RULE 497(E)
FILE NOS. 33-16905 AND 811-5309
FIRST AMERICAN INVESTMENT FUNDS, INC.
SUPPLEMENT DATED JULY 26, 1995
TO
STATEMENT OF ADDITIONAL INFORMATION DATED JANUARY 31, 1995
MINNESOTA INSURED INTERMEDIATE TAX FREE FUND
The information set forth in the Statement of Additional Information under
the caption "Taxation" is hereby supplemented as follows:
Shareholders of Minnesota Insured Intermediate Tax Free Fund should
note that the 1995 Minnesota Legislature has enacted a statement of intent
that interest on obligations of Minnesota governmental units and Indian
tribes be included in net income of individuals, estates and trusts for
Minnesota income tax purposes if a court determines that Minnesota's
exemption of such interest unlawfully discriminates against interstate
commerce because interest on obligations of governmental issuers located in
other states is so included. This provision applies to taxable years that
begin during or after the calendar year in which any such court decision
becomes final, irrespective of the date on which the obligations were
issued. Minnesota Insured Intermediate Tax Free Fund is not aware of any
decision in which a court has held that a state's exemption of interest on
its own bonds or those of its political subdivisions or Indian tribes, but
not of interest on the bonds of other states or their political
subdivisions or Indian tribes, unlawfully discriminates against interstate
commerce or otherwise contravenes the United States Constitution.
Nevertheless, the Fund cannot predict the likelihood that interest on the
Minnesota bonds held by the Fund would become taxable under this Minnesota
statutory provision.
