MUNDER FUNDS INC, 497, 1999-01-13

MUNDER FUNDS INC
497, 1999-01-13

Previous: GREATER CHINA GROWTH PORTFOLIO, N-8A/A, 1999-01-13

Next: MORGAN STANLEY DEAN WITTER & CO, 8-A12B, 1999-01-13

<PAGE>

THIS SUPPLEMENT SUPERCEDES THE SUPPLEMENT DATED NOVEMBER 17, 1998
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS A, B AND C SHARES OF:

CHANGE OF ADDRESS

Please send your Account Application, exchange order or redemption request by
mail to: THE MUNDER FUNDS, C/O FIRST DATA INVESTOR SERVICES GROUP, P.O. BOX
60428, KING OF PRUSSIA, PENNSYLVANIA 19406-0428.

FUND HIGHLIGHTS

The "FUND HIGHLIGHTS--What Are the Key Facts Regarding the Funds? --WHAT ARE
THE OPTIONS FOR INVESTMENT IN THE FUNDS?" section in the Prospectus is hereby
deleted in its entirety and replaced with the following:

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

A: Each Fund, other than the NetNet Fund, offers five different investment
options, or classes: Class A, B, C, K and Y. The NetNet Fund offers four
different investment options, or classes: Class A, B, C and Y. Class K and Y
shares, which are only offered to institutional and other qualified investors,
are offered in other prospectuses.

<TABLE>
<CAPTION>
MAXIMUM FRONT MAXIMUM
CLASS RULE 12b-1 FEES* END SALES LOAD** CDSC***
----- ---------------- ---------------- -------
<S> <C> <C> <C>
Class A 0.25% 5.5% None+
Class B 1% None 5%
Class C 1% None 1%, if redeemed within 1
year of purchase
</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.

(i) If you invest over $250,000, you must buy Class A or Class C Shares.
(ii) Class B Shares convert automatically to Class A Shares after six years.
Due to the level of Rule 12b-1 fees and the CDSC on Class B Shares versus Class
A or Class C Shares, both (i) and (ii) are to your economic benefit.

FUND OPERATING EXPENSES

The "FUND OPERATING EXPENSES" section in the Prospectus with respect to the
Munder NetNet Fund is hereby deleted and replaced with the following:

<TABLE>
<CAPTION>
NETNET FUND
---------------------------------
ANNUAL FUND OPERATING EXPENSES CLASS A CLASS B CLASS C
(AS A % OF AVERAGE NET ASSETS) SHARES SHARES SHARES
- --------------------------------- ------- ------- -------
<S> <C> <C> <C>
Advisory Fees................... 1.00% 1.00% 1.00%
12b-1 Fees...................... .25% 1.00% 1.00%
Other Expenses.................. .31%** .31%** .31%**
---- ---- ----
Total Fund Operating Expenses... 1.56%** 2.31%** 2.31%**
---- ---- ----
---- ---- ----
</TABLE>

- ---------
**The Advisor has voluntarily reimbursed the Fund for certain operating
expenses. In the absence of such expense reimbursements, the total fund
operating expenses would be 2.12%--Class A Shares, 2.60%--Class B Shares and
2.60%--Class C Shares.

<PAGE>

The "EXAMPLE" section in the Prospectus is hereby deleted in its entirety and
replaced with the following:

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,
(2) redemption at the end of the time periods (including the deduction of the
deferred sales charge, if any) and (3) no redemption at the end of the 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.

<TABLE>
<CAPTION>
BALANCED FUND GROWTH & INCOME FUND GROWTH OPPORTUNITIES FUND
---------------------------- ---------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
* Redemption.......... $66 $71 $30 $67 $71 $30 $69 $73 $32
* No Redemption....... $66 $20 $20 $67 $20 $20 $69 $22 $22
3 YEARS
* Redemption.......... $90 $93 $60 $91 $94 $61 $97 $100 $67
* No Redemption....... $90 $60 $60 $91 $61 $61 $97 $67 $67
5 YEARS
* Redemption.......... $116 $127 $104 $117 $128 $105 --- --- ---
* No Redemption....... $116 $104 $104 $117 $105 $105 --- --- ---
10 YEARS*
* Redemption.......... $190 $188 $225 $192 $190 $227 --- --- ---
* No Redemption....... $190 $188 $225 $192 $190 $227 --- --- ---

