1
 
                          MERRILL LYNCH BALANCED FUND
                         FOR INVESTMENT AND RETIREMENT
 
                      SUPPLEMENT DATED FEBRUARY 7, 1994 TO
                       PROSPECTUS DATED JANUARY 28, 1994
 
     The disclosure set forth under "Initial Sales Charge Alternative -- Class A
Shares -- Reduced Initial Sales Charges" is modified as follows:
 
       Initial sales charges will be waived for shareholders purchasing
       $1 million or more in a single transaction (other than an employer
       sponsored retirement or savings plan, such as a tax qualified
       retirement plan under Section 401 of the Internal Revenue Code of
       1986, as amended (the "Code"), a deferred compensation plan under
       Section 403(b) and Section 457 of the Code, other deferred
       compensation arrangements, VEBA plans and non-qualified After Tax
       Savings and Investment programs maintained on the Merrill Lynch
       Group Employee Services system herein referred to as "Employer
       Sponsored Retirement or Savings Plans"), or a purchase by a TMAsm
       Managed Trust, of Class A shares of the Fund.
 
     In addition, the disclosure is amended to reflect that Class A shares are
offered at net asset value to certain Employer Sponsored Retirement or Savings
Plans, provided such plans meet the required minimum number of eligible
employees or required amount of assets advised by the Fund's investment adviser
or any of its affiliates.
 
     Additional information regarding investments by Employer Sponsored
Retirement or Savings Plans may be obtained from your Merrill Lynch financial
consultant.
 
Code #10331ALL