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Filed pursuant to Rule 497(e)
Registration No. 33-96132
THE WATERHOUSE INVESTORS
DOW JONES INDUSTRIAL AVERAGESM
INDEX FUND
TABLE OF CONTENTS
A PROFILE OF THE FUND ................................................2
Investment Objective of the Fund......................................2
Who May Want to Invest ...............................................2
Risks.................................................................2
Buying and Selling Shares ............................................2
Expenses..............................................................4
THE FUND IN DETAIL ...................................................5
Investment Objective .................................................5
Investment Policies and Restrictions..................................5
Risks.................................................................8
Additional Investment Policies........................................8
OPERATING EXPENSES AND FEES .........................................12
Management and Related Expenses .....................................12
Administration.......................................................12
Distribution.........................................................13
Shareholder Servicing ...............................................13
Transfer Agent and Custodian ........................................13
Other Expenses ......................................................14
HOW TO BUY AND SELL SHARES ..........................................14
How to Buy Shares ...................................................15
How to Sell Shares ..................................................16
Telephone Transactions ..............................................16
Brokerage Account Requirements ......................................17
Shareholder Inquiries ...............................................17
OTHER INFORMATION ...................................................17
Pricing Your Shares..................................................17
Dividends............................................................18
Performance..........................................................18
General Information About the Fund ..................................18
Statements and Reports to Shareholders ..............................19
Taxes................................................................19
APPENDIX A: Historical Performance of the
Dow Jones Industrial Average SM......................................21
WATERHOUSE SECURITIES, INC.
Member New York Stock Exchange * SIPC
National Headquarters
100 Wall Street * New York, New York 10005
CUSTOMER SERVICE
(800) 934-4410
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JOHNSON & JOHNSON INTERNATIONAL PAPER CO.
WAL-MART STORES INC. GENERAL ELECTRIC CO.
PHILIP MORRIS COS. INC. EASTMAN KODAK CO.
GENERAL MOTORS CORP. HEWLETT-PACKARD
CATERPILLAR INC. UNITED TECHNOLOGIES CORP.
ALUMINUM CO. OF AMERICA ALLIED SIGNAL INC.
The Waterhouse
Investors
Dow Jones
Industrial Average SM
Index Fund
PROSPECTUS
J.P. MORGAN & CO., INC. UNION CARBIDE CORP.
MINNESOTA MINING & MANUFACTURING CO.
INTERNATIONAL BUSINESS MACHINES CORP.
[WATERHOUSE LOGO]
EXXON CORP. CHEVRON CORP.
THE BOEING CO. AT&T CORP.
THE PROCTER & GAMBLE CO. MERCK & CO., INC.
THE WALT DISNEY CO. SEARS, ROEBUCK & CO.
AMERICAN EXPRESS CO. MCDONALD'S CORP.
THE GOODYEAR TIRE & RUBBER CO. AT&T CORP.
E.I. DU PONT DE NEMOURS AND COMPANY
TRAVELERS GROUP INC. THE COCA-COLA COMPANY
MARCH 16, 1998
