Prospectus Supplement
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                            HSBC MUTUAL FUNDS TRUST

                            GROWTH AND INCOME FUND
                               FIXED INCOME FUND
                          NEW YORK TAX-FREE BOND FUND
                           INTERNATIONAL EQUITY FUND
                              (the "HSBC Funds")

                      SUPPLEMENT DATED SEPTEMBER 18, 2001
                     TO PROSPECTUSES DATED APRIL 30, 2001

The following is a Supplement to the Funds' Prospectuses, each dated April 30,
2001 (the "Prospectuses"). This Supplement should be read in conjunction with
the Prospectuses.

          On September 17, 2001, the HSBC Funds entered into an agreement with
     The Bank of New York by which the HSBC Funds are proposed to be merged into
     the BNY Hamilton Funds on a tax-free basis, subject to shareholder
     approvals.

          The Board of Trustees of the HSBC Funds unanimously approved the
     proposed merger with the BNY Hamilton Funds because of The Bank of New
     York's excellent investment performance and reputation, its high quality of
     services and lower expenses.

          The Board of Trustees of the HSBC Funds has requested that the
     appropriate proxy materials be prepared and filed with the Securities and
     Exchange Commission later this month so that the proxy solicitation may
     begin prior to the end of October. The Board of Trustees of the HSBC Funds
     had approved a similar merger with another investment adviser, however,
     discussions with that adviser were discontinued when the parties were
     unable to reach a definitive agreement.


          HSBC Asset Management resigned as the investment adviser of the HSBC
     Funds effective September 28, 2001. Starting on September 29, 2001, The
     Bank of New York will provide investment advisory services to the HSBC
     Funds on an interim basis while the proposed merger into the BNY Hamilton
     Funds is pending. The Bank of New York will render its investment advisory
     services on the same terms, including the advisory fees, as currently
     rendered by HSBC Asset Management.

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