MUNDER FUNDS INC, 497, 1998-06-05

MUNDER FUNDS INC
497, 1998-06-05

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<PAGE>

(cover page)

CLASS A & B SHARES

PROSPECTUS
(MUNDER LOGO)
JUNE 1, 1998

THE NETNET FUND

PROSPECTUS BEGINS ON NEXT PAGE

<PAGE>

PROSPECTUS

CLASS A AND CLASS B SHARES

The NetNet Fund (the "Fund") is a mutual fund portfolio that seeks to
provide shareholders long-term capital appreciation. The Fund invests primarily
in equity securities of companies engaged in research, design, development,
manufacturing or distribution of products, processes or services for use with
Internet and Intranet related businesses. The Fund is a portfolio of The Munder
Funds, Inc. (the "Company"), an open-end investment company.

Munder Capital Management (the "Advisor") serves as investment advisor of
the Fund.

This Prospectus explains the objective, policies, risks and fees of the
Fund. You should read this Prospectus carefully before investing and retain it
for future reference. A Statement of Additional Information ("SAI") describing
the Fund has been filed with the Securities and Exchange Commission (the "SEC")
and is incorporated by reference into this Prospectus. You can obtain the SAI
free of charge by calling the Fund at (800) 438-5789. In addition, the SEC
maintains a web site (http://www.sec.gov) that contains the SAI and other
information regarding the Fund.

SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. AN
INVESTMENT IN THE FUND INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
THE PRINCIPAL AMOUNT INVESTED.

SECURITIES OFFERED BY THIS PROSPECTUS HAVE NOT BEEN APPROVED OR DISAPPROVED BY
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

CALL TOLL-FREE FOR SHAREHOLDER SERVICES:
(800) 438-5789

THE DATE OF THIS PROSPECTUS IS JUNE 1, 1998

<PAGE>

TABLE OF CONTENTS

PAGE
----

Fund Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
What are the key facts regarding the Fund? . . . . . . . . . . . . . . 3

Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Fund Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
What are the Fund's goal and principal investments?. . . . . . . . . . 7
Who may want to invest in the Fund?. . . . . . . . . . . . . . . . . . 7
What are the Fund's investments and investment practices?. . . . . . . 7
What are the risks of investing in the Fund? . . . . . . . . . . . . . 9

Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
How is the Fund's performance calculated?. . . . . . . . . . . . . . .10
Where can I obtain performance data? . . . . . . . . . . . . . . . . .10

Purchases and Exchange of Shares. . . . . . . . . . . . . . . . . . . . . .11
Which share class should I choose for my investment? . . . . . . . . .11
What price do I pay for shares?. . . . . . . . . . . . . . . . . . . .11
When can I purchase shares?. . . . . . . . . . . . . . . . . . . . . .14
What is the minimum required investment? . . . . . . . . . . . . . . .14
How can I purchase shares? . . . . . . . . . . . . . . . . . . . . . .14
How can I exchange shares? . . . . . . . . . . . . . . . . . . . . . .15

Redemptions of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . .15
What price do I receive for redeemed shares? . . . . . . . . . . . . .15
When can I redeem shares?. . . . . . . . . . . . . . . . . . . . . . .16
How can I redeem shares? . . . . . . . . . . . . . . . . . . . . . . .16
When will I receive redemption amounts?. . . . . . . . . . . . . . . .17

Structure and Management of the Fund. . . . . . . . . . . . . . . . . . . .18
How is the Fund structured?. . . . . . . . . . . . . . . . . . . . . .18
Who manages and services the Fund? . . . . . . . . . . . . . . . . . .18
What are my rights as a shareholder? . . . . . . . . . . . . . . . . .19

Dividends, Distributions and Taxes. . . . . . . . . . . . . . . . . . . . .19
When will I receive distributions from the Fund? . . . . . . . . . . .19

How will distributions be made?. . . . . . . . . . . . . . . . . . . .20
Are there tax implications of my investments in the Fund?. . . . . . .20

Additional Information. . . . . . . . . . . . . . . . . . . . . . . . . . .21

<PAGE>

FUND HIGHLIGHTS

WHAT ARE THE KEY FACTS REGARDING THE FUND?

Q: WHAT IS THE FUND'S GOAL?

A: The NetNet Fund seeks to provide long-term capital appreciation.

Q: WHAT IS THE FUND'S STRATEGY?

A: The Fund invests primarily in equity securities of companies engaged in
research, design, development, manufacturing or engaged to a significant extent
in the business of distributing products, processes or services for use with
Internet or Intranet related businesses.

Q: WHAT ARE THE FUND'S RISKS?

A: The Fund's net asset value, which is determined on every business day, will
change daily. The net asset value changes are due to changes in the price of
securities owned by the Fund as a result of rises and falls in the stock market
in general, perceptions about the stocks of particular companies and perceptions
about particular industries. The Fund concentrates its investments in the
Internet industry. Because the Fund concentrates its investments in one
industry, it may pose greater risks and experience larger fluctuations in value
than portfolios invested in a broader range of industries. Additionally, the
Fund may invest in emerging growth companies which may involve greater price
volatility and risk than more established companies. You should note that you
could lose a portion of the amount you invest in the Fund.

Q: WHAT ARE THE OPTIONS FOR INVESTMENT IN THE FUND?

A: The Fund has registered three classes of shares: Class A, Class B and
Class Y. Class Y Shares, which are only offered to institutional and other
qualified investors, is offered in a separate prospectus.

<TABLE>
<CAPTION>
MAXIMUM FRONT END MAXIMUM
CLASS RULE 12b-1 FEES* SALES LOAD** CDSC***
----- ---------------- ------------ -------
<S> <C> <C> <C>
Class A 0.25% 5.5% None+
Class B 1% None 5%
</TABLE>

- ------------------
* An annual fee for distributing shares and servicing shareholder accounts
based on the Fund's average daily net assets.
** A one-time fee charged at the time of purchase of shares. The fee declines
based on the amount you invest.
*** A contingent deferred sales charge ("CDSC") is a one-time fee charged at
the time of redemption. The fee declines based on the length of time
you hold the shares.
+ A CDSC of 1% is imposed on certain redemptions of Class A Shares if
redeemed within one year of purchase.

If you invest over $250,000, you must buy Class A Shares.

Q: HOW DO I BUY AND SELL SHARES OF THE FUND?

A: Funds Distributor, Inc. (the "Distributor") sells shares of the Fund. You
may purchase shares from the Distributor through broker-dealers or other
financial institutions or from the Fund's transfer agent, First Data Investor
Services Group, Inc. (the "Transfer Agent"), by mailing the attached Account
Application Form with a check to the Transfer Agent. You must invest at least
$250 ($50 through the Automatic Investment Plan) initially and at least $50 for
subsequent purchases.

Shares may be redeemed (sold back to the Fund) by mail or by telephone.

You may also acquire the Fund's shares by exchanging shares of the same
class of other funds of the Company, The Munder Funds Trust (the "Trust") and
The Munder Framlington Funds Trust ("Framlington"), and exchange Fund shares for
shares of the same class of other funds of the Company, the Trust and
Framlington.

<PAGE>

Q: WHAT SHAREHOLDER PRIVILEGES DOES THE FUND OFFER?

A: CLASS A SHARES CLASS B SHARES
-------------- --------------
AUTOMATIC INVESTMENT PLAN AUTOMATIC INVESTMENT PLAN
AUTOMATIC WITHDRAWAL PLAN AUTOMATIC WITHDRAWAL PLAN
RETIREMENT PLANS RETIREMENT PLANS
TELEPHONE EXCHANGES TELEPHONE EXCHANGES
RIGHTS OF ACCUMULATION REINVESTMENT PRIVILEGE
LETTER OF INTENT
QUANTITY DISCOUNTS
REINVESTMENT PRIVILEGE

Q: WHEN AND HOW ARE DISTRIBUTIONS MADE?

A: Dividend distributions are made from the dividends and interest earned on
investments after expenses. Dividends are paid at least annually. The Fund
distributes capital gains at least annually. Unless you elect to receive
distributions in cash, all dividends and capital gains distributions of the Fund
will be automatically used to purchase additional shares of the Fund.

Q: WHO MANAGES THE FUND'S ASSETS?

A: Munder Capital Management is the Fund's investment advisor. The Advisor is
responsible for all purchases and sales of the securities held by the Fund.

<PAGE>

FINANCIAL INFORMATION

SHAREHOLDER TRANSACTION EXPENSES (1)

The purpose of this table is to assist you in understanding the expenses a
shareholder in the Fund will bear directly.

<TABLE>
<CAPTION>
CLASS A CLASS B
SHARES SHARES
------ ------
<S> <C> <C>
Maximum Sales Charge on Purchase (as a % of Offering
Price). . . . . . . . . . . . . . . . . . . . . . . 5.5%(2) None
Sales Charge Imposed on Reinvested Dividends. . . . None None
Maximum Deferred Sales Charge . . . . . . . . . . . None(3) 5%(4)
Redemption Fees (5) . . . . . . . . . . . . . . . . None None
Exchange Fees . . . . . . . . . . . . . . . . . . . None None
</TABLE>

- ------------------------
Notes:
(1) Does not include fees which institutions may charge for services they
provide to you.
(2) The sales charge declines as the amount invested increases.
(3) A 1% CDSC applies to redemption of Class A Shares within one year of
investment that were purchased with no initial sales charge as part of an
investment of $1,000,000 or more.
(4) The CDSC payable upon redemption of Class B Shares declines over time.
(5) The Transfer Agent may charge a fee of $7.50 for wire redemptions under
$5,000.

FUND OPERATING EXPENSES

The purpose of this table is to assist you in understanding the expenses
charged directly to the Fund, which investors in the Fund will bear indirectly
for the current fiscal year. Such expenses include payments to Directors,
auditors, legal counsel and service providers (such as the Advisor),
registration fees and distribution fees. The fees shown below are based on fees
in the Fund's past fiscal year and have been restated to reflect the
discontinuation of the voluntary 12b-1 fee waiver for Class A Shares of the Fund
effective as of the date of this Prospectus. Because of the 12b-1 fee, you may
over the long term, pay more than the amount of the maximum permitted front-end
sales charge.

<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(as a % of average net assets)
- ------------------------------
CLASS A CLASS B
SHARES SHARES
------ ------
<S> <C> <C>
Advisory Fees . . . . . . . . . . . . . . . . . . . . . 1.00% 1.00%
12b-1 Fees. . . . . . . . . . . . . . . . . . . . . . . .25% 1.00%
Other Expenses+ . . . . . . . . . . . . . . . . . . . . .28%++ .28%++
---- ----
Total Fund Operating Expenses+. . . . . . . . . . . . . 1.53%++ 2.28%++
</TABLE>

- -----------------
+ After expense reimbursements.
++ The Advisor has voluntarily reimbursed the Fund for certain operating
expenses which are described below. Without the expense reimbursements,
total fund operating expenses would be 2.34% for Class A Shares and 3.09%
for Class B Shares.

EXAMPLE

This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in the Fund assuming (1) a 5% annual return
and (2) redemption at the end of the following time periods (including the
deduction of the deferred sales charge, if any) and (3) no redemption at the end
of the time periods. THIS

<PAGE>

EXAMPLE IS NOT A REPRESENTATION OF PAST OR FUTURE PERFORMANCE OR OPERATING
EXPENSES; ACTUAL PERFORMANCE OR OPERATING EXPENSES MAY BE LARGER OR SMALLER THAN
THOSE SHOWN.

<TABLE>
<CAPTION>
CLASS A CLASS B
SHARES SHARES
------ ------
<S> <C> <C>
1 YEAR
- REDEMPTION . . . . . . . . . . . . . . . . . . $ 70 $ 89
- REDEMPTION . . . . . . . . . . . . . . . . . . $ 70 $ 38
3 YEARS
- REDEMPTION . . . . . . . . . . . . . . . . . . $101 $103
- NO REDEMPTION. . . . . . . . . . . . . . . . . $101 $ 71
</TABLE>

As noted above, the Advisor expects to reimburse expenses with respect to
the Fund during the current fiscal year. The Advisor may discontinue the
expense reimbursement at any time in its sole discretion.

