FREMONT MUTUAL FUNDS INC
N-18F1, 1998-03-30
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                                     N-18F1
                            Notification of Election

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                 Notification of Election Pursuant to Rule 18f-1
                    under the Investment Company Act of 1940

                           Fremont Mutual Funds, Inc.

                            NOTIFICATION OF ELECTION

         The undersigned  registered  open-end  investment company, on behalf of
the Fremont U.S. Small Cap Fund, the Fremont Real Estate Securities Fund and the
Fremont Select Fund hereby notifies the Securities and Exchange  Commission that
it elects to commit itself to pay in cash all  redemptions  by a shareholder  of
record as provided by Rule 18f-1 under the Investment Company Act of 1940. It is
understood that this election is irrevocable while such Rule is in effect unless
the  Commission  by  order  upon  application   permits  a  withdrawal  of  this
Notification of Election.

                                    SIGNATURE
                                    ---------

         Pursuant to the requirements of Rule 18f-1 under the Investment Company
Act of 1940, the Registrant has caused this  notification of election to be duly
executed on it behalf in the City San  Francisco in the State of  California  on
the 30th day of March, 1998.

                                   Signature:

                                   Fremont Mutual Funds, Inc.
                                   By: /s/ Michael H. Kosich
                                      -------------------------
                                       Michael H. Kosich
                                       President

Attest: /s/ Tina Thomas
       -----------------
           Tina Thomas
           Secretary


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