COLONIAL SMALL STOCK FUND
Supplement to Prospectus
dated January 2, 1996
(Replacing Supplement dated April 1, 1996)
The third paragraph of the section entitled "General" under the caption How to
Buy Shares is revised in its entirety as follows:
Financial service firms may receive different compensation rates for selling
different classes of shares. The Distributor may pay additional compensation to
financial service firms which have made or may make significant sales. Class A
shares may be purchased at net asset value by clients of, or investors
purchasing through, dealers, brokers or registered investment advisers that have
entered into agreements with the Distributor of the Fund and that receive a fee
for their services. See the Statement of Additional Information for more
information.
The following is hereby added immediately prior to the paragraph entitled
"Shareholder Services" under the caption How to Buy Shares:
Class A shares of the Fund may also be purchased at net asset value by (i)
investment advisors or financial planners who have entered into agreements with
the Distributor (or who maintain a master account with a broker or agent that
has entered into such an agreement) and who charge a management, consulting or
other fee for their services; and clients of such investment advisors or
financial planners who place trades for their own accounts if the accounts are
linked to the master account of such investment advisor or financial planner on
the books and records of the broker or agent; and (ii) retirement and deferred
compensation plans and trusts used to fund those plans, including, but not
limited to, those defined in Section 401(a), 403(b), or 457 of the Internal
Revenue Code and "rabbi trusts," where the plans are administered by firms that
have entered into agreements with the Distributor or the Transfer Agent.
Investors may be charged a fee if they effect transactions in Fund shares
through a broker or agent.
SS-36/473C-0796 July 31, 1996
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