497 1 mf-proxy.txt PROSPECTUS/SAI SUPPLEMENTS [USAA USAA AGGRESSIVE GROWTH FUND EAGLE LOGO (R)] SUPPLEMENT DATED MAY 26, 2006 TO THE PROSPECTUS DATED DECEMBER 1, 2005 There will be a Special Meeting of Shareholders of the Fund on July 19, 2006, to vote on, among other things, a proposed reorganization of the Fund. In connection with the reorganization, which if approved by shareholders would take effect on August 1, 2006, the Fund's diversification status would change from diversified to non-diversified, the Fund's transfer agency fee would decrease from $26 to $23, and the Fund's advisory fee breakpoints would change as set forth in the following table: ---------------------------------------------------------------------------- CURRENT BREAKPOINTS PROPOSED BREAKPOINTS BASE FEE (AVERAGE NET ASSETS) (AVERAGE NET ASSETS) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 0.50% $0 to $200 million $0 to 750 million 0.40% Next $100 million Next $750 million 0.33% Over $300 million Over $1.5 billion ---------------------------------------------------------------------------- Details of the proposed reorganization are set forth in a proxy statement that was filed with the U.S. Securities and Exchange Commission on May 26, 2006. 60153-0506 [USAA USAA FIRST START GROWTH FUND EAGLE LOGO (R)] SUPPLEMENT DATED MAY 26, 2006 TO THE PROSPECTUS DATED DECEMBER 1, 2005 There will be a Special Meeting of Shareholders of the Fund on July 19, 2006, to vote on, among other things, a proposed reorganization of the Fund. In connection with the reorganization, which if approved by shareholders would take effect on August 1, 2006, the Fund's investment objective would change from that of seeking "long-term capital appreciation" to that of seeking "long-term capital growth with reduced volatility over time." The Fund's strategy to achieve this objective will be to invest primarily in equity securities when IMCO believes the reward characteristics outweigh the risk in the market. The Fund's principal strategy will also emphasize that the Fund may invest up to 80% in bonds and cash equivalents to reduce volatility depending on IMCO's view of the overall direction of the stock market. In addition, the benchmark index used in calculating the Fund's performance fees would change from the Lipper Large-Cap Growth Funds Index to the Lipper Flexible Portfolio Funds Index. Details of the proposed reorganization are set forth in a proxy statement that was filed with the U.S. Securities and Exchange Commission on May 26, 2006. 60154-0506 [USAA USAA CAPITAL GROWTH FUND EAGLE LOGO (R)] SUPPLEMENT DATED MAY 26, 2006 TO THE PROSPECTUS DATED DECEMBER 1, 2005 There will be a Special Meeting of Shareholders of the Fund on July 19, 2006, to vote on, among other things, a proposed reorganization of the Fund. In connection with the reorganization, which if approved by shareholders would take effect on August 1, 2006, the benchmark index used in calculating the Fund's performance fees would formally change from the Lipper Small-Cap Growth Funds Index to the Lipper Global Funds Index. Details of the proposed reorganization are set forth in a proxy statement that was filed with the U.S. Securities and Exchange Commission on May 26, 2006. 60156-0506 [USAA USAA MUTUAL FUND, INC. EAGLE SUPPLEMENT DATED MAY 26, 2006 LOGO (R)] TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 1, 2005 USAA MUTUAL FUND, INC. (S&P 500 INDEX FUND, EXTENDED MARKET INDEX FUND, AND NASDAQ-100 INDEX FUND) SUPPLEMENT DATED MAY 26, 2006 TO THE STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 2006 Dr. Laura T. Starks has resigned from the Board of Directors. 60302-0506