THE ALGER FUND
SUPPLEMENT DATED AUGUST 5, 1998 TO THE PROSPECTUS DATED FEBRUARY 25, 1998
AS SUPPLEMENTED MAY 18, 1998
The first paragraph of the section of the Prospectus entitled "Waivers of
Sales Charges", beginning on page 4, is amended as follows:
WAIVERS OF SALES CHARGES
No initial sales charge (Class A) or CDSC (Class A, B or C) is imposed on
purchases or redemptions (1) by (i) employees of Alger Inc. and its affiliates,
(ii) IRAs, Keogh Plans and employee benefit plans for those employees and (iii)
spouses, children, siblings and parents of those employees and trusts of which
those individuals are beneficiaries, as long as orders for the shares on behalf
of those individuals and trusts were placed by the employees; (2) by (i)
accounts managed by investment advisory affiliates of Alger Inc. that are
registered under the Investment Advisers Act of 1940, as amended, (ii)
employees, participants and beneficiaries of those accounts, (iii) IRAs, Keogh
Plans and employee benefit plans for those employees, participants and
beneficiaries and (iv) spouses and minor children of those employees,
participants and beneficiaries as long as orders for the shares were placed by
the employees, participants and beneficiaries; (3) by directors of trustees of
any investment company for which Alger Inc. or any of its affiliates serves as
investment adviser or distributor; (4) of shares held through defined
contribution plans as defined by ERISA; (5) by an investment company registered
under the 1940 Act in connection with the combination of the investment company
with the Fund by merger, acquisition of assets or by any other transaction; (6)
by registered investment advisers, banks, trust companies and other financial
institutions on behalf of their clients; (7) by registered investment advisers
for their own accounts; (8) by a Processing Organization, as shareholder of
record on behalf of (i) investment advisers or financial planners trading for
their own accounts or the accounts of their clients and who charge a management,
consulting or other fee for their services and clients of such investment
advisers or financial planners trading for their own accounts if the accounts
are linked to the master account of such investment adviser or financial planner
on the books and records of the Processing Organization, and (ii) retirement and
deferred compensation plans and trusts used to fund those plans; (9) by
registered representatives of broker-dealers which have entered into Selected
Dealer Agreements with Alger Inc., and their spouses, children, siblings and
parents; and (10) of shares representing assets transferred from another mutual
fund into any Portfolio by a broker-dealer acting on behalf of a client.
The last sentence of the paragraph entitled "Shareholder Servicing
Agreement" on page 14 is amended as follows:
Alger Inc. will compensate third parties from this fee who provide personal
services and maintenance of customer accounts.
