<PAGE> 1
SUPPLEMENT DATED FEBRUARY 1, 1997 TO THE PROSPECTUS
DATED FEBRUARY 1, 1997 FOR THE CLASS A AND B SHARES OF EACH OF
THE AGGRESSIVE GROWTH, ARIZONA TAX-FREE, ASSET ALLOCATION,
BALANCED, CALIFORNIA TAX-FREE BOND, CALIFORNIA TAX-FREE INCOME,
DIVERSIFIED INCOME, EQUITY VALUE, GINNIE MAE, GROWTH
AND INCOME, INTERMEDIATE BOND, NATIONAL TAX-FREE, OREGON
TAX-FREE, SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME,
SMALL CAP AND U.S. GOVERNMENT ALLOCATION FUNDS
Each of the Prospectuses dated February 1, 1997, describing the Class A and
B shares, as applicable, of each of the above funds of Stagecoach Funds, Inc.
(the "Funds") is hereby supplemented and amended as follows. This supplement is
effective only until March 3, 1997.
1. The front-end sales charge schedule currently applicable to Class A
shares of each of the Funds (other than the California Tax-Free Income
and Short-Intermediate U.S. Government Income Funds) is as follows:
<TABLE>
<CAPTION>
FRONT-END
FRONT-END SALES CHARGE DEALER
SALES CHARGE AS% OF NET ALLOWANCE
AS% OF AMOUNT AS% OF
AMOUNT OF PURCHASE OFFERING PRICE INVESTED OFFERING PRICE
------------------ -------------- --------------- --------------
<S> <C> <C> <C>
Less than $50,000............. 4.50% 4.71% 4.00%
$50,000 up to $99,999......... 4.00 4.17 3.55
$100,000 up to $249,999....... 3.50 3.63 3.125
$250,000 up to $499,999....... 3.00 3.09 2.65
$500,000 up to $999,999....... 2.00 2.04 1.75
$1,000,000 and over........... 1.00 1.01 0.85
</TABLE>
2. The front-end sales charge schedule currently applicable to Class A
shares of the California Tax-Free Income and Short-Intermediate U.S.
Government Income Funds is as follows:
<TABLE>
<CAPTION>
FRONT-END FRONT-END DEALER
SALES CHARGE SALES CHARGE ALLOWANCE
AS% OF AS% OF NET AS% OF
AMOUNT OF PURCHASE OFFERING PRICE AMOUNT INVESTED OFFERING PRICE
------------------ -------------- --------------- --------------
<S> <C> <C> <C>
Less than $100,000........... 3.00% 3.09% 2.65%
$100,000 up to $249,999...... 2.25 2.30 2.00
$250,000 up to $599,999...... 1.50 1.52 1.30
$600,000 and over............ 0.60 0.60 0.50
</TABLE>
<PAGE> 2
3. Class B shares of the Funds currently are subject to a contingent
deferred sales charge ("CDSC") if redeemed within four years of
purchase. The maximum CDSC on Class B shares is currently 3.00%; all
references to the maximum CDSC should be read as 3.00%. The CDSC
schedule currently applicable to Class B shares appears in the
"Investing in the Funds" section of the Prospectus in the third
paragraph under the sub-heading "Contingent Deferred Sales
Charge -- Class B Shares." The CDSC schedule appearing in the second
paragraph thereunder is not yet effective.
4. Because many of the front-end sales loads and CDSCs described above are
less than the amounts described in each Fund's Prospectus, the expenses
you can expect to pay on an investment in Class A shares of each of the
Aggressive Growth, Balanced, Diversified Income, Equity Value, Growth
and Income and Small Cap Funds and Class B shares of each of the Funds
would be less than the amounts currently shown in the "Example of
Expenses" for each Fund.
5. If you exchange Class A Shares, you will be charged any difference
between the load you have already paid and the load you are subject to
in the new fund.
<PAGE> 3
SUPPLEMENT DATED FEBRUARY 1, 1997
TO THE PROSPECTUS DATED FEBRUARY 1, 1997
FOR THE CLASS A SHARES OF EACH OF THE CALIFORNIA TAX-FREE
MONEY MARKET, GOVERNMENT MONEY MARKET, MONEY
MARKET, NATIONAL TAX-FREE MONEY MARKET, PRIME MONEY
MARKET AND TREASURY MONEY MARKET MUTUAL FUNDS
Each of the Prospectuses dated February 1, 1997, describing the Class A
shares of each of the above funds (the "Funds") of Stagecoach Funds, Inc. is
hereby supplemented and amended as follows. This supplement is effective only
until March 3, 1997.
1. If you exchange Class A shares, you will be charged any difference
between the load you have already paid and the load you are subject to
in the new fund.
