<PAGE> 1
TAX-FREE INVESTMENTS CO.
INSTITUTIONAL CASH RESERVE SHARES
Supplement dated January 30, 1998
to the Prospectus
dated July 29, 1997,
as supplemented September 12, 1997
Pursuant to a Transfer Agency and Service Agreement, dated December 29, 1997,
A I M Fund Services, Inc. (the "Transfer Agent") provides transfer agency
services to the Portfolio. Any request for correction to a transaction must be
submitted in writing to the Transfer Agent. The Transfer Agent reserves the
right to reject any such request. When a correction results in a dividend
adjustment, the institution must agree in writing to reimburse the Portfolio for
any loss resulting from the correction. Failure to deliver purchase proceeds on
the requested settlement date may result in a claim against the institution for
an amount equal to the overdraft charge incurred by the Portfolio.
Effective February 4, 1998, purchase orders received by the Transfer Agent after
3:00 p.m. Eastern Time on a business day of the Portfolio will be effected at
the net asset value determined on the next business day, and redemption requests
received by the Transfer Agent after 12:30 p.m. Eastern Time on a business day
of the Portfolio will be effected at the net asset value determined on the next
business day.
Effective February 4, 1998, the net asset value per share of the Portfolio
will be determined daily as of 12:30 p.m. and 3:00 p.m. Eastern Time on each
business day of the Portfolio.
