THE INTERNET FUND, INC.
Supplement dated July 21, 1999
to Prospectus dated April 30, 1999 as supplemented on June 30, 1999
Effective July 19, 1999, the Board of Directors of the Fund approved the
imposition of a voluntary expense limitation being proposed by the Adviser
pursuant to which the Adviser will limit the annual operating expenses of the
Fund such that the Fund's annual operating expenses will not exceed two (2.00%)
percent, on an annualized basis, of the Fund's average daily net assets for the
year ending December 31, 1999. As of this date, the Adviser has not stated its
intentions with respect to the continuation of this voluntary expense limitation
for the year ending December 31, 2000.
Effective July 19, 1999, the Board of Directors approved an Administration
Agreement (the "Administration Agreement") pursuant to which the Adviser will
serve as Administrator of the Fund. In addition to the compensation the Adviser
receives under the Advisory Agreement with the Fund and pursuant to the
Administration Agreement, the Adviser will be entitled to receive an annual
administration fee equal to 0.15% of the Fund's average daily net assets, of
which the Adviser will be responsible for the payment of a portion of such fees
to Firstar Mutual Fund Services, LLC ("Firstar") for certain sub-administrative
services rendered to the Fund by Firstar.
Effective July 19, 1999, the Board of Directors also approved a
Shareholder Servicing Agreement to be entered into with the Adviser pursuant to
which the Fund will pay the Adviser a shareholder servicing fee in an amount
equal to 0.25% of the Fund's average daily net assets. The Adviser is
responsible for paying a portion of these shareholder servicing fees to various
shareholder servicing agents which have a written shareholder servicing
agreement with the Adviser and which perform shareholder servicing functions and
maintenance of shareholder accounts on behalf of their clients who own shares of
the Fund.
Effective July 19, 1999, the Board of Directors has retained the law firm
of Spitzer & Feldman P.C., 405 Park Avenue, New York, New York, 10022 to serve
as counsel to the Fund.