INTERNATIONAL EQUITY FUND MICRO-CAP EQUITY FUND MULTI-SEASON GROWTH FUND
----------------------------- ---------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
* Redemption.......... $67 $72 $30 $70 $75 $33 $67 $71 $30
* No Redemption....... $67 $20 $20 $70 $23 $23 $67 $20 $20
3 YEARS
* Redemption.......... $93 $96 $63 $101 $104 $71 $91 $95 $62
* No Redemption....... $93 $63 $63 $101 $71 $71 $91 $62 $62
5 YEARS
* Redemption.......... $120 $131 $108 $134 $145 $122 $118 $129 $106
* No Redemption....... $120 $108 $108 $134 $122 $122 $118 $106 $106
10 YEARS*
* Redemption.......... $198 $196 $234 $228 $226 $262 $194 $192 $229
* No Redemption....... $198 $196 $234 $228 $226 $262 $194 $192 $229

REAL ESTATE EQUITY
NETNET FUND INVESTMENT FUND SMALL-CAP VALUE FUND
----------------------------- ---------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
* Redemption.......... $70 $75 $34 $67 $72 $31 $67 $72 $31
* No Redemption....... $70 $24 $24 $67 $21 $21 $67 $21 $21
3 YEARS
* Redemption.......... $102 $105 $72 $93 $97 $64 $93 $96 $63
* No Redemption....... $102 $72 $72 $93 $64 $64 $93 $63 $63
5 YEARS
* Redemption.......... $136 $147 $124 $122 $133 $110 $121 $132 $109
* No Redemption....... $136 $124 $124 $122 $110 $110 $121 $109 $109
10 YEARS*
* Redemption.......... $231 $229 $266 $202 $200 $237 $201 $198 $236
* No Redemption....... $231 $229 $266 $202 $200 $237 $201 $198 $236

FRAMLINGTON EMERGING MARKETS
SMALL COMPANY GROWTH FUND VALUE FUND FUND
----------------------------- ---------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
* Redemption.......... $67 $71 $30 $67 $72 $31 $73 $77 $36
* No Redemption....... $67 $20 $20 $67 $21 $21 $73 $26 $26
3 YEARS
* Redemption.......... $91 $94 $61 $92 $95 $63 $109 $112 $80
* No Redemption....... $91 $61 $61 $92 $63 $63 $109 $80 $80
5 YEARS
* Redemption.......... $118 $129 $105 $120 $129 $107 $148 $160 $137
* No Redemption....... $118 $105 $105 $120 $107 $107 $148 $137 $137
10 YEARS*
* Redemption.......... $193 $191 $228 $197 $195 $232 $258 $256 $292
* No Redemption....... $193 $191 $228 $197 $195 $232 $258 $256 $292

<PAGE>

FRAMLINGTON GLOBAL FINANCIAL FRAMLINGTON FRAMLINGTON INTERNATIONAL GROWTH
SERVICES FUND HEALTHCARE FUND FUND
----------------------------- ---------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
* Redemption.......... $69 $73 $32 $70 $75 $34 $70 $75 $34
* No Redemption....... $69 $22 $22 $70 $24 $24 $70 $24 $24
3 YEARS
* Redemption.......... $98 $101 $68 $102 $105 $73 $102 $105 $73
* No Redemption....... $98 $68 $68 $102 $73 $73 $102 $73 $73
5 YEARS
* Redemption.......... --- --- --- $137 $148 $125 $137 $148 $125
* No Redemption....... --- --- --- $137 $125 $125 $137 $125 $125
10 YEARS*
* Redemption.......... --- --- --- $233 $231 $268 $233 $231 $268
* No Redemption....... --- --- --- $233 $231 $268 $233 $231 $268
</TABLE>

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

* Reflects conversion of Class B Shares to Class A Shares (which pay lower
ongoing expenses) six years after purchase. Class B Shares of the Munder Funds
purchased on or before June 27, 1995 are subject to a different CDSC schedule.
See "REDEMPTIONS OF SHARES- What Price Do I Receive for Redeemed Shares?"

