[USAA EAGLE LOGO]
USAA GROWTH AND TAX STRATEGY FUND
SUPPLEMENT DATED JULY 30, 1997
TO THE PROSPECTUS
DATED OCTOBER 1, 1996
On October 1, 1997, the Growth and Tax Strategy Fund's asset allocation
investment categories and target ranges will be revised in accordance with new
investment categories and target ranges approved by the Board of Trustees at its
meeting on July 9, 1997. The new investment categories and target ranges are as
follows:
Percentage Target Range
INVESTMENT CATEGORY OF NET ASSETS
Tax-Exempt Bonds
(Maturities of more than one year) 41 - 59%
Blue Chip Stocks 41 - 49%
Tax-Exempt Money Market Instruments
(Maturities of one year or less) 0 - 10%
A Blue Chip Stock is defined as an equity security of a company that
has either (1) a market capitalization of at least $500 million and is included
in the list of companies that make up the Standard & Poor's 500 Composite Stock
Price Index or the Dow Jones Industrial Average or (2) a market capitalization
of at least $1 billion.
The Fund's portfolio will be adjusted within 60 days after October 1,
1997. The 60-day period to adjust the portfolio is intended to minimize
portfolio disruption and permit the Fund to purchase and sell securities at the
most advantageous prices.
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30237-0797
