fund's investment objective.

- ---------------------------------------------------
INVESTMENT LIMITATIONS

The Funds have adopted certain limitations in an attempt to reduce their
exposure to specific situations. Some of these limitations are that each Fund
will not:

(a) invest more than 25% of its assets in any one industry;

(b) borrow money, except from banks, and then only in amounts not exceeding
33 1/3% of the value of a Fund's total assets (although for purposes of this
restriction reverse repurchase agreements are not considered borrowings, as
a non-fundamental operating policy, each Fund will limit combined borrowings
and reverse repurchase transactions to 33 1/3% of the value of a Fund's
total assets);

(c) with respect to 75% of the value of each Fund's total assets, purchase the
securities of any issuer (other than cash, cash items or securities issued
or guaranteed by the U.S. Government, its agencies, instrumentalities or
authorities) if:
(1) such purchase would cause more than 5% of the Fund's total assets taken
at market value to be invested in the securities of such issuer; or
(2) such purchase would at the time result in more than 10% of the
outstanding voting securities of such issuer being held by the Fund.

These investment restrictions are considered at the time investment
securities are purchased. The limitations described above, except as noted under
(b), and those listed under Fundamental Restrictions of the Funds in the SAI,
are considered fundamental and as such can only be changed with the approval of
a majority of each Fund's shareholders.
<PAGE>
26 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

- -------------------------------------------
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.
- ---------------------------------------------------
MANAGEMENT SERVICES

HL Advisors serves as investment manager to each Fund pursuant to written
agreements entered into between HL Advisors and each Fund. Pursuant to such
agreements HL Advisors has overall investment supervisory responsibility for
each Fund. In addition, Hartford Life Insurance Company ("Hartford Life"), an
affiliate of HL Advisors, provides administrative personnel, services, equipment
and facilities and office space for proper operation of the Funds. HL Advisors
has contracted with Wellington Management for the provision of day to day
investment management services to the Capital Appreciation Fund, Dividend and
Growth Fund, International Opportunities Fund, Small Company Fund, Stock Fund,
Advisers Fund, and International Advisers Fund. In addition, HL Advisors has
contracted with HIMCO for the provision of day to day investment management and
other services for the Bond Fund, Index Fund, Mortgage Securities Fund, U.S.
Government Money Market Fund and Money Market Fund. Each Fund pays a fee to HL
Advisors, a portion of which may be used to compensate Wellington Management or
HIMCO.

For services rendered to the Funds, HL Advisors 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.

INDEX FUND

<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- ------------------------------------------- -----------
<S> <C>
All Assets 0.200%
</TABLE>

MORTGAGE SECURITIES FUND, MONEY MARKET FUND AND U.S. GOVERNMENT MONEY MARKET
FUND

<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- ------------------------------------------- -----------
<S> <C>
All Assets 0.250%
</TABLE>

BOND FUND AND STOCK FUND

<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- ------------------------------------------- -----------
<S> <C>
First $250,000,000 0.325%
Next $250,000,000 0.300%
Next $500,000,000 0.275%
Amount Over $1 Billion 0.250%
</TABLE>

CAPITAL APPRECIATION FUND, DIVIDEND AND GROWTH FUND, INTERNATIONAL OPPORTUNITIES
FUND, SMALL COMPANY FUND, ADVISERS FUND AND INTERNATIONAL ADVISERS FUND

<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- ------------------------------------------- -----------
<S> <C>
First $250,000,000 0.575%
Next $250,000,000 0.525%
Next $500,000,000 0.475%
Amount Over $1 Billion 0.425%
</TABLE>

Under the terms of the Investment Management Agreements, HL Advisors,
subject to the supervision of the Funds' Board of Directors, provides investment
management supervision to each Fund in accordance with the Funds' investment
objectives, policies and restrictions.

