NATIONS FUND INC
497, 1997-09-04
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                               NATIONS FUND TRUST
                               NATIONS FUND, INC.
                               MONEY MARKET FUNDS


    Supplement dated September 4, 1997 to Prospectuses dated August 1, 1997


All  prospectuses for the Primary A, Primary B, Investor A, Investor B, Investor
C and Daily  Shares of Nations  Government  Money  Market  Fund and  Nations Tax
Exempt Fund of Nations  Fund Trust and Nations  Prime Fund and Nations  Treasury
Fund of Nations Fund, Inc., are hereby supplemented by the removal of the fourth
and fifth  sentences  of the  paragraph  under  the  sub-heading  "Variable  and
Floating-Rate Instruments" in Appendix A.


<PAGE>


                               NATIONS FUND TRUST
                               NATIONS FUND, INC.
                               MONEY MARKET FUNDS
                                INVESTOR A SHARES

    Supplement dated September 4, 1997 to Prospectus dated August 1, 1997


The prospectus for the Investor A Shares of Nations Government Money Market Fund
and  Nations Tax Exempt  Fund of Nations  Fund Trust and Nations  Prime Fund and
Nations Treasury Fund of Nations Fund, Inc., is hereby supplemented as follows:

1.   By the removal of the first full paragraph on page 15 under the heading 
     "How the Funds Are Managed", and the substitution of the following 
     paragraph in its place:

         For the  services  provided and  expenses  assumed  pursuant to various
         Investment  Advisory  Agreements,  NBAI is entitled to receive advisory
         fees,  computed daily and paid monthly,  at the annual rates of .25% of
         the first $250 million of the combined average daily net assets of both
         Nations Prime Fund and Nations Treasury Fund, plus .20% of the combined
         average daily net assets of such Funds in excess of $250  million;  and
         .40% of the  average  daily net  assets of each of  Nations  Government
         Money Market Fund and Nations Tax Exempt Fund.

2.   By the removal of the fourth and fifth sentences of the paragraph under the
     sub-heading "Variable and Floating-Rate Instruments" in Appendix A.




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