FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
                                                                INVESTOR
(fees paid directly from your investment)                         CLASS       CLASS A      CLASS B      CLASS C     CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                5.50%       5.50%        None         None        None
Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                             None        None         5.00%        1.00%       None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                           None        None         None         None        None
Maximum Account Fee                                                None        None         None         None        None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fees(2)                                                 0.85%       0.85%        0.85%        0.85%       0.85%



Distribution and/or Service (12b-1) Fees(3)                        0.25%       0.25%        1.00%        1.00%       None
Other Expenses(4)                                                  0.56%       0.26%        0.51%        0.51%       0.10%



Total Annual Fund Operating Expenses(5)                            1.66%       1.36%        2.36%        2.36%       0.95%
Fee Recoupments/(Waivers/Reimbursements)(5)                       (0.02)%        --%       (0.01)%      (0.01)%     (0.02)%



Net Annual Fund Operating Expenses(5)                              1.64%       1.36%        2.35%        2.35%       0.93%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" also include the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.64%; Class A, 1.27%; Class B, 2.39%; Class C, 2.39%; and Class I, 0.93%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.54% for Class A shares, 2.29% for Class B shares and 2.29% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

ALL CAP GROWTH FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                    CLASS B                                   CLASS C                   CLASS I
                                      Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after                        redemption    at the end of each period   redemption    at the end of each period
 1 Year          $  708     $  681      $  238               $  738               $  238               $  338             $   95

 3 Years         $1,043     $  957      $  735               $1,035               $  735               $  735             $  301



 5 Years         $1,401     $1,254      $1,259               $1,459               $1,259               $1,259             $  524

10 Years         $2,406     $2,095      $2,521               $2,521               $2,695               $2,695             $1,165

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

The S&P 500(R) INDEX is an unmanaged index widely regarded as the standard for measuring large-cap U.S. stock market performance. S&P 500(R) is a trademark of The McGraw-Hill Companies, Inc. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $710 million to $512 billion.

MAINSTAY CAPITAL
APPRECIATION FUND

The Capital Appreciation Fund's investment objective is to seek long-term growth of capital. Dividend income, if any, is an incidental consideration.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                          INVESTOR
                                                           CLASS        CLASS A         CLASS B         CLASS C         CLASS I

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                        5.50%         5.50%           None            None            None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering
price or redemption proceeds)                               None         None            5.00%           1.00%           None

Redemption/Exchange Fee
(as a percentage of redemption proceeds)                    None         None            None            None            None



Maximum Account Fee                                         None         None            None            None            None

ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                         0.58%         0.58%           0.58%           0.58%           0.58%

Distribution and/or Service (12b-1) Fees(3)                0.25%         0.25%           1.00%           1.00%           None



Other Expenses(4)                                          0.52%         0.27%           0.47%           0.47%           0.07%

Total Annual Fund Operating Expenses                       1.35%         1.10%           2.05%           2.05%           0.65%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.72% on assets up to $200 million, 0.65% on assets from $200 million to $500 million and 0.50% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR                                                                                             CLASS
                 CLASS     CLASS A                  CLASS B                                CLASS C                     I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year         $    680   $    656    $    208            $    708           $    208            $    308          $   66

 3 Years        $    954   $    880    $    643            $    943           $    643            $    643          $  208



 5 Years        $  1,249   $  1,123    $  1,103            $  1,303           $  1,103            $  1,103          $  362

10 Years        $  2,085   $  1,816    $  2,200            $  2,200           $  2,379            $  2,379          $  810

* The above example takes into account the changes to expenses associated with the creation of Investor Class shares for the appropriate portion of the period. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

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The S&P 500(R) INDEX is an unmanaged index widely regarded as the standard for measuring large-cap U.S. stock market performance. S&P 500(R) is a trademark of The McGraw-Hill Companies, Inc. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $710 million to $512 billion.

The RUSSELL 1000(R) INDEX measures the performance of the 1,000 largest companies in the Russell 3000(R) Index, which represents approximately 92% of the total market capitalization of the Russell 3000(R) Index. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $479 million to $528 billion.

MAINSTAY COMMON
STOCK FUND

The Common Stock Fund's investment objective is to seek long-term growth of capital, with income as a secondary consideration.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                      INVESTOR
                                                        CLASS       CLASS A      CLASS B      CLASS C      CLASS I     CLASS R2

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                      5.50%       5.50%        None         None         None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                   None        None         5.00%        1.00%        None         None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                 None        None         None         None         None         None



Maximum Account Fee                                      None        None         None         None         None         None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                       0.70%       0.70%        0.70%        0.70%        0.70%       0.70%
Distribution and/or Service (12b-1) Fees(3)              0.25%       0.25%        1.00%        1.00%        None        0.25%



Other Expenses(4)                                        0.63%       0.31%        0.59%        0.59%        0.18%       0.28%



Total Annual Fund Operating Expenses(5)                  1.58%       1.26%        2.29%        2.29%        0.88%       1.23%
Fee Recoupments/(Waivers/Reimbursements)(5)             (0.17)%     (0.11)%      (0.18)%      (0.18)%      (0.25)%     (0.25)%



Net Annual Fund Operating Expenses (excluding
Underlying Fund Operating Expenses)(5)                   1.41%       1.15%        2.11%        2.11%        0.63%       0.98%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets. Effective August 1, 2007, NYLIM has contractually agreed to waive a portion of its management fee so that the management fee is 0.60% on assets up to $500 million and 0.55% on assets in excess of $500 million. Without this contractual waiver, the actual management fee would be 0.70% on assets up to $500 million and 0.65% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class and Class R2 shares are estimated; actual expenses may vary. In addition, "Other Expenses" for Class R2 shares include shareholder service fees of 0.10%. "Other Expenses" also include the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.40%; Class A, 1.04%; Class B, 2.15%; Class C, 2.15%; Class I, 0.62% and Class R2, 0.97%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.30% for Class A shares, 2.05% for Class B shares and 2.05% for Class C shares. Between December 14, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limit for Class R2 shares at 0.97%. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

COMMON STOCK FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                 INVESTOR
                  CLASS      CLASS A                  CLASS B                                CLASS C                  CLASS I
                                        Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                          redemption    the end of each period   redemption    the end of each period
 1 Year          $    686   $    661     $    214            $    714           $    214            $    314          $     64

 3 Years         $  1,006   $    917     $    698            $    998           $    698            $    698          $    256



 5 Years         $  1,348   $  1,194     $  1,209            $  1,409           $  1,209            $  1,209          $    463

10 Years         $  2,311   $  1,980     $  2,434            $  2,434           $  2,612            $  2,612          $  1,061





                 CLASS R2

Expenses after
 1 Year          $    100
 3 Years         $    366



 5 Years         $    652
10 Years         $  1,467

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

MAINSTAY LARGE CAP
GROWTH FUND

The Large Cap Growth Fund's investment objective is to seek long-term growth of capital.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your
investment)
                                                      INVESTOR
                                                        CLASS       CLASS A      CLASS B      CLASS C      CLASS I     CLASS R1
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                      5.50%       5.50%        None         None         None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
purchase price or redemption proceeds)                   None        None         5.00%        1.00%        None         None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                 None        None         None         None         None         None



Maximum Account Fee                                      None        None         None         None         None         None
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)



MANAGEMENT FEES(2)                                       0.75%       0.75%        0.75%        0.75%        0.75%        0.75%
Distribution and/or Service (12b-1) Fees(3)              0.25%       0.25%        1.00%        1.00%        None         None



Other Expenses(4)                                        0.54%       0.34%        0.49%        0.49%        0.16%        0.26%
Total Annual Fund Operating Expenses(5)                  1.54%       1.34%        2.24%        2.24%        0.91%        1.01%



Fee Recoupments/(Waivers/ Reimbursements)(5)            (0.04)%     (0.08)%      (0.05)%      (0.05)%      (0.11)%      (0.11)%



Net Annual Fund Operating Expenses(5)                    1.50%       1.26%        2.19%        2.19%        0.80%        0.90%




SHAREHOLDER FEES
(fees paid directly from your
investment)

                                                    CLASS R2     CLASS R3
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                   None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
purchase price or redemption proceeds)                None         None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)              None         None



Maximum Account Fee                                   None         None
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)



MANAGEMENT FEES(2)                                    0.75%       0.75%
Distribution and/or Service (12b-1) Fees(3)           0.25%       0.50%



Other Expenses(4)                                     0.27%       0.26%
Total Annual Fund Operating Expenses(5)               1.27%       1.51%



Fee Recoupments/(Waivers/ Reimbursements)(5)         (0.12)%     (0.11)%



Net Annual Fund Operating Expenses(5)                 1.15%       1.40%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets. Effective August 1, 2007, NYLIM has contractually agreed to waive a portion of its management fee so that the management fee does not exceed 0.75% on assets up to $500 million; 0.725% on assets from $500 million to $750 million; 0.70% on assets from $750 million to $2.0 billion; 0.65% on assets from $2.0 billion to $3.0 billion; and 0.60% on assets in excess of $3.0 billion. Without this waiver, the actual fee would be 0.80% on assets up to $250 million; 0.75% on assets from $250 million up to $500 million; 0.725% on assets from $500 million up to $750 million; 0.70% on assets from $750 million up to $2 billion; 0.65% on assets from $2 billion up to $3 billion; and 0.60% on assets in excess of $3 billion. This waiver may be discontinued at any time without notice.

3 Because the 12b-1 fee is an on-going fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. In addition, "Other Expenses" for Class R1, R2 and R3 shares include shareholder service fees of 0.10%. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class, Class I, R1, R2 and R3 shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.50%; Class A, 1.18%; Class B, 2.25%; Class C, 2.25%; Class I, 0.80%; Class R1, 0.90%, Class R2, 1.15%, and Class R3, 1.40%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.40% for Class A shares, 2.15% for Class B shares, 2.15% for Class C shares, 0.75% for Class I shares, 0.85% for Class R1 shares, 1.10% for Class R2 shares and 1.35% for Class R3 shares. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

LARGE CAP GROWTH FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year         $    694   $   671     $    222            $    722           $    222            $    322          $     82

 3 Years        $  1,006   $   944     $    695            $    995           $    695            $    695          $    279



 5 Years        $  1,340   $ 1,236     $  1,195            $  1,395           $  1,195            $  1,195          $    493

 10 Years       $  2,280   $ 2,067     $  2,395            $  2,395           $  2,571            $  2,571          $  1,109





                CLASS R1   CLASS R2   CLASS R3

Expenses after
 1 Year         $     92   $    117   $    143
 3 Years        $    311   $    391   $    466



 5 Years        $    547   $    685   $    813
 10 Years       $  1,226   $  1,523   $  1,792

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

MAINSTAY MAP FUND

The MAP Fund's investment objective is to seek long-term appreciation of capital. The Fund also seeks to earn income, but this is a secondary objective.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your
investment)
                                                      INVESTOR
                                                        CLASS       CLASS A      CLASS B      CLASS C      CLASS I     CLASS R1
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                      5.50%       5.50%        None         None         None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                   None        None         5.00%        1.00%        None         None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                 None        None         None         None         None         None



Maximum Account Fee                                      None        None         None         None         None         None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                       0.73%       0.73%        0.73%        0.73%        0.73%        0.73%
Distribution and/or Service (12b-1) Fees(3)              0.25%       0.25%        1.00%        1.00%        None         None



Other Expenses(4)                                        0.34%       0.24%        0.32%        0.32%        0.19%        0.29%
Total Annual Fund Operating Expenses(5)                  1.32%       1.22%        2.05%        2.05%        0.92%        1.02%



Fee Recoupments/(Waivers/Reimbursements)(5)            --%         --%          --%          --%          --%          --%
Net Annual Fund Operating Expenses(5)                    1.32%       1.22%        2.05%        2.05%        0.92%        1.02%

