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RETAIL CLASS OF AIM EQUITY FUNDS, INC.
AIM AGGRESSIVE GROWTH FUND
Supplement dated October 1, 1998
to the Prospectus dated February 27, 1998
The following paragraph should be inserted as a new item under "INVESTMENT
PROGRAM," before "Risk Factors Regarding Foreign Securities" on page 9 of the
prospectus:
"FOREIGN EXCHANGE TRANSACTIONS. The Fund has authority to deal in
foreign exchange between currencies of the different countries in which
it will invest either for the settlement of transactions or as a hedge
against possible variations in the foreign exchange rates between those
currencies. This may be accomplished through direct purchases or sales
of foreign currency, purchases of on futures contracts with respect to
foreign currency (and options thereon), and contractual agreements to
purchase or sell a specified currency at a specified future date (up to
one year) at a price set at the time of the contract. Such contractual
commitments may be forward contracts entered into directly with another
party or exchange-traded futures contracts. The Fund may purchase and
sell options on futures contracts or forward contracts which are
denominated in a particular foreign currency to hedge the risk of
fluctuations in the value of another currency. The Fund's dealings in
foreign exchange may involve specific transactions or portfolio
positions. Transaction hedging is the purchase or sale of foreign
currency with respect to specific receivables or payables of the Fund
accruing in connection with the purchase or sale of its portfolio
securities, the sale and redemption of shares of the Fund, or the
payment of dividends and distributions by the Fund. Position hedging is
the purchase or sale of foreign currency with respect to portfolio
security positions (or underlying portfolio security positions, such as
in an ADR) denominated or quoted in a foreign currency. The Fund will
not speculate in foreign exchange, nor commit a larger percentage of
its total assets to foreign exchange hedges than the percentage of its
total assets that it could invest in foreign securities."
