FEDERATED BOND FUND (A PORTFOLIO OF INVESTMENT SERIES FUNDS, INC.)
Class A Shares
Class B Shares
Class C Shares
Class F Shares
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 31, 1997
On April 28, 1998, the Fund will hold a Special Meeting of Shareholders to
approve or disapprove the following changes to the Fund's fundamental investment
policies:
1) The new policy regarding diversification of its investments would read,
"With respect to securities comprising 75% of the value of its
total assets, the Fund will not purchase securities of any one issuer (other
than cash, cash items, securities issued or guaranteed by the government of the
United States or its agencies or instrumentalities and repurchase agreements
collateralized by such U.S. government securities, and securities of other
investment companies) if as a result more than 5% of the value of its total
assets would be in the securities of that issuer, or would own more than 10% of
the outstanding voting securities of that issuer."
2) The Fund's policy on investing in illiquid securities would change from
a fundamental to an operating policy.
3) The Fund's policy on investing in restricted securities would change
from a fundamental to an operating policy. Further, the policy will be revised
to remove the current 10% limitation and permit unlimited purchases of
restricted securities as long as they are determined to be liquid under criteria
established by the Directors.
March 11, 1998
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Cusip 461444507
461444606
461444705
461444309
G01640-05 (3/98)
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<PAGE>
FEDERATED BOND FUND (A PORTFOLIO OF INVESTMENT SERIES FUNDS, INC.)
Class A Shares
Class B Shares
Class C Shares
Class F Shares
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATE DECEMBER 31, 1997
On April 28, 1998, the Fund will hold a Special Meeting of Shareholders to
approve or disapprove the following items:
1) The election of Directors Thomas G. Bigley, Nicholas P. Constantakis and
John E. Murray, Jr.
2) Changes to the Fund's fundamental investment policies:
a) The Fund's current policy on diversification would be changed to read,
"With respect to securities comprising 75% of the value of its
total assets, the Fund will not purchase securities of any one issuer (other
than cash, cash items, securities issued or guaranteed by the government of the
United States or its agencies or instrumentalities and repurchase agreements
collateralized by such U.S. government securities, and securities of other
investment companies) if as a result more than 5% of the value of its total
assets would be invested in the securities of that issuer, or would own more
than 10% of the outstanding voting securities of that issuer."
b) The Fund's policy on investing in illiquid securities would change from
a fundamental to an operating policy.
<PAGE>
c) The Fund's policy on investing in restricted securities would
change from a fundamental to an operating policy. Further, the policy will be
revised to remove the current 10% limitation and permit unlimited purchases of
restricted securities as long as they are determined to be liquid under criteria
established by the Directors.
March 11, 1998
[GRAPHIC OMITTED]
Cusip 461444507
461444606
461444705
461444309
G01640-06 (3/98)
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