SHAREHOLDER FEES
(fees paid directly from your
investment)

                                                    CLASS R2     CLASS R3
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                   None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                None         None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)              None         None



Maximum Account Fee                                   None         None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                    0.73%       0.73%
Distribution and/or Service (12b-1) Fees(3)           0.25%       0.50%



Other Expenses(4)                                     0.29%       0.29%
Total Annual Fund Operating Expenses(5)               1.27%       1.52%



Fee Recoupments/(Waivers/Reimbursements)(5)         --%          --%
Net Annual Fund Operating Expenses(5)                 1.27%       1.52%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within the year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.75% on assets up to $1.0 billion and 0.70% on assets in excess of $1.0 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. In addition, "Other Expenses" for Class R1, R2 and R3 shares include shareholder service fees of 0.10%. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.45%; Class A, 1.19%; Class B, 2.20%; Class C, 2.20%; Class I, 0.98%; Class R1, 1.08%, Class R2, 1.33%, and Class R3, 1.58%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.35% for Class A shares, 2.10% for Class B shares and 2.10% for Class C shares. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

MAP FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                 CLASS B                             CLASS C                CLASS I    CLASS R1
                                                    Assuming redemption                 Assuming redemption
                                      Assuming no   at the end of         Assuming no   at the end of
Expenses after                        redemption    each period           redemption    each period
 1 Year         $    677   $   667     $    208          $    708          $    208          $    308         $     94   $   104

 3 Years        $    945   $   916     $    643          $    943          $    643          $    643         $    293   $   325



 5 Years        $  1,234   $ 1,183     $  1,103          $  1,303          $  1,103          $  1,103         $    509   $   563

10 Years        $  2,053   $ 1,946     $  2,192          $  2,192          $  2,379          $  2,379         $  1,131   $ 1,248





                CLASS R2   CLASS R3

Expenses after
 1 Year         $   129    $    155
 3 Years        $   403    $    480



 5 Years        $   697    $    829
10 Years        $ 1,534    $  1,813

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

The RUSSELL MIDCAP(R) GROWTH INDEX measures the performance of those Russell Midcap(R) companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000(R) Growth Index. The market capitalizations of companies in the Russell Midcap(R) Growth Index fluctuate; as of December 31, 2007, they range from $624 million to $42 billion.

MAINSTAY MID CAP
GROWTH FUND

The Mid Cap Growth Fund's investment objective is to seek long-term growth of capital.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                             INVESTOR                                                           CLASS
                                               CLASS       CLASS A      CLASS B      CLASS C      CLASS I        R2
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)             5.50%       5.50%        None         None         None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                       None        None         5.00%        1.00%        None         None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)        None        None         None         None         None         None



Maximum Account Fee                             None        None         None         None         None         None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(2)                              0.75%       0.75%        0.75%        0.75%        0.75%        0.75%
Distribution and/or Service (12b-1)
Fees(3)                                         0.25%       0.25%        1.00%        1.00%        None         0.25%



Other Expenses(4)                               0.52%       0.36%        0.49%        0.49%        0.25%        0.35%
Total Annual Fund Operating Expenses(5)         1.52%       1.36%        2.24%        2.24%        1.00%        1.35%



Fee
Recoupments/(Waivers/Reimbursements)(5)       --%         --%            0.01%        0.01%        0.01%      --%
Net Annual Fund Operating Expenses(5)           1.52%       1.36%        2.25%        2.25%        1.01%        1.35%




SHAREHOLDER FEES
(fees paid directly from your investmen

                                         CLASS R3
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)        None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                  None
Redemption/Exchange Fee
(as a percentage of redemption proceeds    None



Maximum Account Fee                        None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(2)                        0.75%
Distribution and/or Service (12b-1)
Fees(3)                                   0.50%



Other Expenses(4)                         0.35%
Total Annual Fund Operating Expenses(5)   1.60%



Fee
Recoupments/(Waivers/Reimbursements)(5)   0.04%
Net Annual Fund Operating Expenses(5)     1.64%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.75% on assets up to $500 million and 0.70% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. In addition, "Other Expenses" for Class R2 and Class R3 shares include shareholder service fees of 0.10%. "Other Expenses" also include the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class and Class R2 shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April, 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.60%; Class A, 1.29%; Class B, 2.35%; Class C, 2.35%; Class I, 1.12%; Class R2, 1.47%; and Class R3, 1.72%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April, 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.50% for Class A shares, 2.25% for Class B shares and 2.25% for Class C shares. Between December 14, 2007 and March 1, 2008 NYLIM had a written expense limitation agreement that set the expense limit for Class R2 shares at 1.39%. The limitations for the other share classes were the same as in the April, 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

MID CAP GROWTH FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year         $    696   $   681     $    228            $    728           $    228            $    328          $    103

 3 Years        $  1,004   $   957     $    701            $  1,001           $    701            $    701          $    319



 5 Years        $  1,333   $ 1,254     $  1,201            $  1,401           $  1,201            $  1,201          $    553

10 Years        $  2,263   $ 2,095     $  2,394            $  2,394           $  2,576            $  2,576          $  1,226





                CLASS R2   CLASS R3

Expenses after
 1 Year         $   137    $    167
 3 Years        $   428    $    509



 5 Years        $   739    $    875
10 Years        $ 1,624    $  1,903

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

TOTAL RETURN is a combination of realized and unrealized capital gains and income.

The RUSSELL MIDCAP(R) INDEX is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000(R) Index. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $479 million to $42 billion.

The S&P MIDCAP 400(R) INDEX is a market-value weighted index that consists of 400 domestic stocks chosen for market size, liquidity, and industry group representation, and is a benchmark of mid-capitalization stock price movement. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $260 million to $12 billion.

MAINSTAY MID CAP
OPPORTUNITY FUND

The Mid Cap Opportunity Fund's investment objective is to seek high TOTAL
RETURN.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES                             INVESTOR
(fees paid directly from your investment)      CLASS       CLASS A      CLASS B      CLASS C      CLASS I     CLASS R3
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)              5.50%        5.50%        None         None         None          None

Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original
offering price or redemption proceeds)           None         None         5.00%        1.00%        None          None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)         None         None         None         None         None          None

Maximum Account Fee                              None         None         None         None         None          None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)

Management Fees(2)                               0.90%        0.90%        0.90%        0.90%        0.90%         0.90%



Distribution and/or Service (12b-1)
Fees(3)                                          0.25%        0.25%        1.00%        1.00%        None          0.50%

Other Expenses(4)                                0.63%        0.39%        0.58%        0.58%        0.27%         0.37%



Total Annual Fund Operating Expenses(5)          1.78%        1.54%        2.48%        2.48%        1.17%         1.77%

Fee Recoupments/(Waivers/
Reimbursements)(5)                             (0.33)%      (0.19)%      (0.32)%      (0.32)%      (0.13)%       (0.13)%



Net Annual Fund Operating Expenses(5)            1.45%        1.35%        2.16%        2.16%        1.04%         1.64%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. Other expenses for Class R3 shares include shareholder service fees of 0.10%. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.45%; Class A, 1.35%; Class B, 2.20%; Class C, 2.20%; Class I, 1.04%; and Class R3, 1.64%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.35% for Class A shares, 2.10% for Class B shares and 2.10% for Class C shares. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

MID CAP OPPORTUNITY FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                    CLASS B                                   CLASS C
                                      Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after                        redemption    at the end of each period   redemption    at the end of each period
 1 Year         $    689   $    680    $    219             $    719             $    219             $    319

 3 Years        $  1,049   $    992    $    742             $  1,042             $    742             $    742



 5 Years        $  1,432   $  1,326    $  1,292             $  1,492             $  1,292             $  1,292

10 Years        $  2,504   $  2,268    $  2,619             $  2,619             $  2,792             $  2,792





                CLASS I    CLASS R3

Expenses after
 1 Year         $    106   $    167
 3 Years        $    359   $    545



 5 Years        $    631   $    947
10 Years        $  1,409   $  2,073

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

TOTAL RETURN is a combination of realized and unrealized capital gains and income.

The RUSSELL MIDCAP(R) VALUE INDEX measures the performance of those Russell Midcap companies with lower price to book ratios and lower forecasted growth values. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $479 million to $42 billion.

MAINSTAY MID CAP
VALUE FUND

The Mid Cap Value Fund's investment objective is to realize maximum long-term TOTAL RETURN from a combination of capital appreciation and income.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from
your investment)
                                                INVESTOR
                                                 CLASS          CLASS A         CLASS B         CLASS C         CLASS I
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)              5.50%            5.50%           None            None            None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                         None            None            5.00%           1.00%           None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)          None            None            None            None            None



Maximum Account Fee                               None            None            None            None            None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(2)                               0.70%            0.70%           0.70%           0.70%          0.70%
Distribution and/or Service (12b-1)
Fees(3)                                          0.25%            0.25%           1.00%           1.00%           None



Other Expenses(4)                                0.47%            0.34%           0.44%           0.44%          0.11%
Total Annual Fund Operating Expenses(5)          1.42%            1.29%           2.14%           2.14%          0.81%



Fee Recoupments/(Waivers/
Reimbursements)(5)                             (0.02)%          --%              (0.03)%         (0.03)%        (0.04)%
Net Annual Fund Operating Expenses
(Excluding Underlying Fund Operating
Expenses)(5)                                     1.40%            1.29%           2.11%           2.11%          0.77%




SHAREHOLDER FEES
(fees paid directly from
your investment)

                                            CLASS R1        CLASS R2
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)           None            None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                     None            None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)      None            None



Maximum Account Fee                           None            None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(2)                           0.70%           0.70%
Distribution and/or Service (12b-1)
Fees(3)                                       None           0.25%



Other Expenses(4)                            0.22%           0.21%
Total Annual Fund Operating Expenses(5)      0.92%           1.16%



Fee Recoupments/(Waivers/
Reimbursements)(5)                          (0.05)%         (0.04)%
Net Annual Fund Operating Expenses
(Excluding Underlying Fund Operating
Expenses)(5)                                 0.87%           1.12%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.70% on assets up to $500 million and 0.65% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. In addition, "Other Expenses" for Class R1 and R2 shares include shareholder service fees of 0.10%. "Other Expenses" also include the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class Shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.40%; Class A, 1.30%; Class B, 2.15%; Class C, 2.15%; Class I, 0.78%; Class R1, 0.88%; and Class R2, 1.13%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.30% for Class A shares, 2.05% for Class B shares and 2.05% for Class C shares. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

MID CAP VALUE FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year         $    685   $   674     $    214            $    714           $    214            $    314          $   79

 3 Years        $    973   $   936     $    667            $    967           $    667            $    667          $  255



 5 Years        $  1,282   $ 1,219     $  1,146            $  1,346           $  1,146            $  1,146          $  446

10 Years        $  2,157   $ 2,021     $  2,287            $  2,287           $  2,470            $  2,470          $  998





                CLASS R1   CLASS R2

Expenses after
 1 Year         $    89    $    114
 3 Years        $   288    $    365



 5 Years        $   504    $    634
10 Years        $ 1,127    $  1,405

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

TOTAL RETURN is a combination of realized and unrealized capital gains and income.

The S&P 500(R) INDEX is an unmanaged index widely regarded as the standard for measuring large-cap U.S. stock market performance. S&P 500(R) is a trademark of The McGraw-Hill Companies, Inc. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $710 million to $512 billion.

INDEX FUNDS seek to match their respective indices, unlike other funds that generally seek to beat an index or indices. The Fund is not currently managed in the traditional sense using economic, financial and market analysis.

