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HOMESTEAD FUNDS, INC.
SUPPLEMENT TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 4, 1998
The following paragraph is being added to the sections of the Prospectus
entitled: "How to Purchase Shares" and in the Statement of Additional
Information entitled: "Purchase and Redemption of Securities Being Offered."
In addition to purchasing shares directly from the Fund, you may also purchase
shares of the Short-Term Bond Fund and the Value Fund through a broker-dealer
that is authorized to sell you shares of those Funds. A broker-dealer may charge
you a transaction or other fees for this service.
October 1, 1998
