[Black and white print ad:]
TOP PERFORMING CGM FUNDS [Headline in largest (white) type]
[Black background with light grey box divided into three columns; in each block
is a headline [prints in black in boldface sans serif typeface]; the name of a
fund [also prints in black in large type (Times Roman); total return figure
(black Times Roman); and in small italic type (black) total return periods
(dates). Beneath type in each block is a black and white photo of a fencer (from
left to right lunging, partial lunge, standing); the type in each box reads as
follows (boxes from left to right)]:
#1 BALANCED FUND FOR 15-YEARS
CGM MUTUAL FUND
752.9%
Total Return 4/1/81-3/31/96
#1 GROWTH FUND FOR 15-YEARS
CGM CAPITAL DEVELOPMENT FUND
1,550.5%
Total Return 4/1/81-3/31/96
#1 GENERAL BOND FUND FOR 1- AND 3-YEARS
CGM FIXED INCOME FUND
27.4%
Total Return 4/1/95-3/31/96
38.5%
Total Return 4/1/93-3/31/96
[Under the grey box, the black background begins to lighten to grey. Centered
under the box is the CGM Funds logo (black and white line drawing of a fencer in
a box with striped background) with the following type in black to the right:]
THE CGM FUNDS
The CGM Funds
222 Berkeley Street, Suite 02116
Boston, MA 02116
1-800-598-0716
[Beneath the logo are four paragraphs of smaller type printing in black. Numbers
(average annual total returns), however, print in a size comparable to the total
return numbers in the box above.]
28.9%, 13.1%, 12.6% and 15.4% are the average annual total returns for CGM
Mutual Fund for the 1, 5, 10, and 15-year periods ended 3/31/96. Ranking
according to Lipper Analytical Services, Inc., which ranks CGM Mutual Fund #1 of
24 balanced funds for 15-year performance, #2 of 30 balanced funds for 10-year
performance, #8 of 63 balanced funds for 5-year performance, and #10 of 239
balanced funds for 1-year performance through 3/31/96. CGM Mutual Fund has been
managed continuously by Ken Heebner since 1981.
52.6%, 22.3%, 17.8% and 20.6% are the average annual total returns for CGM
Capital Development Fund for the 1, 5, 10, and 15-year periods ended 3/31/96.
Ranking according to Lipper Analytical Services, Inc., which ranks CGM Capital
Development Fund #1 of 109 growth funds for 15-year performance, #5 of 156
growth funds for 10-year performance, #3 of 241 growth funds for 5-year
performance, and #6 of 584 growth funds for 1-year performance through 3/31/96.
CGM Capital Development Fund has been managed continuously by Ken Heebner since
1976.
CGM Capital Development Fund is closed to new investors.
12.7%, 27.4% and 11.5% are the average annual total returns for CGM Fixed Income
Fund from inception (3/17/92) through 3/31/96 and for the 1- and 3-year periods
ended 3/31/96. The Fund's adviser is currently absorbing a portion of management
fees and expenses. Otherwise total return would be lower. Ranking according to
Lipper Analytical Services, Inc., which ranks CGM Fixed Income Fund #1 of 20
general bonds funds for 3-year performance and #1 of 51 general bonds funds for
1-year performance through 3/31/96. Ken Heebner co-manages CGM Fixed Income Fund
with Janice Saul.
This information represents past performance which is no guarantee of future
results. The investment return and principal value of your shares will fluctuate
and you may have a gain or loss when you sell shares. For more complete
information, including management fees, charges and expenses, refer to the
appropriate prospectus, which is available from the address above. Read it
carefully before you invest or send money. Lipper Analytical Services, Inc., is
an independent mutual fund ranking services. c 1996 CGM
[Entire ad is surrounded by a decorative border containing the following words
used as a repetitive pattern:] No-Load
