DRAFT

Dated ___________ __, 1996

Supplement to Prospectus dated April 18, 1996

ELFUN FUNDS

     Each of the Funds is now authorized to invest in GEI
Short-Term Investment Fund (the "Investment Fund"), an
investment fund advised by General Electric Investment
Management Incorporated ("GEIM") created specifically to
serve as a vehicle for the collective investment of cash
balances of the Funds (other than the Money Market Fund) and
other accounts advised by either GEIM or General Electric
Investment Corporation ("GEIC").

     To reflect the foregoing and in connection therewith to
clarify the types of money market instruments in which the
Funds are authorized to invest directly, the first paragraph
on page 12 of the prospectus under "Additional Investments -
- - Money Market Instruments" has been deleted in its entirety
and now reads as follows:

     Money Market Instruments.  Each Fund, other than the
     Money Market Fund, may invest only in the following
     types of money market instruments:  (i) securities
     issued or guaranteed by the U.S. Government or one of
     its agencies or instrumentalities, (ii) debt
     obligations of banks, savings and loan institutions,
     insurance companies and mortgage bankers, (iii)
     commercial paper and notes, including those with
     variable and floating rates of interest, (iv) debt
     obligations of foreign branches of U.S. banks, U.S.
     branches of foreign banks and foreign branches of
     foreign banks, (v) debt obligations issued or
     guaranteed by one or more foreign governments or any of
     their political subdivisions, agencies or
     instrumentalities, including obligations of
     supranational entities, (vi) debt securities issued by
     foreign issuers and (vii) repurchase agreements.







     Each Fund, other than the Money Market Fund, may also
     invest up to 25% of its assets in the Investment Fund,
     a fund created specifically to serve as a vehicle for
     the collective investment of cash balances of the Funds
     (other than the Money Market Fund) and other accounts
     advised by General Electric Investment Management
     Incorporated ("GEIM")<F1> or GEIC.  The Investment Fund
     invests exclusively in the money market instruments
     described in (1) through (vii) above.  The Investment
     Fund is advised by GEIM.  No advisory fee is charged by
     GEIM to the Investment Fund, nor will the Funds incur
     any sales charge, redemption fee, distribution fee or
     service fee in connection with its investments in the
     Investment Fund.

[FN]

<F1>
GEIM will have to be defined for the first time here rather
than in the "General" section under "Risk Factors and
Special Considerations."