KPM FUNDS, INC.
SUPPLEMENT TO PROSPECTUS
DATED SEPTEMBER 30, 1996
The following information supplements and replaces the information
contained in the sections of the Fund's Prospectus entitled "Management":
Effective April 1, 1997, the KPM Equity Portfolio is jointly managed by
Bruce H. Van Kooten, First Vice President and Portfolio Manager of the Adviser
and Rodney D. Cerny, President of the Fund, Executive Vice President and Chief
Investment Officer of the Adviser. Mr. Van Kooten is a Chartered Financial
Analyst with Bachelor of Science degrees from Iowa State University. Mr. Van
Kooten has been a portfolio manager with the Adviser since 1988. Prior to that
time, Mr. Van Kooten was a Trust Investment Officer for a regional national bank
from 1982 through 1988.
