CALVERT INCOME FUND
Supplement to January 31, 1997 Prospectus
Date of Supplement: May 20, 1997
INSERT THE FOLLOWING AT THE BOTTOM OF PAGE 7 OF THE PROSPECTUS:
Hedging strategies:
The Fund may also use short sales of U.S. Treasury securities for the
limited purpose of hedging the Fund's duration (duration is a measure of the
interest rate-sensitivity of the Fund.) Any short sales will be "covered" with
an equivalent amount of high quality, liquid securities in a segregated account
at the Fund's custodian. This hedging technique is intended to lower the Fund's
interest rate risk. However, as with other hedging strategies, the Fund takes
the risk that the strategy may not correlate well with the risk it is intended
to hedge against, or that the Advisor has judged market conditions incorrectly.
