THE VIRTUS FUNDS
INVESTMENT SHARES
Supplement to Combined Prospectus dated March 1, 1995
A. On page 29 of the prospectus, please add the following section
entitled "Check-Writing Privilege" after the section entitled
"Systematic Withdrawal Program" and before the section entitled
"Accounts with Low Balances."
"Check-Writing Privilege
If you are a shareholder of The Treasury Money Market
Fund, The Money Market Fund, or The Tax-Free Money Market
Fund (other than IRA shareholders), you may elect a
service which allows you to write an unlimited number of
checks in any amount of $250 or more which will clear
through the Transfer Agent. If the amount of your check is
less than $250 or exceeds the value of the shares in your
account, your check will be returned and a $10 fee
deducted from your account. You may not use the Check-
Writing Privilege to close out your account as you will
not be able to ascertain the exact account balance of your
account on the date your check clears. To close out your
account completely, you should use the telephone or mail
redemption procedures previously described. Stop orders
may be placed on checks for a fee of $10. For further
information on this service, please call 1-800-723-9512."
B. On page 26 of the prospectus, please add the following at the
end of the first paragraph under the heading Exchange
Privilege.
In addition, holders of Shares of The Money Market Fund,
The Treasury Money Market Fund or The Tax-Free Money Market
Fund (the Virtus Money Funds) who are also holders of
shares of any fund (a Blanchard Fund) of The Blanchard Group of
Funds, or who acquired such Shares of Virtus Money Funds in
exchange for shares of a Blanchard Fund, may exchange such
Virtus Money Funds Shares for shares of any Blanchard Fund at net
asset value without paying a redemption fee or sales charge
upon such exchange.
C. On page 26 of the prospectus, please delete the first sentence
of the third paragraph under the heading entitled Exchange
Privilege and replace it with the following:
Upon receipt by Signet Financial Services, Inc. of proper
instructions and all necessary supporting documents, Shares submitted
for exchange will be redeemed at the next-determined net asset value and
invested in Investment Shares of the other participating Fund,
or in shares of the applicable Blanchard Fund, as the case may
be.
October 14, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated
Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
CUSIP 927913707 CUSIP 927913509
CUSIP 927913848 CUSIP 927913400
CUSIP 927913871 CUSIP
927913889
CUSIP 927913103
G00564-13 (9/95) SGF509094