MAINSTAY S&P 500 INDEX FUND

The S&P 500 Index Fund's investment objective is to seek to provide investment results that correspond to the TOTAL RETURN performance (reflecting reinvestment of dividends) of common stocks in the aggregate, as represented by the S&P
500(R) INDEX.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

                      SHAREHOLDER FEES                        Investor
         (fees paid directly from your investment)             Class           Class A         Class I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                            3.00%            3.00%           None

Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                          None            None            None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                        None            None            None

Maximum Account Fee                                             None            None            None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)

Management Fees(2)                                             0.24%            0.24%           0.24%



Distribution and/or Service (12b-1) Fees(3)                    0.25%            0.25%           None

Other Expenses(4)                                              0.44%            0.23%           0.18%



Total Annual Fund Operating Expenses(5)                        0.93%            0.72%           0.42%

Fee Recoupments/(Waivers/Reimbursements)(5)                   (0.33)%          (0.12)%         (0.12)%



Net Annual Fund Operating Expenses(5)                          0.60%            0.60%           0.30%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets as follows: 0.25% on assets up to $1 billion, 0.225% on assets from $1 billion to $3 billion and 0.20% on assets in excess of $3 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average percentages of daily net assets: Investor Class, 0.60%; Class A, 0.60%; and Class I, 0.30%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations for Class A and Class I shares at the same rates as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

S&P 500 INDEX FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                                                                  INVESTOR
EXPENSES AFTER                                                     CLASS        CLASS A          CLASS I
 1 year                                                           $   359       $   359          $   31

 3 years                                                          $   556       $   512          $  123

 5 years                                                          $   768       $   677          $  223

10 years                                                          $ 1,379       $ 1,157          $  518

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The RUSSELL 2000(R) GROWTH INDEX measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000(R) companies with higher price-to-value ratios and higher forecasted growth values. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $38 million to $8 billion.

MAINSTAY SMALL CAP
GROWTH FUND

The Small Cap Growth Fund's investment objective is to seek long-term capital appreciation by investing primarily in securities of small-cap companies.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                      INVESTOR                                                          CLASS
                                                       CLASS           CLASS A         CLASS B         CLASS C            I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                    5.50%            5.50%           None            None            None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                  None            None            5.00%           1.00%           None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                None            None            None            None            None



Maximum Account Fee                                     None            None            None            None            None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                     1.00%            1.00%           1.00%           1.00%           1.00%
Distribution and/or Service (12b-1) Fees(3)            0.25%            0.25%           1.00%           1.00%           None



Other Expenses(4)                                      0.72%            0.46%           0.68%           0.68%           0.30%
Total Annual Fund Operating Expenses(5)                1.97%            1.71%           2.68%           2.68%           1.30%



Fee Recoupments/(Waivers/Reimbursements)(5)           (0.39)%          (0.23)%         (0.39)%         (0.39)%         (0.40)%



Net Annual Fund Operating Expenses(5)                  1.58%            1.48%           2.29%           2.29%           0.90%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets. Effective August 1, 2007, NYLIM has contractually agreed to waive a portion of its management fee so that the management fee does not exceed 0.85% on assets up to $1.0 billion, and 0.80% on assets in excess of $1.0 billion. Without this waiver, the actual management fee would be 1.00% on assets up to $1.0 billion and 0.95% on assets in excess of $1.0 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.58%; Class A, 1.48%; Class B, 2.33%; Class C, 2.33%; and Class I, 0.93%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 2.23% for Class B shares and 2.23% for Class C shares. The limitations for Class A shares and Class I shares were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

SMALL CAP GROWTH FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR                                                                                             CLASS
                 CLASS     CLASS A                  CLASS B                                CLASS C                     I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year          $  702     $  692      $  232              $  732             $  232              $  332           $   92
 3 Years         $1,099     $1,038      $  795              $1,095             $  795              $  795           $  373



 5 Years         $1,520     $1,407      $1,385              $1,585             $1,385              $1,385           $  675
10 Years         $2,690     $2,440      $2,812              $2,812             $2,984              $2,984           $1,533

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

TOTAL RETURN is a combination of realized and unrealized capital gains and income.

The RUSSELL 2000(R) INDEX is an unmanaged index that measures the performance of the smallest 2,000 companies in the Russell 3000(R) Index, which include the largest 3,000 U.S. companies determined by market capitalization. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $27 million to $8 billion.

The S&P SMALLCAP 600(R) INDEX is a market value weighted index of 600 small-capitalization common stocks. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $60 million to $5 billion.

SMALL-CAPITALIZATION STOCKS are common stocks of relatively small companies that tend to have fewer shares outstanding and thus a smaller trading volume than large-capitalization stocks.

MAINSTAY SMALL CAP OPPORTUNITY FUND

The Small Cap Opportunity Fund's investment objective is to seek high TOTAL
RETURN.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES                               INVESTOR
(fees paid directly from your investment)       CLASS           CLASS A         CLASS B         CLASS C         CLASS I
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)               5.50%           5.50%          None            None             None
Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                       None             None             5.00%           1.00%           None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)        None             None            None            None             None
Maximum Account Fee                             None             None            None            None             None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fees(2)                                1.00%           1.00%           1.00%           1.00%             1.00%



Distribution and/or Service (12b-1) Fees(3)       0.25%           0.25%           1.00%           1.00%           None
Other Expenses(4)                                 0.67%           0.38%           0.56%           0.56%             0.35%



Total Annual Fund Operating Expenses(5)           1.92%           1.63%           2.56%           2.56%             1.35%
Fee Recoupments/(Waivers/Reimbursements)(5)     (0.12)%             --%         (0.07)%         (0.07)%           (0.16)%



Net Annual Fund Operating Expenses(5)             1.80%           1.63%           2.49%           2.49%             1.19%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets. NYLIM has contractually agreed to waive a portion of its management fee so that the management fee is 0.95% for assets over $1.5 billion. Without this contractual waiver, the actual management fee would be 1.00% on all asset levels.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.80%; Class A, 1.70%; Class B, 2.55%; Class C, 2.55%; and Class I, 1.19%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 2.45% for Class B shares and 2.45% for Class C shares. The limitations for Class A shares and Class I shares were the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

SMALL CAP OPPORTUNITY FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR    CLASS
                 CLASS        A                       CLASS B                                   CLASS C                   CLASS I
                                      Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after                        redemption    at the end of each period   redemption    at the end of each period
 1 Year         $    723   $   707     $    252             $    752             $    252             $    352            $    121
 3 Years        $  1,109   $ 1,036     $    790             $  1,090             $    790             $    790            $    412



 5 Years        $  1,519   $ 1,388     $  1,354             $  1,554             $  1,354             $  1,354            $    724
10 Years        $  2,661   $ 2,376     $  2,734             $  2,734             $  2,890             $  2,890            $  1,610

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

The RUSSELL 2000(R) VALUE INDEX measures the performance of those Russell 2000(R) companies with lower price-to-book ratios and lower forecasted growth values. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $27 million to $6 billion.

In a SECURITIES LENDING transaction, a fund lends securities from its portfolio to a broker-dealer (or other financial institution) for a period of time. The fund receives interest and/or a fee and a promise that the securities will be returned on a fixed date.

MAINSTAY SMALL CAP
VALUE FUND

The Small Cap Value Fund's investment objective is to seek long-term capital appreciation by investing primarily in securities of small-cap companies.

FEES AND EXPENSES OF THE FUND

SHAREHOLDER FEES
(fees paid directly from your investment)
                                               INVESTOR
                                                 CLASS            CLASS A           CLASS B           CLASS C          CLASS I
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)              5.50%             5.50%             None              None              None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                        None              None              5.00%             1.00%             None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)         None              None              None              None              None



Maximum Account Fee                              None              None              None              None              None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(2)                               0.85%             0.85%             0.85%             0.85%             0.85%
Distribution and/or Service (12b-1)
Fees(3)                                          0.25%             0.25%             1.00%             1.00%             None



Other Expenses(4)                                0.70%             0.52%             0.65%             0.65%             0.43%
Total Annual Fund Operating Expenses(5)          1.80%             1.62%             2.50%             2.50%             1.28%



Fee
Recoupments/(Waivers/Reimbursements)(5)         (0.15)%           (0.12)%           (0.19)%           (0.19)%           (0.25)%
Net Annual Fund Operating Expenses(5)            1.65%             1.50%             2.31%             2.31%             1.03%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets. Effective August 1, 2007, NYLIM has contractually agreed to waive a portion of its management fee so that the management fee does not exceed 0.60% on assets up to $1.0 billion and 0.55% on assets in excess of $1.0 billion. Without this waiver, the actual management fee would be 0.85% on assets up to $1.0 billion and 0.80% on assets in excess of $1.0 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" also include the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.65%; Class A, 1.55%; Class B, 2.40%; Class C, 2.40%; and Class I, 1.24%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.55% for Class A shares, 2.30% for Class B shares and 2.30% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

SMALL CAP VALUE FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming Redemption at   Assuming no   Assuming Redemption at
Expenses after                        Redemption    the end of each period   Redemption    the end of each period
 1 Year         $    709   $    694    $    234            $    734           $    234            $    334          $    105

 3 Years        $  1,071   $  1,022    $    760            $  1,060           $    760            $    760          $    381



 5 Years        $  1,458   $  1,372    $  1,313            $  1,513           $  1,313            $  1,313          $    678

10 Years        $  2,538   $  2,357    $  2,650            $  2,650           $  2,822            $  2,822          $  1,523

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

TOTAL RETURN is a combination of realized and unrealized capital gains and income.

MAINSTAY VALUE
FUND

The Value Fund's investment objective is to realize maximum long-term TOTAL RETURN from a combination of capital growth and income.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                   INVESTOR
                                                    CLASS        CLASS A      CLASS B      CLASS C      CLASS I      CLASS R1
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)                  5.50%        5.50%        None         None         None          None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)               None         None         5.00%        1.00%        None          None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)             None         None         None         None         None          None



Maximum Account Fee                                  None         None         None         None         None          None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                   0.62%        0.62%        0.62%        0.62%        0.62%         0.62%
Distribution and/or Service (12b-1) Fees(3)          0.25%        0.25%        1.00%        1.00%        None          None



Other Expenses(4)                                    0.45%        0.25%        0.41%        0.41%        0.14%         0.25%
Total Annual Fund Operating Expenses(5)              1.32%        1.12%        2.03%        2.03%        0.76%         0.87%



Fee Recoupments/(Waivers/Reimbursements)(5)         (0.04)%      --%          (0.05)%      (0.05)%      (0.05)%       (0.05)%
Net Annual Fund Operating Expenses(5)                1.28%        1.12%        1.98%        1.98%        0.71%         0.82%

SHAREHOLDER FEES
(fees paid directly from your investment)

                                                 CLASS R2
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)                None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)             None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)           None



Maximum Account Fee                                None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                 0.62%
Distribution and/or Service (12b-1) Fees(3)        0.25%



Other Expenses(4)                                  0.25%
Total Annual Fund Operating Expenses(5)            1.12%



Fee Recoupments/(Waivers/Reimbursements)(5)       (0.05)%
Net Annual Fund Operating Expenses(5)              1.07%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.72% on assets up to $200 million, 0.65% on assets from $200 up to $500 million, and 0.50% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. In addition, other expenses for Class R1 and R2 shares include shareholder service fees of 0.10%. "Other Expenses" also include the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.27%; Class A, 1.17%; Class B, 2.02%; Class C, 2.02%; Class I, 0.71%; Class R1, 0.81%; and Class R2, 1.06%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.17% for Class A shares, 1.92% for Class B shares and 1.92% for Class C shares. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

VALUE FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year          $  673     $  658      $  201              $  701             $  201              $  301           $   73

 3 Years         $  942     $  886      $  632              $  932             $  632              $  632           $  238



 5 Years         $1,230     $1,133      $1,089              $1,289             $1,089              $1,089           $  417

10 Years         $2,049     $1,838      $2,172              $2,172             $2,354              $2,354           $  938





                CLASS R1   CLASS R2

Expenses after
 1 Year          $   84     $  109
 3 Years         $  273     $  351



 5 Years         $  477     $  612
10 Years         $1,068     $1,359

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

A BOTTOM UP approach selects stocks based on their individual strengths, rather than focusing on the underlying sectors/industries of those stocks or on general economic trends.

