Rule 497(e)
                                                        Registration No. 2-82143



                            THE CALIFORNIA MUNI FUND

                       SUPPLEMENT DATED SEPTEMBER 11, 1997
                                       TO
                         PROSPECTUS DATED APRIL 30, 1997



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

                  Fundamental Portfolio Advisors,  Inc. (the "Manager") utilizes
         an  investment  management  committee to manage the assets of the Fund.
         Until  August 27, 1997,  the  committee  was composed of the  following
         members:  Christopher P. Culp, who also was affiliated with Tocqueville
         Asset  Management  L.P.,  Vincent J.  Malanga,  a portfolio  strategist
         affiliated  with the  Manager,  and Jane  Tubis,  a  trading  assistant
         affiliated  with  the  Manager.   The  current   committee,   following
         Christopher P. Culp's removal,  consists of Vincent J. Malanga and Jane
         Tubis.

                  Christopher P. Culp, the former  portfolio  manager of another
         fund  in  the  Fundamental  complex  (the  "Related  Fund"),   retained
         Tocqueville   Securities   L.P.   ("Tocqueville"),   an   affiliate  of
         Tocqueville Asset Management L.P., to effect certain portfolio purchase
         transactions on behalf of the Related Fund. Questions were raised as to
         whether  commissions  paid to  Tocqueville  were  justified  under  the
         circumstances  and  whether or not the  Related  Fund bore  unnecessary
         expenses  as  a  result  of  certain  sale  and  subsequent  repurchase
         transactions. At the directive of the Related Fund's Board, Tocqueville
         agreed to pay $260,000 to the Related Fund.

                  It is anticipated that  shareholders of the Fund will be asked
         to  consider  and  approve  an  Agreement  and  Plan of  Reorganization
         providing  for  the  transfer  of  the  Fund's  assets  to a  separate,
         newly-created  Tocqueville Fund having the same investment policies and
         objectives  as those of the Fund at a special  meeting of  shareholders
         scheduled to be held in the late Fall.