FREEDOM INVESTMENT TRUST III
497, 1996-04-23
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                           John Hancock Discovery Fund


                 Supplement to Prospectus dated December 1, 1995



The "INVESTMENT  OBJECTIVE AND POLICIES" section in the Prospectus is amended as
follows:

Investment  Restrictions.  The Fund has adopted certain investment  restrictions
which are detailed in the  Statement of Additional  Information,  where they are
classified as fundamental or nonfundamental.  The Fund's fundamental  investment
restrictions  may  not be  changed  without  shareholder  approval.  The  Fund's
investment  objective,  all other  restrictions,  and  investment  policies  are
nonfundamental and can be changed by a vote of the Trustees without  shareholder
approval. If there is a change in the Fund's investment objective,  shareholders
should consider  whether the Fund remains an appropriate  investment in light of
their current financial position and needs.


April 24, 1996

3400S -4/96



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