MAINSTAY INTERNATIONAL
EQUITY FUND

The International Equity Fund's investment objective is to provide long-term growth of capital commensurate with an acceptable level of risk by investing in a portfolio consisting primarily of non-U.S. equity securities. Current income is a secondary objective.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                           INVESTOR
                                            CLASS    CLASS A   CLASS B   CLASS C   CLASS I   CLASS R1  CLASS R2  CLASS R3
Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)          5.50%     5.50%     None      None      None      None      None      None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                    None      None      5.00%     1.00%     None      None      None      None
Redemption/Exchange Fee(2)
(as a percentage of redemption proceeds)     2.00%     2.00%     2.00%     2.00%     2.00%     2.00%     2.00%     2.00%



Maximum Account Fee                          None      None      None      None      None      None      None      None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(3)                           0.88%     0.88%     0.88%     0.88%     0.88%     0.88%     0.88%     0.88%
Distribution and/or Service (12b-1)
Fees(4)                                      0.25%     0.25%     1.00%     1.00%     None      None      0.25%     0.50%



Other Expenses(5)                            0.53%     0.26%     0.48%     0.48%     0.14%     0.24%     0.24%     0.24%



Total Annual Fund Operating Expenses(6)      1.66%     1.39%     2.36%     2.36%     1.02%     1.12%     1.37%     1.62%
Fee
Recoupments/(Waivers/Reimbursements)(6)       --%       --%       --%       --%      0.01%     0.01%     0.01%     0.01%



Net Annual Fund Operating Expenses
(Excluding Underlying Fund Operating
Expenses)(6)                                 1.66%     1.39%     2.36%     2.36%     1.03%     1.13%     1.38%     1.63%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The redemption fee applies to redemptions (including exchanges) of any class of shares made within 60 days of purchase. The fee, where applicable, is deducted from your redemption proceeds and is payable to the Fund. This fee is designed to ensure that the transaction and administrative costs are borne by investors making the short-term transactions and not by long-term shareholders in the Fund. Please see "Redemption Fee" in the Shareholder Guide for additional information.

3 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.90% on assets up to $500 million and 0.85% on assets in excess of $500 million.

4 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

5 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. In addition, "Other Expenses" for Class R1, R2 and R3 shares include shareholder service fees of 0.10%. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

6 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.70%; Class A, 1.37%; Class B, 2.45%; Class C, 2.45%; Class I, 1.03%; Class R1, 1.13%; Class R2, 1.38%; and Class R3 1.63%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.60% for Class A shares, 2.35% for Class B shares and 2.35% for Class C shares. The limitations for the other share classes were the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

INTERNATIONAL EQUITY FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                   INVESTOR
                    CLASS        CLASS A                  CLASS B                                CLASS C
                                            Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                              redemption    the end of each period   redemption    the end of each period
 1 Year            $    709      $   684     $    239            $    739           $    239            $    339
 3 Years           $  1,045      $   966     $    736            $  1,036           $    736            $    736



 5 Years           $  1,403      $ 1,269     $  1,260            $  1,460           $  1,260            $  1,260
10 Years           $  2,407      $ 2,127     $  2,522            $  2,522           $  2,696            $  2,696





                CLASS I    CLASS R1   CLASS R2   CLASS R3

Expenses after
 1 Year         $    105   $   115    $   140    $    166
 3 Years        $    326   $   357    $   435    $    512



 5 Years        $    564   $   618    $   751    $    882
10 Years        $  1,249   $ 1,364    $ 1,647    $  1,923

* The above example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

MORE ABOUT INVESTMENT
STRATEGIES AND RISKS

Information about each Fund's principal investments, investment practices and principal risks appears at the beginning of the Prospectus. The information below describes in greater detail the investments, investment practices and other risks pertinent to one or more of the Funds.

Additional information about the investment practices of the Funds and risks pertinent to these practices is included in the applicable Statement of Additional Information ("SAI") (see the back cover of this Prospectus). All references to "Statement of Additional Information" refer to the Statement of Additional Information applicable to your Fund.

DERIVATIVE SECURITIES

Certain Funds may invest in derivative securities. The value of derivative securities is based on certain underlying equity or fixed-income securities, interest rates, currencies or indices and include options, futures, options on futures and swap agreements. The use of these transactions is a highly specialized activity that involves investment techniques, tax planning and risks that are different from those of ordinary securities transactions. Derivative securities may be hard to sell at an advantageous price or time and are very sensitive to changes in the underlying security, interest rate, currency or index. As a result, derivatives can be highly volatile. If the Manager or the Subadvisor is wrong about its expectations of changes in interest rates or market conditions, the use of derivatives could result in a loss. When using derivative instruments, there is a risk that a Fund will lose money if the contract counterparty does not make the required payments or otherwise fails to comply with the terms of the contract. In particular, credit default swaps can result in losses if a Fund does not correctly evaluate the creditworthiness of the company on which the credit default is based. In addition, the leverage associated with inverse floaters, a type of derivative, may result in greater volatility in their market value than other income-producing securities.

As an investment company registered with the SEC, the Funds must "cover" open positions with respect to certain kinds of derivatives instruments. In the case of swaps that do not cash settle, for example, the Funds must set aside liquid assets equal to the full notional value of the swaps while the positions are open. With respect to swaps that do cash settle, however, the Funds are permitted to set aside liquid assets in an amount equal to the Funds' daily marked-to market net obligations (i.e., the Funds' daily net liability) under the swaps, if any, rather than their full notional value.

FOREIGN SECURITIES

Generally, foreign securities are issued by companies organized outside the U.S. and are traded in markets outside the U.S. These foreign securities can be subject to most, if not all, of the risks of foreign investing. For example, foreign investments may be more difficult to sell than U.S. investments. Investments in foreign securities involve difficulties in receiving or interpreting financial and economic information, possible imposition of taxes, higher brokerage and

custodian fees, possible currency exchange controls or other government restrictions, including possible seizure or nationalization of foreign deposits or assets. Foreign securities may also be less liquid and more volatile than U.S. securities. There may also be difficulty in invoking legal protections across borders. In addition, investments in emerging market countries present risks to a greater degree than those presented by investments in foreign securities in countries with developed securities markets and more advanced regulatory systems.

Additionally, some securities may be issued by companies organized outside the U.S. but are traded in U.S. securities markets and are denominated in U.S. dollars. For example, American Depositary Receipts and shares of some large foreign-based companies are traded on principal U.S. exchanges. Other securities are not traded in the U.S. but are denominated in U.S. dollars. These securities are subject to some but not all of the risks of foreign investing. For example, foreign trading market or currency risks will not apply to dollar denominated securities traded in U.S. securities markets.

Many of the foreign securities in which the Funds invest will be denominated in foreign currency. Changes in foreign currency exchange rates will affect the value of securities denominated or quoted in foreign currencies. Exchange rate movements can be large and can endure for extended periods of time, affecting either favorably or unfavorably the value of the Funds' assets. However, a Fund may engage in foreign currency transactions to attempt to protect itself against fluctuations in currency exchange rates in relation to the U.S. dollar. See "Risk Management Techniques" below.

ILLIQUID AND RESTRICTED SECURITIES

A Fund's investments may include illiquid securities or restricted securities. The principal risk of investing in illiquid and restricted securities is that they may be difficult to sell. Restricted securities are securities that are sold only through negotiated private transactions and not to the general public, due to certain restrictions imposed by federal securities laws. Illiquid securities are securities that have no ready market.

INITIAL PUBLIC OFFERINGS

Certain Funds may invest in securities that are made available in initial public offerings (IPOs). IPO securities may be volatile, and the Funds cannot predict whether investments in IPOs will be successful. As the Funds grow in size, the positive effect of IPO investments on the Funds may decrease.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES                                                      CLASS
(fees paid directly from your investment)                               I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                    None

Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                                 None



Redemption/Exchange Fee
(as a percentage of redemption proceeds                                None

Maximum Account Fee                                                   None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)

Management Fees(1)                                                    0.44%



Distribution and/or Service (12b-1) Fees                               None

Other Expenses                                                        0.13%



Total Annual Fund Operating Expenses                                  0.57%

Fee Recoupments/(Waivers/Reimbursements)(2)                           (0.07)%



Net Annual Fund Operating Expenses(2)                                 0.50%

1 The management fee for the Fund is an annual percentage of the Fund's average net assets as follows: .45% up to $500 million and .40% in excess of $500 million.

2 Effective April 1, 2008, NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the Class I shares of the Fund so that the total ordinary operating expenses (total annual operating expenses excluding taxes, interest, litigation, extraordinary expenses, and brokerage and other transaction expenses relating to the purchase or sale of portfolio investments) do not exceed 0.50% of average daily net assets for Class I. These expense limitations may be modified or terminated only with the approval of the Board. NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreement if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense.

Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitation for Class I shares at the same level as the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation in place with respect to the Fund.

EXAMPLE

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge
(load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

EXPENSES AFTER                                                       CLASS I
 1 year                                                               $ 51

 3 years                                                              $176



 5 years                                                              $311

10 years                                                              $707

FLOATERS (or securities with a floating rate of interest) are debt securities with a variable interest rate that is tied to another interest rate, such as a money-market index or Treasury bill rate. The interest rate on an INVERSE FLOATER resets in the opposite direction from the interest rate to which the inverse floater is indexed.

ASSET-BACKED SECURITIES are debt securities whose values are based on underlying pools of credit receivables.

MAINSTAY DIVERSIFIED
INCOME FUND

The Diversified Income Fund's investment objective is to provide current income and competitive overall return by investing primarily in domestic and foreign debt securities.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)              INVESTOR CLASS      CLASS A       CLASS B       CLASS C        CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                             4.50%        4.50%          None          None             None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                           None         None         5.00%         1.00%             None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                         None         None          None          None             None



Maximum Account Fee                                              None         None          None          None             None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                              0.60%        0.60%         0.60%         0.60%            0.60%
Distribution and/or Service (12b-1) Fees(3)                     0.25%        0.25%         1.00%         1.00%             None



Other Expenses(4)                                               0.66%        0.47%         0.60%         0.60%            0.44%
Total Annual Fund Operating Expenses(5)                         1.51%        1.32%         2.20%         2.20%            1.04%



Fee Recoupments/(Waivers/Reimbursements)(5)                   (0.11)%      (0.02)%       (0.09)%       (0.09)%          (0.08)%
Net Annual Fund Operating Expenses(5)                           1.40%        1.30%         2.11%         2.11%            0.96%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.60% on assets up to $500 million and 0.55% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.40%; Class A, 1.30%; Class B, 2.15%; Class C, 2.15%; and Class I, 0.96%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.30% for Class A shares, 2.05% for Class B shares and 2.05% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

DIVERSIFIED INCOME FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year          $  586     $  576      $  214              $  714             $  214              $  314           $   98

 3 Years         $  895     $  848      $  680              $  980             $  680              $  680           $  323



 5 Years         $1,227     $1,139      $1,171              $1,371             $1,171              $1,171           $  566

10 Years         $2,162     $1,967      $2,352              $2,352             $2,527              $2,527           $1,264

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

MAINSTAY FLOATING RATE FUND

The Floating Rate Fund's investment objective is to seek to provide high current income.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                INVESTOR CLASS       CLASS A       CLASS B       CLASS C       CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                          3.00%             3.00%         None          None          None

Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
purchase price or redemption proceeds)                        None             None          3.00%         1.00%         None

Redemption/Exchange Fee(2)
(as a percentage of redemption proceeds)                     2.00%             2.00%         2.00%         2.00%         2.00%

Maximum Account Fee                                           None             None          None          None          None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)

Management Fees(3)                                           0.60%             0.60%         0.60%         0.60%         0.60%
Distribution and/or Service (12b-1) Fees(4)                  0.25%             0.25%         1.00%         1.00%         None

Other Expenses(5)                                            0.22%             0.13%         0.19%         0.19%         0.07%
Total Annual Fund Operating Expenses(6)                      1.07%             0.98%         1.79%         1.79%         0.67%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The redemption fee applies to redemptions (including exchanges) of any class of shares made within 60 days of purchase. The fee, where applicable, is deducted from your redemption proceeds and is payable to the Fund. The fee is designed to ensure that the transaction and administrative costs are borne by investors making the short-term transactions and not by long-term shareholders in the Fund. Please see "Redemption Fee" in the Shareholder Guide for additional information.

