STAGECOACH FUNDS INC /AK/
497, 1996-07-24
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July 24, 1996


Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549



Re: Stagecoach Funds, Inc.
Registration Nos. 33-42927; 811-6419

Ladies/Gentlemen:

           In connection with the  registration of Stagecoach  Funds,  Inc. (the
"Company")  under  the  Investment  Company  Act of 1940,  and the  issuance  of
securities  by it under the  Securities  Act of 1933,  and pursuant to 17 C.F.R.
230.497(e),  enclosed for filing on EDGAR are two  supplements,  each dated July
24, 1996. One for the prospectus dated May 1, 1996,  describing the Retail Class
Shares of the Company's Ginnie Mae Fund and  Short-Intermediate  U.S. Government
Income Fund, and the other for the prospectus dated June 3, 1996, describing the
Institutional  Class  Shares of these Funds.  The  supplement  reflects  certain
changes in the day-to-day management of each Fund's investment portfolio.

              Please acknowledge receipt and confirm acceptance of this filing.


                                                   Sincerely,

                                                   /s/Emile R. Molineaux

                                                   Emile R. Molineaux



<PAGE>


                                       STAGECOACH FUNDS, INC.
                                          GINNIE MAE FUND
                            SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND

                                    Supplement dated July 24, 1996
                                    to Prospectus dated May 1, 1996

                           The  following  three  paragraphs  replace the fourth
                paragraph   under  the   prospectus   section   "The  Funds  and
                Management":

                       Ms. Tamyra  Thomas  assumed  responsibility  as portfolio
                  co-manager for the  day-to-day  management of the portfolio of
                  the  Ginnie  Mae Fund as of July 16,  1996.  Ms.  Thomas  is a
                  senior  vice-president  and the chief fixed income  investment
                  officer of the Investment  Management Group Policy  Committee.
                  Ms. Thomas has managed bond portfolios for over a decade.  She
                  currently  manages in excess of 1 billion of long-term taxable
                  bond portfolios for various foundations, defined benefit plans
                  and other clients.  Prior to joining Wells Fargo Bank in early
                  1988, she held a number of senior investment positions for the
                  Valley Bank & Trust Company of Utah  including  vice president
                  and manager of the  investment  department and chairman of the
                  Trust  Investment  Committee.   She  holds  a  B.S.  from  the
                  University  of Utah and was past  president  of the Utah  Bond
                  Club. Ms. Thomas is a chartered financial analyst.

                       Mr.  Jeff  Weaver  assumed  responsibility  as  portfolio
                  co-manager for the  day-to-day  management of the portfolio of
                  the Short-Intermediate  U.S. Government Income Fund as of July
                  16, 1996.  Mr.  Weaver  joined Wells Fargo Bank in February of
                  1994,  after three years as a short-term  fixed income  trader
                  and portfolio  manager in the investment  management  group of
                  Bankers  Trust  Company  in New  York.  He  holds  a  B.A.  in
                  economics  from the  University of Colorado and is a chartered
                  financial analyst candidate.

                       Ms.   Madeline  Gish  also  assumed   responsibility   as
                  portfolio  co-manager  for the  day-to-day  management  of the
                  portfolio of the  Short-Intermediate  U.S.  Government  Income
                  Fund as of July 16, 1996.  Ms. Gish joined Wells Fargo Bank in
                  1989  as  the  portfolio  coordinator  for  the  Mutual  Funds
                  Division  and played an integral  part in the rapid  growth of
                  the Overland  Express  Funds.  Since joining the  fixed-income
                  group on 1992,  Madeline  has  assisted  in the  research  and
                  trading for the adjustable-rate mortgage fund and is currently
                  managing taxable liquidity portfolios. She holds a bachelor of
                  science degree in business  administration from the University
                  of Kansas and is a chartered financial analyst candidate.




<PAGE>


                             STAGECOACH FUNDS, INC.
                                 GINNIE MAE FUND
                 SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND

                               INSTITUTIONAL CLASS

                         Supplement dated July 24, 1996
                        to Prospectus dated June 3, 1996

                           The  following  three  paragraphs  replace  the sixth
                paragraph   under  the   prospectus   section   "The  Funds  and
                Management":

                       Ms. Tamyra  Thomas  assumed  responsibility  as portfolio
                  co-manager for the  day-to-day  management of the portfolio of
                  the  Ginnie  Mae Fund as of July 16,  1996.  Ms.  Thomas  is a
                  senior  vice-president  and the chief fixed income  investment
                  officer of the Investment  Management Group Policy  Committee.
                  Ms. Thomas has managed bond portfolios for over a decade.  She
                  currently  manages in excess of 1 billion of long-term taxable
                  bond portfolios for various foundations, defined benefit plans
                  and other clients.  Prior to joining Wells Fargo Bank in early
                  1988, she held a number of senior investment positions for the
                  Valley Bank & Trust Company of Utah  including  vice president
                  and manager of the  investment  department and chairman of the
                  Trust  Investment  Committee.   She  holds  a  B.S.  from  the
                  University  of Utah and was past  president  of the Utah  Bond
                  Club. Ms. Thomas is a chartered financial analyst.

                       Mr.  Jeff  Weaver  assumed  responsibility  as  portfolio
                  co-manager for the  day-to-day  management of the portfolio of
                  the Short-Intermediate  U.S. Government Income Fund as of July
                  16, 1996.  Mr.  Weaver  joined Wells Fargo Bank in February of
                  1994,  after three years as a short-term  fixed income  trader
                  and portfolio  manager in the investment  management  group of
                  Bankers  Trust  Company  in New  York.  He  holds  a  B.A.  in
                  economics  from the  University of Colorado and is a chartered
                  financial analyst candidate.

                       Ms.   Madeline  Gish  also  assumed   responsibility   as
                  portfolio  co-manager  for the  day-to-day  management  of the
                  portfolio of the  Short-Intermediate  U.S.  Government  Income
                  Fund as of July 16, 1996.  Ms. Gish joined Wells Fargo Bank in
                  1989  as  the  portfolio  coordinator  for  the  Mutual  Funds
                  Division  and played an integral  part in the rapid  growth of
                  the Overland  Express  Funds.  Since joining the  fixed-income
                  group on 1992,  Madeline  has  assisted  in the  research  and
                  trading for the adjustable-rate mortgage fund and is currently
                  managing taxable liquidity portfolios. She holds a bachelor of
                  science degree in business  administration from the University
                  of Kansas and is a chartered financial analyst candidate.




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