TOWER MUTUAL FUNDS
SUPPLEMENT TO THE PROSPECTUS DATED OCTOBER 31, 1995
1. In the `Summary of Fund Expenses'' on page 2, the ``Maximum Sales Load
Imposed on Purchases''with respect to the Capital Appreciation Fund has
been changed to 4.50%.
Also with respect to the Capital Appreciation Fund, the expense numbers in
the `Example'' found in the ``Summary of Fund Expenses'' are changed to
$57, $83, $111, and $189, respectively, for the one, three, five and ten
year periods.
2. Please replace the third paragraph under the heading `What Shares Cost''
on page 34 with the following:
`Shares of the Louisiana Municipal Income Fund, Total Return Bond
Fund and U.S. Government Income Fund are sold with a sales charge as
follows:
SALES CHARGE AS ASALES CHARGE AS A
AMOUNT 0F PERCENTAGE OF PUBLICPERCENTAGE OF NET
TRANSACTION INVESTED OFFERING PRICE AMOUNT INVESTED
Less than $100,000 3.00% 3.09%
$100,000 but less than $250,000 2.75% 2.83%
$250,000 but less than $500,000 2.00% 2.04%
$500,000 but less than $750, 000 1.00% 1.01%
$750,000 but less than $1 million 0.75% 0.76%
$1 million but less than $2 million 0.50% 0.50%
$2 million or more 0.25% 0.25%
Shares of the Capital Appreciation Fund are sold with a sales charge
as follows:
SALES CHARGE AS ASALES CHARGE AS A
AMOUNT 0F PERCENTAGE OF PUBLICPERCENTAGE OF NET
TRANSACTION INVESTED OFFERING PRICE AMOUNT INVESTED
Less than $100,000 4.50% 4.71%
$100,000 but less than $250,000 3.75% 3.90%
$250,000 but less than $500,000 2.50% 2.56%
$500,000 but less than $750, 000 2.00% 2.04%
$750,000 but less than $1 million 1.00% 1.01%
$1 million but less than $2 million 0.50% 0.50%
$2 million or more 0.25% 0.25%
3. Please add the following as the last sentence under the heading `Purchases
at Net Asset Value'on page 35:
`In addition, shares may be purchased at net asset value, without a
sales charge, by investors who purchase shares through The Personal
Portfolio Manager, an investment program sponsored by Hibernia
Investment Securities, Inc.''
September 3, 1996
FEDERATED INVESTORS
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the Funds
and is a subsidiary of Federated Investors.
Cusip 891836108
Cusip 891836206
Cusip 891836603
Cusip 891836504
Cusip 891836405
Cusip 891836603
G01034-04 (9/96)
HNB608082