FINANCIAL HIGHLIGHTS

The following financial highlights for the fiscal year ended June 30, 1997
have been audited by Ernst & Young LLP, independent auditors. This information
is part of the Fund's audited financial statements which are included in the
Fund's Annual Report, which is incorporated by reference into the SAI. The
information for the six months ended December 31, 1997 is part of the Fund's
unaudited financial statements which are included in the Fund's most recent
Semi-Annual Report, which has also been incorporated by reference into the SAI.
This information should be read in conjunction with the financial statements and
notes thereto. You may obtain the Annual Report or Semi-Annual Report without
charge by calling (800) 438-5789.

<TABLE>
<CAPTION>
CLASS A
-------
SIX MONTHS
ENDED PERIOD
12/31/97 ENDED
(UNAUDITED) 6/30/97(a)
----------- ----------
<S> <C> <C>
Net asset value, beginning of period . . . . . . . $12.79 $10.00
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss . . . . . . . . . . . . . . (0.03) (0.04)
Net realized and unrealized gain on
investments . . . . . . . . . . . . . . . . . 3.65 3.15
------ ------
Total from investment operations . . . . . . . 3.62 3.11
------ ------
LESS DISTRIBUTIONS:
Distributions from net realized gains . . . . . (2.20) (0.32)
------ ------
Total distributions . . . . . . . . . . . . . . (2.20) (0.32)
------ ------
Net asset value, end of period . . . . . . . . . . $14.21 $12.79
------ ------
------ ------
Total return (b) . . . . . . . . . . . . . . . 28.90% 31.14%
------ ------
------ ------
RATIO TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:

Net assets, end of period (in 000's). . . . . . $4,702 $1,459
Ratio of operating expenses to average net
assets . . . . . . . . . . . . . . . . . . . 1.25%(c) 1.48%(c)
Ratio of net investment loss to average net
assets . . . . . . . . . . . . . . . . . . . (0.50)%(c) (0.48)%(c)
Portfolio turnover rate . . . . . . . . . . . . 82% 195%
Ratio of operating expenses to average net
assets without waivers and expenses
reimbursed . . . . . . . . . . . . . . . . . 2.31%(c) 4.57%(c)
Average commission rate (d) . . . . . . . . . . $0.0600 $0.0468
</TABLE>

- ---------------------
(a) NetNet Fund commenced operations on August 16, 1996.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by
the Fund.

<PAGE>

FUND INFORMATION

WHAT ARE THE FUND'S GOALS AND PRINCIPAL INVESTMENTS?

This Prospectus describes Class A and Class B Shares of the Fund. This
section summarizes the Fund's principal investments. The sections entitled
"What are the Fund's Investments and Investment Practices?" and "What are the
Risks of Investing in the Fund?" and the SAI give more information about the
Fund's investment techniques and risks.

GOAL AND PRINCIPAL INVESTMENTS. The Fund's primary goal is to provide
long-term capital appreciation. Under normal conditions, the Fund will invest
at least 65% of its assets in the Equity Securities.

In choosing which companies' stock the Fund should purchase, the Advisor
will invest in those companies listed on U.S. securities exchange or NASDAQ
which are engaged in the research, design, development or manufacturing, or
engaged to a significant extent in the business of distributing products,
processes or services for use with Internet or Intranet related businesses. The
Internet is a world-wide network of computers designed to permit users to share
information and transfer data quickly and easily. The World Wide Web ("WWW"),
which is a means of graphically interfacing with the Internet, is a hyper-text
based publishing medium containing text, graphics, interactive feedback
mechanisms and links within WWW documents and to other WWW documents. An
Intranet is the application of WWW tools and concepts to a company's internal
documents and databases.

PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.

WHO MAY WANT TO INVEST IN THE FUND?

The Fund is designed for investors who seek long-term capital appreciation.

WHAT ARE THE FUND'S INVESTMENTS AND INVESTMENT PRACTICES?

The Fund will invest primarily in EQUITY SECURITIES which includes common
stocks, preferred stocks, warrants and other securities convertible into common
stocks, including convertible bonds and convertible preferred stock. Many of
the common stocks the Fund will buy will not pay dividends; instead, stocks will
be bought for the potential that their prices will increase, providing capital
appreciation for the Fund. The value of Equity Securities will fluctuate due to
many factors, including the past and predicted earnings of the issuer, the
quality of the issuer's management, general market conditions, the forecasts for
the issuer's industry and the value of the issuer's assets. Holders of Equity
Securities only have rights to value in the company after all the debts have
been paid, and they could lose their entire investment in a company that
encounters financial difficulty. Warrants are rights to purchase securities at
a specified time at a specified price. Although the Fund may acquire
convertible securities that are rated below investment grade by Standard &
Poor's Rating Service, a division of McGraw-Hill Companies (S&P), or Moody's
Investors Service, Inc. ("Moody's"), it is expected that lower-rated convertible
securities will not exceed 5% of the value of the total assets of the Fund at
the time of purchase.

The Fund may invest in FOREIGN SECURITIES. These securities present more
risk than those issued by U.S. companies. The Fund typically will only purchase
foreign securities which are represented by American Depositary Receipts
("ADRs") listed on a domestic securities exchange or included in the NASDAQ
National Market System ("NASDAQ") or foreign securities listed directly on a
domestic securities exchange or included in NASDAQ. ADRs are receipts typically
issued by a United States bank or trust company evidencing ownership of the
underlying foreign securities.

The Fund may also purchase GLOBAL DEPOSITARY RECEIPTS ("GDRS"), which are
receipts issued by European financial institutions evidencing ownership of the
underlying foreign securities.

<PAGE>

The Fund may invest in FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS, which
are obligations of the Fund to purchase or sell a specific currency at a future
date at a set price. These contracts may decrease the Fund's loss due to a
change in currency value, but also limit gains from currency exchanges.

The Fund may invest in FUTURES CONTRACTS AND OPTIONS. Futures contracts
are contracts in which the Fund agrees, at maturity, to make delivery of or
receive securities, the cash value of an index or foreign currency. Futures
contracts and options on futures contracts are used for hedging purposes or to
maintain liquidity. The Fund may not purchase or sell a futures contract unless
immediately after any such transaction the sum of the aggregate amount of margin
deposits on its existing futures positions and the amount of premiums paid for
related options is 5% or less of its total assets. The Fund may buy options
giving it the right to require a buyer to buy a security held by the Fund (put
options), buy options giving it the right to require a seller to sell securities
to the Fund (call options), sell (write) options giving a buyer the right to
require the Fund to buy securities from the buyer or write options giving a
buyer the right to require the Fund to sell securities to the buyer during a set
time at a set price. Options may relate to stock indices or individual
securities. See the SAI for more details and additional limitations.

The Fund may purchase securities on a "WHEN-ISSUED" basis and may purchase
or sell securities on a "FORWARD COMMITMENT" basis. Although the price to be
paid by the Fund is set at the time of the agreement, the Fund usually does not
pay for the securities until they are received. The value of securities may
change between the time the price is set and the time the price is paid. When
the Fund purchases securities for future delivery, the Company's custodian will
set aside cash or liquid securities to "cover" the Fund's position. These
purchases are not expected to exceed 25% of the value of the Fund's total assets
absent unusual market conditions. The Fund does not intend to purchase
securities for future delivery for speculative purposes.

The Fund may invest in MONEY MARKET INSTRUMENTS, which are high-quality,
short-term instruments including, among other things, commercial paper, bankers'
acceptances and negotiable certificates of deposit of banks or savings and loan
associations, short-term corporate obligations and short-term securities issued
by, or guaranteed by, the U.S. Government and its agencies or instrumentalities.
These instruments will be used primarily pending investment, to meet anticipated
redemptions or as a temporary defensive measure.

The Fund may enter into REPURCHASE AGREEMENTS. Under a repurchase
agreement, the Fund agrees to purchase securities from a seller and the seller
agrees to repurchase the securities at a later time, typically within seven
days, at a set price. The seller agrees to set aside collateral at least equal
to the repurchase price. This ensures that the Fund will receive the purchase
price at the time it is due, unless the seller defaults or declares bankruptcy,
in which event the Fund will bear the risk of possible loss due to adverse
market action or delays in liquidating the underlying obligation.

The Fund may invest in REVERSE REPURCHASE AGREEMENTS. Under a reverse
repurchase agreement, the Fund sells securities and agrees to buy them back
later at an agreed upon time and price. Reverse repurchase agreements are used
to borrow money for temporary purposes.

The Fund may LEND SECURITIES to broker-dealers and other financially sound
institutional investors who will pay the Fund for the use of the securities,
thus potentially increasing the Fund's returns. The borrower must set aside
cash or liquid securities equal to the value of the securities borrowed at all
times during the terms of the loan. Loans may not exceed 25% of the value of
the Fund's total assets. Risks involved in such transactions include possible
delay in recovering the loaned securities and possible loss of the securities or
the collateral if the borrower declares bankruptcy.

The Fund may invest in securities issued by MONEY MARKET FUNDS. The Fund
will bear a portion of the expenses of any investment company whose shares they
purchase, including operating costs and investment advisory, distribution and
administration fees. These expenses would be in addition to the Fund's own
expenses. The Fund may invest up to 10% of its assets in other investment
companies and no more than 5% of its assets in any one investment company.

<PAGE>

The Fund may purchase U.S. GOVERNMENT SECURITIES, which are securities
issued by, or guaranteed by, the U.S. Government or its agencies or
instrumentalities. Such securities include U.S. Treasury bills, which have
initial maturities of less than one year, U.S. Treasury notes, which have
initial maturities of one to ten years, U.S. Treasury bonds, which generally
have initial maturities of greater than ten years, and obligations of the
Federal Home Loan Mortgage Corporation, Federal National Mortgage Association
and Government National Mortgage Association. Under normal market conditions,
the Fund will not invest to a significant extent, or on a routine basis, in U.S.
Government Securities.

The Fund may invest up to 15% of the value of its net assets in ILLIQUID
SECURITIES. Illiquid Securities are securities for which there is no ready
market, which inhibits the ability to sell them and obtain their full market
value.

The Fund may BORROW MONEY in an amount up to 5% of its assets for temporary
purposes and in an amount up to 33 1/3% of its assets to meet redemptions. This
is a "fundamental" policy which only can be changed by shareholders.

WHAT ARE THE RISKS OF INVESTING IN THE FUND?

Investing in the Fund may be less risky than investing in individual stocks
due to the diversification of investing in a portfolio of many different stocks;
however, such diversification does not eliminate all risks. Because the Fund
invests mostly in Equity Securities, rises and falls in the stock market in
general, as well as in the value of particular Equity Securities held by the
Fund, can affect the Fund's performance. Your investment in the Fund is not
guaranteed. The net asset value of the Fund will change daily and you might not
recoup the amount you invest in the Fund.

The Fund is not meant to provide a vehicle for playing short term swings in
the stock market. Consistent with a long-term investment approach, investors in
the Fund should be prepared and able to maintain their investments during
periods of adverse market conditions. By itself, the Fund does not constitute a
balanced investment program and there is no guarantee that the Fund will achieve
its investment objectives since there is uncertainty in every investment.

A fund's risk is mostly dependent on the types of securities it purchases
and its investment techniques. The Fund is authorized to use options, futures
and forward foreign currency exchange contracts, which are types of derivative
instruments. Derivative instruments are instruments that derive their value
from a different underlying security, index or financial indicator. The use of
derivative instruments exposes the Fund to additional risks and transaction
costs. Risks inherent in the use of derivative instruments include: (1) the
risk that interest rates, securities prices and currency markets will not move
in the direction that a portfolio manager anticipates; (2) imperfect correlation
between the price of derivative instruments and movements in the prices of the
securities, interest rates or currencies being hedged; (3) the fact that skills
needed to use these strategies are different than those needed to select
portfolio securities; (4) the possible absence of a liquid secondary market for
any particular instrument and possible exchange-imposed price fluctuation
limits, either of which may make it difficult or impossible to close out a
position when desired; (5) leverage risk, that is, the risk that adverse price
movements in an instrument can result in a loss substantially greater than the
Fund's initial investment in that instrument (in some cases, the potential loss
is unlimited); and (6) particularly in the case of privately-negotiated
instruments, the risk that the counterparty will not perform its obligations,
which could leave the Fund worse off than if it had not entered into the
position.

To the extent that the Fund invests in illiquid securities, the Fund risks
not being able to sell securities at the time and the price that it would like.
The Fund may therefore have to lower the price, sell substitute securities or
forego an investment opportunity, each of which might adversely affect the Fund.

