<PAGE> 1
AIM BALANCED FUND
AIM GLOBAL UTILITIES FUND
AIM GROWTH FUND
AIM HIGH YIELD FUND
AIM INCOME FUND
AIM INTERMEDIATE GOVERNMENT FUND
AIM MONEY MARKET FUND
AIM MUNICIPAL BOND FUND
AIM VALUE FUND
(SERIES PORTFOLIOS OF AIM FUNDS GROUP)
Supplement dated October 10, 1996
to the Prospectus dated May 1, 1996, as revised June 11, 1996
In the Table of Fees and Expenses on Page 4, all references to footnote ** are
deleted in their entirety.
The second paragraph under the caption "Investment Programs--AIM Balanced Fund"
on page 17 is revised to read in its entirety as follows:
"The Fund may also invest up to 25% of its total assets in convertible
securities. Compliance with all of the above percentage requirements
may limit the ability of the Fund to maximize total return. The
actual percentage of the assets invested in equity and fixed income
securities will vary from time to time, depending on the judgment of
AIM as to general market and economic conditions and trends, yields
and interest rates and changes in fiscal and monetary policies."
The sixth and seventh sentences of the first paragraph under the caption
"Investment Programs--AIM Global Utilities Fund" on page 17 are revised to read
in their entirety as follows:
"The Fund may invest up to 25% of its total assets in convertible
securities. When AIM deems it appropriate, the Fund may purchase
bonds issued by the above types of companies, although investments in
non-convertible bonds will not exceed 25% of the Fund's total assets."
The second sentence of the first paragraph under the caption "AIM Money Market
Fund" on page 19 is revised to read in its entirety as follows:
"The Fund intends to invest in money market instruments such as
bankers' acceptances, certificates of deposit, repurchase agreements,
master notes, time deposits, taxable municipal securities and
commercial paper, all of which will be denominated in U.S. dollars
(referred to collectively as "Money Market Instruments") and U.S.
Government direct obligations and U.S. Government agencies'
securities."
The following caption and paragraph replace in their entirety the section
currently appearing under the caption "Certain Investment Strategies and
Policies--Money Market Instruments" on page 21:
"CASH MANAGEMENT AND TEMPORARY DEFENSIVE INVESTMENTS. A portion of
each Fund's assets may be held from time to time in cash, repurchase
agreements, commercial paper, taxable municipal securities or other
Money Market Instruments when such positions are deemed advisable in
light of economic conditions or for daily cash management purposes. In
addition, each of the Funds may invest for temporary defensive purposes
all or a substantial portion of its assets in the foregoing types of
investments, although AIM MONEY MARKET FUND invests exclusively in
Money Market Instruments. None of the Funds
<PAGE> 2
(except AIM MONEY MARKET FUND) is limited to investing in Money Market
Instruments which are "First Tier" securities as defined in Rule 2a-7
under the 1940 Act. To the extent that a Fund (other than AIM MONEY
MARKET FUND) invests in the foregoing types of investments, its ability
to achieve its investment objective may be adversely affected."
The following sentences are added at the end of the paragraph under the caption
"Portfolio Management--AIM Intermediate Government Fund" on page 25:
"Paula A. Permenter has been responsible for the Fund since 1996. Ms.
Permenter has been associated with AIM since 1996 and has 8 years of
experience as an investment professional. Prior to joining AIM, she
was an Associate Trader and Investment Assistant with Van Kampen
American Capital Asset Management, Inc."
