BLANCHARD ASSET ALLOCATION FUND
(a portfolio of The Blanchard Group of Funds)
SUPPLEMENT TO PROSPECTUS DATED NOVEMBER 30, 1996.

NOTICE TO SHAREHOLDERS:
In keeping with our mandate to provide you with the highest quality of
service, while keeping expenses low, the Investors' Services department has
been relocated from New York City to our headquarters office in Richmond,
Virginia.


1.  On page 22 of the prospectus, please delete the first
sentence of the first paragraph of the section entitled
`PURCHASES BY MAIL'' in its entirety and replace it with
the following:


`To purchase shares of the Fund by mail, simply send a completed
Application (included with this Prospectus or obtainable from the Fund) to
The Blanchard Group of Funds, c/o Signet Financial Services, Inc., P.O. Box
26301, Richmond VA 23260, together with a check payable to the Fund in
payment for the shares.''


2.  On page 22 of the prospectus, please delete the second
sentence of the third paragraph of the section entitled
`PURCHASES BY MAIL'' in its entirety and replace it with
the following:


`This is generally the next business day after Signet Financial Services,
Inc. (`Signet'') receives the check.''


3.  On page 22 of the prospectus, please delete the first

sentence of the second paragraph of the section entitled
`PURCHASES BY WIRE'' in its entirety and replace it with
the following:


`Call Investor Services at 1-800-829-3863 to receive wiring instructions.''


4.  On page 24 of the prospectus, please delete the third
sentence of the third paragraph of the section entitled
`EXCHANGE PRIVILEGE'' in its entirety and replace it with
the following:


`As a result of the Fund's policy, neither the Fund nor Signet will be
responsible for any claims, losses or expenses for acting on telephone
instructions that they reasonably believe to be genuine.''


5.  On page 24 of the prospectus, please delete the final
paragraph of the section entitled `EXCHANGE PRIVILEGE'' in
its entirety and replace it with the following:


`A COMPLETED PURCHASE APPLICATION MUST BE RECEIVED BY SIGNET BEFORE THE
AUTOMATIC WITHDRAWAL PLAN OR EXCHANGE PRIVILEGE MAY BE USED.''


6.  On page 24 of the prospectus, please delete the first
sentence of the section entitled `HOW TO REDEEM'' in its
entirety and replace it with the following:


`You may redeem your shares on any business day at the next determined net
asset value calculated after your redemption request has been accepted by
Signet as described below.''




7.  On page 25 of the prospectus, please delete the third
sentence of the first paragraph of the section entitled `BY
TELEPHONE''in its entirety and replace it with the
following:


`Redemption of Fund shares can be made in this manner only after you have
executed and filed with Signet, the telephone redemption authorization form
which may be obtained from your Fund or Signet.''


8.  On page 25 of the prospectus, please delete the fourth
sentence of the second paragraph of the section entitled
`BY TELEPHONE'' in its entirety and replace it with the
following:


`As long as the identification procedures described above are followed,
neither your Fund nor Signet will be responsible for any claims, losses or
expenses for acting on telephone instructions that they reasonably believe
to be genuine.''


9.  On page 25 of the prospectus, please delete the fifth
sentence of the third paragraph of the section entitled `BY
TELEPHONE''in its entirety and replace it with the
following:


`However, the proceeds of a wire redemption may be subject to the usual
and customary charges imposed by Signet for the wiring of funds.''

10.  On page 25 of the prospectus, please delete the first
sentence of the section entitled `BY MAIL'' in its entirety
and replace it with the following:


`All other redemption requests should be made in writing to The Blanchard
Group of Funds, c/o Signet Financial Services, Inc., P.O. Box 26301,
Richmond VA 23260.''


11.  On page 25 of the prospectus, please delete the third
sentence of the section entitled `BY MAIL'' in its entirety
and replace it with the following:


`Signatures on redemption requests for amounts in excess of $25,000 and
endorsed share certificates submitted for redemption must be accompanied by
signature guarantees from any eligible guarantor institution approved by
Signet in accordance with its Standards, Procedures and Guidelines for the
Acceptance of Signature Guarantees (`Signature Guarantee Guidelines'').''


12.  On page 25 of the prospectus, please delete the fifth
and sixth sentences of the section entitled `BY MAIL'' in
their entirety and replace them with the following:


`All eligible guarantor institutions must participate in the Securities
Transfer Agents Medallion Program (`STAMP'') in order to be approved by
Signet pursuant to the Signature Guarantee Guidelines.  Copies of the
Signature Guarantee Guidelines and information on STAMP can be obtained
from Signet at (800) 829-3863.''

