Rule 497(e)
                                                       Registration No. 33-12738


                                FUNDAMENTAL FUNDS

                               NEW YORK MUNI FUND
                            THE CALIFORNIA MUNI FUND
                      FUNDAMENTAL U.S. GOVERNMENT STRATEGIC
                                   INCOME FUND
                           TAX-FREE MONEY MARKET FUND
                         HIGH-YIELD MUNICIPAL BOND FUND

                         Supplement Dated July 16, 1997
                         Prospectus Dated April 30, 1997


         Each of Fundamental's mutual funds have adopted, subject to shareholder
approval,  an Agreement and Plan of Reorganization (the "Plan") under which each
fund (the "Fundamental Fund") will transfer all of its assets and liabilities to
a newly-created  corresponding series of The Tocqueville Trust (the "Tocqueville
Fund") in exchange  for shares of the  Tocqueville  Fund.  Shareholders  of each
Fundamental Fund will receive shares of the corresponding Tocqueville Fund equal
in value to their shares in the Fundamental Fund.  Shareholders will not have to
pay a sales load upon receiving shares of the Tocqueville Fund.

         The  corresponding  Tocqueville  Fund will have investment  objectives,
policies and  restrictions  substantially  identical to those of the Fundamental
Fund. The Board of Trustees of the Tocqueville Funds is comprised of individuals
other than those who currently serve as Directors  (Trustees) of the Fundamental
Funds.  Tocqueville  Asset  Management  L.P.  is the  investment  adviser to the
Tocqueville Funds.

         Fundamental's  Board Members  determined  that the Plan would be in the
best interests of  shareholders of the  Fundamental  Funds and recommended  that
shareholders  of each of the  Fundamental  Funds  approve  the Plan at a meeting
anticipated to be held in the Fall of 1997.

         Tocqueville Asset Management L.P. serves as investment  adviser to four
mutual funds and a number of private accounts. Tocqueville Asset Management L.P.
has approximately $720 million in assets under management.