CDSC WAIVERS

The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--CDSC
Waivers" section in the Prospectus is deleted in its entirety and replaced
with the following:

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 individual
retirement plan account after you reach age 70 1/2

* involuntary redemptions made by the Fund

* redemptions limited to 10% per year of the account's NAV. For
example, if you maintain an annual balance of $10,000 you can redeem
up to $1,000 annually free of charge.

We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:

* redemptions made from an IRA or other individual retirement plan
account established through Comerica Securities, Inc. after you reach
age 59 1/2 and after the eighteen month anniversary of the purchase of
Fund shares.

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 or the
Trust 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.

<PAGE>

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS Y SHARES OF:

MUNDER BALANCED FUND, MUNDER GROWTH & INCOME FUND, MUNDER GROWTH OPPORTUNITIES
FUND, MUNDER INTERNATIONAL EQUITY FUND, MUNDER MICRO-CAP EQUITY FUND, MUNDER
MULTI-SEASON GROWTH FUND, MUNDER NETNET 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
GLOBAL FINANCIAL SERVICES FUND, MUNDER FRAMLINGTON HEALTHCARE FUND, MUNDER
FRAMLINGTON INTERNATIONAL GROWTH FUND, MUNDER BOND FUND, MUNDER INTERMEDIATE
BOND FUND, MUNDER INTERNATIONAL BOND FUND, MUNDER U.S. GOVERNMENT INCOME FUND,
MUNDER MICHIGAN TAX-FREE BOND FUND, MUNDER TAX-FREE BOND FUND, MUNDER TAX-FREE
INTERMEDIATE BOND FUND, MUNDER SHORT TERM TREASURY FUND, MUNDER CASH INVESTMENT
FUND, MUNDER MONEY MARKET FUND, MUNDER TAX-FREE MONEY MARKET FUND AND MUNDER
U.S. TREASURY MONEY MARKET FUND

CHANGE OF ADDRESS

Please send your Account Application by mail to: THE MUNDER FUNDS, C/O FIRST
DATA INVESTOR SERVICES GROUP, P.O. BOX 60428, KING OF PRUSSIA, PENNSYLVANIA
19406-0428.

<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS A, B AND C SHARES OF:

MUNDER CASH INVESTMENT FUND, MUNDER MONEY MARKET FUND,
MUNDER TAX-FREE MONEY MARKET FUND AND MUNDER U.S. TREASURY MONEY MARKET FUND

CHANGE OF ADDRESS

The "EXAMPLE" section in the Prospectus is hereby deleted in its entirety and
replaced with the following:

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

<TABLE>
<CAPTION>
CLASS A SHARES
---------------------------------------------------------------------
CASH MONEY TAX-FREE MONEY U.S. TREASURY MONEY
INVESTMENT FUND MARKET FUND MARKET FUND MARKET FUND
--------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
1 Year . . . . . $8 $9 $8 $8
3 Years. . . . . $24 $28 $25 $26
5 Years. . . . . $42 $49 $44 $46
10 Years . . . . $95 $110 $98 $102
</TABLE>

This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in Class B Shares, assuming (1) a
hypothetical 5% annual return, (2) redemption at the end of the following time
period and (3) no redemption at the end of the following time periods:

<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS B SHARES
- -----------------------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS*
------- ------- ------- ---------
No No No No
Redemption Redemption Redemption Redemption Redemption Redemption Redemption Redemption
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$67 $17 $85 $52 $113 $89 $156 $156
</TABLE>

- --------------------
* Reflects conversion of Class B Shares to Class A Shares (which pay lower
ongoing expenses) six years after date of original purchase.

The following example shows the amount of expenses you would pay (directly
or indirectly) on a $1,000 investment in Class C Shares, assuming (1) a
hypothetical 5% annual return, (2) redemption at the end of the following time
periods and (3) no redemption at the end of one year:

<TABLE>
<CAPTION>
MONEY MARKET FUND
CLASS C SHARES
- --------------------------------------------------------------------------------
1 YEAR
- ------------------------------
Redemption No Redemption 3 YEARS 5 YEARS 10 YEARS
- ---------- -------------- -------- -------- --------
<S> <C> <C> <C> <C>
$27 $17 $52 $89 $195
</TABLE>

<PAGE>

CDSC WAIVERS

The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--CDSC
Waivers" section in the Prospectus is deleted in its entirety and replaced
with the following:

CDSC WAIVERS. We will waive the CDSC payable upon redemptions of Class B
Shares of the Money Market Fund 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 individual
retirement plan account after you reach age 70 1/2
- involuntary redemptions made by the Fund
- redemptions limited to 10% per year of the account's NAV. For
example, if you maintain an annual balance of $10,000 you can redeem
up to $1,000 annually free of charge.

