<PAGE> 1
AIM EQUITY FUNDS, INC.
AIM AGGRESSIVE GROWTH FUND
Supplement dated August 15, 1997
to the Prospectus dated August 4, 1997
The following replaces in its entirety the Financial Highlights information
contained on page 5 of the above-referenced prospectus:
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Shown below for the periods indicated are per share data, ratios and
supplemental data of the Fund. The data for the six-month period ended April 30,
1997, is unaudited. The data for the fiscal years ended October 31, 1996, 1995,
1994 and the ten months ended October 31, 1993 has been audited by KPMG Peat
Marwick LLP, independent auditors, whose unqualified report thereon appears in
the Statement of Additional Information and is available upon request from AIM
Distributors, and the data for the six years ended December 31, 1992 has been
derived from financial statements audited by Price Waterhouse LLP.
(PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TEN
MONTHS
YEAR ENDED OCTOBER 31, ENDED YEAR ENDED DECEMBER 31,
APRIL 30, ---------------------------------- OCTOBER 31, --------------------------
1997 1996 1995 1994 1993 1992(a) 1991 1990
---------- ---------- ---------- -------- ----------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $ 44.93 $ 40.13 $ 28.37 $ 23.85 $ 18.52 $ 16.06 $ 11.85 $13.30
Income from investment
operations:
Net investment income
(loss)...................... (0.16) (0.32) (0.04) (0.05) (0.02) (0.03) (0.04) 0.08
Net gains (losses) on
securities (both realized
and unrealized)............. (6.08) 6.09 11.80 4.57 5.35 3.41 7.29 (0.95)
---------- ---------- ---------- -------- -------- ------- ------- ------
Total from investment
operations.................. (6.24) 5.77 11.76 4.52 5.33 3.38 7.25 (0.87)
---------- ---------- ---------- -------- -------- ------- ------- ------
Less distributions:
Dividends from net investment
income...................... -- -- -- -- -- -- -- (0.09)
Distributions from capital
gains....................... (2.30) (0.97) -- -- -- (0.92) (3.04) (0.49)
---------- ---------- ---------- -------- -------- ------- ------- ------
Total distributions........... (2.30) (0.97) -- -- -- (0.92) (3.04) (0.58)
---------- ---------- ---------- -------- -------- ------- ------- ------
Net asset value, end of
period........................ $ 36.39 $ 44.93 $ 40.13 $ 28.37 $ 23.85 $ 18.52 $ 16.06 $11.85
========== ========== ========== ======== ======== ======= ======= ======
Total return(b)................ (14.54)% 14.77% 41.45% 18.96% 28.78% 21.34% 63.90% (6.50)%
========== ========== ========== ======== ======== ======= ======= ======
Ratios/supplemental data:
Net assets, end of period
(000s omitted).............. $2,176,719 $2,750,564 $2,245,554 $687,238 $217,256 $38,238 $16,218 $9,234
========== ========== ========== ======== ======== ======= ======= ======
Ratio of expenses to average
net assets(c)............... 1.06%(d)(e) 1.11% 1.08% 1.07% 1.00%(g) 1.25% 1.25% 1.25%
========== ========== ========== ======== ======== ======= ======= ======
Ratio of net investment income
(loss) to average net
assets(f)................... (0.77)%(d) (0.76)% (0.19)% (0.26)% (0.24)%(g) (0.59)% (0.31)% 0.62%
========== ========== ========== ======== ======== ======= ======= ======
Portfolio turnover rate....... 36% 79% 52% 75% 61% 164% 165% 137%
========== ========== ========== ======== ======== ======= ======= ======
Average broker commission
rate(h)..................... $ 0.0539 $ 0.0545 N/A N/A N/A N/A N/A N/A
========== ========== ========== ======== ======== ======= ======= ======
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------
1989 1988 1987
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of
period........................ $ 11.07 $ 9.86 $ 12.10
Income from investment
operations:
Net investment income
(loss)...................... 0.03 0.05 --
Net gains (losses) on
securities (both realized
and unrealized)............. 2.28 1.21 (1.38)
------- ------- -------
Total from investment
operations.................. 2.31 1.26 (1.38)
------- ------- -------
Less distributions:
Dividends from net investment
income...................... (0.03) (0.05) --
Distributions from capital
gains....................... (0.05) -- (0.86)
------- ------- -------
Total distributions........... (0.08) (0.05) (0.86)
------- ------- -------
Net asset value, end of
period........................ $ 13.30 $ 11.07 $ 9.86
======= ======= =======
Total return(b)................ 20.89% 12.77% (11.52)%
======= ======= =======
Ratios/supplemental data:
Net assets, end of period
(000s omitted).............. $11,712 $12,793 $13,991
======= ======= =======
Ratio of expenses to average
net assets(c)............... 1.25% 1.22% 1.20%
======= ======= =======
Ratio of net investment income
(loss) to average net
assets(f)................... 0.24% 0.38% 0.01%
======= ======= =======
Portfolio turnover rate....... 69% 56% 118%
======= ======= =======
Average broker commission
rate(h)..................... N/A N/A N/A
======= ======= =======
</TABLE>
- ---------------
(a) The Fund changed investment advisors on June 30, 1992.
(b) Does not deduct sales charges and, for periods less than one year, total
returns are not annualized.
(c) Ratios of expenses to average net assets prior to reduction of advisory fees
and expense reimbursements were 1.15%, 1.09%, 1.17% (annualized), 1.65%,
1.83%, 1.99%, 1.80%, 1.56% and 1.29% for 1995-87, respectively.
(d) Ratios are annualized and based on average net assets of $2,584,346,866.
(e) Ratio includes indirectly paid expenses. Excluding indirectly paid expenses,
the ratio of expenses to average net assets would have been 1.05%.
(f) Ratios of net investment income (loss) to average net assets prior to
reduction of advisory fees and expense reimbursements were (0.26)%, (0.28)%,
(0.41)% (annualized), (0.99)%, (0.89)%, (0.11)%, (0.31)%, 0.04% and
(0.08)% for 1995-87, respectively.
(g) Annualized.
(h) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