13.  On page 25 of the prospectus, please delete the first
and second sentences of the section entitled `GENERAL
INFORMATION''in their entirety and replace them with the
following:


`Your redemption request becomes effective when it is received in proper
form by Signet prior to 4:00 p.m. Eastern time, or your redemption will
occur on the following business day.  We will make payment for redeemed
shares within seven days after receipt by Signet.''

                                                  April 25, 1997




FEDERATED INVESTORS
Federated Investors
Pittsburgh, PA 15222-3779



Federated Securities Corp. is the distributor of the Fund
and is a subsidiary of Federated Investors.
Cusip 093212504
G01687-19 (4/97)


BLANCHARD GLOBAL GROWTH FUND
BLANCHARD PRECIOUS METALS FUND, INC.
BLANCHARD FLEXIBLE INCOME FUND
BLANCHARD SHORT-TERM FLEXIBLE INCOME FUND
BLANCHARD FLEXIBLE TAX-FREE BOND FUND
(portfolios of The Blanchard Group of Funds)
SUPPLEMENT TO PROSPECTUS DATED AUGUST 31, 1996.

NOTICE TO SHAREHOLDERS:
In keeping with our mandate to provide you with the highest quality of
service, while keeping expenses low, the Investors' Services department has
been relocated from New York City to our headquarters office in Richmond,
Virginia.


1.  On page 19 of the prospectus, please delete the first
sentence of the first paragraph of the section entitled
`PURCHASES BY MAIL'' in its entirety and replace it with
the following:


`To purchase shares of a Fund by mail, simply send a completed Application
(included with this Prospectus or obtainable from the Fund) to The
Blanchard Group of Funds, c/o Signet Financial Services, Inc., P.O. Box
26301, Richmond VA 23260, together with a check payable to the individual
Fund in payment for the shares.''


2.  On page 19 of the prospectus, please delete the second
sentence of the third paragraph of the section entitled
`PURCHASES BY MAIL'' in its entirety and replace it with
the following:


`This is generally the next business day after Signet Financial Services,
Inc. (`Signet'') receives the check.''


3.  On page 19 of the prospectus, please delete the second
paragraph of the section entitled `PURCHASES BY WIRE'' in

its entirety and replace it with the following:


`Call Investor Services at 1-800-829-3863 to receive wiring
instructions.''


4.  On page 21 of the prospectus, please delete the third
sentence of the third paragraph of the section entitled
`EXCHANGE PRIVILEGE'' in its entirety and replace it with
the following:


`As a result of the Funds' policy, neither a Fund nor Signet will be
responsible for any claims, losses or expenses for acting on telephone
instructions that they reasonably believe to be genuine.''




5.  On page 21 of the prospectus, please delete the final
paragraph of the section entitled `CHECK-WRITING
PRIVILEGE''in its entirety and replace it with the
following:


`A COMPLETED NEW ACCOUNT APPLICATION OR SHAREHOLDER PRIVILEGE FORM MUST BE
RECEIVED BY SIGNET BEFORE THESE PRIVILEGES MAY BE USED.''




6.  On page 22 of the prospectus, please delete the first
sentence of the section entitled `HOW TO REDEEM'' in its
entirety and replace it with the following:

`You may redeem your shares on any business day at the next determined net
asset value calculated after your redemption request has been accepted by
Signet as described below.''


7.  On page 22 of the prospectus, please delete the third
sentence of the first paragraph of the section entitled `BY
TELEPHONE''in its entirety and replace it with the
following:


`Redemptions of Fund shares can be made in this manner only after you have
executed and filed with Signet, the telephone redemption authorization form
which may be obtained from your Fund or Signet.''


8.  On page 22 of the prospectus, please delete the fourth
sentence of the second paragraph of the section entitled
`BY TELEPHONE'' in its entirety and replace it with the
following:


`As long as the identification procedures described above are followed,
neither your Fund nor Signet will be responsible for any claims, losses or
expenses for acting on telephone instructions that they reasonably believe
to be genuine.''


9.  On page 22 of the prospectus, please delete the fifth
sentence of the third paragraph of the section entitled `BY
TELEPHONE''in its entirety and replace it with the
following:
`However, the proceeds of a wire redemption may be subject to the usual
and customary charges imposed by Signet for the wiring of funds.''




10.  On page 22 of the prospectus, please delete the first
sentence of the section entitled `BY MAIL'' in its entirety
and replace it with the following:


`All other redemption requests should be made in writing to The Blanchard
Group of Funds, c/o Signet Financial Services, Inc., P.O. Box 26301,
Richmond VA 23260.''