We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:

- redemptions made from an IRA or other individual retirement plan
account established through Comerica Securities, Inc. after you reach
age 59 1/2 and after the eighteen month anniversary of the purchase of
Fund shares.

Consult the SAI for Class A Share CDSC waivers and Class B Share CDSC
waivers which apply when you redeem shares of the Money Market Fund purchased on
or before June 27, 1995.
<PAGE>

THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS A, B AND C SHARES OF:

MUNDER BOND FUND, MUNDER INTERMEDIATE BOND FUND, MUNDER INTERNATIONAL BOND
FUND, MUNDER U.S. GOVERNMENT INCOME FUND, MUNDER MICHIGAN TAX-FREE BOND FUND,
MUNDER TAX-FREE BOND FUND AND MUNDER TAX-FREE INTERMEDIATE BOND FUND

CHANGE OF ADDRESS

The "EXAMPLE" section in the Prospectus is hereby deleted in its entirety and
replaced with the following:

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,
(2) redemption at the end of the time period (including the deduction of the
deferred sales charge, if any) and (3) no redemption at the end of the time
period. 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.

<TABLE>
<CAPTION>
INTERNATIONAL
BOND FUND INTERMEDIATE BOND FUND BOND FUND
------------------------------ ----------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
- - Redemption. . . . . $49 $69 $28 $49 $69 $27 $51 $71 $29
- - No Redemption . . . $49 $18 $18 $49 $17 $17 $51 $19 $19
3 YEARS
- - Redemption. . . . . $69 $87 $54 $69 $86 $53 $74 $92 $59
- - No Redemption . . . $69 $54 $54 $69 $53 $53 $74 $59 $59
5 YEARS
- - Redemption. . . . . $91 $117 $93 $90 $115 $91 $99 $124 $101
- - No Redemption . . . $91 $93 $93 $90 $91 $91 $99 $101 $101
10 YEARS*
- - Redemption. . . . . $154 $164 $203 $150 $161 $199 $170 $181 $219
- - No Redemption . . . $154 $164 $203 $150 $161 $199 $170 $181 $219
</TABLE>

<TABLE>
<CAPTION>
U.S. GOVERNMENT MICHIGAN TAX-FREE
INCOME FUND TAX-FREE BOND FUND BOND FUND
------------------------------ ----------------------------- -----------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES SHARES
------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR
- - Redemption. . . . . $49 $69 $28 $50 $69 $28 $49 $69 $27
- - No Redemption . . . $49 $18 $18 $50 $18 $18 $49 $17 $17
3 YEARS
- - Redemption. . . . . $69 $86 $53 $70 $88 $55 $69 $86 $53
- - No Redemption . . . $69 $53 $53 $70 $55 $55 $69 $53 $53
5 YEARS
- - Redemption. . . . . $90 $116 $92 $92 $118 $94 $90 $115 $91
- - No Redemption . . . $90 $92 $92 $92 $94 $94 $90 $91 $91
10 YEARS*
- - Redemption. . . . . $151 $162 $200 $156 $166 $205 $150 $161 $199
- - No Redemption . . . $151 $162 $200 $156 $166 $205 $150 $161 $199
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
TAX-FREE INTERMEDIATE
BOND FUND
----------------------------
CLASS A CLASS B CLASS C
SHARES SHARES SHARES
------ ------ ------
<S> <C> <C> <C>
1 YEAR
- Redemption. . . . . . . $49 $69 $28
- No Redemption . . . . . $49 $18 $18
3 YEARS
- Redemption. . . . . . . $69 $86 $53
- No Redemption . . . . . $69 $53 $53
5 YEARS
- Redemption. . . . . . . $90 $116 $92
- No Redemption . . . . . $90 $92 $92
10 YEARS*
- Redemption. . . . . . . $151 $162 $200
- No Redemption . . . . . $151 $162 $200
</TABLE>

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

CDSC WAIVERS

The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--CDSC
Waivers" section in the Prospectus is deleted in its entirety and replaced
with the following:

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

We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:

