CALIFORNIA MUNI FUND
497, 1997-05-27
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                                                                     Rule 497(e)
                                                    Registration Number: 2-82143



                            THE CALIFORNIA MUNI FUND

                          SUPPLEMENT DATED MAY 27, 1997
                       TO PROSPECTUS DATED APRIL 30, 1997


                  The  independent  trustees  are in the process of  considering
other  fund  organizations  willing to manage  the  Fundamental  Funds and it is
expected that a new manager will be selected.  In any event, it is unlikely that
a  majority  of  the  Fund's  independent  trustees  will  approve  the  current
Investment Management Agreement beyond December 31, 1997.




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