MILESTONE FUNDS, 497, 1996-03-25

MILESTONE FUNDS
497, 1996-03-25

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                                MILESTONE FUNDS

                         TREASURY OBLIGATIONS PORTFOLIO
 
                        Supplement dated March 25, 1996
                            to the Prospectus dated
                               February 23, 1996
 
The paragraph describing repurchase agreements under the caption 'Permissible
Investments' on page 5 of both the Institutional and Investor Prospectus' is
amended as follows:
 
     The Portfolio enters into repurchase agreements only with primary
     dealers designated by the Federal Reserve Bank of New York which the
     Adviser believes present minimal credit risks in accordance with
     guidelines established by the Board of Trustees of the Trust (the
     'Board').
 
The paragraph following the caption 'Illiquid Securities' on page 6 of both the
Institutional and Investor Prospectus' is amended to include:
 
     In addition, the Fund will not invest in repurchase agreements having
     a maturity in excess of one year.