Consult the SAI for Class B Share CDSC waivers which apply when you redeem
shares 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 record kept on a daily valuation basis by
Merrill Lynch; or (ii) the Plan is record kept on a daily valuation basis by an
independent record keeper 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 Record keeping Service
Agreement.
<PAGE>

THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS A AND B SHARES OF:

MUNDER ALL-SEASON CONSERVATIVE FUND, MUNDER ALL-SEASON MODERATE FUND AND
MUNDER ALL-SEASON AGGRESSIVE FUND

CHANGE OF ADDRESS

The "EXAMPLE" section in the Prospectus is hereby deleted in its entirety and
replaced with the following:

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 time periods (including the deduction of
the deferred sales charge, if any). 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.

<TABLE>
<CAPTION>
CONSERVATIVE FUND MODERATE FUND AGGRESSIVE FUND
-------------------- ------------------- -------------------
CLASS A CLASS B CLASS A CLASS B CLASS A CLASS B
SHARES SHARES SHARES SHARES SHARES SHARES
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
1 YEAR
- - Redemption. . . . . . $62 $66 $61 $65 $61 $65
- - No Redemption . . . . $62 $14 $61 $13 $61 $13

3 YEARS
- - Redemption. . . . . . $76 $77 $74 $76 $74 $76
- - No Redemption . . . . $76 $44 $74 $43 $74 $43

5 YEARS
- - Redemption. . . . . . $91 $100 $88 $97 $88 $97
- - No Redemption . . . . $91 $76 $88 $73 $88 $73

10 YEARS*
- - Redemption. . . . . . $135 $129 $130 $124 $130 $124
- - No Redemption . . . . $135 $129 $130 $124 $130 $124
</TABLE>

- --------------
* Reflects conversion of Class B Shares to Class A Shares (which pay lower
ongoing expenses) six years after purchase. Class B Shares of the Munder Funds
purchased on or before June 27, 1995 are subject to a different CDSC schedule.
See "REDEMPTIONS OF SHARES- What Price Do I Receive for Redeemed Shares?"

Based on the expenses for the Funds and the Underlying Funds shown above, and
assuming the neutral asset allocation for each Fund set forth below, the average
weighted expense ratio for each Fund, expressed as a percentage of each Fund's
average daily net assets, is estimated to be as follows:

<TABLE>
<CAPTION>
EXPENSE RATIO
-------------
CLASS A CLASS B
------- -------
SHARES SHARES
------ ------
<S> <C> <C>
Conservative Fund . . . . . . . . . . . . . . . . 1.44% 2.14%
Moderate Fund . . . . . . . . . . . . . . . . . . 1.55% 2.25%
Aggressive Fund . . . . . . . . . . . . . . . . . 1.67% 2.37%
</TABLE>
<PAGE>

FUND CHOICES

The "FUND CHOICES--What are the Underlying Funds' Investments and Investment
Practices? --Goal and Principal Investments for Equity Selection Fund" section
in the Prospectus is deleted in its entirety and replaced with the following:

EQUITY SELECTION FUND

GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.

- Under normal market conditions, the Fund will invest at least 65% of
its assets in Equity Securities. "Equity Securities" include common
stocks, preferred stocks, warrants and other securities convertible
into common stock, including convertible bonds and convertible
preferred stock.
- The Advisor's dedicated research team invests the Fund's assets in
Equity Securities which it believes are undervalued compared to stocks
of other companies in the same industry.
- The Fund generally invests in issuers with market capitalizations of
at least $1 billion.
- The Fund diversifies its assets by industry in approximately the same
weightings as those of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500").

CDSC WAIVERS

The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--CDSC
Waivers" section in the Prospectus is deleted in its entirety and replaced
with the following:

CDSC WAIVERS. We will waive the CDSC payable upon redemptions of shares
for:

We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:

We will waive the CDSC for all redemptions of Class B Shares 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.
<PAGE>

THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS Y SHARES OF:

MUNDER ALL-SEASON CONSERVATIVE FUND, MUNDER ALL-SEASON MODERATE FUND AND
MUNDER ALL-SEASON AGGRESSIVE FUND

CHANGE OF ADDRESS

Please send your Account Application by mail to: THE MUNDER FUNDS, C/O FIRST
DATA INVESTOR SERVICES GROUP, P.O. BOX 60428, KING OF PRUSSIA, PENNSYLVANIA
19406-0428.