<PAGE>

dependence on foreign economic assistance. Investments in companies domiciled
in foreign countries, therefore, may be subject to potentially higher risks than
investments in the United States.

The Fund will invest primarily in companies engaged in Internet and
Intranet related activities. The value of such companies is particularly
vulnerable to rapidly changing technology, extensive government regulation and
relatively high risks of obsolescence caused by scientific and technological
advances. The value of the Fund's shares may fluctuate more than shares of a
fund investing in a broader range of industries.

The risks of various investment techniques the Fund uses are described in
more detail in the SAI.

PERFORMANCE

HOW IS THE FUND'S PERFORMANCE CALCULATED?

There are various ways in which the Fund may calculate and report its
performance. Performance is calculated separately for each class of shares.

One method is to show the Fund's total return. Cumulative total return is
the percentage change in the value of an amount invested in a class of shares of
the Fund over a stated period of time and takes into account reinvested
dividends plus in the case of Class A Shares, the payment of the maximum sales
charge and, in the case of Class B Shares, the maximum CDSC. Cumulative total
return most closely reflects the actual performance of the Fund. However, a
shareholder who opts to receive dividends in cash, a Class A shareholder who
paid a sales charge lower than 5.5%, or a Class B shareholder who paid lower
than the maximum CDSC will have a different return than the reported
performance.

Average annual total return refers to the average annual compounded rates
of return over a specified period on an investment in shares of the Fund
determined by comparing the initial amount invested to the ending redeemable
value of the amount, taking into account reinvested dividends, the payment of
the maximum sales charge on Class A Shares, and the payment of the maximum CDSC
on Class B Shares.

The Fund may also publish its current yield. Yield is the net investment
income generated by a share of the Fund during a 30-day period divided by the
maximum offering price per share on the 30th day. "Maximum offering price"
includes the sales charge for Class A Shares.

The Fund may sometimes publish total returns that do not take into account
sales charges and such returns will be higher than returns which include sales
charges. You should be aware that (i) past performance does not indicate how
the Fund will perform in the future; and (ii) the Fund's return and net asset
value will fluctuate, so you cannot use the Fund's performance data to compare
it to investments in certificates of deposit, savings accounts or other
investments that provide a fixed or guaranteed yield.

The Fund may compare its performance to that of other mutual funds, such as
the performance of mutual funds reported by Lipper Analytical Services, Inc. or
information reported in national financial publications (such as MORNINGSTAR,
INC., MONEY MAGAZINE, FORBES, BARRON'S, THE WALL STREET JOURNAL and THE NEW YORK
TIMES), or in local or regional publications. The Fund may also compare its
total return to indices such as the S&P 500 and other broad-based indices.
These indices show the value of selected portfolios of securities (assuming
reinvestment of interest and dividends) which are not managed by a portfolio
manager. The Fund may report how they are performing in comparison to the
Consumer Price Index, an indication of inflation reported by the U.S.
Government.

WHERE CAN I OBTAIN PERFORMANCE DATA?

The WALL STREET JOURNAL and certain local newspapers report information on
the performance of mutual funds. In addition, performance information is
contained in the Fund's annual report dated June 30 of each year and semi-annual
report dated December 31 of each year, which will automatically be mailed to
shareholders. To obtain copies of financial reports or performance information,
call (800) 438-5789.

<PAGE>

PURCHASES AND EXCHANGES OF SHARES

WHICH SHARE CLASS SHOULD I CHOOSE FOR MY INVESTMENT?

The Fund offers Class A and Class B Shares. Each Class has its own cost
structure, allowing you to choose the one that best meets your requirements
given the amount of your purchase and the intended length of your investment.
You should consider both ongoing annual expenses and initial or contingent
deferred sales charges in estimating the costs of investing in a particular
class of shares.

CLASS A CLASS B
------- -------

- Front end sales charge. - No front end sales charge. All your
There are several ways to money goes to work for you right away.
reduce these sales - Higher annual expenses than Class A
charges. Shares.
- A CDSC on shares you sell within six
- Lower annual expenses than years of purchase.
Class B Shares. - Automatic conversion to Class A Shares
approximately six years after issuance,
thus reducing future annual expenses.
- CDSC is waived for certain redemptions.

The Fund also issues Class Y Shares, which has different sales charges,
expense levels and performance. Class Y Shares are available to limited types of
investors. Call (800) 438-5789 to obtain more information concerning Class Y
Shares.

WHAT PRICE DO I PAY FOR SHARES?

Class A Shares are sold at the "net asset value next determined" by the
Fund plus any "applicable sales charge" and Class B Shares are sold at the "net
asset value next determined" by the Fund. These terms are explained below. You
should be aware that broker-dealers (other than the Fund's Distributor) may
charge investors additional fees if shares are purchased through them.

NET ASSET VALUE. Except in certain limited circumstances, the Fund
determines its net asset value ("NAV") on each day the New York Stock Exchange
("NYSE") is open for trading (a "Business Day") at the close of such trading
(normally 4:00 p.m. Eastern time). The Fund calculates NAV separately for each
class of shares. The "net asset value next determined" is the NAV calculated at
4:00 p.m. on the day the purchase order for shares is received, if the purchase
order is received prior to or at 4:00 p.m., and is the net asset value
calculated at 4:00 p.m. on the next Business Day, if the purchase order is
received after 4:00 p.m. NAV is calculated by totaling the value of all of the
assets of the Fund allocated to a particular class of shares, subtracting the
Fund's liabilities and expenses charged to that class and dividing the result by
the number of shares of that class outstanding.

APPLICABLE SALES CHARGE. Except in the circumstances described below, you
must pay a sales charge at the time of purchase of Class A Shares. The sales
charge as a percentage of your investment decreases as the amount you invest
increases. The current sales charge rates and commissions paid to selected
dealers are as follows:

<PAGE>

<TABLE>
<CAPTION>
SALES CHARGE DEALER REALLOWANCE
AS A PERCENTAGE OF AS A PERCENTAGE OF THE
------------------
YOUR INVESTMENT NET ASSET VALUE OFFERING PRICE
--------------- --------------- --------------
<S> <C> <C> <C>
Less than $25,000 . . . . . . . . . . . . . . . 5.50% 5.82% 5.00%
$25,000 but less than $50,000 . . . . . . . . . 5.25% 5.54% 4.75%
$50,000 but less than $100,000. . . . . . . . . 4.50% 4.71% 4.00%
$100,000 but less than $250,000 . . . . . . . . 3.50% 3.63% 3.25%
$250,000 but less than $500,000 . . . . . . . . 2.50% 2.56% 2.25%
$500,000 but less than $1,000,000 . . . . . . . 1.50% 1.52% 1.25%
$1,000,000 or more . . . . . . . . . . . . . . . None* None* (see below)**
</TABLE>

- ------------------
* No initial sales charge applies on investments of $1 million or more.
However, a CDSC of 1% is imposed on certain redemptions within one year of
purchase.
** The Distributor will pay a 1% commission to dealers who initiate and are
responsible for purchases of $1 million or more.

The Distributor may pay the entire commission to dealers. If that occurs,
the dealer may be considered an "underwriter" under Federal securities laws.

SALES CHARGE WAIVERS. We will waive the initial sales charge on sales of
Class A Shares to the following types of purchasers:

(1) individuals with an investment account or relationship with the
Advisor;
(2) full-time employees and retired employees of the Advisor, employees
of the Fund's services providers and immediate family members of
such persons;
(3) registered broker-dealers that have entered into selling agreements
with the Distributor, for their own accounts or for the retirement
plans for their employees or sold to registered representatives for
full-time employees (and their families) that certify to the
Distributor at the time of purchase that such purchase is for their
own account (or for the benefit of their families);
(4) certain qualified employee benefit plans as described below;
(5) individuals who reinvest a distribution from a qualified retirement
plan for which the Advisor serves as an investment advisor;
(6) individuals who reinvest the proceeds of redemptions from Class Y
Shares of any Fund of the Company, the Trust or Framlington, within
60 days of redemption;
(7) banks and other financial institutions that have entered into
agreements with the Company, the Trust or Framlington to provide
shareholder services for customers ("Customers") (including
Customers of such banks and other financial institutions, and the
immediate family members of such Customers);
(8) fee-based financial planners or employee benefit plan consultants
acting for the accounts of their clients;
(9) employer sponsored retirement plans which are administered by
Universal Pensions, Inc. ("UPI Plans");

(10) employer sponsored 401(k) plans that are administered by Merrill
Lynch Group Employee Services ("Merrill Lynch Plans") which meet the
criteria described below under "Qualified Employer Sponsored
Retirement Plan"; and
(11) individuals who were shareholders of the Fund prior to June 1, 1998.

QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS

We will waive the initial sales charge on purchases of Class A Shares by
employer sponsored retirement plans that are qualified under Section 401(a) or
Section 403(b) of the Code (each, a "Qualified Employee Benefit Plan") and that
(1) invest $1,000,000 or more in Class A Shares of investment portfolios offered
by the Company,

<PAGE>

the Trust or Framlington or (2) have at least 75 eligible plan participants. In
addition, we will waive the CDSC 1% charged on certain redemptions within one
year of purchase for Qualified Employee Benefit Plan purchases that meet the
above criteria. A 1% commission will be paid by the Distributor to dealers and
other entities (as permitted by applicable Federal and state law) who initiate
and are responsible for Qualified Employee Benefit Plan purchases that meet the
above criteria. For purposes of this sales charge waiver, Simplified Employee
Pension Plans ("SEPs"), Individual Retirement Accounts ("IRAs") and UPI Plans
are not considered to be Qualified Employee Benefit Plans.

We will also waive (i) the initial sales charge on Class A Shares on
purchases by UPI Plans for employees participating in an employer-sponsored or
administered retirement program operating under Section 408A of the Code and
(ii) the CDSC of 1% imposed on certain redemptions within one year of purchase
for these accounts. The Distributor will pay a 1% commission to dealers and
others (as permitted by applicable Federal and state law) who initiate and are
responsible for UPI Plan purchases.

We will waive the initial sales charge for all investments by Merrill Lynch
Plans if (i) the Plan is recordkept on a daily valuation basis by Merrill Lynch
Group Employee Services ("Merrill Lynch") and, on the date the plan sponsor
("the Plan Sponsor") signs the Merrill Lynch Recordkeeping Service Agreement,
the Plan has $3 million or more in assets invested in broker/dealer funds not
advised or managed by Merrill Lynch Asset Management, L.P. ("MLAM") that are
made available pursuant to a Services Agreement between Merrill Lynch and the
Fund's principal underwriter or distributor and in funds advised or managed by
MLAM (collectively, the "Applicable Investments"); or (ii) the Plan is
recordkept on a daily valuation basis by an independent recordkeeper whose
services are provided through a contract or alliance arrangement with Merrill
Lynch, and on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping
Service Agreement, the Plan has $3 million or more in assets, excluding money
market funds, invested in Applicable Investments; or (iii) the Plan has 500 or
more eligible employees, as determined by the Merrill Lynch plan conversion
manager, on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping
Service Agreement.

SALES CHARGE REDUCTIONS. You may qualify for reduced sales charges in the
following cases:
- LETTER OF INTENT. If you intend to purchase at least $25,000 of Class
A and Class B Shares of the Fund you may wish to complete the Letter
of Intent Section of your Account Application Form. By doing so, you
agree to invest a certain amount over a 13-month period. You would
pay a sales charge on any Class A Shares you purchase during the 13
months based on the total amount to be invested under the Letter of
Intent. You can apply any investments you made in any of the funds
during the preceding 90-day period toward fulfillment of the Letter of
Intent (although there will be no refund of sales charge you paid
during the 90-day period). You should inform the Transfer Agent that
you have a Letter of Intent each time you make an investment.

You are not obligated to purchase the amount specified in the Letter
of Intent. If you purchase less than the amount specified, however,
you must pay the difference between the sales charge paid and the
sales charge applicable to the purchases actually made. The Custodian
will hold such amount in escrow. The Custodian will pay the escrowed
funds to your account at the end of the 13 months unless you do not
complete your intended investment.

- QUANTITY DISCOUNTS. You may combine purchases of Class A Shares that
are made by you, your spouse, your children under age 21 and your IRA
when calculating the sales charge. You must notify your broker or the
Transfer Agent to qualify.

