FIRST AMERICAN INVESTMENT FUNDS, INC.
                  PROSPECTUS SUPPLEMENT DATED FEBRUARY 27, 2007

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    This supplement updates the following Prospectus dated October 30, 2006:

                     First American Income Funds Prospectus

This supplement and the Prospectus dated October 30, 2006 together constitute a
current Prospectus. To request a copy of a Prospectus, please call 800 677-FUND.

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Effective March 15, 2007, Core Bond Fund and Short Term Bond Fund may each
invest a portion of their total assets in securities rated lower than investment
grade (or unrated securities of comparable quality as determined by the fund's
advisor), non-dollar denominated debt obligations of foreign corporations and
governments, and debt obligations issued by governmental and corporate issuers
that are located in emerging market countries, as described below.

THE FOLLOWING REPLACES THE LANGUAGE UNDER "PRINCIPAL INVESTMENT STRATEGIES" FOR
CORE BOND FUND ON PAGE 2:

Under normal market conditions, Core Bond Fund invests primarily (at least 80%
of its net assets, plus the amount of any borrowings for investment purposes) in
debt securities, such as:

o  U.S. government securities (securities issued or guaranteed by the
   U.S. government or its agencies or instrumentalities), including zero coupon
   securities.
o  residential and commercial mortgage-backed securities.
o  asset-backed securities.
o  corporate debt obligations, including obligations issued by special-purpose
   entities that are backed by corporate debt obligations.

Up to 10% of the fund's total assets may be invested collectively in the
following categories of debt securities:

o  securities rated lower than investment grade or unrated securities of
   comparable quality as determined by the fund's advisor (securities commonly
   referred to as "high yield" or "junk bonds"). The fund will not invest in
   securities rated lower than CCC at the time of purchase or in unrated
   securities of equivalent quality.
o  non-dollar denominated debt obligations of foreign corporations and
   governments.
o  debt obligations issued by governmental and corporate issuers that are
   located in emerging market countries. A country is considered to have an
   "emerging market" if it has a relatively low gross national product per
   capita compared to the world's major economies, and the potential for rapid
   economic growth, provided that no issuer included in the fund's current
   benchmark index will be considered to be located in an emerging market
   country.

The fund may invest up to 25% of its total assets in U.S. dollar denominated
debt obligations of foreign corporations and governments that are not located in
emerging market countries.

Fund managers select securities using a "top-down" approach, which begins with
the formulation of their general economic outlook. Following this, various
sectors and industries are analyzed and selected for investment. Finally, fund
managers select individual securities within these sectors or industries.

The fund invests primarily in debt securities rated investment grade at the time
of purchase by a nationally recognized statistical rating organization or in
unrated securities of comparable quality.



                                                                      INCOME-STK

As noted above, however, up to 10% of the fund's total assets may be invested in
securities that are rated lower than investment grade at the time of purchase or
that are unrated and of comparable quality. Quality determinations regarding
unrated securities will be made by the fund's advisor. If the rating of a
security is reduced or the credit quality of an unrated security declines after
purchase, the fund is not required to sell the security, but may consider doing
so. At least 65% of the fund's debt securities must be either U.S. government
securities or securities that are rated A or better or are unrated and of
comparable quality. Unrated securities will not exceed 25% of the fund's total
assets.

Under normal market conditions the fund attempts to maintain a weighted average
effective maturity for its portfolio securities of 15 years or less and an
average effective duration of three to eight years. The fund's weighted average
effective maturity and average effective duration are measures of how the fund
may react to interest rate changes.

To generate additional income, the fund may invest up to 25% of total assets in
dollar roll transactions. In a dollar roll transaction, the fund sells
mortgage-backed securities for delivery in the current month while contracting
with the same party to repurchase similar securities at a future date.

The fund may utilize the following derivatives: options; futures contracts;
options on futures contracts; interest rate caps and floors; foreign currency
contracts; options on foreign currencies; interest rate, total return and credit
default swap agreements; and options on the foregoing types of swap agreements.
The fund may use these derivatives in an attempt to manage market risk, currency
risk, credit risk and yield curve risk, to manage the effective maturity or
duration of securities in the fund's portfolio or for speculative purposes in an
effort to increase the fund's yield or to enhance return. The fund may also use
derivatives to gain exposure to non-dollar denominated securities markets to the
extent it does not do so through direct investments. The use of a derivative is
speculative if the fund is primarily seeking to enhance return, rather than
offset the risk of other positions. When the fund invests in derivatives for
speculative purposes, the fund will be fully exposed to the risks of loss of
that derivative, which may sometimes be greater than the derivative's cost. The
fund may not use any derivative to gain exposure to a security or type of
security that it would be prohibited by its investment restrictions from
purchasing directly.

THE FOLLOWING REPLACES THE LANGUAGE UNDER "PRINCIPAL INVESTMENT STRATEGIES" FOR
SHORT TERM BOND FUND ON PAGE 13:

Under normal market conditions, Short Term Bond Fund invests primarily (at least
80% of its net assets, plus the amount of any borrowings for investment
purposes) in debt securities, such as:

o  residential and commercial mortgage-backed securities.
o  asset-backed securities.
o  corporate debt obligations, including obligations issued by special-purpose
   entities that are backed by corporate debt obligations.
o  U.S. government securities, which are securities issued or guaranteed by the
   U.S. government or its agencies or instrumentalities.
o  commercial paper.

