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RETAIL CLASS OF AIM EQUITY FUNDS, INC.
AIM BLUE CHIP FUND
Supplement dated December 16, 1996
to the Prospectus dated September 23, 1996
as supplemented 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 Blue Chip 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.
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