11.  On page 22 of the prospectus, please delete the third
sentence of the section entitled `BY MAIL'' in its entirety
and replace it with the following:


`Signatures on redemption requests for amounts in excess of $25,000 and
endorsed share certificates submitted for redemption must be accompanied by
signature guarantees from any eligible guarantor institution approved by
Signet in accordance with its Standards, Procedures and Guidelines for the
Acceptance of Signature Guarantees (`Signature Guarantee Guidelines'').''


12.  On page 22 of the prospectus, please delete the fifth
and sixth sentences of the section entitled `BY MAIL'' in
their entirety and replace them with the following:


`All eligible guarantor institutions must participate in the Securities
Transfer Agents Medallion Program (`STAMP'') in order to be approved by
Signet pursuant to the Signature Guarantee Guidelines.  Copies of the
Signature Guarantee Guidelines and information on STAMP can be obtained
from Signet at 1-800-829-3863.''


13.  On page 23 of the prospectus, please delete the first
and second sentences of the section entitled `GENERAL
INFORMATION''in their entirety and replace them with the
following:


`Your redemption request becomes effective when it is received in proper
form by Signet prior to 4:00 p.m. Eastern time, or your redemption will
occur on the following business day.  We will make payment for redeemed
shares within seven days after receipt by Signet.''




14.  On page 30 of the prospectus, please delete the section
entitled `SHAREHOLDER INQUIRIES'' in its entirety and
replace it with the following:


`SHAREHOLDER INQUIRIES.  Shareholder inquiries concerning the status of an
account or information concerning the Funds should be directed to Signet
Financial Services, Inc., P.O. Box 26301, Richmond VA 23260, or by calling
1-800-829-3863.''



                                                  April 25, 1997
FEDERATED INVESTOS
Federated Investors Tower
Pittsburgh, PA 15222-3779


Federated Securities Corp. is the distributor of the Funds
and is a subsidiary of Federated Investors.
Cusip 093265106
Cusip 093254100
Cusip 093212306
Cusip 093212405
Cusip 093212603
G01687-18 (4/97)



BLANCHARD GROWTH & INCOME FUND
(a portfolio of The Blanchard Group of Funds)
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 28, 1997.

NOTICE TO SHAREHOLDERS:
In keeping with our mandate to provide you with the highest quality of
service, while keeping expenses low, the Investors' Services department has
been relocated from New York City to our headquarters office in Richmond,
Virginia.


1.  On page 11 of the prospectus, please delete the first
sentence of the first paragraph of the section entitled
`PURCHASES BY MAIL'' in its entirety and replace it with
the following:
`To purchase shares of the Fund by mail, simply send a completed
Application (included with this Prospectus or obtainable from the Fund) to
The Blanchard Group of Funds, c/o Signet Financial Services, Inc., P.O. Box
26301, Richmond VA 23260, together with a check payable to the Fund in
payment for the shares.''


2.  On page 11 of the prospectus, please delete the second
sentence of the third paragraph of the section entitled
`PURCHASES BY MAIL'' in its entirety and replace it with
the following:


`This is generally the next business day after Signet Financial Services,
Inc. (`Signet'') receives the check.''


3.  On page 12 of the prospectus, please delete the first
sentence of the second paragraph of the section entitled
`PURCHASES BY WIRE'' in its entirety and replace it with
the following:


`Call Investor Services at 1-800-829-3863 to receive wiring
instructions.''


4.  On page 13 of the prospectus, please delete the third
sentence of the third paragraph of the section entitled
`EXCHANGE PRIVILEGES'' in its entirety and replace it with
the following:


`As a result of the Fund's policy, neither the Fund nor Signet will be
responsible for any claims, losses or expenses for acting on telephone
instructions that they reasonably believe to be genuine.''




5.  On page 14 of the prospectus, please delete the final
paragraph of the section entitled `EXCHANGE PRIVILEGES'' in
its entirety and replace it with the following:


`A COMPLETED PURCHASE APPLICATION MUST BE RECEIVED BY SIGNET BEFORE THE
AUTOMATIC WITHDRAWAL PLAN OR EXCHANGE PRIVILEGE MAY BE USED.''


6.  On page 14 of the prospectus, please delete the first
sentence of the section entitled `HOW TO REDEEM'' in its
entirety and replace it with the following:


`You may redeem your shares on any business day at the next determined net
asset value calculated after your redemption request has been accepted by
Signet as described below.''


7.  On page 14 of the prospectus, please delete the third
sentence of the first paragraph of the section entitled `BY
TELEPHONE''in its entirety and replace it with the
following:


`Redemption of Fund shares can be made in this manner only after you have
executed and filed with Signet, the telephone redemption authorization form
which may be obtained from your Fund or Signet.''


