<PAGE>
THE HOMESTATE GROUP Rule 497 (e)
HOMESTATE PENNSYLVANIA GROWTH FUND File No. 33-48940
FINANCIAL HIGHLIGHTS File No. 811-6722
The following table presents per share financial information
for the HomeState Pennsylvania Growth Fund since its commencement
of operations on October 1, 1992. This information has been
audited and reported on by The HomeState Group's independent
accountants. The Report of Independent Accountants and financial
statements included in The HomeState Group's Annual Report to
shareholders for the period ended June 30, 1997 are incorporated
by reference into this Prospectus. The HomeState Group's
Annual Report contains additional performance information that
will be made available without charge upon request directed to
Emerald Advisers, Inc. at (800)-232-0224.
<TABLE>
<CAPTION>
PERIODS ENDED
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
6/30/97 6/30/96 6/30/95 6/30/94 6/30/93+
------- ------- ------- ------- --------
Net asset value at
beginning of period..... $21.25 $15.68 $12.37 $10.98 $10.00
------ ------ ------ ------ ------
Income from Investment
- ----------------------
Operations
- ----------
Net investment income
(loss) ................. (0.07) (0.07) (0.01) (0.03) 0.03
Net realized and
unrealized gain on
investments............. 1.78 6.17 3.54 1.53 0.95
------ ------ ------ ------ ------
Total from investment
operations............ 1.71 6.10 3.53 1.50 0.98
------ ------ ------ ------ ------
Less Distributions
- -------------------
Dividends from net
investment income ...... 0.00 0.00 0.00 (0.03) 0.00
Distributions from net
realized gains ......... (1.41) (0.53) (0.22) (0.08) 0.00
------ ------ ------ ------ ------
Total distributions.... (1.41) (0.53) (0.22) (0.11) 0.00
------ ------ ------ ------ ------
Net asset value at end
of period .............. $21.55 $21.25 $15.68 $12.37 $10.98
====== ====== ====== ====== ======
Total return**........... 9.56% 39.94% 28.96% 13.75% 13.07%
RATIOS / SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted)........... $89,577 $55,828 $20,388 $9,892 $3,026
Ratio of expenses to
average net assets
before reimbursement
by Adviser............... 1.77% 1.85% 2.00% 2.67% 7.85%*
Ratio of expenses to
average net assets after
reimbursement by Adviser. na1 na1 1.91% 2.23% 1.87%*
Ratio of net investment
loss to average net
assets before
reimbursement by Adviser. (0.39)% (0.58)% (0.20)% (0.76)% (5.24)%*
Ratio of net investment
income (loss) to
average net assets
after reimbursement by
Adviser.................. na1 na1 (0.10)% (0.32)% 0.74%*
Average commission
rate paid................. $0.0941 $0.0961 - - -
Portfolio turnover rate... 50% 66% 51% 51% 63%
<FOOTNOTE>
+ From commencement of operations: October 1, 1992.
* Annualized.
** Total return does not reflect 4.75% maximum sales charge.
1 Not applicable: no reimbursements were made by the Adviser.
</FOOTNOTE>
</TABLE>
Supplement dated September 5, 1997 to Prospectus dated February 18, 1997.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
<PAGE>
THE HOMESTATE GROUP Rule 497 (e)
HOMESTATE SELECT OPPORTUNITIES FUND File No. 33-48940
FINANCIAL HIGHLIGHTS File No. 811-6722
The following table presents per share financial information
for the HomeState Select Opportunities Fund since its
commencement of operations on February 18, 1997. This information
has been audited and reported on by The HomeState Group's
independent accountants. The Report of Independent Accountants
and financial statements included in The HomeState Group's Annual
Report to shareholders for the period ended June 30, 1997 are
incorporated by reference into this Prospectus. The HomeState
Group's Annual Report contains additional performance information
that will be made available without charge upon request directed
to Emerald Advisers, Inc. at (800)-232-0224.
PERIOD ENDED
6/30/97+
Net asset value at
beginning of period........ $10.00
------
Income from Investment
- ----------------------
Operations
- ----------
Net investment loss....... (0.03)
Net realized and
unrealized gain on
investments................ 1.73
------
Total from investment
operations............... 1.70
------
Net asset value at end
of period ................. $11.70
======
Total return**.............. 17.00%
RATIOS / SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted)............. $5,628
Ratio of expenses to
average net assets
before reimbursement
by Adviser and waivers..... 8.10%*
Ratio of expenses to
average net assets after
reimbursement by Adviser
and waivers................ 2.35%*
Ratio of net investment
loss to average net
assets before
reimbursement by Adviser
and waivers................. (6.85)%*
Ratio of net investment
loss to average net assets
after reimbursement by
Adviser and waivers......... (1.10)%*
Average commission
rate paid................... $0.0983
Portfolio turnover rate...... 59%
+ From commencement of operations: February 18, 1997.
* Annualized.
** Total return does not reflect 4.75% maximum sales charge.
Supplement dated September 5, 1997 to Prospectus dated February 18, 1997.
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