STAGECOACH FUNDS INC /AK/
497, 1997-10-20
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                             STAGECOACH FUNDS, INC.

                        Supplement dated October 20, 1997
                   to the Statement of Additional Information
                             dated February 1, 1997
                   describing the Service Class shares of the
                          Prime Money Market Mutual and
                       Treasury Money Market Mutual Funds


         On September 8, 1997 the Board of Directors of Stagecoach  Funds,  Inc.
(the  "Company")  approved a new transfer  agency fee  structure for the Service
Class shares of the Funds.  Specifically,  the Agency Agreement on behalf of the
Funds with Wells Fargo Bank,  N.A.  has been  amended to increase  the  transfer
agency fee for the Service Class shares of the Funds to 0.10%. All references to
this fee in the statement of additional information for the Service Class shares
shall be amended to reflect this change.





<PAGE>


                             STAGECOACH FUNDS, INC.

                        Supplement dated October 20, 1997
            to the Prospectus and Statement of Additional Information
                             dated February 1, 1997
                        describing Class E shares of the
                        Treasury Money Market Mutual Fund

         On September 8, 1997 the Board of Directors of Stagecoach  Funds,  Inc.
(the  "Company")  approved new transfer  agency and  shareholder  servicing  fee
structures  for  Class E  shares  of the  above-referenced  Fund  (the  "Fund").
Specifically,  the Agency Agreement on behalf of the Fund with Wells Fargo Bank,
N.A. has been amended to increase the transfer agency fee for the Class E shares
of the Fund to 0.10%. The Shareholder  Servicing Agreement on behalf of the Fund
with Wells  Fargo  Bank,  N.A.  has been  amended to  increase  the  shareholder
servicing  fee for Class E shares of the Fund to 0.30%.  All  references to such
fees in the Prospectus and statement of additional  information  for the Class E
shares shall be amended to reflect these changes.



<PAGE>


                             STAGECOACH FUNDS, INC.

                        Supplement dated October 20, 1997
          to the Prospectuses and Statements of Additional Information
                             dated February 1, 1997
                        describing Class A shares of the
                          Prime Money Market Mutual and
                       Treasury Money Market Mutual Funds

         On September 8, 1997 the Board of Directors of Stagecoach  Funds,  Inc.
(the "Company")  approved a new shareholder  servicing fee structure for Class A
shares  of  the  above-referenced   Funds  (the  "Funds").   Specifically,   the
Shareholder  Servicing  Agreement  on behalf of the Funds with Wells Fargo Bank,
N.A. has been amended to increase the shareholder  servicing fee for the Class A
shares to 0.30%. All references to this fee in the Prospectuses and SAIs for the
Class A shares of the Funds shall be amended to reflect this change.




<PAGE>


                             STAGECOACH FUNDS, INC.

                        Supplement dated October 20, 1997
                    to the Prospectus dated February 1, 1997
                  describing Institutional Class shares of the
                          Prime Money Market Mutual and
                       Treasury Money Market Mutual Funds


Add the  following  sentence at the end of the fourth  paragraph  of the outside
cover page of the Prospectus:

         The SAI and  other  information  is  available  on the  SEC's  Web site
(http://www.sec.gov).


Insert the  following  paragraph  immediately  after the fourth  sentence of the
paragraph under the Prospectus section entitled "PROSPECTUS SUMMARY -- Q. How Do
I Invest?":

         In addition,  customers may invest in Institutional Class shares of the
Prime Money Market Mutual Fund through an Online Money Market Account with Wells
Fargo  Bank.  Certain  of the  features  described  in this  Prospectus  are not
available to investors purchasing shares through such an Account.


Insert the following  paragraph  immediately after the first paragraph under the
Prospectus section entitled "INVESTING IN THE FUNDS -- Purchase of Institutional
Class Shares":

         Customers  of Wells  Fargo  Bank also may  invest in the  Institutional
Class  shares of the Prime  Money  Market  Mutual Fund  through an Online  Money
Market Account (an "Account")  established with the Bank. Investments through an
Account are governed by the terms and  conditions of the Account,  which are set
forth in a separate  Disclosure  Statement  provided by Wells Fargo Bank to each
Accountholder.  In light of the automated sweep and custodial  account structure
of  investments  through an Account,  certain of the features  described in this
Prospectus are not available to investors  purchasing shares through an Account.
Specifically, shares of a Fund purchased through an Account may be redeemed only
through the  Account,  and the dividend  and  distribution  options and exchange
privileges described in this Prospectus are not available with respect to shares
purchased  through an  Account.  Potential  Accountholders  should  refer to the
Disclosure  Statement  for more  information  regarding  the Account,  including
information about fees and expenses.





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