SUPPLEMENT TO THE PROSPECTUS
of
KEYSTONE DIVERSIFIED BOND FUND (B-2)
(the "Fund")
The third full paragraph in the section entitled "INVESTMENT OBJECTIVE AND
POLICIES" of the Fund's prospectus is hereby deleted and replaced in its
entirety by the following paragraph:
"Under normal circumstances, the Fund will invest at least 65%
of its total assets in bonds, debentures, and income obligations that
are normally characterized by relatively liberal returns and moderate
price fluctuations. Such debt securities, which include both secured
and unsecured debt obligations, will have a rating of BBB or higher by
Standard & Poor's Corporation ("S&P") or Baa or higher by Moody's
Investors Service ("Moody's"), or, if unrated, believed to have a
comparable rating. As a group, such debt securities usually possess a
fairly high degree of dependability of interest payments. While the
Fund's primary objective is income, the Fund gives careful
consideration to security of principal, marketability, and
diversification."
July 3, 1996
