<PAGE> 1
AIM BALANCED FUND
AIM GLOBAL UTILITIES FUND
AIM HIGH YIELD FUND
AIM INCOME FUND
AIM INTERMEDIATE GOVERNMENT FUND
AIM MONEY MARKET FUND
AIM MUNICIPAL BOND FUND
AIM SELECT GROWTH FUND
AIM VALUE FUND
(SERIES PORTFOLIOS OF AIM FUNDS GROUP)
Supplement dated December 21, 1998
to the Prospectus dated May 1, 1998
as revised October 5, 1998
Effective December 21, 1998, Advisor Class shares of certain mutual funds
distributed by A I M Distributors, Inc. may be exchanged for AIM Cash Reserve
Shares of AIM Money Market Fund. AIM Cash Reserve Shares which were obtained
through exchange of Advisor Class shares may subsequently be exchanged into
other Advisor Class shares or Class A shares, provided that differential sales
charges will apply to exchanges into Class A shares unless the shareholder
otherwise qualifies for the right to purchase Class A shares at net asset
value. See "TERMS AND CONDITIONS OF PURCHASE OF THE AIM FUNDS -- REDUCTIONS IN
INITIAL SALES CHARGES -- PURCHASES AT NET ASSET VALUE."
Also effective December 21, 1998, the Class A shares of AIM Money Market Fund
were reclassified as AIM Cash Reserve Shares of AIM Money Market Fund. AIM
Money Market Fund no longer offers Class A shares for purchase or exchange.
