AIM EQUITY FUNDS INC
497, 1996-12-16
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<PAGE>   1

                     RETAIL CLASS OF AIM EQUITY FUNDS, INC.

                           AIM AGGRESSIVE GROWTH FUND

                       Supplement dated December 16, 1996
                    to the Prospectus dated January 2, 1996
                          as revised November 5, 1996


APPROVAL OF NEW ADVISORY, ADMINISTRATIVE SERVICES AND DISTRIBUTION AGREEMENTS

         On December 11, 1996, the Board of Directors (the "Board") of AIM
Equity Funds, Inc. (the "Company") approved a new investment advisory agreement,
subject to shareholder approval, between A I M Advisors, Inc. ("AIM") and the
Company with respect to AIM Aggressive Growth Fund (the "Fund").  Shareholders
will be asked to approve the proposed advisory agreement at an annual meeting of
shareholders to be held on February 7, 1997 (the "Annual Meeting").  The Board
has also approved a new administrative services agreement with AIM and a new
distribution agreement with A I M Distributors, Inc.  There have been no
material changes to the terms of the new agreements, including the fees payable
by the Fund.  No change is anticipated in the investment advisory or other
personnel responsible for the Fund as a result of these new agreements.

         The Board has approved these new agreements because the Fund's
corresponding existing agreements will terminate upon the consummation of the
proposed merger of A I M Management Group Inc., the parent of AIM, into a
subsidiary of INVESCO plc. INVESCO plc and its subsidiaries are an independent
investment management group engaged in institutional investment management and
retail mutual fund businesses in the United States, Europe and the Pacific
region.  It is contemplated that the merger will occur on February 28, 1997.
Provided that the Fund's shareholders approve the new advisory agreement at the
Annual Meeting and the merger is consummated, the new advisory agreement with
respect to the Fund, as well as the new administrative services and
distribution agreements, will automatically become effective as of the closing
of the merger.

PROPOSED CHANGES TO FUNDAMENTAL INVESTMENT POLICIES

         The Board has unanimously approved the elimination of and changes to
certain fundamental investment policies of the Fund, subject to shareholder
approval.  Shareholders will be asked to approve these changes at the Annual
Meeting.  If approved, they will become effective on March 1, 1997.

         Investment in Other Investment Companies

         The Fund is currently generally prohibited from investing in other
investment companies.  The Board has approved the elimination of this
prohibition, and the amendment to another fundamental investment policy that
corresponds to the proposed elimination.  The elimination of the fundamental
investment policy that prohibits the Fund from investing in other investment
companies and the proposed amendment to the corresponding fundamental
investment policy would permit investment in other investment companies to the
extent permitted by the Investment Company Act of 1940, and rules and
regulations thereunder, and, if applicable, exemptive orders granted by the
Securities and Exchange Commission.

         For additional information regarding the proposed changes described
above, see the Funds' Statement of Additional Information dated September 23,
1996, as supplemented November 5, 1996 and December 16, 1996.


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