CAPITAL GROWTH FUND
(A PORTFOLIO OF INVESTMENT SERIES FUNDS, INC.)
CLASS A SHARES
CLASS C SHARES
SUPPLEMENT TO PROSPECTUSES DATED DECEMBER 31, 1995.
On February 29, 1996, the Board of Directors of Investment Series Funds, Inc.
approved a proposed Agreement and Plan of Reorganization (the "Agreement") for
the merger of Capital Growth Fund (the "Fund") into Federated Growth Strategies
Fund ("FGSF"), a portfolio of Federated Equity Funds. The Agreement
contemplates that FGSF would acquire all the assets of the Fund's Class A
Shares and Class C Shares in exchange for Class A Shares and Class C Shares of
FGSF, to be distributed pro rata by the Fund to its shareholders in complete
liquidation and termination of the Fund.
The Agreement will be presented for the approval of shareholders of the Fund at
a Special Meeting of Shareholders to held on or about May 31, 1996. It is
anticipated that shareholders of record on March 25, 1996, will receive a proxy
statement discussing the terms of and the reasons for the merger in detail, and
will be entitled to vote at the Special Meeting.
March 15, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
Cusip 461444200
Cusip 461444408
G01188-04 (3/96)