3 The management fee for the Fund is an annual percentage of the Fund's average net assets.

4 Because the 12b-1 fee is an on-going fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

5 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

6 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.25%; Class A, 1.01%; Class B, 2.00%; Class C, 2.00%; and Class I, 0.90%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.15% for Class A shares, 1.90% for Class B shares and 1.90% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses

                           CLASS A                    CLASS B                                   CLASS C                   CLASS I
                INVESTOR              Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after   CLASS                redemption    at the end of each period   redemption    at the end of each period
  1 Year         $  406     $  397      $  182               $  482               $  182               $  282              $ 68

  3 Years        $  630     $  603      $  563               $  763               $  563               $  563              $214
  5 Years        $  872     $  825      $  970               $  970               $  970               $  970              $373

 10 Years        $1,566     $1,465      $1,916               $1,916               $2,105               $2,105              $835

(*) The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in year 4; fees could be lower if eligible to convert to Class A shares instead.

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MORTGAGE-RELATED (including mortgage-backed) SECURITIES are debt securities whose values are based on underlying pools of mortgages. These securities may be issued by U.S. governmental entities or private issuers.

ASSET-BACKED SECURITIES are debt securities whose values are based on underlying pools of credit receivables.

FLOATERS (or securities with a floating rate of interest) are debt securities with a variable interest rate that is tied to another interest rate, such as a money-market index or Treasury bill rate.

In a MORTGAGE-DOLLAR ROLL transaction, the Fund sells a mortgage-backed security from its portfolio to another party and agrees to buy a similar security from the same party at a set price at a later date.

MAINSTAY
GOVERNMENT FUND

The Government Fund's investment objective is to seek a high level of current income, consistent with safety of principal.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)             INVESTOR CLASS       CLASS A       CLASS B       CLASS C        CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                        4.50%            4.50%          None          None            None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                      None             None         5.00%         1.00%            None
Redemption Fee
(as a percentage of redemption proceeds)                    None             None          None          None            None



Maximum Account Fee                                         None             None          None          None            None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                         0.60%            0.60%         0.60%         0.60%           0.60%
Distribution and/or Service (12b-1) Fees(3)                0.25%            0.25%         1.00%         1.00%            None



Other Expenses(4)                                          0.58%            0.47%         0.55%         0.55%           0.40%
Total Annual Fund Operating Expenses(5)                    1.43%            1.32%         2.15%         2.15%           1.00%



Fee Recoupments/(Waivers/Reimbursements)(5)              (0.28)%           (0.27)%       (0.29)%       (0.29)%        (0.58)%
Net Annual Fund Operating Expenses(5)                      1.15%            1.05%         1.86%         1.86%           0.42%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets. Effective August 1, 2007, NYLIM has contractually agreed to waive a portion of its management fee so that the management fee does not exceed 0.50% on assets up to $1 billion and 0.45% on assets in excess of $1 billion. Without this waiver, the actual management fee would be 0.60% on assets up to $1.0 billion and 0.55% on assets in excess of $1 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.15%; Class A, 1.05%; Class B, 1.90%; Class C, 1.90%; and Class I, 0.40%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.05% for Class A shares, 1.80% for Class B shares and 1.80% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

GOVERNMENT FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                  CLASS B                                CLASS C                   CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year          $  562     $  552      $  189              $  689             $  189              $  289             $   43

 3 Years         $  856     $  824      $  645              $  945             $  645              $  645             $  261



 5 Years         $1,171     $1,116      $1,128              $1,328             $1,128              $1,128             $  496

10 Years         $2,063     $1,946      $2,277              $2,277             $2,460              $2,460             $1,172

(*) The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

HIGH-YIELD CORPORATE DEBT SECURITIES (sometimes called "junk bonds") are rated lower than Baa by Moody's or BBB by S&P or, if not rated, are determined to be of equivalent quality by the Manager or the Subadvisor and are sometimes considered speculative.

YANKEE DEBT SECURITIES are dollar-denominated securities of foreign issuers that are traded in the United States.

ZERO COUPON BONDS are debt obligations issued without any requirement for the periodic payment of interest. They are issued at a significant discount to their face value and tend to be more volatile than conventional debt securities.

MAINSTAY HIGH YIELD
CORPORATE BOND FUND

The High Yield Corporate Bond Fund's investment objective is to seek maximum current income through investment in a diversified portfolio of high-yield debt securities. Capital appreciation is a secondary objective.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                INVESTOR
                                                 CLASS         CLASS A       CLASS B       CLASS C       CLASS I       CLASS R2

Maximum Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)              4.50%          4.50%          None          None          None          None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the
original offering price or redemption
proceeds)                                         None           None         5.00%         1.00%          None          None

Redemption/Exchange Fee(2)
(as a percentage of redemption proceeds)         2.00%          2.00%         2.00%         2.00%         2.00%         2.00%



Maximum Account Fee                               None           None          None          None          None          None

ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund
assets)



Management Fees(3)                               0.56%          0.56%         0.56%         0.56%         0.56%         0.56%

Distribution and/or Service (12b-1)
Fees(4)                                          0.25%          0.25%         1.00%         1.00%          None         0.25%



Other Expenses(5)                                0.32%          0.20%         0.28%         0.28%         0.23%         0.33%

Total Annual Fund Operating Expenses(6)          1.13%          1.01%         1.84%         1.84%         0.79%         1.14%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The redemption fee applies to certain redemptions (including exchanges) of Fund shares made within 60 days of purchase. The fee, where applicable, is deducted from your redemption proceeds and is payable to the Fund. This fee is designed to ensure that the transaction and administrative costs are borne by investors making short-term transactions and not by long-term shareholders in the Fund. Please see "Redemption Fee" for additional information.

3 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.60% on assets up to $500 million; 0.55% on assets from $500 million to $5 billion; and 0.525% on assets in excess of $5 billion.

4 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

5 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class and Class R2 shares are estimated; actual expenses may vary. In addition, "Other Expenses" for Class R2 shares include shareholder service fees of 0.10%. "Other Expenses" also includes the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

6 The Total Annual Fund Operating Expenses may differ from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invests.

HIGH YIELD CORPORATE BOND FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                 CLASS B                                CLASS C                  CLASS I
                                     Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                       redemption    the end of each period   Redemption    the end of each period
 1 Year          $  560    $  548      $  187              $  687             $  187              $  287            $ 81

 3 Years         $  793    $  757      $  579              $  879             $  579              $  579            $252



 5 Years         $1,044    $  983      $  995              $1,195             $  995              $  995            $439

10 Years         $1,763    $1,631      $1,973              $1,973             $2,159              $2,159            $$978





                CLASS R2

Expenses after
 1 Year          $  116
 3 Years         $  362



 5 Years         $  628
10 Years         $1,386

* The above Example takes into account the impact of class and fee restructuring (where applicable). The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

INDEX FUNDS seek to match their respective indices, unlike other funds which generally seek to beat an index or indices. No attempt is made to manage the portfolio in an active manner by using economic, financial and market analysis.

TOTAL RETURN is a combination of income and realized and unrealized capital gains.

The CITIGROUP BROAD INVESTMENT GRADE BOND INDEX (the "BIG INDEX") is an unmanaged capitalization-weighted index that contains approximately 4,000 individually priced fixed income securities. The BIG Index is generally considered to be representative of the U.S. bond market.

MAINSTAY INDEXED BOND FUND

The Indexed Bond Fund's investment objective is to seek to provide investment results that correspond to the TOTAL RETURN performance of fixed income securities in the aggregate, as represented by the BIG INDEX.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                         INVESTOR CLASS        CLASS A         CLASS I
Maximum Sales Charge (Load) Imposed on Purchases of Shares
(as a percentage of offering price)                                    3.00%             3.00%             None

Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                                  None              None             None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                                None              None             None

Maximum Account Fee                                                     None              None             None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)

Management Fees(2)                                                     0.35%             0.35%            0.35%



Distribution and/or Service (12b-1) Fees(3)                            0.25%             0.25%             None

Other Expenses(4)                                                      0.85%             0.25%            0.18%



Total Annual Fund Operating Expenses(5)                                1.45%             0.85%            0.53%

Fee Recoupments/(Waivers/Reimbursements)(5)                          (0.53)%            (0.03)%         (0.10)%



Net Annual Fund Operating Expenses(5)                                  0.92%             0.82%            0.43%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets as follows: 0.35% up to $1 billion and 0.30% in excess of $1 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investors Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 0.92%; Class A, 0.82%; and Class I, 0.43%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 0.82% for Class A shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

INDEXED BOND FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

EXPENSES AFTER                                                    INVESTOR CLASS      CLASS A      CLASS I
 1 year                                                               $  391          $  381        $ 44

 3 years                                                              $  694          $  560        $160



 5 years                                                              $1,020          $  754        $286

10 years                                                              $1,939          $1,315        $655

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

[This page intentionally left blank]

An INVESTMENT GRADE security is one rated Baa or higher by Moody's BBB or higher by S&P, or BBB or higher by Fitch. The Fund may also invest in unrated debt securities that the Adviser believes are comparable to investment grade rated securities.

The DURATION of a bond or mutual fund portfolio is an indication of sensitivity to changes in interest rates. In general, the longer a fund's duration, the more it will react to changes in interest rates and the greater the risk and return potential.

MAINSTAY INSTITUTIONAL BOND FUND

The Institutional Bond Fund's investment objective is to seek to maximize total return consistent with maintaining liquidity and preserving capital.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                                                CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                                         None



Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of the original offering
price or redemption proceeds)                                                               None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                                                    None



Maximum Account Fee                                                                         None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(1)                                                                         0.35%
Distribution and/or Service (12b-1) Fees                                                    None



Other Expenses(2)                                                                          0.28%
Total Annual Fund Operating Expenses(3)                                                    0.63%
Fee Recoupments/(Waivers/Reimbursements)                                                 (0.13)%



Net Annual Fund Operating Expenses                                                         0.50%

1 The management fee for the Fund is an annual percentage of the Fund's average daily net assets.

2 "Other Expenses" include, among other things, fees payable for transfer agency services. The Fund changed its fiscal year from June 30th to October 31st. Because of this change the Fund has not been operating for a full fiscal year. As a result, "Other Expenses" are annualized to reflect a twelve month period.

3 Effective April 1, 2008, NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the Fund so that the Fund's total ordinary operating expenses (total annual operating expenses excluding taxes, interest, litigation, extraordinary expenses, and brokerage and other transaction expenses relating to the purchase or sale of portfolio investments) do not exceed the annual rate of 0.50% of the average daily net assets for Class I shares. This expense limitation may be modified only with the approval of the Board. NYLIM may recoup the amount of any management fee waivers or expense reimbursements from the Fund pursuant to the agreement if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. NYLIM has separately agreed that for a period of two years commencing November 27, 2007, NYLIM will, by waiving, assuming or reimbursing expenses, or otherwise, limit the expenses of Class I shares of the Fund so that the total ordinary operating expenses of Class I shares do not exceed the annual rate of 0.50% of the average daily net assets attributable to Class I shares.