For 1996, the management fees (advisory and administrative fees) for each
Fund as a percentage of average net assets were as follows:

<TABLE>
<CAPTION>
% OF ASSETS
-----------
<S> <C>
Capital Appreciation Fund .63%
Dividend and Growth Fund .71%
Index Fund .37%
International Opportunities Fund .69%
Small Company Fund1 .58%
Stock Fund .44%
Advisers Fund .62%
International Advisers Fund .75%
Bond Fund .49%
Mortgage Securities Fund .42%
Money Market Fund .42%
U.S. Government Money Market Fund .42%
</TABLE>

1 Portion of management fee waived in 1996

HL Advisors, Hartford Plaza, Hartford, Connecticut 06115, is a wholly-owned
subsidiary of Hartford Life and was organized under the laws of the State of
Connecticut in 1981. A wholly-owned subsidiary of HL Investment Advisors,
Hartford Investment Financial Services Company, serves as investment adviser to
several other Hartford Life-sponsored funds which are also registered with the
SEC. Hartford Life is a majority owned subsidiary of Hartford Fire Insurance
Company, one of the largest multiple lines insurance carriers in the United
States. Hartford Fire Insurance Company is a subsidiary of The Hartford
Financial Services Group, Inc.

Certain officers of the Funds are also officers and/or directors of HL
Advisors and HIMCO: Joseph H. Gareau is a
<PAGE>
HARTFORD MUTUAL FUNDS 27
- --------------------------------------------------------------------------------

Director and the President of HL Advisors and HIMCO; Andrew W. Kohnke is a
Managing Director and a Director of HL Advisors and HIMCO; and C. Michael
O'Halloran is a Director, Secretary and General Counsel of HL Advisors and
HIMCO.

- ---------------------------------------------------
INVESTMENT SUB-ADVISORY AND OTHER SERVICES

Wellington Management serves as sub-adviser to the Capital Appreciation
Fund, Dividend and Growth Fund, International Opportunities Fund, Small Company
Fund, Stock Fund, Advisers Fund, and International Advisers Fund pursuant to
written contracts entered into between HL Advisors and Wellington Management. In
addition, HIMCO provides day-to-day investment management services to HL
Advisors on behalf of the Index Fund, Mortgage Securities Fund, Bond Fund, U.S.
Government Money Market Fund and HVA Money Market Fund pursuant to written
agreements between HL Advisors and HIMCO.

In connection with the services provided to the Funds, Wellington Management
and HIMCO make 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 the Funds and to the general
supervision of the Fund's Boards of Directors and HL Advisors) and places, in
the name of the Funds, all orders for execution of these Funds' portfolio
transactions. In conjunction with such activities, Wellington Management and
HIMCO regularly furnish reports to the Fund's Boards of Directors concerning
economic forecasts, investment strategy, portfolio activity and performance of
the Funds.

For services rendered to the Wellington Management-advised Funds, Wellington
Management charges a quarterly fee to HL Advisors. The Funds do not pay
Wellington Management's fee nor any part thereof, nor do the Funds have any
obligation or responsibility to do so. Wellington Management'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.

DIVIDEND AND GROWTH FUND, STOCK FUND AND
ADVISERS FUND

<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- ------------------------------------------- -----------
<S> <C>
First $50,000,000 0.325%
Next $100,000,000 0.250%
Next $350,000,000 0.200%
Amount Over $500,000,000 0.150%
</TABLE>

CAPITAL APPRECIATION FUND, INTERNATIONAL OPPORTUNITIES FUND, SMALL COMPANY FUND
AND INTERNATIONAL ADVISERS FUND

<TABLE>
<CAPTION>
NET ASSET VALUE ANNUAL RATE
- ------------------------------------------- -----------
<S> <C>
First $50,000,000 0.400%
Next $100,000,000 0.300%
Next $350,000,000 0.250%
Amount Over $500,000,000 0.200%
</TABLE>

Wellington Management is a professional investment counseling firm which
provides investment services to investment companies, employee benefit plans,
endowments, foundations and other institutions and individuals. Wellington
Management and its predecessor organizations have provided investment advisory
services since 1928. As of December 31, 1996, Wellington Management held
discretionary management authority with respect to approximately $133 billion of
client assets. Wellington Management, 75 State Street, Boston, MA 02109, is a
Massachusetts limited liability partnership, of which the following persons are
managing partners: Robert W. Doran, Duncan M. McFarland and John R. Ryan.

HIMCO is a professional money management firm which provides services to
investment companies, employee benefit plans and its affiliated insurance
company accounts. HIMCO was incorporated in 1996 and is a wholly owned
subsidiary of The Hartford. As a corporate affiliate of HL Advisors, HIMCO is
reimbursed by HL Advisors for the costs it incurs in providing such services.