- RIGHT OF ACCUMULATION. You may add the value of any shares of
non-money market funds of the Company, the Trust or Framlington you
already own to the amount of your next Class A Shares investment for
purposes of calculating the sales charge at the time of current
purchase. You must notify your broker or the Transfer Agent to
qualify.

Certain brokers may not offer these programs or may impose conditions on
use of these programs. You should consult with your broker prior to purchasing
the Fund's shares.

<PAGE>

For further information on the sales charge waivers and reductions call the
Fund at (800) 438-5789.

WHEN CAN I PURCHASE SHARES?

Shares of the Fund are sold on a continuous basis and can be purchased on
any Business Day.

WHAT IS THE MINIMUM REQUIRED INVESTMENT?

The minimum initial investment for Class A and Class B Shares of the Fund
is $250 and subsequent investments must be at least $50. Purchases in excess of
$250,000 must be for Class A Shares.

HOW CAN I PURCHASE SHARES?

You can purchase Class A and Class B Shares in a number of different ways.
You may place orders directly through the Distributor or the Transfer Agent or
through arrangements with your authorized broker.

- BY BROKER. Any broker authorized by the Distributor can sell you
shares of the Fund. Please note that brokers may charge you fees for
their services.

- BY MAIL. You may open an account by mailing a completed and signed
Account Application Form and a check or other negotiable bank draft
(payable to The Munder Funds) for $250 or more to: THE MUNDER FUNDS,
C/O FIRST DATA INVESTOR SERVICES GROUP, P.O. BOX 5130, WESTBOROUGH,
MASSACHUSETTS 01581-5130. Be sure to specify on your Account
Application Form the class of shares being purchased. If the class is
not specified, your purchase will automatically be invested in Class A
Shares. For additional investments send a letter stating the Fund and
share class you wish to purchase, your name and your account number
with a check for $50 or more to the address listed above.

- BY WIRE. To open a new account, you should call the Fund at (800)
438-5789 to obtain an account number and complete wire instructions
prior to wiring any funds. Within seven days of purchase, you must
send a completed Account Application Form containing your certified
taxpayer identification number to the Transfer Agent at the address
provided above. Wire instructions must state the name of the Fund,
share class, your registered name and your account number. Your bank
wire should be sent through the Federal Reserve Bank Wire System to:

Boston Safe Deposit and Trust Company
Boston, MA
ABA # 011001234
DDA # 16-798-3
Account No.:

You may make additional investments at any time using the wire procedures
described above. Note that banks may charge fees for transmitting wires.

- AUTOMATIC INVESTMENT PLAN ("AIP"). Under the AIP, you may arrange for
periodic investments in the Fund through automatic deductions from a
checking or savings account. To enroll in the AIP you should complete
the AIP Application Form or call the Fund at (800) 438-5789. The
minimum pre-authorized investment amount is $50. You may discontinue
the AIP at any time. We may discontinue the AIP on 30 days' written
notice to you.

- REINVESTMENT PRIVILEGE. Once a year you may reinvest redemption
proceeds from Class A and B Shares of the Fund (or Class A and B
Shares of another non-money market fund of the Company, the Trust or
Framlington) in shares of the same class of the Fund without any sales
charges, if the reinvestment is made within 60 days of redemption.
You or your broker must notify the Transfer Agent in writing at the
time of reinvestment in order to eliminate the sales charge.

<PAGE>

The Transfer Agent will send confirmations of the opening of an account and
of all subsequent purchases, exchanges or redemptions in the account. If your
account has been set up by a broker or other investment professional, account
activity will be detailed in their statements to you. We reserve the right to
(i) reject any purchase order if, in our opinion, it is in the Fund's best
interest to do so and (ii) suspend the offering of shares of either Class for
any period of time.

See the SAI for further information regarding purchases of the Fund's
shares.

HOW CAN I EXCHANGE SHARES?

You may exchange shares of the Fund for shares of other funds of the
Company, the Trust or Framlington based on their relative net asset values.
Class A Shares of a money market fund of the Company or the Trust that were (1)
acquired through the use of the exchange privilege and (2) can be traced back to
a purchase of shares in one or more investment portfolios of the Company or the
Trust for which a sales charge was paid, can be exchanged for Class A Shares of
a fund of the Company, the Trust or Framlington. Class B Shares will continue
to age from the date of the original purchase and will retain the same CDSC rate
as they had before the exchange.

You must meet the minimum purchase requirements for the fund of the
Company, the Trust or Framlington that you purchase by exchange. If you are
exchanging into shares of a fund with a higher sales charge, you must pay the
difference at the time of the exchange. Please note that a share exchange is a
taxable event and accordingly, you may realize a taxable gain or loss. Before
making an exchange request, read the Prospectus of the fund you wish to purchase
by exchange. You can obtain a Prospectus for any fund of the Company, the Trust
or Framlington by contacting your broker or the Fund at (800) 438-5789. Brokers
may charge a fee for handling exchanges.

- EXCHANGES BY TELEPHONE. You may give exchange instructions by
telephone to the Fund at (800) 438-5789. You may not exchange shares
by telephone if you hold share certificates. We reserve the right to
reject any telephone exchange request and to place restrictions on
telephone exchanges.

- EXCHANGES BY MAIL. You may send exchange orders to your broker or to
us at The Munder Funds c/o First Data Investor Services Group, P.O.
Box 5130, Westborough, Massachusetts 01581-5130.

We may modify or terminate the exchange privilege at any time. You will be
given notice of any material modifications except where notice is not required.

REDEMPTIONS OF SHARES

WHAT PRICE DO I RECEIVE FOR REDEEMED SHARES?

The redemption price is the net asset value next determined after we
receive the redemption request in proper order. We will reduce the amount of
any applicable CDSC. See "Purchases of Shares--What Price Do I Pay for Shares?"
for an explanation of how the net asset value next determined is calculated.

CONTINGENT DEFERRED SALES CHARGES. You pay a CDSC when you redeem:

- Class A Shares that are part of an investment of at least $1 million
within one year of buying them
- Class B Shares within six years of buying them

The CDSC schedule for Class B Shares purchased after June 27, 1995 is set
forth below. Shares acquired in an exchange of shares of another Fund of the
Company, the Trust or Framlington that were purchased on or before June 27, 1995
are subject to any CDSC applicable to those shares. See the SAI for the CDSC
Schedule for shares purchased on or before June 27, 1995. The CDSC is based on
the original net asset value at the time of your investment or the net asset
value at the time of redemption, whichever is lower.

<PAGE>

CLASS B SHARES
<TABLE>
<CAPTION>
YEARS SINCE PURCHASE CDSC
- -------------------- ----
<S> <S>
First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00%
Second. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.00%
Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00%
Fourth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00%
Fifth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00%
Sixth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%
Seventh and thereafter. . . . . . . . . . . . . . . . . . . . . . . 0.00%
</TABLE>

The Distributor pays sales commissions of 4.00% of the purchase price of
Class B Shares of the Fund to brokers at the time of sale that initiate and are
responsible for purchases of Class B Shares of the Fund.

You will not pay a CDSC to the extent that the value of the redeemed shares
represents:

- reinvestment of dividends or capital gain distributions
- capital appreciation of shares redeemed

When you redeem shares, we will assume you are redeeming first shares
representing investment of dividends and capital gain distributions, then any
appreciation on shares redeemed, and then remaining shares held by you for the
longest period of time. We will calculate the holding period of shares of the
Fund acquired through an exchange of shares of the Munder Money Market Fund from
the date that the shares of the Fund were initially purchased.

CDSC WAIVERS. We will waive the CDSC payable upon redemptions of shares
which you purchased after June 27, 1995 for:

- redemptions made within one year after the death of a shareholder or
registered joint owner
- minimum required distributions made from an IRA or other retirement
plan account after you reach age 70 1/2
- involuntary redemptions made by the Fund

Consult the SAI for Class B Share CDSC waivers which apply when you redeem
shares acquired in an exchange of shares of another Fund of the Company, the
Trust or Framlington that were purchased on or before June 27, 1995.

We will waive the CDSC for Class B Shares for all redemptions by Merrill
Lynch Plans if: (i) the Plan is recordkept on a daily valuation basis by
Merrill Lynch; or (ii) the Plan is recordkept on a daily valuation basis by an
independent recordkeeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch; or (iii) the Plan has less than 500
eligible employees, as determined by the Merrill Lynch plan conversion manager,
on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping Service
Agreement.

WHEN CAN I REDEEM SHARES?

You can redeem shares on any Business Day, provided all required documents
have been received by the Transfer Agent. The Fund may temporarily stop
redeeming shares when the NYSE is closed or trading on the NYSE is restricted,
when an emergency exists and the Fund cannot sell its assets or accurately
determine the value of its assets or if the SEC orders the Fund to suspend
redemptions.

HOW CAN I REDEEM SHARES?

You may redeem shares of the Fund in several ways:

<PAGE>

- BY MAIL. You may mail your redemption request to: THE MUNDER FUNDS,
C/O FIRST DATA INVESTOR SERVICES GROUP, P.O. BOX 5130, WESTBOROUGH,
MASSACHUSETTS 01581-5130. The redemption request should state the
name of the Fund, share class, account number, amount of redemption,
account name and where to send the proceeds. All account owners must
sign. If a stock certificate has been issued to you, you must endorse
the stock certificate and return it together with the written
redemption request.

A SIGNATURE GUARANTEE is required for the following redemption
requests: (a) redemption proceeds greater than $50,000; (b)
redemption proceeds not being made payable to the owner of the
account; (c) redemption proceeds not being mailed to the address of
record on the account or (d) if the redemption proceeds are being
transferred to another Munder Funds account with a different
registration. You can obtain a signature guarantee from a financial
institution such as a commercial bank, trust company, savings
association or from a securities firm having membership on a
recognized stock exchange.

- BY TELEPHONE. You can redeem your shares by calling your broker or
the Fund at (800) 438-5789. There is no minimum requirement for
telephone redemptions paid by check. The Transfer Agent may deduct a
wire fee (currently $7.50) for wire redemptions under $5,000.

If you are redeeming at least $1,000 of shares and you have authorized
expedited redemption on your Account Application Form, simply call the
Fund prior to 4:00 p.m. (Eastern time), and request the funds be
mailed to the commercial bank or registered broker-dealer you
designated on your Account Application Form. We will send your
redemption amount to you on the next Business Day. We reserve the
right at any time to change or impose fees for this expedited
redemption procedure.

We record all telephone calls for your protection and take measures to
identify the caller. If the Transfer Agent properly acts on telephone
instructions and follows reasonable procedures to ensure against
unauthorized transactions, neither the Company, the Trust, the
Distributor nor the Transfer Agent will be responsible for any losses.
If these procedures are not followed, the Transfer Agent may be liable
to you for losses resulting from unauthorized instructions.

During periods of unusual economic or market activity, you may
experience difficulties or delays in effecting telephone redemptions.
In such cases you should consider placing your redemption request by
mail.

- AUTOMATIC WITHDRAWAL PLAN ("AWP"). If you have an account value of
$2,500 or more in the Fund, you may redeem shares on a monthly,
quarterly, semi-annual or annual basis. The minimum withdrawal is
$50. We usually process withdrawals on the 20th day of the month and
promptly send you your redemption amount. You may enroll in the AWP
by completing the AWP Application Form available through the Transfer
Agent. To participate in the AWP you must have your dividends
automatically reinvested and may not hold share certificates. You may
change or cancel the AWP at any time upon notice to the Transfer
Agent. You should not buy Class A Shares (and pay a sales charge)
while you participate in the AWP and you must pay any applicable CDSCs
when you redeem shares.

- INVOLUNTARY REDEMPTION. We may redeem your account if its value falls
below $500 as a result of redemptions (but not as a result of a
decline in net asset value). You will be notified in writing and
allowed 60 days to increase the value of your account to the minimum
investment level.

WHEN WILL I RECEIVE REDEMPTION AMOUNTS?

We will typically send redemption amounts to you within seven Business Days
after you redeem shares. We may hold redemption amounts from the sale of shares
you purchased by check until the purchase check has cleared, which may be as
long as 15 days.

<PAGE>

STRUCTURE AND MANAGEMENT OF THE FUND

HOW IS THE FUND STRUCTURED?

