BLANCHARD GROUP OF FUNDS
BLANCHARD GROWTH & INCOME FUND
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 29, 1996
Please insert the following sub-section entitled "Special Offering" immediately
following the sub-section entitled "General Information" on page 15:
"SPECIAL OFFERING
During the period beginning January 1, 1996 and ending not later than
August 31, 1996, Signet Financial Services, Inc. ("SFSI") will offer to
pay $100 to the account of each person who becomes a first time
shareholder of the Growth & Income Fund and maintains at least a $3,000
balance ($2,000 for IRAs) in his account for at least 90 days from the
initial purchase. (A shareholder will not be disqualified if his
balance falls below the required minimum due to changes in the Growth &
Income Fund's net asset value.) The payment will be made by the
purchase of $100 in shares of Growth & Income Fund for the
shareholder's account (or, in certain instances involving IRA accounts,
in cash) and will be made at the end of the 90-day holding period at
the Growth & Income Fund's net asset value as of the 90th day after
the investment is made.
The offer is subject to the following additional conditions: (i) it is
limited to one payment per household , and to one payment in the case
of a joint account; (ii) employees of SFSI and its affiliates and
Federated Securities Corporation and its affiliates and members of
their immediate families will not be eligible to participate in the
offer; (iii) broker/dealers through which persons purchase shares
pursuant to the offer must furnish to SFSI the names, addresses and
social security numbers of all such purchasers, must certify to SFSI
that such purchasers hold no shares of Growth & Income Fund in their
brokerage accounts at the date of the offer and must, with respect to
each such purchaser, from time to time during the term of the offer
furnish to SFSI the date and amount of any purchase or redemption of
shares of Growth & Income Fund during the period of the offer; and
(iv) the offer may be terminated (as to persons that have not yet
purchased shares at the time of termination) at any time by SFSI
without prior notice. SFSI will not be reimbursed by the Growth &
Income Fund for any payments made pursuant to this offer.
June 24, 1996
FEDERATED INVESTORS
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the Fund
and is a subsidiary of Federated Investors.
(2051)
Cusip 093265304