EXAMPLE

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

EXPENSES AFTER                                                                              CLASS I
 1 Year                                                                                      $ 51

 3 Years                                                                                     $189



 5 Years                                                                                     $338

10 Years                                                                                     $774

[This page intentionally left blank]

TOTAL RETURN is a combination of income and realized and unrealized capital gains.

ZERO COUPON BONDS are debt obligations issued without any requirement for the periodic payment of interest. They are issued at a significant discount to their face value and tend to be more volatile than conventional debt securities.

MUNICIPAL BONDS are bonds issued by, or on behalf of, the states, the District of Columbia, the territories, commonwealths and possessions of the United States and their political subdivisions, and agencies, authorities and instrumentalities.

MORTGAGE-RELATED (including mortgage-backed) SECURITIES are debt securities whose values are based on underlying pools of mortgages. These securities may be issued by U.S. governmental entities or private issuers.

MAINSTAY INTERMEDIATE TERM BOND FUND

The Intermediate Term Bond Fund's investment objective is to seek to maximize TOTAL RETURN, consistent with liquidity, low risk to principal and investment in debt securities.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES                                         INVESTOR
(fees paid directly from your investment)                 CLASS            CLASS A       CLASS B       CLASS C        CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                        4.50%            4.50%          None          None            None
Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                      None             None         5.00%         1.00%            None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                    None             None          None          None            None
Maximum Account Fee                                         None             None          None          None            None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fees(2)                                         0.60%            0.60%         0.60%         0.60%           0.60%



Distribution and/or Service (12b-1) Fees(3)                0.25%            0.25%         1.00%         1.00%            None
Other Expenses(4)                                          0.53%            0.34%         0.53%         0.53%           0.14%



Total Annual Fund Operating Expenses(5)                    1.38%            1.19%         2.13%         2.13%           0.74%
Fee Recoupments/(Waivers/Reimbursements)(5)                (0.18)%          (0.12)%       (0.22)%       (0.22)%         (0.04)%



Net Annual Fund Operating Expenses(5)                      1.20%            1.07%         1.91%         1.91%           0.70%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of Investor Class or purchase of Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" also includes the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.20%; Class A, 1.05%; Class B, 1.95%; Class C, 1.95%; and Class I, 0.70%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.10% for Class A shares, 1.85% for Class B shares and 1.85% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

INTERMEDIATE TERM BOND FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                    CLASS B                                   CLASS C                   CLASS I
                                      Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after                        redemption    at the end of each period   redemption    at the end of each period
 1 Year          $  567     $  554      $  194               $  694               $  194               $  294              $ 72

 3 Years         $  850     $  800      $  646               $  946               $  646               $  646              $233



 5 Years         $1,155     $1,064      $1,124               $1,324               $1,124               $1,124              $408

10 Years         $2,018     $1,818      $2,253               $2,253               $2,445               $2,445              $915

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

A REPURCHASE AGREEMENT is an agreement to buy a security at one price and a simultaneous agreement to sell it back later at an agreed upon price that reflects interest.

VARIABLE RATE NOTES are debt securities that provide for periodic adjustments in their interest rates.

MAINSTAY MONEY
MARKET FUND

The Money Market Fund's investment objective is to seek a high level of current income while preserving capital and maintaining liquidity.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                   INVESTOR CLASS        CLASS A         CLASS B         CLASS C
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                   None           None            None            None



Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                                None           None            None            None

Redemption/Exchange Fee
(as a percentage of redemption proceeds)                              None           None            None            None



Maximum Account Fee                                                   None           None            None            None

ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(1)                                                   0.48%          0.48%           0.48%           0.48%

Distribution and/or Service (12b-1) Fees                              None           None            None            None



Other Expenses(2)                                                    0.46%          0.23%           0.41%           0.41%

Total Annual Fund Operating Expenses(3)                              0.94%          0.71%           0.89%           0.89%



Less Expense Reimbursement(3)                                      (0.14)%        (0.01)%         (0.13)%         (0.13)%

Net Annual Fund Operating Expenses(3)                                0.80%          0.70%           0.76%           0.76%

1 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.50% on assets up to $300 million; 0.45% on assets from $300 million up to $700 million; 0.40% on assets from $700 million to $1 billion; and 0.35% on assets in excess of $1 billion.

2 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

3 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 0.80%; Class A, 0.70%; Class B, 0.80%; and Class C, 0.80%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 0.70% for all classes. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

MONEY MARKET FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. Your actual costs may be higher or lower than those shown. Expenses are the same for each class.

EXPENSES AFTER  INVESTOR CLASS   CLASS A   CLASS B   CLASS C
 1 Year             $   82       $   72    $   78    $   78

 3 Years            $  286       $  226    $  271    $  271



 5 Years            $  506       $  394    $  480    $  480

10 Years            $1,142       $  882    $1,098    $1,084

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

TOTAL ASSETS means, with respect to the Fund, the total amortized cost of the Fund's assets.

MAINSTAY PRINCIPAL PRESERVATION FUND

The Principal Preservation Fund's investment objective is to maximize current income consistent with maintaining liquidity and preserving capital.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                         CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                  None
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of the original offering
price or redemption proceeds)                                        None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                             None
Maximum Account Fee                                                  None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fees(1)                                                  0.25%



Distribution and/or Service (12b-1) Fees                             None
Other Expenses(2)                                                   0.24%



Total Annual Fund Operating Expenses(3)                             0.49%
Less Waiver/Reimbursement                                         (0.19)%



Net Annual Fund Operating Expenses                                  0.30%

1 The management fee for the Fund is an annual percentage of the Fund's average daily net assets.

2 "Other Expenses" include, among other things, fees payable for transfer agency services. The Fund changed its fiscal year end from June 30th to October 31st. Because of this change the Fund has not been operating for a full fiscal year. As a result "Other Expenses" are annualized to reflect a twelve month period.

3 Effective April 1, 2008, NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the Fund so that the Fund's total ordinary operating expenses (total annual operating expenses excluding taxes, interest, litigation, extraordinary expenses, and brokerage and other transaction expenses relating to the purchase or sale of portfolio investments) do not exceed 0.30% of the Fund's average daily net assets. This expense limitation may be modified only with the approval of the Board. NYLIM may recoup the amount of any management fee waivers or expense reimbursements from the Fund pursuant to the agreement if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. NYLIM has separately agreed that for a period of two years commencing November 27, 2007, NYLIM will, by waiving, assuming or reimbursing expenses, or otherwise, limit the expenses of Class I shares of the Fund so that the total ordinary operating expenses of Class I shares do not exceed the annual rate of 0.30% of the average daily net assets attributable to such Class I shares.

EXAMPLE

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund operating expenses remain the same and that all dividends and distributions are reinvested. There is no sales charge
(load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

EXPENSES AFTER                                                       CLASS I
 1 Year                                                               $ 31

 3 Years                                                              $138



 5 Years                                                              $255

10 Years                                                              $598

TOTAL RETURN is a combination of income and realized and unrealized capital gains.

In a MORTGAGE DOLLAR ROLL transaction, a fund sells a mortgage-backed security from its portfolio to another party and agrees to buy a similar security from the same party at a lower price at a later date.

In a SECURITIES LENDING transaction, a fund lends securities from its portfolio to a broker-dealer (or other financial institution) for a period of time. The fund receives interest and/or a fee and a promise that the securities will be returned on a fixed date.

MORTGAGE-RELATED (including mortgage-backed) SECURITIES are debt securities whose values are based on underlying pools of mortgages. These securities may be issued by U.S. governmental entities or private issuers.

MAINSTAY SHORT TERM
BOND FUND

The Short Term Bond Fund's investment objective is to seek to maximize TOTAL RETURN, consistent with liquidity, preservation of capital and investment in short-term debt securities.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES                                                     INVESTOR          CLASS           CLASS
(fees paid directly from your investment)                             CLASS              A               I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                   3.00%            3.00%            None

Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                                 None             None            None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                               None             None            None

Maximum Account Fee                                                    None             None            None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)

Management Fees(2)                                                    0.60%            0.60%           0.60%



Distribution and/or Service (12b-1) Fees(3)                           0.25%            0.25%            None

Other Expenses(4)                                                     0.63%            0.26%           0.15%



Total Annual Fund Operating Expenses(5)                               1.48%            1.11%           0.75%

Fee Recoupments/(Waivers/Reimbursements)(5)                           (0.48)%          (0.21)%         (0.15)%



Net Annual Fund Operating Expenses(5)                                 1.00%            0.90%           0.60%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following average daily net assets: Investor Class, 1.00%; Class A, 0.90%; and Class I, 0.60%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations for Class A and Class I shares at the same levels as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

SHORT TERM BOND FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

EXPENSES AFTER                                                    INVESTOR CLASS         CLASS A          CLASS I
 1 year                                                               $  399              $  389            $ 61

 3 years                                                              $  708              $  622            $225



 5 years                                                              $1,040              $  874            $402

10 years                                                              $1,976              $1,593            $916

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

Issuers of GENERAL OBLIGATION BONDS include states, counties, cities, towns and regional districts. Payments of principal and interest are secured by the issuer's pledge of its full faith, credit and taxing powers.

REVENUE BONDS are issued to finance capital projects. They are repaid from revenues raised by the project that the bonds finance. Many bonds also provide additional security.

INDUSTRIAL DEVELOPMENT and POLLUTION CONTROL BONDS are generally revenue bonds and are issued by, or on behalf of, public authorities or investor-owned companies to raise money to finance various privately operated facilities.

ZERO COUPON BONDS are debt obligations issued without any requirement for the periodic payment of interest. They are issued at a significant discount to their face value and tend to be more volatile than conventional debt securities.

MAINSTAY TAX FREE
BOND FUND

The Tax Free Bond Fund's investment objective is to provide a high level of current income free from regular federal income tax, consistent with the preservation of capital.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                   INVESTOR CLASS         CLASS A         CLASS B         CLASS C
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                              4.50%              4.50%            None             None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                            None               None           5.00%            1.00%
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                          None               None            None             None



Maximum Account Fee                                               None               None            None             None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                               0.60%              0.60%           0.60%            0.60%
Distribution and/or Service (12b-1) Fees(3)                      0.25%              0.25%           0.50%            0.50%



Other Expenses(4)                                                0.33%              0.18%           0.28%            0.28%
Total Annual Fund Operating Expenses(5)                          1.18%              1.03%           1.38%            1.38%



Fee Recoupments/(Waivers/Reimbursements)(5)                    (0.19)%             (0.14)%         (0.18)%         (0.18)%
Net Annual Fund Operating Expenses(5)                            0.99%              0.89%           1.20%            1.20%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets. Effective August 1, 2007, NYLIM has contractually agreed to waive a portion of its management fee to 0.45% on assets up to $1.0 billion, and 0.40% on assets in excess of $1.0 billion. Without this waiver, the actual management fee would be 0.60% on assets up to $1.0 billion and 0.55% on assets in excess of $1.0 billion. This waiver may be discontinued at any time without notice.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between classes. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 0.99%; Class A, 0.89%; Class B, 1.24%; and Class C, 1.24%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 0.89% for Class A shares, 1.14% for Class B shares and 1.14% for Class C shares. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

TAX FREE BOND FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                 CLASS B                                CLASS C
                                     Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                       redemption    the end of each period   redemption    the end of each period
 1 Year          $  546    $  537      $  122              $  622             $  122              $  222

 3 Years         $  790    $  750      $  419              $  719             $  419              $  419



 5 Years         $1,052    $  980      $  738              $  938             $  738              $  738

10 Years         $1,801    $1,641      $1,587              $1,587             $1,642              $1,642

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

MAINSTAY GLOBAL HIGH INCOME FUND

The Global High Income Fund's investment objective is to seek to provide maximum current income by investing primarily in high-yield debt securities of non-U.S. issuers. Capital appreciation is a secondary objective.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                                  INVESTOR
                                                                   CLASS        CLASS A      CLASS B      CLASS C      CLASS I