The Company is an open-end management investment company, which is a mutual
fund that sells and redeems shares every day that it is open for business. It
is managed under the direction of its governing Board of Directors, which is
responsible for the overall management of the Company and supervises the Fund's
service providers. The Company is a Maryland corporation.

WHO MANAGES AND SERVICES THE FUND?

INVESTMENT ADVISOR. The Fund's investment advisor is Munder Capital
Management, a Delaware general partnership with its principal offices at 480
Pierce Street, Birmingham, Michigan 48009. The principal partners of the
Advisor are Old MCM, Inc. ("MCM"), Munder Group LLC, Woodbridge and WAM
Holdings, Inc. ("WAM"). MCM was founded in February 1985 as a Delaware
corporation and was a registered investment advisor. Woodbridge and WAM are
indirect, wholly-owned subsidiaries of Comerica Incorporated. Mr. Lee P.
Munder, the Advisor's chairman, indirectly owns or controls approximately 45%
and Comerica Incorporated owns or controls approximately 44% of the partnership
interests in the Advisor. As of December 31, 1997, the Advisor and its
affiliates had approximately $45 billion in assets under management, of which
$22.2 billion were invested in equity securities, $9 billion were invested in
money market or other short-term instruments, $9.3 billion were invested in
other fixed income securities, and $4.5 billion in non-discretionary assets.

The Advisor provides overall investment management for the Fund, provides
research and credit analysis and is responsible for all purchases and sales of
portfolio securities. During the fiscal year ended June 30, 1997, the Advisor
was paid an advisory fee at an annual rate of 1.00% based on the average daily
net assets of the Fund.

The Advisor may, from time to time, make payments to banks, broker-dealers
or other financial institutions for certain services to the Fund and/or their
shareholders, including sub-administration, sub-transfer agency and shareholder
servicing. The Advisor may make such payments out of its own resources and
there are no additional costs to the Fund or their shareholders.

The Advisor selects broker-dealers to execute portfolio transactions for
the Fund based on best price and execution terms. The Advisor may consider as a
factor the number of shares sold by the broker-dealer.

ADMINISTRATOR. State Street Bank and Trust Company ("State Street" or the
"Administrator") is the Fund's administrator. The Administrator is located at
225 Franklin Street, Boston, Massachusetts 02110. The Administrator generally
assists the Company in all aspects of its administration and operations. As
compensation for its services, State Street is entitled to receive fees, based
on the aggregate daily net assets of the Fund and certain other investment
portfolios that are advised by the Advisor for which it provides services,
computed daily and payable monthly at the annual rate of 0.113% on the first
$2.8 billion of net assets, plus 0.103% on the next $2.2 billion of net assets,
plus 0.101% on the next $2.5 billion of net assets, plus 0.095% on the next $2.5
billion of net assets, plus 0.080% on the next $2.5 billion of net assets, plus
0.070% on all net assets in excess of $12.5 billion (with a $75,000 minimum fee
per annum in the aggregate for all portfolios with respect to the
Administrator). State Street is also entitled to reimbursement for
out-of-pocket expenses.

State Street has entered into a Sub-Administration Agreement with the
Distributor under which the Distributor provides certain administrative services
with respect to the Fund. State Street pays the Distributor a fee for these
services out of its own resources at no cost to the Fund.

TRANSFER AGENT. First Data Investor Services Group, Inc. is the Fund's
Transfer Agent. The Transfer Agent is a wholly-owned subsidiary of First Data
Corporation and is located at 53 State Street, Boston, Massachusetts 02109.

<PAGE>

CUSTODIAN AND SUB-CUSTODIAN. Comerica Bank (the "Custodian") whose
principal business address is One Detroit Center, 500 Woodward Avenue, Detroit,
Michigan 48226, provides custodial services to the Fund. No compensation is
paid to the Custodian for such services. Comerica receives a fee of 0.01% of
the aggregate average daily net assets of the Fund beneficially owned by
Comerica and its customers for certain shareholder services provided by Comerica
to the Fund. State Street serves as Sub-Custodian to the Fund.

DISTRIBUTOR. Funds Distributor, Inc. is the distributor of the Fund's
shares and is located at 60 State Street, Suite 1300, Boston, Massachusetts
02109. It markets and sells the Fund's shares.

For additional description of the services performed by the Administrator,
the Transfer Agent, the Custodian, the Sub-Custodian and the Distributor, see
the SAI.

DISTRIBUTION SERVICES ARRANGEMENT

Under Rule 12b-1 of the 1940 Act, the Fund has adopted a Service Plan with
respect to its Class A Shares and a Service and Distribution Plan with respect
to its Class B Shares. Under the Plans, the Fund uses its assets to finance
activities relating to the distribution of shares to investors and the provision
of certain shareholder services. The Distributor is paid a service fee at an
annual rate of up to 0.25% of the value of the average daily net assets of the
Fund's Class A Shares. The Distributor is also paid a service fee at an annual
rate of 0.25% and a distribution fee at an annual rate of up to 0.75% of the
value of the average daily net assets of the Fund's Class B Shares. The
Distributor uses the service fees primarily to pay ongoing trail commissions to
securities dealers (which may include the Distributor itself) and other
financial organizations which provide shareholder services for the Fund. These
services include, among other things, processing new shareholder account
applications, reporting to the Fund's Transfer Agent all transactions by
customers and serving as the primary information source to customers concerning
the Fund.

WHAT ARE MY RIGHTS AS A SHAREHOLDER?

All shareholders have equal voting, liquidation and other rights. You are
entitled to one vote for each share you hold and a fractional vote for each
fraction of a share you hold. You will be asked to vote on matters affecting
the Company as a whole and affecting the Fund. You will not vote by Class
unless expressly required by law or when the Directors determine that the matter
to be voted on affects only the interests of the holders of a particular class
of shares. The Company will not hold annual shareholder meetings, but special
meetings may be held at the written request of shareholders owning more than 10%
of outstanding shares for the purpose of removing a Director. The SAI contains
more information regarding voting rights.

DIVIDENDS, DISTRIBUTIONS AND TAXES

WHEN WILL I RECEIVE DISTRIBUTIONS FROM THE FUND?

As a shareholder, you are entitled to your share of net income and capital
gains, if any, on the Fund's investments. The Fund passes its earnings along to
its investors in the form of dividends. Dividend distributions are the
dividends or interest earned on investments after expenses. Dividends from net
income of the Fund, if any, are paid at least annually. The Fund distributes
its net realized capital gains (including net short-term capital gains), if any,
are distributed at least annually.

It is possible that the Fund may make a distribution in excess of the
Fund's current and accumulated earnings and profits. You will treat such a
distribution as a return of capital which is applied against and reduces your
basis in your shares. To the extent that the amount of any such distribution
exceeds your basis in your shares, you will treat the excess as gain from a sale
or exchange of the shares.

<PAGE>

HOW WILL DISTRIBUTIONS BE MADE?

The Fund will pay dividend and capital gains distributions in additional
shares of the same class of the Fund. If you wish to receive distributions in
cash, either indicate this request on your Account Application Form or notify
the Fund at (800) 438-5789.

ARE THERE TAX IMPLICATIONS OF MY INVESTMENTS IN THE FUND?

In general, as long as the Fund meets the requirements to qualify as a
regulated investment company ("RIC") under Federal tax laws, it will not be
subject to Federal income tax on its income and capital gains that it
distributes in a timely manner to its shareholders. The Fund intends to qualify
annually as a RIC. Even if it qualifies as a RIC, the Fund may still be liable
for any excise tax on income that is not distributed in accordance with a
calendar year requirement; the Fund intends to avoid the excise tax by making
timely distributions.

Generally, you will owe tax on the amounts distributed to you, regardless
of whether you receive these amounts in cash or reinvest them in additional Fund
shares. Shareholders not subject to tax on their income generally will not be
required to pay any tax on amounts distributed to them. Federal income tax on
distributions to an IRA or to a qualified retirement plan will generally be
deferred.

Capital gains derived from sales of portfolio securities held by the Fund
will generally be designated as long-term or short-term. Distributions from the
Fund's long-term capital gains are generally taxed at the long-term capital
gains rates, regardless of how long you have owned shares in the Fund.
Dividends derived from other sources are generally taxed as ordinary income.

Dividends and capital gain distributions are generally taxable when you
receive them; however, if a distribution is declared in October, November or
December, but not paid until January of the following year, it will be
considered to be paid on December 31 in the year in which it was declared.
Shortly after the end of each year, you will receive from the Fund a statement
of the amount and nature of the distributions made to you during the year.

If you redeem, transfer or exchange Fund shares, you may have taxable gain
or a loss. If you hold Fund shares for six months or less, and during that time
you receive a capital gain dividend, any loss you realize on the sale of these
Fund shares will be treated as a long-term loss to the extent of the earlier
distribution.

Dividends and certain interest income earned from foreign securities by the
Fund may be subject to foreign withholding or other taxes. The Fund may be
permitted to pass on to its shareholders the right to a credit or deduction for
income or other tax credits earned from foreign investments and will do so if
possible. These deductions or credits may be subject to tax law limitations.

If the Fund invests in certain "passive foreign investment companies"
("PFICs"), it will be subject to Federal income tax (and possibly additional
interest charges) on a portion of any "excess distribution" or gain from the
disposition of such shares, even if it distributes such income to its
shareholders. If the Fund elects to treat a PFIC as a "qualified electing fund"
("QEF") and the PFIC furnishes certain financial information in the required
form to such Fund, the Fund will instead be required to include in income each
year its allocable share of the ordinary earnings and net capital gains of the
QEF, regardless of whether received, and such amounts will be subject to the
various distribution requirements described above. The Fund may also elect to
mitigate the tax effects of owning PFIC stock by making an annual mark-to-market
election with respect to PFIC shares.

More information about the tax treatment of distributions from the Fund and
about other potential tax liabilities, including backup withholding for certain
taxpayers and information about tax aspects of dispositions of shares of the
Fund, is contained in the SAI. You should consult your tax advisor regarding
the impact of owning the Fund's shares on your own personal tax situation
including the applicability of any state and local taxes.

<PAGE>

ADDITIONAL INFORMATION

SHAREHOLDER COMMUNICATIONS. You will receive unaudited Semi-Annual Reports
and audited Annual Reports on a regular basis from the Fund. In addition, you
will also receive updated Prospectuses or Supplements to this Prospectus. In
order to eliminate duplicate mailings, the Fund will only send one copy of the
above communications to (1) accounts with the same primary record owner, (2)
joint tenant accounts, (3) tenant in common accounts and (4) accounts which have
the same address.

21
<PAGE>

Application [LOGO]

PLEASE MAIL YOUR COMPLETE APPLICATION (printed or typed)
ALONG WITH YOUR CHECK TO:

THE MUNDER FUNDS
c/o First Data Investor Services Group, Inc.
P.O. Box 5130
Westborough, MA 01581-5130

If you have any questions regarding this application, please telephone the
Transfer Agent at 1.800.438.5789

1. ACCOUNT REGISTRATION

- --------------------------------------------------------------------------------
Name Social Security Number

- --------------------------------------------------------------------------------
Joint Owner (if any) (If Joint Tenancy, use Social Security
Number of first joint owner)

Uniform Transfer to Minor:

for:
- --------------------------------------------------------------------------------
Custodian Name (one custodian only) Minor's Name (one minor only)

- --------------------------------------------------------------------------------
State (Custodian's State of Residence) Minor's Social Security Number

/ / Trust / / Corporation / / Other (please specify)
---------------

- --------------------------------------------------------------------------------
Trust/Corporation Name

- --------------------------------------------------------------------------------
Trust Date Trust Identification Number

2. MAILING ADDRESS (address for reports, dividends, statements and
redemption proceeds)

- --------------------------------------------------------------------------------
Street Apt.

- --------------------------------------------------------------------------------
City State Zip Code Telephone Number

Non-Resident Alien: / / Yes / / No If Yes, Country of Residence
-----------

<PAGE>

3. INITIAL INVESTMENT

With as little as $250* you can invest in any Munder Fund. Please be sure to
read the prospectus carefully before investing or sending money. You may
request an additional prospectus by calling 1.800.438.5789.