- ---------------------------------------------------
PORTFOLIO MANAGERS

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

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

The International Opportunities Fund is managed by Wellington Management's
Global Equity Strategy Group, headed by Trond Skramstad, Senior Vice President
of Wellington Management. 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 Wellington Management in 1993,
Mr. Skramstad was a global equity portfolio manager at Scudder, Stevens & Clark
since 1990.
<PAGE>
28 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

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

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

Paul D. Kaplan, Senior Vice President of Wellington Management, 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 Wellington
Management 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
Wellington Management'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 Wellington Management. Prior to joining Wellington
Management 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, joined The 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 The Hartford, Ms. Granger was a corporate bond portfolio
manager at The Home Insurance Company and Axe-Houghton Management. Ms. Granger
holds a CFA and has over sixteen years of experience with fixed income
investments.

The Mortgage Securities Fund is managed by Timothy J. Wilhide. Mr. Wilhide
is a Portfolio Manager and Senior Vice President of HIMCO. He has seventeen
years of experience in the fixed income markets. Prior to joining The 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.

- ---------------------------------------------------
PORTFOLIO TURNOVER

Each Fund may sell a portfolio investment soon after its acquisition if
HIMCO and/or Wellington Management believe that such a disposition is in the
Fund's best interest. For the fiscal year ended December 31, 1996, the portfolio
turnover rate of each Fund was below 100% except for the Bond Fund and Mortgage
Securities Fund which were 212% and 201% respectively. A high rate of portfolio
turnover involves correspondingly greater brokerage commission expenses and
other transaction costs, which must be ultimately borne by a Fund's
shareholders. High portfolio turnover may result in the realization of
substantial capital gains.

- ---------------------------------------------------
BROKERAGE COMMISSIONS

Although the rules of the National Association of Securities Dealers, Inc.
prohibit its members from seeking orders for the execution of investment company
portfolio transactions on the basis of their sales of investment company shares,
under such rules, sales of investment company shares may be considered in
selecting brokers to effect portfolio transactions. Accordingly, some portfolio
transactions are, subject to such rules and to obtaining best prices and
executions, effected through dealers who sell shares of the Fund. HIMCO or
Wellington Management may also select an affiliated broker-dealer to execute
transactions for the Fund, provided that the commissions, fees or other
remuneration paid to such affiliated broker are reasonable and fair as compared
to that paid to non-affiliated brokers for comparable transactions.

- ---------------------------------------------------
ADMINISTRATIVE SERVICES
FOR THE FUNDS

An Administrative Services Agreement between each Fund and Hartford Life
provides that Hartford Life will manage the business affairs and provide
administrative services to each Fund. Under the terms of these Agreements,
Hartford Life will provide the following: administrative personnel, services,
equipment and facilities and office space for proper operation of the Funds.
Hartford Life 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 Hartford Life, each Fund pays to Hartford Life,
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 assumes and pays the following costs and expenses: interest;
taxes; brokerage charges (which may be to affiliated broker-dealers); costs of
preparing, printing and filing any amendments or supplements to the registration
forms of each Fund and its securities; all federal and
<PAGE>
HARTFORD MUTUAL FUNDS 29
- --------------------------------------------------------------------------------

state registration, qualification and filing costs and fees, (except the initial
costs and fees, which will be borne by Hartford Life), 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 Hartford Life or its affiliates; 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 1996 as a percentage of the Funds' average net assets were as
follows:

<TABLE>
<CAPTION>
% OF ASSETS
-----------
<S> <C>
Capital Appreciation Fund .65%
Dividend and Growth Fund .73%
Index Fund .39%
International Opportunities Fund .79%
Small Company Fund .72%
Stock Fund .46%
Advisers Fund .63%
International Advisers Fund .96%
Bond Fund .52%
Mortgage Securities Fund .45%
Money Market Fund .44%
U.S. Government Money Market Fund .58%
</TABLE>

- ---------------------------------------------------
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 and to
make distributions of realized capital gains, if any, at least 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.

