THE MAINSTAY FUNDS
Supplement dated July 29, 1996 to the
Prospectus dated May 1, 1996
The Prospectus is amended as follows:
1. In the description of the Value Fund under the heading
"Who's Managing your Money?" on page 28, Mr. Kolefas' biography
is hereby deleted and replaced the with following:
Mr. Simon joined MacKay-Shields in 1993. Mr.
Simon is a Director of MacKay-Shields and
specializes in equity securities.
Previously, Mr. Simon was a senior equity
research analyst and portfolio manager at
National Securities and Research Corporation
(from 1991-1992) and Neuberger & Berman (from
1987-1991).
2. Effective January 1, 1996, the Administrator
voluntarily agreed to reduce its fees payable by the Equity Index
Fund to the extent that Fund's total expenses (including Rule
12b-1 fees) for any fiscal year exceed .80% of the value of the
Fund's average annual net assets. See Note + to the chart on the
Administrator's fees on page 63.
3. In the section titled "Deferred Sales Charge Class B
Shares - Contingent Deferred Sales Charge, Class B" on page 68,
the following subsection is added at the end of the listing of
redemptions for which the contingent deferred sales charge will
be waived:
and (xviii) redemptions by shareholders of
shares purchased with the proceeds of a
settlement payment made in connection with
the liquidation and dissolution of a limited
partnership sponsored by New York Life or one
of its affiliates.
4. In the description of the High Yield Corporate Bond
Fund under the heading "The Funds invests in ..." on page 30, the
first item under "Under normal market conditions ..." is hereby
deleted and replaced with the following:
...at least 65% of total assets in corporate
debt securities: all types of foreign and
domestic debt securities ordinarily in the
lower rating categories of Moody's (Baa to B)
and S&P (BBB to B). These securities tend to
offer yields above those that are rated
higher and are not considered speculative.
MSP02 (7/96)