NAME OF FUND CLASS CLASS CLASS
A B C INVESTMENT AMOUNT
<S> <C> <C> <C> <C>
/ / Munder Accelerating Growth Fund / / / / / / $_______________
/ / Munder All-Season Aggressive Fund / / / / N/A $_______________
/ / Munder All-Season Moderate Fund / / / / N/A $_______________
/ / Munder All-Season Conservative Fund / / / / N/A $_______________
/ / Munder Balanced Fund / / / / / / $_______________
/ / Munder Growth & Income Fund / / / / / / $_______________
/ / Munder Index 500 Fund / / / / / / $_______________
/ / Munder International Equity Fund / / / / / / $_______________
/ / Munder Micro-Cap Equity Fund / / / / / / $_______________
/ / Munder Multi-Season Growth Fund / / / / / / $_______________
/ / Munder Real Estate Equity Investment Fund / / / / / / $_______________
/ / Munder Small-Cap Value Fund / / / / / / $_______________
/ / Munder Small Company Growth Fund / / / / / / $_______________
/ / Munder Value Fund / / / / / / $_______________
/ / Munder Framlington Emerging Markets Fund / / / / / / $_______________
/ / Munder Framlington Healthcare Fund / / / / / / $_______________
/ / Munder Framlington International Growth Fund / / / / / / $_______________
/ / NetNet Fund / / / / N/A $_______________
/ / Munder Bond Fund / / / / / / $_______________
/ / Munder Intermediate Bond Fund / / / / / / $_______________
/ / Munder International Bond Fund / / / / / / $_______________
/ / Munder Short Term Treasury Fund / / / / / / $_______________
/ / Munder Michigan Triple Tax-Free Bond Fund / / / / / / $_______________
/ / Munder Tax-Free Bond Fund / / / / / / $_______________
/ / Munder Tax-Free Intermediate Bond Fund / / / / / / $_______________
/ / Munder U.S. Government Income Fund / / / / / / $_______________
/ / Munder Cash Investment Fund / / N/A N/A $_______________
/ / Munder Money Market Fund / / N/A N/A $_______________
/ / Munder Tax-Free Money Market Fund / / N/A N/A $_______________
/ / Munder U.S. Treasury Money Market Fund / / N/A N/A $_______________
/ / Other Munder Fund / / / / / / $_______________
Total Amount Invested $_______________
</TABLE>
/ / By Check (Payable to The Munder Funds)
/ / By Wire. Account Number:(Account number assigned by Bank from which assets
were wired)

- ---------------------
* $50 per Fund if the Automatic Investment Plan Option is being established at
this time (please complete section 5).

<PAGE>

4. DISTRIBUTION OPTION (check one. If none, "A" will be assigned)

/ / A. Reinvest dividends and capital gains in additional Fund shares.

/ / B. Pay dividends in cash; reinvest capital gains in additional Fund shares.

/ / C. Pay dividends and capital gains in cash.

/ / D. Please send my: / /Dividends / /Dividends & Capital Gains (choose one)
directly to my checking/savings account.

FILL OUT BANKING INFORMATION IN SECTION 10

5. AUTOMATIC INVESTMENT PLAN (optional)

YES, I (we) wish to participate in the Automatic Investment Plan (AIP). I
(We) authorize First Data Investor Services Group, Inc. (First Data), The
Munder Funds' transfer agent, to invest automatically $ _______ ($50 minimum)
for me (us) on a / / MONTHLY OR / / QUARTERLY basis (please choose either the
/ / 5TH or the / / 20TH of the month) and draw a bank draft in payment of
each of these investments against my (our) / / CHECKING OR / / SAVINGS
account. For the purpose of verifying my (our) bank account number, I (we)
have enclosed a blank check or deposit slip marked void and have signed the
bank authorization below.

- --------------------------------------------------------------------------------
Name of Fund Checking/Savings Account Number ABA Number (Banking
Routing Number)
FILL OUT BANKING INFORMATION IN SECTION 10

6. CHECKWRITING PRIVILEGES (optional)

Income & Money Market Class A shares only

If you are opening an account for any of The Munder Income and/or Money Market
Funds (Class A Shares only), you are entitled to the checkwriting option.
Redemption checks may be written for amounts of $500 or more. To obtain checks,
please complete the signature card below. All persons named in the Account
Registration in Section 1 must sign the signature card. For Corporate, Trust or
Partnership accounts, only authorized signers must sign. By signing this
signature card, you agree to be subject to the customary rules and regulations
governing checking accounts, as well as instructions and rules of the Fund now
in effect, and as amended from time to time, that pertain to the use of
redemption checks.

Please fill out the following Signature Card to be eligible for Checkwriting and
indicate the Fund(s) for which you are requesting this service:

- --------------------------------------------------------------------------------
Fund(s)

Authorized Signatures (exactly as it appears if Part 1 of the Application):

- --------------------------------------------------------------------------------
Print Name Signature

Check here if more than one signature
is required per check: / / 2 / / 3 / / Other: ________________

<PAGE>

7. AUTOMATIC WITHDRAWAL PLAN (optional)

The minimum account balance must be $2,500 or more.

FILL OUT BANKING INFORMATION IN SECTION 10

YES, I authorize the redemption of shares from my Munder Fund account to meet
withdrawal payments on the 20th of each month.

- --------------------------------------------------------------------------------
Name of Fund That Shares Will Be Redeemed From Account Number (if
applicable)

- --------------------------------------------------------------------------------
Amount of Monthly Payment ($50 minimum per Fund) Start Date (Payment is to
begin on the next payment
period unless a later
date is indicated)

Payments will be made to: / / Owner's address of record only OR
/ / Other listed below:

______________________________________ / /Checking OR / / Savings Account
Name (if bank indicate account number)

- --------------------------------------------------------------------------------
Address

For the purpose of verifying my (our) bank account number, I (we) have enclosed
a blank check or deposit slip marked void and have signed the bank authorization
below.

- --------------------------------------------------------------------------------
Name of Fund Account Number ABA Number (Bank Routing Number)

8. REDUCED SALES CHARGE (optional)
/ / Rights of Accumulation:

Investors may qualify for reduced sales charges by aggregating the total
purchases of all Munder Class A Shares, excluding Money Market Funds, to
determine the applicable sales charge for current purchases. To determine the
aggregated amount of all non-money market funds, you will need to total the
current purchases as well as shares that are already beneficially owned by the
investor for which a sales charge has already been paid. Please see the
prospectus for additional information regarding Rights of Accumulation.

I apply for the Rights of Accumulation reduced sales charges based on the
following accounts in The Munder Funds.

- --------------------------------------------------------------------------------
Name of Fund Account Number

- --------------------------------------------------------------------------------
Name of Fund Account Number
/ / Letters of Intent:

You may qualify for reduced sales charges if you plan to make additional
investments in The Munder Funds within a 13 month period. By indicating a level
of anticipated investment and by signing this application, you agree to the
terms of the Letter of Intent as set forth in the Prospectus, and as follows:
"Although I am not obligated to do so, I intend to invest over a 13 month period
an aggregate amount of at least" (check one):

/ / $25,000 / / $50,000 / / $100,000

/ / $250,000 / / $500,000 / / $1,000,000

<PAGE>

9. TELEPHONE REDEMPTION & EXCHANGE AGREEMENT

Please check the box if you want this option.

/ / I (We) authorize First Data to act upon instructions received by telephone
from me (us) to redeem or to exchange shares of The Munder Funds.

1. I (We) relieve the Funds or First Data of any liability for the loss,
cost or expense for acting upon such instructions reasonably believed
to be from me (us).

2. I (We) assume responsibility for notifying the Funds within seven (7)
business days if a confirmation for the transaction is not received or
is incorrect.

3. If an exchange involves an initial investment into a Fund, the account
registration will carry the same registration as set forth above.

4. An exchange deemed to be the initial purchase of a Fund must meet the
minimum initial investment requirement of $250 per Fund unless the
shareholder is establishing an Automatic Investment Plan.

5. Redemption proceeds will be sent only to my account address of record.

- --------------------------------------------------------------------------------
Name Name

10. BANKING INFORMATION

TO BE COMPLETED WITH SECTION 4 (DISTRIBUTION OPTION)
I (We) authorize The Munder Funds to deposit distributions into the following
/ / Checking / / Savings Account

- --------------------------------------------------------------------------------
Bank Name Address

- --------------------------------------------------------------------------------
ABA Number (Bank Routing Number) Account Number Banking Account
Registration

- --------------------------------------------------------------------------------
Wiring Instructions

TO BE COMPLETED WITH SECTION 5 (AUTOMATIC INVESTMENT PLAN)
Please note that your bank will clear and process each bank draft and will
include it with your regular statements. However, acceptance of this
authorization is conditional upon approval of your authorization by your bank,
which will allow First Data, the transfer agent for The Munder Funds, to act as
your agent with regard to the Automatic Investment Plan (AIP). The AIP will
automatically terminate without notice if any bank draft is not paid upon
presentation by First Data, to your bank. The AIP may be modified or terminated
at any time, upon thirty (30)-days written notice.

- --------------------------------------------------------------------------------
Signature of Depositor Date Signature of Joint Depositor (if any) Date

TO BE COMPLETED WITH SECTION 7 (AUTOMATIC WITHDRAWAL PLAN)
Please note that your bank will clear and process each bank deposit and will
include it with your regular statements. However, acceptance of this
authorization is conditional upon approval of your authorization by your bank,
which will allow the transfer agent for The Munder Funds to act as your Agent
with regard to the Automatic Withdrawal Plan (AWP). The AWP may be modified or
terminated at any time, upon thirty (30) days written notice.

- --------------------------------------------------------------------------------
Signature of Depositor Date Signature of Joint Depositor (if any) Date

* Please Staple Void Check or Deposit Slip Here *

<PAGE>

11. AUTHORIZATIONS, CERTIFICATES AND SIGNATURES

By signing the application, I (we) hereby certify under the penalty of perjury
that the information on this application is true, complete and correct and that:

I (We) understand that this order is subject to acceptance by The Munder Funds.

I (We) agree that The Munder Funds, Funds Distributor, Inc., First Data, Munder
Capital Management or any of its affiliates, officers, directors or employees
will not be liable for any loss, expense or cost for acting upon instructions or
inquiries reasonably believed to be genuine. Shares of the Funds are not
insured or guaranteed by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency. An investment in the Funds involves
investment risks, including the possible loss of principal.

I (We) represent that I am (we are) of legal age and capacity and have read the
Prospectus(es) for The Munder Funds selected, and agree to its (their) terms.
First Data, is hereby appointed agent to receive dividends and distributions for
automatic reinvestment unless otherwise directed in Section 4.

I (We) understand and acknowledge that a sales charge may be levied against the
dollar that I (we) invest in The Munder Funds. (See the Prospectus(es) for
reduced sales charge information.)

The Internal Revenue Service requires that all taxpayers provide their Taxpayer
Identification Numbers (Social Security Numbers) and sign in the space provided
below. Failure by non-exempt taxpayers to furnish us with the correct Taxpayer
Identification Number will result in withholding of 31% of all taxable dividends
paid and/or withholding on certain other payments (this is referred to as backup
withholding).

- --------------------------------------------------------------------------------
Taxpayer Identification Number Name of Taxpayer Whose Number
Appears Above

TAXPAYER IDENTIFICATION:

I (the Investor) certify under penalties of perjury that:

(1) The Social Security Number or taxpayer identification number shown above is
correct and may be used for any custodial or trust account opened for me by
The Munder Funds, and

(2) I (the Investor) am not subject to backup withholding because:

(a) I am exempt from Backup Withholding

(b) I have not been notified by the Internal Revenue Service ("IRS") that
I am, as a result of failure to report all interest or dividends, or

THE CERTIFICATION IN THIS PARAGRAPH IS REQUIRED FROM ALL NON-EXEMPT PERSONS TO
PREVENT BACKUP WITHHOLDING OF 31% OF ALL TAXABLE DISTRIBUTIONS AND GROSS
REDEMPTIONS PROCEEDS UNDER THE FEDERAL INCOME TAX LAW.

/ / Check here if you are subject to backup withholding or have not received a
notice from the IRS advising you that backup withholding has been terminated.

AUTHORIZATION:

- --------------------------------------------------------------------------------
Signature of Owner Date Name

<PAGE>

- --------------------------------------------------------------------------------
FOR DEALER USE ONLY
We hereby authorize First Data Investor Services Group, Inc., to act as our
agent in connection with transactions authorized by this Application and agree
to notify First Data Investor Services Group, Inc., of any purchase made under a
Letter of Intent or Right of Accumulation.

