MAINSTAY INSTITUTIONAL FUNDS INC.
Supplement dated September 30, 1996
to the Prospectus dated May 1, 1996
New York Life Insurance Company, as Administrator, and Monitor
Capital Advisors, Inc., as Adviser, for the Indexed Equity Fund
(the "Fund"), have voluntarily agreed to waive a portion of their
fees so that the Fund's total operating expenses will not exceed
.30% for the Institutional Class and .55% for the Institutional
Service Class of the value of the average daily net assets for
each such Class of shares. This expense limitation will remain
in effect through December 31, 1998. See page 53 of the
Prospectus for additional information about the Voluntary Expense
Limitation.
Tom Kolefas is no longer with MacKay-Shields Financial
Corporation, MainStay Institutional Value Equity Fund's
investment adviser. Jeffrey A. Simon has assumed Mr. Kolefas'
responsibilities as a portfolio manager of the Fund.
Accordingly, Mr. Kolefas' biography which appears on page 22
under the heading "Who's Managing Your Money?" is hereby deleted
and replaced with Mr. Simon's biography as follows: Mr. Simon is
a Director of MacKay-Shields and specializes in equity
securities. He joined MacKay-Shields in 1993 after working as a
senior equity research analyst and portfolio manager at National
Securities and Research Corporation (1991-1992) and Neuberger &
Berman (1987-1991).