- ---------------------------------------------------
DETERMINATION OF
NET ASSET VALUE

The net asset value per share is determined for each Fund as of the close of
the NYSE (normally 4:00 p.m. Eastern Time) on each regular business day (as
previously defined) by dividing the value of the Fund's net assets by the number
of shares outstanding. The assets of each Fund (except the money market funds)
are valued primarily on the basis of market quotations. If quotations are not
readily available, assets are valued by a method that the Board of Directors
believes accurately reflects fair value. The assets of the Money Market Fund and
the U.S. Government Money Market Fund are valued at their amortized cost
pursuant to procedures established by the Board of Directors. Foreign securities
are valued on the basis of quotations from the
<PAGE>
30 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

primary market in which they are traded, and are translated from the local
currency into U.S. dollars using current exchange rates. With respect to all
Funds, short-term investments that will mature in 60 days or less are also
valued at amortized cost, which approximates market value.

- ---------------------------------------------------
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
The Hartford Life Insurance Companies. Shares of the Funds are sold on a no-load
basis at their net asset values. See "Determination of 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 The 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. 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 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, The 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
The 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 The 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: Capital
Appreciation Fund, 2 billion; Dividend and Growth Fund, 2 billion; Index Fund, 1
billion; International Opportunities Fund, 1.5 billion; Small Company Fund, 750
million; Stock Fund, 2 billion; Advisers Fund, 5 billion; International Advisers
Fund, 750 million; Bond Fund, 800 million; Mortgage Securities Fund, 800
million; Money Market Fund, 1.3 billion; and U.S. Government Money Market Fund,
100 million.

As of December 31, 1996, HIMCO owned 3,000,000 shares (7.5%) of the Small
Company Fund.
<PAGE>
HARTFORD MUTUAL FUNDS 31
- --------------------------------------------------------------------------------

At December 31, 1996, certain Hartford Life group pension contracts held
direct interests in shares of the Funds as follows:

<TABLE>
<CAPTION>
SHARES %
------------ ---------
<S> <C> <C>
Hartford Index Fund, Inc................ 16,432,999 6.30%
Hartford Mortgage Securities Fund,
Inc.................................... 17,408,850 5.65%
Hartford Capital Appreciation Fund,
Inc.................................... 15,519,596 1.79%
Hartford International Opportunities
Fund, Inc.............................. 7,835,802 1.11%
Hartford Advisers Fund, Inc............. 18,752,510 0.69%
Hartford Dividend & Growth Fund, Inc.... 443,556 0.08%
Hartford Small Company Fund, Inc........ 28,535 0.07%
Hartford International Advisers Fund,
Inc.................................... 27,096 0.03%
Hartford Stock Fund, Inc................ 92,167 0.01%
Hartford Bond Fund, Inc................. 47,060 0.01%
HVA Money Market Fund , Inc............. 31,633 0.01%
</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 Hartford Life Insurance
Companies shall be the shareholders of record. Each of The 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." 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.

- ---------------------------------------------------
PENDING LEGAL PROCEEDINGS

As of the date of this Prospectus, there are no pending legal proceedings
involving the Funds, HL Advisors, HIMCO or Wellington Management 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>
32 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

- ---------------------------------------------------
APPENDIX A

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.

- ---------------------------------------------------
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
<PAGE>
HARTFORD MUTUAL FUNDS 33
- --------------------------------------------------------------------------------

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>
34 HARTFORD MUTUAL FUNDS
- --------------------------------------------------------------------------------

- ---------------------------------------------------
APPENDIX B

- --------------------------------
CREDIT QUALITY DISTRIBUTION

HARTFORD BOND FUND

The average quality distribution of the portfolio of the Hartford Bond Fund
during the year ended December 31, 1996 as assigned by Moody's Investors
Services, Inc. ("Moody's") and Standard & Poor's Corporation ("Standard &
Poors"), was as follows:

<TABLE>
<CAPTION>
QUALITY
DISTRIBUTION QUALITY
AS DISTRIBUTION AS
ASSIGNED BY PERCENTAGE OF ASSIGNED BY PERCENTAGE OF
MOODY'S PORTFOLIO STANDARD & POORS PORTFOLIO
- ------------- ------------- ---------------- -------------
<S> <C> <C> <C>
Aaa 52.4% AAA 52.4%
Aa 8.6% AA 7.6%
A 9.2% A 13.1%
Baa 12.6% BBB 15.0%
Ba 16.2% BB 9.6%
B 1.0% B 1.8%
Unrated 0.0% Unrated 0.6%
------------- -------------
Total 100.0% Total 100.0%
</TABLE>