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                                 4.50%        4.50%        None         None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original offering
price or redemption proceeds)                                        None        None         5.00%        1.00%        None

Redemption/Exchange Fee
(as a percentage of redemption proceeds)                             None        None         None         None         None



Maximum Account Fee                                                  None        None         None         None         None

ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                                  0.70%        0.70%        0.70%        0.70%        0.70%

Distribution and/or Service (12b-1) Fees(3)                         0.25%        0.25%        1.00%        1.00%        None



Other Expenses(4)                                                   0.53%        0.37%        0.48%        0.48%        0.29%

Total Annual Fund Operating Expenses                                1.48%        1.32%        2.18%        2.18%        0.99%



Fee Recoupments/(Waivers/Reimbursements)(5)                            --           --           --           --        0.16%

Net Annual Fund Operating Expenses(5)                               1.48%        1.32%        2.18%        2.18%        1.15%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.70% on assets up to $500 million and 0.65% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between classes. "Other Expenses" shown for Investor Class and Class I shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.50%; Class A, 1.31%; Class B, 2.25%; Class C, 2.25%; and Class I, 1.15%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.40% for Class A shares, 2.15% for Class B shares and 2.15% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

GLOBAL HIGH INCOME FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR    CLASS
                 CLASS        A                     CLASS B                                CLASS C                  CLASS I
                                      Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                        redemption    the end of each period   redemption    the end of each period
 1 Year          $  594     $  578      $  221              $  721             $  221              $  321           $  117

 3 Years         $  897     $  849      $  682              $  982             $  682              $  682           $  331



 5 Years         $1,222     $1,141      $1,169              $1,369             $1,169              $1,169           $  563

10 Years         $2,139     $1,969      $2,336              $2,336             $2,513              $2,513           $1,228

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

TOTAL RETURN is a combination of income and realized and unrealized capital gains.

MID-CAPITALIZATION STOCKS are common stocks of mid-size U.S. companies that tend to be well known, and to have large amounts of stock outstanding. The Fund considers mid-capitalization stocks to be those with a market capitalization that, at the time of investment, are similar to the companies in the Russell Midcap(R) Index, the S&P MidCap 400(R) Index, or a universe selected from the smallest 800 companies of the largest 1,000 companies, ranked by market capitalization. The market capitalizations for the Russell Midcap Index fluctuate; as of December 31, 2007, they range from $479 million to $42 billion.

The DURATION of a bond or mutual fund portfolio is an indication of sensitivity to changes in interest rates. In general, the longer a fund's duration, the more it will react to changes in interest rates and the greater the risk and return potential.

MAINSTAY BALANCED FUND

The Balanced Fund's investment objective is to seek high TOTAL RETURN.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER
FEES
(fees paid
directly
from your                  INVESTOR
investment)                 CLASS        CLASS A      CLASS B      CLASS C      CLASS I      CLASS R1      CLASS R2      CLASS R3

Maximum Sales Charge
(Load) Imposed on
Purchases
(as a percentage of
offering price)              5.50%        5.50%         None         None         None          None          None          None




Maximum Deferred Sales
Charge (Load)(1)
(as a percentage of
the lesser of the
original offering
price or redemption
proceeds)                     None         None        5.00%        1.00%         None          None          None          None




Redemption
Exchange/Fee
(as a percentage of
redemption proceeds)          None         None         None         None         None          None          None          None

Maximum Account Fee           None         None         None         None         None          None          None          None




ANNUAL FUND OPERATING
EXPENSES
(expenses that are
deducted from Fund
assets)

Management Fees(2)           0.74%        0.74%        0.74%        0.74%        0.74%         0.74%         0.74%         0.74%




Distribution and/or
Service (12b-1)
Fees(3)                      0.25%        0.25%        1.00%        1.00%         None          None         0.25%         0.50%




Other Expenses(4)            0.38%        0.24%        0.34%        0.34%        0.21%         0.31%         0.31%         0.32%




Total Annual Fund
Operating Expenses(5)        1.37%        1.23%        2.08%        2.08%        0.95%         1.05%         1.30%         1.56%

Fee
Recoupments/(Waivers/
Reimbursements)(5)              --           --           --           --       (0.04)%      (0.04)%       (0.04)%       (0.04)%




Net Annual Fund
Operating Expenses(5)        1.37%        1.23%        2.08%        2.08%        0.91%         1.01%         1.26%         1.52%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets as follows: .75% up to $1 billion and .70% in excess of $1 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. Other expenses for Class R1, R2 and R3 shares include shareholder service fees of .10%. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.50%; Class A, 1.28%; Class B, 2.25%; Class C, 2.25%; Class I, 0.94%; Class R1 1.04%; Class R2 1.29%; and Class R3 1.54%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.40% for Class A shares, 2.15% for Class B shares and 2.15% for Class C shares. The limitations for other share classes were the same as in the April 1, 2008 agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

BALANCED FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                   CLASS B                                   CLASS C
                                     Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after                       redemption    at the end of each period   redemption    at the end of each period
 1 Year          $  682    $  668      $  211               $  711               $  211               $  311

 3 Years         $  960    $  919      $  652               $  952               $  652               $  652



 5 Years         $1,259    $1,188      $1,119               $1,319               $1,119               $1,119

10 Years         $2,106    $1,957      $2,229               $2,229               $2,410               $2,410





                CLASS I   CLASS R1   CLASS R2   CLASS R3

Expenses after
 1 Year         $   93     $  103     $  128     $  155
 3 Years        $  299     $  330     $  408     $  489



 5 Years        $  522     $  575     $  709     $  846
10 Years        $1,163     $1,279     $1,564     $1,853

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

HIGH-YIELD DEBT SECURITIES (sometimes called "junk bonds") are rated lower than Baa by Moody's or BBB by S&P or, if not rated, are determined to be of equivalent quality by the Manager or the Subadvisor and are sometimes considered speculative.

MAINSTAY CONVERTIBLE
FUND

The Convertible Fund's investment objective is to seek capital appreciation together with current income.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)                   INVESTOR CLASS         CLASS A         CLASS B         CLASS C
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                              5.50%              5.50%            None             None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering
price or redemption proceeds)                                     None               None           5.00%            1.00%
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                          None               None            None             None



Maximum Account Fee                                               None               None            None             None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                               0.69%              0.69%           0.69%            0.69%
Distribution and/or Service (12b-1) Fees(3)                      0.25%              0.25%           1.00%            1.00%



Other Expenses(4)                                                0.49%              0.26%           0.43%            0.43%
Total Annual Fund Operating Expenses(5)                          1.43%              1.20%           2.12%            2.12%



Fee Recoupments/(Waivers/Reimbursements)(5)                    (0.15)%             (0.07)%         (0.13)%         (0.13)%
Net Annual Fund Operating Expenses(5)                            1.28%              1.13%           1.99%            1.99%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily assets as follows: 0.60% on assets up to $500 million; 0.55% on assets from $500 million up to $1 billion; and 0.50% on assets in excess of $1 billion.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between classes. "Other Expenses" also includes the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses for Class A, B and C shares have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.28%; Class A, 1.09%; Class B, 2.03%; and Class C, 2.03%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.175% for Class A shares, 1.925% for Class B shares and 1.925% for Class C shares. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

CONVERTIBLE FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                   INVESTOR
                    CLASS        CLASS A                 CLASS B                                CLASS C
                                           Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after                             redemption    the end of each period   redemption    the end of each period
 1 Year             $  673       $  659      $  202              $  702             $  202              $  302

 3 Years            $  964       $  903      $  651              $  951             $  651              $  651
 5 Years            $1,275       $1,167      $1,127              $1,327             $1,127              $1,127

10 Years            $2,157       $1,919      $2,266              $2,266             $2,442              $2,442

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

MAINSTAY INCOME MANAGER FUND

The Income Manager Fund's investment objective is to seek to maximize TOTAL RETURN, consistent with certain percentage constraints on amounts allocated to each asset class, from a combination of common stocks, fixed income securities, and money market investments.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES                                          INVESTOR
(fees paid directly from your investment)                  CLASS        CLASS A         CLASS B         CLASS C         CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                         5.50%        5.50%            None            None             None

Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original
offering price or redemption proceeds)                       None         None           5.00%           1.00%             None



Redemption/Exchange Fee
(as a percentage of redemption proceeds)                     None         None            None            None             None

Maximum Account Fee                                          None         None            None            None             None



ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)

Management Fees(2)                                          0.65%        0.65%           0.65%           0.65%            0.65%



Distribution and/or Service (12b-1) Fees(3)                 0.25%        0.25%           1.00%           1.00%             None

Other Expenses(4)                                           0.52%        0.28%           0.46%           0.46%            0.23%



Total Annual Fund Operating Expenses(5)                     1.42%        1.18%           2.11%           2.11%            0.88%

Fee Recoupments/(Waivers/Reimbursements)(5)               (0.33)%       (0.19)%         (0.31)%         (0.31)%           0.02%



Net Annual Fund Operating Expenses(5)                       1.09%        0.99%           1.80%           1.80%            0.90%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge, which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average net assets.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" also includes the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following average daily net assets: Investor Class, 1.09%; Class A, 0.99%; Class B, 1.84%; Class C, 1.84%; and Class I, 0.90%. These expense limitations may be modified or terminated only with the approval of the Board. Between May 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 0.99% for Class A shares, 1.74% for Class B shares and 1.74% for Class C shares. The limitations for Class I shares were the same as in the April 1, 2008 Agreement. Prior to May 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

INCOME MANAGER FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                INVESTOR
                 CLASS     CLASS A                    CLASS B                                   CLASS C
                                      Assuming no   Assuming redemption         Assuming no   Assuming redemption
Expenses after                        redemption    at the end of each period   redemption    at the end of each period
 1 Year          $  655     $  645      $  183               $  683               $  183               $  283

 3 Years         $  944     $  886      $  631               $  931               $  631               $  631
 5 Years         $1,254     $1,146      $1,106               $1,306               $1,106               $1,106

10 Years         $2,131     $1,887      $2,241               $2,241               $2,417               $2,417





                 CLASS I

Expenses after
 1 Year           $   92
 3 Years          $  283
 5 Years          $  490
10 Years          $1,086

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

[This page intentionally left blank]

The S&P 500(R) INDEX is an unmanaged index widely regarded as the standard for measuring large-cap U.S. stock market performance. S&P 500(R) is a trademark of The McGraw-Hill Companies, Inc. The market capitalizations of companies in this Index fluctuate; as of December 31, 2007, they range from $710 million to $512 billion.

In a MORTGAGE-DOLLAR ROLL transaction, the Fund sells a mortgage-backed security from its portfolio to another party and agrees to buy a similar security from the same party at a set price at a later date.

MAINSTAY TOTAL
RETURN FUND

The TOTAL RETURN Fund's investment objective is to realize current income consistent with reasonable opportunity for future growth of capital and income.

