VISTA CALIFORNIA INTERMEDIATE TAX FREE INCOME FUND
                      VISTA NEW YORK TAX FREE INCOME FUND
                          VISTA TAX FREE INCOME FUND

                       SUPPLEMENT DATED OCTOBER 9, 1997
                  TO THE PROSPECTUS FOR CLASS A AND B SHARES
                            DATED DECEMBER 27, 1996


In the section entitled "Distribution Plans," the following paragraph is
inserted immediately preceding "Shareholder Servicing Agents":

     VFD may from time to time, pursuant to objective criteria established by
     it, pay additional compensation to qualifying authorized broker-dealers
     for certain services or activities which are primarily intended to
     result in sales of shares of the Fund.  In some instances, such cash
     compensation may be offered only to certain broker-dealers who employ
     registered representatives who have sold or may sell significant amounts
     of shares of the Fund and/or other Vista Funds during a specified period
     of time.  Such compensation does not represent an additional expense to
     the Fund or its shareholders, since it will be paid by VFD out of
     compensation retained by it from the Fund or other sources available to
     it.