Rule 497(e)
File Nos. 33-16905 and 811-5309
FIRST AMERICAN INVESTMENT FUNDS, INC.
SUPPLEMENT DATED MAY 15, 1996
TO
STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 31, 1996
The information set forth in the Statement of Additional Information
under the caption "Additional Information Concerning Fund Investments --
Short-Term Investments" is hereby supplemented as follows:
MONEY MARKET FUNDS. In addition to the equity Funds, the following
fixed income Funds may invest in securities of other mutual funds which invest
primarily in debt obligations with remaining maturities of 13 months or less:
Limited Term Income Fund, Intermediate Term Income Fund, Fixed Income Fund, and
Intermediate Government Bond Fund.
Where a Fund may invest a portion of its assets in such other mutual
funds, the other funds in which it is permitted to invest include money market
funds advised by First Bank National Association, which is also the adviser to
the Funds (the "Adviser"). Investments by the Funds in money market funds
advised by the Adviser are subject to certain restrictions contained in an
exemptive order issued by the Securities and Exchange Commission with respect
thereto. These restrictions include the requirement that the Adviser must waive
its money market fund advisory fee with respect to the Fund assets which are
invested therein.
Paragraph (c) of non-fundamental investment restriction No. 15 set
forth in the Statement of Additional Information under the caption "Investment
Restrictions" is supplemented to read in its entirety as follows: "(c) each of
Stock Fund, Equity Index Fund, Balanced Fund, Asset Allocation Fund, Equity
Income Fund, Diversified Growth Fund, Emerging Growth Fund, Regional Equity
Fund, Special Equity Fund, Technology Fund, Health Sciences Fund, Real Estate
Securities Fund, International Fund, Limited Term Income Fund, Intermediate Term
Income Fund, Fixed Income Fund, and Intermediate Government Bond Fund may, as
part of its investment in cash items, invest in securities of other mutual funds
which invest primarily in debt obligations with remaining maturities of 13
months or less".