Up to 10% of the fund's total assets may be invested collectively in the
following categories of debt securities:

o  securities rated lower than investment grade or unrated securities of
   comparable quality as determined by the fund's advisor (securities commonly
   referred to as "high yield" or "junk bonds"). The fund will not invest in
   securities rated lower than CCC at the time of purchase or in unrated
   securities of equivalent quality.

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o  non-dollar denominated debt obligations of foreign corporations and
   governments.
o  debt obligations issued by governmental and corporate issuers that are
   located in emerging market countries. A country is considered to have an
   "emerging market" if it has a relatively low gross national product per
   capita compared to the world's major economies, and the potential for rapid
   economic growth, provided that no issuer included in the fund's current
   benchmark index will be considered to be located in an emerging market
   country.

The fund may invest up to 25% of its total assets in U.S. dollar denominated
debt obligations of foreign corporations and governments that are not located in
emerging market countries.

Fund managers select securities using a "top-down" approach which begins with
the formulation of their general economic outlook. Following this, various
sectors and industries are analyzed and selected for investment. Finally, fund
managers select individual securities within these sectors or industries.

The fund invests primarily in debt securities rated investment grade at the time
of purchase by a nationally recognized statistical rating organization or in
unrated securities of comparable quality. As noted above, however, up to 10% of
the fund's total assets may be invested in securities that are rated lower than
investment grade at the time of purchase or that are unrated and of comparable
quality. Quality determinations regarding unrated securities will be made by the
fund's advisor. If the rating of a security is reduced or the credit quality of
an unrated security declines after purchase, the fund is not required to sell
the security, but may consider doing so. At least 65% of the fund's debt
securities must be either U.S. government securities or securities that are
rated A or better or are unrated and of comparable quality. Unrated securities
will not exceed 25% of the fund's total assets.

Under normal market conditions the fund attempts to maintain a weighted average
effective maturity and an average effective duration for its portfolio
securities of one to three years. The fund's weighted average effective maturity
and effective duration are measures of how the fund may react to interest rate
changes.

The fund may utilize the following derivatives: options; futures contracts;
options on futures contracts; interest rate caps and floors; foreign currency
contracts; options on foreign currencies; interest rate, total return and credit
default swap agreements; and options on the foregoing types of swap agreements.
The fund may use these derivatives in an attempt to manage market risk, currency
risk, credit risk and yield curve risk, to manage the effective maturity or
duration of securities in the fund's portfolio or for speculative purposes in an
effort to increase the fund's yield or to enhance return. The fund may also use
derivatives to gain exposure to non-dollar denominated securities markets to the
extent it does not do so through direct investments. The use of a derivative is
speculative if the fund is primarily seeking to enhance return, rather than
offset the risk of other positions. When the fund invests in derivatives for
speculative purposes, the fund will be fully exposed to the risks of loss of
that derivative, which may sometimes be greater than the derivative's cost. The
fund may not use any derivative to gain exposure to a security or type of
security that it would be prohibited by its investment restrictions from
purchasing directly.

THE FOLLOWING PRINCIPAL RISKS ARE ADDED UNDER "PRINCIPAL RISKS" FOR CORE BOND
FUND ON PAGE 2 AND SHORT TERM BOND FUND ON PAGE 13:

Emerging Markets Risk. The risks of international investing are particularly
significant in emerging markets.

High-Yield Securities Risk. High-yield securities generally are less liquid,
have more volatile prices, and have greater credit risk than investment grade
securities.

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International Investing Risk. Investing in non-dollar denominated foreign
securities involves risk not typically associated with U.S. investing, such as
currency risk, risks of trading in foreign securities markets, and political and
economic risks.

Liquidity Risk. Trading opportunities are more limited for debt securities that
have received ratings below investment grade.

THE FOLLOWING REPLACES THE FIRST SENTENCE UNDER "MORE ABOUT THE
FUNDS--INVESTMENT STRATEGIES, RISKS AND OTHER INVESTMENT MATTERS--PRINCIPAL
RISKS--HIGH-YIELD SECURITIES RISK" ON PAGE 25:

A significant portion of the portfolio of High Income Bond Fund, and up to 10%
of the total assets of Core Bond Fund and Short Term Bond Fund, 10% of the net
assets of Inflation Protected Securities Fund, and 20% of the total assets of
Total Return Bond Fund, may consist of lower-rated corporate debt obligations,
which are commonly referred to as "high-yield" securities or "junk bonds."

THE FOLLOWING REPLACES THE FIRST SENTENCE UNDER "MORE ABOUT THE
FUNDS--INVESTMENT STRATEGIES, RISKS AND OTHER INVESTMENT MATTERS--PRINCIPAL
RISKS--INTERNATIONAL INVESTING RISK" ON PAGE 25:

Up to 20% of the net assets of Inflation Protected Securities Fund, 20% of the
total assets of Total Return Bond Fund, and 10% of the total assets of Core Bond
Fund and Short Term Bond Fund may be invested in non-dollar denominated foreign
securities.

THE FOLLOWING REPLACES THE FIRST SENTENCE UNDER "MORE ABOUT THE
FUNDS--INVESTMENT STRATEGIES, RISKS AND OTHER INVESTMENT MATTERS--PRINCIPAL
RISKS--LIQUIDITY RISK" ON PAGE 26:

Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund,
Short Term Bond Fund, and Total Return Bond Fund are exposed to liquidity risk
because of their investment in high-yield bonds.

IF YOU HAVE ANY QUESTIONS REGARDING THIS PROSPECTUS SUPPLEMENT, PLEASE CONTACT
YOUR INVESTMENT PROFESSIONAL, OR YOU MAY CALL FIRST AMERICAN FUNDS INVESTOR
SERVICES AT 800 677-FUND.

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