8.  On page 14 of the prospectus, please delete the fourth
sentence of the second paragraph of the section entitled

`BY TELEPHONE'' in its entirety and replace it with the
following:


`As long as the identification procedures described above are followed,
neither your Fund nor Signet will be responsible for any claims, losses or
expenses for acting on telephone instructions that they reasonably believe
to be genuine.''


9.  On page 14 of the prospectus, please delete the fifth
sentence of the third paragraph of the section entitled `BY
TELEPHONE''in its entirety and replace it with the
following:


`However, the proceeds of a wire redemption may be subject to the usual
and customary charges imposed by Signet for the wiring of funds.''




10.  On page 15 of the prospectus, please delete the first
sentence of the section entitled `BY MAIL'' in its entirety
and replace it with the following:


`All other redemption requests should be made in writing to The Blanchard
Group of Funds, c/o Signet Financial Services, Inc., P.O. Box 26301,
Richmond VA 23260.''


11.  On page 15 of the prospectus, please delete the third
sentence of the section entitled `BY MAIL'' in its entirety
and replace it with the following:

`Signatures on redemption requests for amounts in excess of $25,000 and
endorsed share certificates submitted for redemption must be accompanied by
signature guarantees from any eligible guarantor institution approved by
Signet in accordance with its Standards, Procedures and Guidelines for the
Acceptance of Signature Guarantees (`Signature Guarantee Guidelines'').''


12.  On page 15 of the prospectus, please delete the fifth
and sixth sentences of the section entitled `BY MAIL'' in
their entirety and replace them with the following:


`All eligible guarantor institutions must participate in the Securities
Transfer Agents Medallion Program (`STAMP'') in order to be approved by
Signet pursuant to the Signature Guarantee Guidelines.  Copies of the
Signature Guarantee Guidelines and information on STAMP can be obtained
from Signet at (800) 829-3863.''


13.  On page 15 of the prospectus, please delete the first
and second sentences of the section entitled `GENERAL
INFORMATION''in their entirety and replace them with the
following:


`Your redemption request becomes effective when it is received in proper
form by Signet prior to 4:00 p.m. Eastern time, or your redemption will
occur on the following business day.  We will make payment for redeemed
shares within seven days after receipt by Signet.''




14.  On page 17 of the prospectus, please delete the section

entitled `TRANSFER AGENT AND DIVIDEND DISBURSING AGENT'' in
its entirety and replace it with the following:


`TRANSFER AGENT AND DIVIDEND DISBURSING AGENT.  Federated Shareholder
Services Company, Pittsburgh, Pennsylvania, is transfer agent for the Fund
and dividend disbursing agent for the Fund.''

`SHAREHOLDER INQUIRIES.  Shareholder inquiries concerning the status of an
account or information concerning the Fund should be directed to Signet
Financial Services, Inc., P.O. Box 26301, Richmond VA 23260, or by calling
1-800-829-3863.''



                                                  April 25, 1997



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.
Cusip 093265304
G01687-20 (4/97)

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.
Cusip 093265106
G01687-17 (3/97)

BLANCHARD GLOBAL GROWTH FUND
(A PORTFOLIO OF THE BLANCHARD GROUP OF FUNDS)

SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 31,
1996.

1. Please delete the third paragraph under the sub-section entitled
`Portfolio Management Services'' on page 28 and replace it with the
following:


     `For the fiscal years ended April 30, 1996, 1995 and 1994, the
     aggregate amounts paid by the prior manager to prior Portfolio
     Managers under prior Sub-Advisory Agreements were as follows: Shufro
     Rose & Ehrman- $118,521, $90,508, and $104,023, respectively;
     Investment Advisers, Inc.- $15,149, $22,423, and $5,641, respectively;
     and Cavelti Capital Management, Inc.- $11,507, $11,821, and $10,556,
     respectively. In addition, for the fiscal years ended April 30, 1996
     and 1995, the aggregate amounts paid to Fiduciary International, Inc.
     were $140,258 and $172,222, respectively. For the fiscal year ended
     1994, the aggregate amount paid jointly to Fiduciary International,
     Inc. and Morgan Stanley Asset Management, Inc. was $257,595.
     Furthermore, for the fiscal years ended April 30, 1996 and1995, the
     aggregate amounts paid to Martin Currie Inc.were $38,798 and $67,098,
     respectively. For the fiscal year ended 1994, the aggregate amount
     paid jointly to Martin Currie Inc.and Morgan Stanley Asset Management
     was $49,870.''

                                                           April 25, 1997