NEW ENGLAND FUNDS (the "Funds")

Supplement dated August 15, 1998 to the New England Stock Funds Prospectus for
Class A, B and C Shares dated May 1, 1998; the New England Bond Funds Prospectus
for Class A, B and C Shares dated May 1, 1998; the New England Star Funds
Prospectus for Class A, B and C Shares dated May 1, 1998; and the New England
Bullseye Fund Prospectus for Class A, B and C Shares dated March 31, 1998.

The following provisions shall apply to any retirement plan (each a "Merrill
Lynch Daily K Plan") whose records are maintained on a daily valuation basis by
either Merrill Lynch Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), or
by an independent recordkeeper (an "Independent Recordkeeper") whose services
are provided through a contract or alliance arrangement with Merrill Lynch, and
with respect to which the sponsor of such plan has entered into a recordkeeping
agreement with Merrill Lynch (a "Merrill Lynch Recordkeeping Agreement").

The initial sales charge imposed on purchases of Class A shares of the Funds,
and the contingent deferred sales charge ("CDSC") imposed on certain redemptions
of Class A shares of the Funds, is waived in the following circumstances with
respect to a Merrill Lynch Daily K Plan:

       (i) if, on the date the Plan sponsor signs the Merrill Lynch
           Recordkeeping Agreement, such Plan has $3 million or more in assets
           invested in broker-dealer sold funds not advised or managed by
           Merrill Lynch Asset Management L.P. ("MLAM") that are made available
           pursuant to agreements between Merrill Lynch and such funds'
           principal underwriters or distributors, and in funds advised or
           managed by MLAM (collectively, the "Applicable Investments").

      (ii) if such Plan's records are maintained by an Independent Recordkeeper
           and, on the date the Plan sponsor signs the Merrill Lynch
           Recordkeeping Agreement, such Plan has $3 million or more in assets,
           excluding money market funds, invested in Applicable Investments; or

     (iii) such Plan has 500 or more eligible employees, as determined by the
           Merrill Lynch plan conversion manager on the date the Plan sponsor
           signs the Merrill Lynch Recordkeeping Agreement.

The CDSC imposed on redemptions of Class B shares of the Funds is waived in the
following circumstances with respect to a Merrill Lynch Daily K Plan:

       (i) if, on the date the Plan sponsor signs the Merrill Lynch
           Recordkeeping Agreement, such Plan has less than $3 million in
           Investments;

      (ii) if such Plan's records are maintained by an Independent recordkeeper
           and, on the date the plan sponsor signs the Merrill Lynch
           Recordkeeping Agreement, such Plan has less than $3 million dollars
           in assets, excluding money market funds, invested in Applicable
           Investments; or

     (iii) such Plan has fewer than 500 eligible employees, as determined by the
           Merrill Lynch plan conversion manager on the date the Plan sponsor
           signs the Merrill Lynch Recordkeeping Agreement.

No front-end commissions are paid with respect to any Class A or Class B shares
of the Funds purchased by any Merrill Lynch Daily K Plan.

                                                                 MerrillSup-0898