FEES AND EXPENSES OF THE FUND

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

SHAREHOLDER FEES
(fees paid directly from your investment)
                                                                INVESTOR          CLASS        CLASS        CLASS
                                                                 CLASS              A            B            C         CLASS I
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)                               5.50%            5.50%       None         None         None



Maximum Deferred Sales Charge (Load)(1)
(as a percentage of the lesser of the original offering
price or redemption proceeds)                                      None           None          5.00%        1.00%       None
Redemption/Exchange Fee
(as a percentage of redemption proceeds)                           None           None         None         None         None



Maximum Account Fee                                                None           None         None         None         None
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)



Management Fees(2)                                                0.63%            0.63%        0.63%        0.63%        0.63%
Distribution and/or Service (12b-1) Fees(3)                       0.25%            0.25%        1.00%        1.00%       None



Other Expenses(4)                                                 0.54%            0.29%        0.48%        0.48%        0.30%
Total Annual Fund Operating Expenses(5)                           1.42%            1.17%        2.11%        2.11%        0.93%



Fee Recoupments/(Waivers/Reimbursements)(5)                     (0.13)%              --%      (0.11)%      (0.11)%      (0.12)%
Net Annual Fund Operating Expenses(5)                             1.29%            1.17%        2.00%        2.00%        0.81%

1 Generally, Investor Class and Class A shares of the Fund are not subject to a contingent deferred sales charge upon redemption. A contingent deferred sales charge of 1.00% may be imposed on certain redemptions effected within one year of the date of purchase of Investor Class or Class A shares that were purchased at net asset value. The amount of the contingent deferred sales charge which may be applicable to Class B shares will depend on the number of years since you purchased the shares being redeemed. A contingent deferred sales charge of 1.00% may be imposed on redemptions of Class C shares effected within one year of the date of purchase.

2 The management fee for the Fund is an annual percentage of the Fund's average daily net assets as follows: 0.64% on assets up to $500 million and 0.60% on assets in excess of $500 million.

3 Because the 12b-1 fee is an ongoing fee charged against the assets of the Fund, long-term shareholders may indirectly pay an amount that is more than the economic equivalent of paying other types of sales charges.

4 "Other Expenses" include, among other things, fees payable for transfer agency services, which may differ between the classes. "Other Expenses" also includes the Fund's share of the fees and expenses of any other fund in which the Fund invests. These fees and expenses are less than 0.01% of the average net assets of the Fund. "Other Expenses" shown for Investor Class shares are estimated; actual expenses may vary. Other Expenses have been restated to reflect the expected impact of class and fee restructuring (where applicable).

5 Each class of shares of the Fund is subject to an expense limitation agreement with NYLIM. Effective April 1, 2008 (February 28, 2008 for Investor Class shares), NYLIM has entered into a written expense limitation agreement under which it has agreed to waive a portion of the Fund's management fee or reimburse the expenses of the appropriate class of the Fund so that the total ordinary operating expenses of a class do not exceed the following percentages of average daily net assets: Investor Class, 1.29%; Class A, 1.16%; Class B, 2.04%; Class C, 2.04%; and Class I, 0.79%. These expense limitations may be modified or terminated only with the approval of the Board. Between August 1, 2007 and April 1, 2008, NYLIM had a written expense limitation agreement that set the expense limitations at 1.19% for Class A shares, 1.94% for Class B shares and 1.94% for Class C shares. The limitation for Class I shares was the same as in the April 1, 2008 agreement. Prior to August 1, 2007, NYLIM had a different expense limitation agreement in place with respect to the Fund.

Under each of these expense limitation agreements, NYLIM may recoup the amount of certain management fee waivers or expense reimbursements from the Fund pursuant to the agreements, if such action does not cause the Fund to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. The term "total ordinary operating expenses" excludes taxes, interest, litigation, extraordinary expenses, brokerage, other transaction expenses relating to the purchase or sale of portfolio investments, and the fees and expenses of any other funds in which the Fund invests.

The amounts shown under "Net Annual Fund Operating Expenses" above reflect a restatement of the Fund's net annual operating expenses for the current fiscal year (through October 31, 2008), after taking into account the impact of class and fee restructuring and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year.

The Total Annual Fund Operating Expenses above may differ in part from the amounts shown in the Financial Highlights section of this Prospectus which reflect only the operating expenses of the Fund for its prior fiscal year and do not include the Fund's share of the fees and expenses of any other fund in which the Fund invested.

TOTAL RETURN FUND

EXAMPLE*

The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and reflects what you would pay if you redeemed all your shares at the end of each time period shown or if you continued to hold them. The Example also assumes that your investment has a 5% return each year, that the Fund's operating expenses remain the same, and that all dividends and distributions are reinvested. There is no sales charge (load) on reinvested dividends. Your actual costs may be higher or lower than those shown.

                           CLASS A                 CLASS B                                CLASS C                  CLASS I
                INVESTOR             Assuming no   Assuming redemption at   Assuming no   Assuming redemption at
Expenses after   CLASS               redemption    the end of each period   redemption    the end of each period
 1 Year          $  674    $  663      $  203              $  703             $  203              $  303           $   83

 3 Years         $  963    $  901      $  650              $  950             $  650              $  650           $  284



 5 Years         $1,272    $1,158      $1,124              $1,324             $1,124              $1,124           $  503

10 Years         $2,148    $1,892      $2,257              $2,257             $2,433              $2,433           $1,132

* The above Example takes into account the impact of class and fee restructuring (where applicable) and any actual or projected applicable fee waiver/expense reimbursement and/or recoupment amounts pursuant to the expense limitation agreements in place during the current fiscal year. The Example reflects Class B shares converting into Investor Class shares in years 9-10; fees could be lower if eligible to convert to Class A shares instead.

MORE ABOUT INVESTMENT
STRATEGIES AND RISKS

Information about each Fund's principal investments, investment practices and principal risks appears at the beginning of the Prospectus. The information below describes in greater detail the investments, investment practices and other risks pertinent to one or more of the Funds.

Additional information about the investment practices of the Funds and risks pertinent to these practices is included in the applicable Statement of Additional Information ("SAI") (see the back cover of this Prospectus). All references to "Statement of Additional Information" refer to the Statement of Additional Information applicable to your Fund.

DERIVATIVE SECURITIES

Certain Funds may invest in derivative securities. The value of derivative securities is based on certain underlying equity or fixed-income securities, interest rates, currencies or indices and include options, futures, options on futures and swap agreements. Additionally, the Diversified Income Fund, Total Return Fund, and the Global High Income Fund may each invest a portion of their respective net assets in credit default swaps. The use of these transactions is a highly specialized activity that involves investment techniques tax planning and risks that are different from those of ordinary securities transactions. Derivative securities may be hard to sell at an advantageous price or time and are very sensitive to changes in the underlying security, interest rate, currency or index. As a result, derivatives can be highly volatile. If the Manager or the Subadvisor is wrong about its expectations of changes in interest rates or market conditions, the use of derivatives could result in a loss. When using derivative instruments, there is a risk that a Fund will lose money if the contract counterparty does not make the required payments or otherwise fails to comply with the terms of the contract. In particular, credit default swaps can result in losses if a Fund does not correctly evaluate the creditworthiness of the company on which the credit default is based. In addition, the leverage associated with inverse floaters, a type of derivative, may result in greater volatility in their market value than other income-producing securities.

As an investment company registered with the SEC, the Funds must "cover" open positions with respect to certain kinds of derivatives instruments. In the case of swaps that do not cash settle, for example, the Funds must set aside liquid assets equal to the full notional value of the swaps while the positions are open. With respect to swaps that do cash settle, however, the Funds are permitted to set aside liquid assets in an amount equal to the Funds' daily marked-to-market net obligations (i.e., the Funds' daily net liability) under the swaps, if any, rather than their full notional value.

FLOATING RATE LOANS

Floating rate loans incur some of the same risks as other debt securities, such as prepayment risk, credit risk, interest rate risk and risk found with high-yield securities.

Floating rate loans are subject to the risk that the scheduled interest or principal payments will not be paid. Lower-quality loans and debt securities (those of less than investment grade quality), including floating rate loans and debt securities, involve greater risk of default on interest and principal payments than higher quality loans and securities. In the event that a non-payment occurs, the value of that obligation likely will decline. In turn, the NAV of a Fund's shares also will decline. Generally, the lower the rating category, the more risky the investment.

Debt securities rated BBB and below by S&P or Baa and below by Moody's are considered to have speculative characteristics and are commonly referred to as "junk bonds." Junk bonds entail default and other risks greater than those associated with higher-rated securities. Although the floating rate loans in which a Fund generally invests are speculative, they are subject to less credit risk than junk bonds, as they have features that junk bonds generally do not have. They are senior obligations of the borrower or issuer, are typically secured by collateral, and generally are subject to certain restrictive covenants in favor of the lenders or securityholders that invest in them. Floating rate loans generally have a lower default rate and a reduced interest rate risk in comparison to junk bonds. Floating rate loans are usually issued in connection with a financing or corporate action (such as leveraged buyout loans, leveraged recapitalizations and other types of acquisition financing). In such highly leveraged transactions, the borrower assumes large amounts of debt in order to have the financial resources to attempt to achieve its business objectives. As such, floating rate loans are part of highly leveraged transactions and involve a significant risk that the borrower may default or go into bankruptcy.

A Fund will typically purchase loans via assignment, which makes the Fund a direct lender. However, a Fund may also invest in floating rate loans by purchasing a participation interest. See "Loan Participation Interests".

A Fund also may be in possession of material non-public information about a borrower as a result of its ownership of a floating rate instrument of such borrower. Because of prohibitions on trading in securities of issuers while in possession of such information, a Fund might be unable to enter into a transaction in a publicly-traded security of that borrower when it would otherwise be advantageous to do so.

FOREIGN SECURITIES

Generally, foreign securities are issued by companies organized outside the U.S. and are traded in markets outside the U.S. These foreign securities can be subject to most, if not all, of the risks of foreign investing. For example, foreign investments may be more difficult to sell than U.S. investments. Investments in foreign securities involve difficulties in receiving or interpreting financial and economic information, possible imposition of taxes, higher brokerage and custodian fees, possible currency exchange controls or other government restrictions, including possible seizure or nationalization of foreign deposits or assets. Foreign securities may also be less liquid and more volatile than U.S. securities. There may also be difficulty in invoking legal protections across borders. In addition, investments in emerging market countries present risks to a greater degree than those presented by investments in foreign securities in countries with developed securities markets and more advanced regulatory systems.

Additionally, some securities may be issued by companies organized outside the U.S. but are traded in U.S. securities markets and are denominated in U.S. dollars. For example, American Depositary Receipts and shares of some large foreign-based companies are traded on principal U.S. exchanges. Other securities

are not traded in the U.S. but are denominated in U.S. dollars. These securities are subject to some but not all of the risks of foreign investing. For example, foreign trading market or currency risks will not apply to dollar denominated securities traded in U.S. securities markets.

Many of the foreign securities in which the Funds invest will be denominated in foreign currency. Changes in foreign currency exchange rates will affect the value of securities denominated or quoted in foreign currencies. Exchange rate movements can be large and can endure for extended periods of time, affecting either favorably or unfavorably the value of the Funds' assets. However, a Fund may engage in foreign currency transactions to attempt to protect itself against fluctuations in currency exchange rates in relation to the U.S. dollar. See "Risk Management Techniques" below.

HIGH-YIELD DEBT SECURITIES ("JUNK BONDS")

High-yield debt securities (sometimes called "junk bonds") are rated lower than Baa by Moody's or BBB by S&P or, if not rated, are determined to be of equivalent quality by the Manager or the Subadvisor and are sometimes considered speculative.

Investments in high-yield bonds or "junk bonds" involve special risks in addition to the risks associated with investments in higher rated debt securities. High-yield bonds may be regarded as predominantly speculative with respect to the issuer's continuing ability to meet principal and interest payments. Moreover, such securities may, under certain circumstances, be less liquid than higher rated debt securities.

ILLIQUID AND RESTRICTED SECURITIES

A Fund's investments may include illiquid securities or restricted securities. The principal risk of investing in illiquid and restricted securities is that they may be difficult to sell. Restricted securities are securities that are sold only through negotiated private transactions and not to the general public, due to certain restrictions imposed by federal securities laws. Illiquid securities are securities that have no ready market.

INITIAL PUBLIC OFFERINGS

Certain Funds may invest in securities that are made available in initial public offerings (IPOs). IPO securities may be volatile, and the Funds cannot predict whether investments in IPOs will be successful. As the Funds grow in size, the positive effect of IPO investments on the Funds may decrease.