- --------------------------------------------------------------------------------
Dealer's Name Main Office Address

- --------------------------------------------------------------------------------
Representative's Name Branch # Rep #

- --------------------------------------------------------------------------------
Branch Address Telephone #

- --------------------------------------------------------------------------------
Authorized Signature of Dealer Title

- --------------------------------------------------------------------------------

<PAGE>

- --------------------------------------------------------------------------------
SHARES OF THE MUNDER FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY
OTHER AGENCY. ALL MUTUAL FUND SHARES INVOLVE CERTAIN INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
- --------------------------------------------------------------------------------
DISTRIBUTOR: Funds Distributor, Inc.

<PAGE>

CLASS Y SHARES

PROSPECTUS
(MUNDER LOGO)
J U N E 1, 1 9 9 8

THE NETNET FUND

PROSPECTUS BEGINS ON NEXT PAGE

<PAGE>

PROSPECTUS

CLASS Y SHARES

Munder Capital Management (the "Advisor") serves as investment advisor of
the Fund.

SECURITIES OFFERED BY THIS PROSPECTUS HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

CALL TOLL-FREE FOR SHAREHOLDER SERVICES:
(800) 438-5789

THE DATE OF THIS PROSPECTUS IS JUNE 1, 1998

<PAGE>

TABLE OF CONTENTS

PAGE
----

Fund Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
What are the key facts regarding the Fund?. . . . . . . . . . . . . . .3

Fund Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
What are the Fund's goal and principal investments? . . . . . . . . . .5
Who may want to invest in the Fund? . . . . . . . . . . . . . . . . . .5
What are the Fund's investments and investment practices? . . . . . . .5
What are the risks of investing in the Fund?. . . . . . . . . . . . . .7

Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
How is the Fund's performance calculated? . . . . . . . . . . . . . . .8
Where can I obtain performance data?. . . . . . . . . . . . . . . . . .9

Purchases and Exchange of Shares . . . . . . . . . . . . . . . . . . . . . .8
What price do I pay for shares? . . . . . . . . . . . . . . . . . . . .9
When can I purchase shares? . . . . . . . . . . . . . . . . . . . . . .9
What is the minimum required investment?. . . . . . . . . . . . . . . .9
How can I purchase shares?. . . . . . . . . . . . . . . . . . . . . . .9
How can I exchange shares?. . . . . . . . . . . . . . . . . . . . . . 10

Redemptions of Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . 10
What price do I receive for redeemed shares?. . . . . . . . . . . . . 10
When can I redeem shares? . . . . . . . . . . . . . . . . . . . . . . 11
How can I redeem shares?. . . . . . . . . . . . . . . . . . . . . . . 11
When will I receive redemption amounts? . . . . . . . . . . . . . . . 11

Structure and Management of the Fund . . . . . . . . . . . . . . . . . . . 11
How is the Fund structured? . . . . . . . . . . . . . . . . . . . . . 11
Who manages and services the Fund?. . . . . . . . . . . . . . . . . . 11
What are my rights as a shareholder?. . . . . . . . . . . . . . . . . 12

Dividends, Distributions and Taxes . . . . . . . . . . . . . . . . . . . . 12
When will I receive distributions from the Fund?. . . . . . . . . . . 12
How will distributions be made? . . . . . . . . . . . . . . . . . . . 13
Are there tax implications of my investments in the Fund? . . . . . . 13

Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2
<PAGE>

FUND HIGHLIGHTS

WHAT ARE THE KEY FACTS REGARDING THE FUND?

Q: WHAT IS THE FUND'S GOAL?

A: The NetNet Fund seeks to provide long-term capital appreciation.

Q: WHAT IS THE FUND'S STRATEGY?

Q: WHAT ARE THE FUND'S RISKS?

A: The Fund's net asset value, which is determined on every business day,
will change daily. The net asset value changes are due to changes in the price
of securities owned by the Fund as a result of rises and falls in the stock
market in general, perceptions about the stocks of particular companies and
perceptions about particular industries. The Fund concentrates its investments
in the Internet industry. Because the Fund concentrates its investments in one
industry, it may pose greater risks and experience larger fluctuations in value
than portfolios invested in a broader range of industries. Additionally, the
Fund may invest in emerging growth companies which may involve greater price
volatility and risk than more established companies. You should note that you
could lose a portion of the amount you invest in the Fund.

Q: WHAT ARE THE OPTIONS FOR INVESTMENT IN THE FUND?

A: The Fund has registered three classes of shares: Class A, Class B and
Class Y. Class A and B Shares are described in a separate prospectus.

Q: HOW DO I BUY AND SELL SHARES OF THE FUND?

A: Funds Distributor, Inc. (the "Distributor") sells shares of the Fund.
You may purchase shares from the Distributor through broker-dealers or other
financial institutions or from the Fund's transfer agent, First Data Investor
Services Group, Inc. (the "Transfer Agent"), by mailing an Account Application
Form with a check to the Transfer Agent. Fiduciary and discretionary accounts
of institutions and institutional investors must invest at least $500,000
initially. Other types of investors are not subject to any minimum required
investment.

Shares may be redeemed (sold back to the Fund) through your bank or
financial institution.

Q: WHAT SHAREHOLDER PRIVILEGES DOES THE FUND OFFER?

- Automatic Investment Plan
- Automatic Withdrawal Plan

3
<PAGE>

Q: WHEN AND HOW ARE DISTRIBUTIONS MADE?

Q: WHO MANAGES THE FUND'S ASSETS?

A: Munder Capital Management is the Fund's investment advisor. The Advisor
is responsible for all purchases and sales of the securities held by the Fund.

SHAREHOLDER TRANSACTION EXPENSES (1)

The purpose of this table is to assist you in understanding the expenses
a shareholder in the Fund will bear directly.

Maximum Sales Charge on Purchase (as a % of Offering Price). . . . . . . None
Sales Charge Imposed on Reinvested Dividends . . . . . . . . . . . . . . None
Maximum Deferred Sales Charge. . . . . . . . . . . . . . . . . . . . . . None
Redemption Fees (2). . . . . . . . . . . . . . . . . . . . . . . . . . . None
Exchange Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None

- -----------------
Notes:
(1) Does not include fees which institutions may charge for services they
provide to you.
(2) The Transfer agent may charge a fee of $7.50 for wire redemptions under
$5,000.

FUND OPERATING EXPENSES

The purpose of this table is to assist you in understanding the expenses
charged directly to the Fund, which investors in the Fund will bear indirectly.
Such expenses include payments to Directors, auditors, legal counsel and service
providers (such as the Advisor) and registration fees. The fees shown below are
based on fees in the Fund's past fiscal year.

<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(as a % of average net assets)
- ------------------------------
<S> <C>
Advisory Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%
Other Expenses+. . . . . . . . . . . . . . . . . . . . . . . . . . . . .28%++
---
Total Fund Operating Expenses+ . . . . . . . . . . . . . . . . . . . . 1.28%++
----
----
</TABLE>

- -------------------
+ After expense reimbursements.
++ The Advisor has voluntarily reimbursed the Fund for certain operating
expenses which are described below. Without the expense reimbursements,
total fund operating expenses would be 2.09%.

EXAMPLE

This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in the Fund assuming (1) a 5% annual return
and (2) redemption at the end of the following time periods. THIS EXAMPLE IS
NOT A REPRESENTATION OF PAST OR FUTURE PERFORMANCE OR OPERATING EXPENSES; ACTUAL
PERFORMANCE OR OPERATING EXPENSES MAY BE LARGER OR SMALLER THAN THOSE SHOWN.

1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
$13 $41 $71 $155

4
<PAGE>

As noted above, the Advisor expects to reimburse expenses with respect to
the Fund during the current fiscal year. The Advisor may discontinue this
expense reimbursement at any time in its sole discretion.

FUND INFORMATION

WHAT ARE THE FUND'S GOALS AND PRINCIPAL INVESTMENTS?

This Prospectus describes Class Y Shares of the Fund. This section
summarizes the Fund's principal investments. The sections entitled "What are
the Fund's Investments and Investment Practices?" and "What are the Risks of
Investing in the Fund?" and the SAI give more information about the Fund's
investment techniques and risks.

PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.

WHO MAY WANT TO INVEST IN THE FUND?

The Fund is designed for investors who seek long-term capital
appreciation.

WHAT ARE THE FUND'S INVESTMENTS AND INVESTMENT PRACTICES?

5
<PAGE>

The Fund may also purchase GLOBAL DEPOSITARY RECEIPTS ("GDRS"), which are
receipts issued by European financial institutions evidencing ownership of the
underlying foreign securities.

The Fund may purchase securities on a "WHEN-ISSUED" basis and may
purchase or sell securities on a "FORWARD COMMITMENT" basis. Although the price
to be paid by the Fund is set at the time of the agreement, the Fund usually
does not pay for the securities until they are received. The value of securities
may change between the time the price is set and the time the price is paid.
When the Fund purchases securities for future delivery, the Company's custodian
will set aside cash or liquid securities to "cover" the Fund's position. These
purchases are not expected to exceed 25% of the value of the Fund's total assets
absent unusual market conditions. The Fund does not intend to purchase
securities for future delivery for speculative purposes.

The Fund may LEND SECURITIES to broker-dealers and other financially
sound institutional investors who will pay the Fund for the use of the
securities, thus potentially increasing the Fund's returns. The borrower must
set aside cash or liquid securities equal to the value of the securities
borrowed at all times during the terms of the loan. Loans may not exceed 25% of
the value of the Fund's total assets. Risks involved in such transactions
include possible delay in recovering the loaned securities and possible loss of
the securities or the collateral if the borrower declares bankruptcy.

6
<PAGE>

The Fund may invest up to 10% of its assets in other investment companies and no
more than 5% of its assets in any one investment company.

The Fund may BORROW MONEY in an amount up to 5% of its assets for
temporary purposes and in an amount up to 33 1/3% of its assets to meet
redemptions. This is a "fundamental" policy which only can be changed by
shareholders.

WHAT ARE THE RISKS OF INVESTING IN THE FUND?

Investing in the Fund may be less risky than investing in individual
stocks due to the diversification of investing in a portfolio of many different
stocks; however, such diversification does not eliminate all risks. Because the
Fund invests mostly in Equity Securities, rises and falls in the stock market in
general, as well as in the value of particular Equity Securities held by the
Fund, can affect the Fund's performance. Your investment in the Fund is not
guaranteed. The net asset value of the Fund will change daily and you might not
recoup the amount you invest in the Fund.

The Fund is not meant to provide a vehicle for playing short term swings
in the stock market. Consistent with a long-term investment approach, investors
in the Fund should be prepared and able to maintain their investments during
periods of adverse market conditions. By itself, the Fund does not constitute a
balanced investment program and there is no guarantee that the Fund will achieve
its investment objectives since there is uncertainty in every investment.

To the extent that the Fund invests in illiquid securities, the Fund
risks not being able to sell securities at the time and the price that it would
like. The Fund may therefore have to lower the price, sell substitute
securities or forego an investment opportunity, each of which might adversely
affect the Fund.

7
<PAGE>

There are certain risks and costs involved in investing in securities of
companies and governments of foreign nations, which are in addition to the usual
risks inherent in U.S. investments. These considerations include the
possibility of political instability (including revolution), future political
and economic developments and dependence on foreign economic assistance.
Investments in companies domiciled in foreign countries, therefore, may be
subject to potentially higher risks than investments in the United States.

The risks of various investment techniques the Fund uses are described in
more detail in the SAI.

PERFORMANCE

HOW IS THE FUND'S PERFORMANCE CALCULATED?

There are various ways in which the Fund may calculate and report its
performance. Performance is calculated separately for each class of shares.

One method is to show the Fund's total return. Cumulative total return
is the percentage change in the value of an amount invested in a class of shares
of the Fund over a stated period of time and takes into account reinvested
dividends. Cumulative total return most closely reflects the actual performance
of the Fund. Average annual total return refers to the average annual
compounded rates of return over a specified period on an investment in shares of
the Fund determined by comparing the initial amount invested to the ending
redeemable value of the amount, taking into account reinvested dividends. The
Fund may also publish its current yield. Yield is the net investment income
generated by a share of the Fund during a 30-day period divided by the maximum
offering price per share on the 30th day.

