Rule 497(e)
                                                       Registration No.: 2-82710

                         SUPPLEMENT DATED APRIL 2, 1997
                            TO NEW YORK MUNI FUND
                         PROSPECTUS DATED APRIL 25, 1996

         The  following  information  supplements  and  supersedes  any contrary
information contained in the Fund's Prospectus:

         Portfolio  management  responsibilities  have been transferred from the
Fund's former portfolio  strategist to an investment  committee  composed of the
following members:  Christopher P. Culp, a portfolio co-manager  affiliated with
Tocqueville Asset Management L.P.,  Vincent J. Malanga,  a portfolio  strategist
affiliated with the Manager,  and Jane Tubis, a bond trader  affiliated with the
Manager.  Christopher  P. Culp is serving the Fund on an interim  basis  without
compensation.  He is the co-manager of The Tocqueville Government Fund. He was a
Vice President of Belle Haven Investments L.P. from 1994 to 1995, before joining
Tocqueville  Asset  Management,  L.P.,  and  was  (i) an  independent  financial
consultant  from 1993 to 1994, and (ii) a bond trader with Swiss Bank Corp. from
1991 to 1993 and with Carroll McEntee,  a subsidiary of HSBC Corp., from 1990 to
1991.  Vincent J.  Malanga  is, and has been for more than the past five  years,
Chairman of the Board, Chief Executive  Officer,  President and Treasurer of the
Fundamental  Funds.  He is,  and has  been for more  than the past  five  years,
President,  Treasurer and a Director of the Manager,  Executive Vice  President,
Secretary and a Director of Fundamental Service Corporation (the Distributor for
certain of the Fundamental Funds) and President of LaSalle  Economics,  Inc., an
economic   consulting  firm,  and  a  managing  director  of  LaSalle  Portfolio
Management,  Inc., a commodity trading adviser.  Jane Tubis is, and has been for
more than the past five years, a bond trader with the Manager.