FUND CHOICES

EQUITY SELECTION FUND

GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.

THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS A, B, C SHARES OF:

THE MUNDER EQUITY SELECTION FUND

CHANGE OF ADDRESS

FUND INFORMATION

The "FUND INFORMATION--Goal and Principal Investments" section in the Prospectus
is deleted in its entirety and replaced with the following:

GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.

CDSC WAIVERS

The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--CDSC
Waivers" section in the Prospectus is deleted in its entirety and replaced
with the following:

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

We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:

THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
CLASS Y SHARES OF:

THE MUNDER EQUITY SELECTION FUND

CHANGE OF ADDRESS

Please send your Account Application by mail to: THE MUNDER FUNDS, C/O FIRST
DATA INVESTOR SERVICES GROUP, P.O. BOX 60428, KING OF PRUSSIA, PENNSYLVANIA
19406-0428.

FUND INFORMATION

The "FUND INFORMATION--Goal and Principal Investments" section in the Prospectus
is deleted in its entirety and replaced with the following:

GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO PROSPECTUS DATED OCTOBER 27, 1998
MICHIGAN MUNICIPAL SHARES OF:

MUNDER SHORT TERM TREASURY FUND

CHANGE OF ADDRESS

Please send your Account Application or redemption request by mail to: THE
MUNDER FUNDS, C/O FIRST DATA INVESTOR SERVICES GROUP, P.O. BOX 60428, KING OF
PRUSSIA, PENNSYLVANIA 19406-0428.

<PAGE>

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO STATEMENT OF ADDITIONAL INFORMATION DATED OCTOBER 27, 1998

MUNDER BALANCED FUND, MUNDER EQUITY SELECTION FUND, MUNDER GROWTH & INCOME
FUND, MUNDER INDEX 500 FUND, MUNDER INTERNATIONAL EQUITY FUND, MUNDER
MICRO-CAP EQUITY FUND, MUNDER MULTI-SEASON GROWTH FUND, MUNDER NETNET 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 GLOBAL FINANCIAL SERVICES FUND,
MUNDER FRAMLINGTON HEALTHCARE FUND, MUNDER FRAMLINGTON INTERNATIONAL GROWTH
FUND, MUNDER BOND FUND, MUNDER INTERMEDIATE BOND FUND, MUNDER INTERNATIONAL
BOND FUND, MUNDER U.S. GOVERNMENT INCOME FUND, MUNDER MICHIGAN TAX-FREE BOND
FUND, MUNDER TAX-FREE BOND FUND, MUNDER TAX-FREE INTERMEDIATE BOND FUND,
MUNDER SHORT TERM TREASURY FUND, MUNDER CASH INVESTMENT FUND, MUNDER MONEY
MARKET FUND, MUNDER TAX-FREE MONEY MARKET FUND AND MUNDER U.S. TREASURY MONEY
MARKET FUND

INVESTMENT ADVISORY AGREEMENT

The second paragraph of the "INVESTMENT ADVISORY AND OTHER SERVICE
ARRANGEMENTS" section in the Statement of Additional Information is deleted in
its entirety and replaced with the following:

The Funds have entered into Investment Advisory Agreements (the
"Advisory Agreements") with the Advisor on behalf of each Fund of the
Company, the Trust and Framlington. The Advisory Agreements have been
approved by the Boards of Directors/Trustees and by the shareholders of each
Fund.
<PAGE>

THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 13, 1999
TO STATEMENT OF ADDITIONAL INFORMATION DATED OCTOBER 27, 1998

MUNDER ALL-SEASON AGGRESSIVE FUND, MUNDER ALL-SEASON CONSERVATIVE FUND,
MUNDER ALL-SEASON MODERATE FUND

INVESTMENT ADVISORY AGREEMENT

The second paragraph of the "INVESTMENT ADVISORY AND OTHER SERVICE
ARRANGEMENTS" section in the Statement of Additional Information is deleted
in its entirety and replaced with the following:

The Funds have entered into an Investment Advisory Agreement (the
"Advisory Agreement") with the Advisor on behalf of each Fund of the Company.
The Advisory Agreement has been approved by the Board of Directors and by the
shareholders of each Fund.