You should be aware that (i) past performance does not indicate how the
Fund will perform in the future; and (ii) the Fund's return and net asset value
will fluctuate, so you cannot use the Fund's performance data to compare it to
investments in certificates of deposit, savings accounts or other investments
that provide a fixed or guaranteed yield.

The Fund may compare its performance to that of other mutual funds, such
as the performance of similar funds reported by Lipper Analytical Services, Inc.
or information reported in national financial publications (such as MORNINGSTAR,
INC., MONEY MAGAZINE, FORBES, BARRON'S, THE WALL STREET JOURNAL and THE NEW YORK
TIMES) or in local or regional publications. The Fund may also compare its
total return to indices such as the S&P 500 and other broad-based indices.
These indices show the value of selected portfolios of securities (assuming
reinvestment of interest and dividends) which are not managed by a portfolio
manager. The Fund may report how they are performing in comparison to the
Consumer Price Index, an indication of inflation reported by the U.S.
Government.
WHERE CAN I OBTAIN PERFORMANCE DATA?

The WALL STREET JOURNAL and certain local newspapers report information
on the performance of mutual funds. In addition, performance information is
contained in the Fund's annual report dated June 30 of each year and semi-annual
report dated December 31 of each year, which will automatically be mailed to
shareholders. To obtain copies of financial reports or performance information,
call (800) 438-5789.

PURCHASES AND EXCHANGES OF SHARES

The following persons may purchase Class Y Shares:

- fiduciary and discretionary accounts of institutions

8
<PAGE>

- institutional investors (including: banks, savings institutions,
credit unions and other financial institutions, pension, profit
sharing and employee benefit plans and trusts, insurance companies,
investment companies, investment advisors and broker-dealers acting
for their own accounts or for the accounts of institutional investors)
- directors, trustees, officers and employees of the Company, the Trust,
Framlington, the Advisor and the Distributor
- the Advisor's investment advisory clients
- family members of employees of the Advisor

The Fund also has registered Class A and B Shares, which have different
sales charges, expense levels and performance. Call (800) 438-5789 to obtain
more information concerning the Fund's other classes of shares.

WHAT PRICE DO I PAY FOR SHARES?

Class Y Shares are sold at the "net asset value next determined" by the
Fund without any initial sales charge. You should be aware that broker-dealers
(other than Fund's Distributor) may charge investors additional fees if shares
are purchased through them.

Except in certain limited circumstances, the Fund determines its net
asset value ("NAV") on each day the New York Stock Exchange ("NYSE") is open for
trading (a "Business Day") at the close of such trading (normally 4:00 p.m.
Eastern time). The Fund calculates NAV separately for each class of shares. NAV
is calculated by totaling the value of all of the assets of the Fund allocated
to a particular class of shares, subtracting the Fund's liabilities and expenses
charged to that class and dividing the result by the number of shares of that
class outstanding.

WHEN CAN I PURCHASE SHARES?

Shares of the Fund are sold on a continuous basis and can be purchased on
any Business Day.

WHAT IS THE MINIMUM REQUIRED INVESTMENT?

The minimum initial investment by fiduciary and discretionary accounts of
institutions and institutional investors for Class Y Shares of the Fund is
$500,000. Other types of investors are not subject to any minimum required
investment.

HOW CAN I PURCHASE SHARES?

You can purchase Class Y Shares in a number of different ways. You may
place orders for Class Y Shares directly through the Distributor or the Transfer
Agent or through arrangements with a financial institution.

- THROUGH A FINANCIAL INSTITUTION. You may purchase shares through a
financial institution through procedures established with that
institution. Confirmations of share purchases will be sent to the
institution.

- BY MAIL. You may open an account by mailing a completed and signed
Account Application Form and a check or other negotiable bank draft
(payable to The Munder Funds) to: THE MUNDER FUNDS, C/O FIRST DATA
INVESTOR SERVICES GROUP, P.O. BOX 5130, WESTBOROUGH, MASSACHUSETTS
01581-5130. You can obtain an Account Application Form by calling
(800) 438-5789. For additional investments, send a letter stating the
Fund and share class you wish to purchase, your name and your account
number with a check for $50 or more to the address listed above.

- BY WIRE. You may make additional investments in the Fund by wire.
Wire instructions must state the Fund name, share class, your
registered name and your account number. Your bank wire should be
sent through the Federal Reserve Bank Wire System to:

9
<PAGE>

Boston Safe Deposit and Trust Company
Boston, MA
ABA # 011001234
DDA # 16-798-3
Account No.:

Note that banks may charge fees for transmitting wires.

We reserve the right to (i) reject any purchase order if, in our opinion,
it is in the Fund's best interest to do so and (ii) suspend the offering of
shares of any Class for any period of time. You may pay for shares of the Fund
with securities which the Fund is allowed to hold.

See the SAI for further information regarding purchases of the Fund's
shares.

HOW CAN I EXCHANGE SHARES?

You may exchange Class Y Shares of the Fund for Class Y Shares of other
funds of the Company, the Trust or Framlington based on their relative net asset
values.

You must meet the minimum purchase requirements for the fund of the
Company, the Trust or Framlington that you purchase by exchange. You must pay
any difference in sales charge at the time of the exchange. Please note that a
share exchange is a taxable event and accordingly, you may realize a taxable
gain or loss. Before making an exchange request, read the Prospectus of the
fund you wish to purchase by exchange. You can obtain a Prospectus for any fund
of the Company, the Trust and Framlington by contacting your broker or the Fund
at (800) 438-5789. Brokers may charge a fee for handling exchanges.

We may modify or terminate the exchange privilege at any time. You will
be given notice of any material modifications except where notice is not
required.

REDEMPTIONS OF SHARES

WHAT PRICE DO I RECEIVE FOR REDEEMED SHARES?

The redemption price is the net asset value next determined after we
receive the redemption request in proper order.

WHEN CAN I REDEEM SHARES?

You can redeem shares on any Business Day, provided all required
documents have been received by the Transfer Agent. The Fund may temporarily
stop redeeming shares when the NYSE is closed or trading on the NYSE is
restricted, when an emergency exists and the Fund cannot sell its assets or
accurately determine the value of its assets or if the SEC orders the Fund to
suspend redemptions.

10
<PAGE>

HOW CAN I REDEEM SHARES?

Redemption orders are effected at the net asset value per share next
determined after receipt of the order by the Transfer Agent. Shares held by an
institution on behalf of its Customers must be redeemed in accordance with
instructions and limitations pertaining to the account at that institution.

- INVOLUNTARY REDEMPTION. We may redeem your account if its value
falls below $500 as a result of redemptions (but not as a result of
a decline in net asset value). You will be notified in writing and
allowed 60 days to increase the value of your account to the
minimum investment level.

- AUTOMATIC WITHDRAWAL PLAN ("AWP"). If you have an account value of
$2,500 or more in the Fund, you may redeem shares on a monthly,
quarterly, semi-annual or annual basis. The minimum withdrawal is
$50. We usually process withdrawals on the 20th day of the month
and promptly send you your redemption amount. You may enroll in
the AWP by completing the AWP Application Form available through
the Transfer Agent. To participate in the AWP you must have your
dividends automatically reinvested and may not hold share
certificates. You may change or cancel the AWP at any time upon
notice to the Transfer Agent.

WHEN WILL I RECEIVE REDEMPTION AMOUNTS?

If we receive a redemption order for the Fund before 4:00 p.m. (Eastern
time) on a Business Day, we will normally wire payment to the redeeming
institution on the next Business Day. We may delay wiring redemption proceeds
for up to seven days if we feel an earlier payment would have a negative impact
on the Fund.

STRUCTURE AND MANAGEMENT OF THE FUND

HOW IS THE FUND STRUCTURED?

The Company is an open-end management investment company, which is a
mutual fund that sells and redeems shares every day that it is open for
business. It is managed under the direction of its governing Board of
Directors, which is responsible for the overall management of the Company and
supervises the Fund's service providers. The Company is a Maryland corporation.

WHO MANAGES AND SERVICES THE FUND?

The Advisor may, from time to time, make payments to banks,
broker-dealers or other financial institutions for certain services to the Fund
and/or their shareholders, including sub-administration, sub-transfer agency and
shareholder servicing. The Advisor may make such payments out of its own
resources and there are no additional costs to the Fund or their shareholders.

11
<PAGE>

ADMINISTRATOR. State Street Bank and Trust Company ("State Street" or
the "Administrator") is the Fund's administrator. The Administrator is located
at 225 Franklin Street, Boston, Massachusetts 02110. The Administrator
generally assists the Company in all aspects of its administration and
operations. As compensation for its services, State Street is entitled to
receive fees, based on the aggregate daily net assets of the Fund and certain
other investment portfolios that are advised by the Advisor for which it
provides services, computed daily and payable monthly at the annual rate of
0.113% on the first $2.8 billion of net assets, plus 0.103% on the next $2.2
billion of net assets, plus 0.101% on the next $2.5 billion of net assets, plus
0.095% on the next $2.5 billion of net assets, plus 0.080% on the next $2.5
billion of net assets, plus 0.070% on all net assets in excess of $12.5 billion
(with a $75,000 minimum fee per annum in the aggregate for all portfolios with
respect to the Administrator). State Street is also entitled to reimbursement
for out-of-pocket expenses.

DISTRIBUTOR. Funds Distributor, Inc. is the distributor of the Fund's
shares and is located at 60 State Street, Suite 1300, Boston, Massachusetts
02109. It markets and sells the Fund's shares.

For an additional description of the services performed by the
Administrator, the Transfer Agent, the Custodian, the Sub-Custodian and the
Distributor, see the SAI.

WHAT ARE MY RIGHTS AS A SHAREHOLDER?

All shareholders have equal voting, liquidation and other rights. You
are entitled to one vote for each share you hold and a fractional vote for each
fraction of a share you hold. You will be asked to vote on matters affecting
the Company as a whole and affecting the Fund. You will not vote by Class
unless expressly required by law or when the Directors determine that the matter
to be voted on affects only the interests of the holders of a particular class
of shares. The Company will not hold annual shareholder meetings, but special
meetings may be held at the written request of shareholders owning more than 10%
of outstanding shares for the purpose of removing a Director. The SAI contains
more information regarding voting rights.

DIVIDENDS, DISTRIBUTIONS AND TAXES

WHEN WILL I RECEIVE DISTRIBUTIONS FROM THE FUND?

As a shareholder, you are entitled to your share of net income and
capital gains, if any, on the Fund's investments. The Fund passes its earnings
along to its investors in the form of dividends. Dividend distributions are the
dividends or interest earned on investments after expenses. The Fund pays
dividends at least annually. The Fund distributes its net realized capital
gains (including net short-term capital gains), if any, at least annually.

12
<PAGE>

HOW WILL DISTRIBUTIONS BE MADE?

ARE THERE TAX IMPLICATIONS OF MY INVESTMENTS IN THE FUND?

If you redeem, transfer or exchange Fund shares, you may have taxable
gain or a loss. If you hold Fund shares for six months or less, and during that
time you receive a capital gain dividend, any loss you realize on the sale of
these Fund shares will be treated as a long-term loss to the extent of the
earlier distribution.

Dividends and certain interest income earned from foreign securities by
the Fund may be subject to foreign withholding or other taxes. The Fund may be
permitted to pass on to its shareholders the right to a credit or deduction for
income or other tax credits earned from foreign investments and will do so if
possible. These deductions or credits may be subject to tax law limitations.

13
<PAGE>

More information about the tax treatment of distributions from the Fund
and about other potential tax liabilities, including backup withholding for
certain taxpayers and information about tax aspects of dispositions of shares of
the Fund, is contained in the SAI. You should consult your tax advisor
regarding the impact of owning Fund shares on your own personal tax situation,
including the applicability of any state or local taxes.

ADDITIONAL INFORMATION

SHAREHOLDER COMMUNICATIONS. You will receive unaudited Semi-Annual
Reports and audited Annual Reports on a regular basis from the Fund. In
addition, you will also receive updated Prospectuses or Supplements to this
Prospectus. In order to eliminate duplicate mailings, the Fund will only send
one copy of the above communications to (1) accounts with the same primary
record owner, (2) joint tenant accounts, (3) tenant in common accounts and (4)
accounts which have the same address.