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
     During the period beginning January 1, 1996 and ending not later than
     August 31, 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 (or, in certain instances involving IRA accounts,
     in cash) 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.


                                                              June 24, 1996



    FEDERATED INVESTORS
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    Federated Securities Corp. is the distributor of the Fund
    and is a subsidiary of Federated Investors.
    (2051)
    Cusip 093265304