BLANCHARD GROUP OF FUNDS
     BLANCHARD GROWTH & INCOME FUND

SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 29, 1996

Please insert the following sub-section entitled "Special Offering"
immediately following the sub-section entitled "General Information" on page
15:
     "SPECIAL OFFERING
     For a period ending not later than June 30, 1996, Signet Financial
     Services, Inc. ("SFSI") will offer to pay $100 to the account of each
     person who becomes a first time shareholder of the Growth & Income Fund
     and maintains at least a $3,000 balance ($2,000 for IRAs) in his
     account for at least 90 days from the initial purchase. (A shareholder
     will not be disqualified if his balance falls below the required
     minimum due to changes in the Growth & Income Fund's net asset value.)
     The payment will be made by the purchase of $100 in shares of Growth &
     Income Fund for the shareholder's account and will be made at the end
     of the 90-day holding period at the Growth & Income Fund's net asset
     value as of the 90th day after  the investment is made.
     The offer is subject to the following additional conditions: (i) it is
     limited to one payment per household , and to one payment in the case
     of a joint account; (ii) employees of SFSI and its affiliates and
     Federated Securities Corporation and its affiliates and members of
     their immediate families will not be eligible to participate in the
     offer; (iii) broker/dealers through which persons purchase shares
     pursuant to the offer must furnish to SFSI the names, addresses and
     social security numbers of all such purchasers, must certify to SFSI
     that such purchasers hold no shares of Growth & Income Fund in their
     brokerage accounts at the date of the offer and must, with respect to
     each such purchaser, from time to time during the term of the offer
     furnish to SFSI the date and amount of any purchase or redemption of
     shares of Growth & Income Fund during the period of the offer; and (iv)
     the offer may be terminated (as to persons that have not yet purchased
     shares at the time of termination) at any time by SFSI without prior
     notice. SFSI will not be reimbursed by the Growth & Income Fund for any
     payments made pursuant to this offer.


     The Growth & Income Fund's Administrator plans to report the $100
     payment as ordinary income to the shareholder."

                                                               March 6, 1996

   FEDERATED SECURITIES CORP.

   Distributor
   A subsidiary of FEDERATED INVESTORS
   Federated Investors Tower
   PITTSBURGH, PA  15222-3779
   Cusip 093265304
   G01335-15 (3/96)




THE BLANCHARD GROUP OF FUNDS
Blanchard Growth & Income Fund
Blanchard Capital Growth Fund

NOTICE TO SHAREHOLDERS:
The parent company of The Chase Manhattan Bank, N.A., the Portfolio Adviser
to the Portfolio in which your Fund invests, has entered into an Agreement
and Plan of Merger with Chemical Banking Corporation.  This prospectus
supplement is to advise you of the intended merger.
In 1996, you will be solicited to approve a new investment advisory contract
with the new entity.  We do not anticipate that there will be any impact on
the management of your fund.
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 29, 1996
In August 1995, The Chase Manhattan Corporation and Chemical Banking
Corporation announced that they had entered into an Agreement and Plan of
Merger (the "Merger Agreement") pursuant to which The Chase Manhattan
Corporation will merge with Chemical Banking Corporation (the "Holding
Company Merger").  Under the terms of the Merger Agreement, Chemical Banking
Corporation will be the surviving corporation in the Holding Company Merger
and will continue its corporate existence under Delaware law under the name
"The Chase Manhattan Corporation."  Subsequent to the Holding Company
Merger, The Chase Manhattan Bank, N.A. (the "Portfolio Adviser"), will be
merged with and into Chemical Bank, a New York banking corporation (the
"Bank Merger").  Both the Holding Company Merger and Bank Merger are subject
to certain conditions, including certain regulatory approvals.
As required by the Investment Company Act of 1940, as amended (the "1940
Act"), the current advisory agreement (the "Current Agreement") between the
Portfolios in which each Fund is invested, and the Portfolio Adviser,
provides for its automatic termination upon its "assignment" (as defined in
the 1940 Act).  Consummation of the Holding Company Merger and the Bank
Merger may be deemed to result in an assignment of each Current Agreement
and, consequently, to terminate each Current Agreement in accordance with
its terms.  After the Holding Company Merger, the Portfolio Adviser (or the
successor thereto) will continue rendering services to the Portfolios in
which each Fund is invested, under anticipated exemptive relief from the
Securities and Exchange Commission and advisory services will not be
impaired thereby.  Shareholder approval of new advisory agreements will be
solicited in the first quarter of 1996.
                                                               March 6, 1996
   FEDERATED SECURITIES CORP.

   Distributor
   A subsidiary of FEDERATED INVESTORS
   Federated Investors Tower
   PITTSBURGH, PA  15222-3779
   Cusip 093265304
   Cusip 093265403