<PAGE> For Massachusetts residents only.
American Growth Fund, Inc. Supplement dated April 1, 1996 to
Prospectus.
The following replaces the performance chart found on pages
21 and
22 of the American Growth Fund Prospectus dated March 1, 1996.
Set forth below is a graph comparing the Fund's performance
(Class D shares) as of the end
of the ten most recently completed fiscal years, to the performance
of the S&P 500 and the
Consumer Price Index for the same periods.
Comparison of Change in Value of $10,000 Investment in the
Fund for Class D shares, the
S&P 500 and the Consumer Price Index. No history is available for
Class A, B and C shares.
<TABLE>
<S> <C> <C> <C> <C>
Date CPI AGF
S&P500
07/85 10,000 9,425
10,000
07/86 10,158 10,496
12,815
07/87 10,557 12,920
17,837
07/88 10,993 11,058
15,738
07/89 11,545 12,937
20,761
07/90 12,103 13,672
22,113
07/91 12,466 14,981
24,932
07/92 12,865 17,012
28,121
07/93 13,225 20,448
30,576
07/94 13,556 22,708
32,154
07/95 13,908 26,157
40,549
</TABLE>
* AGF performance reflects the deduction of the front-end sales
charge at the maximum rate of 5.75% and an initial net asset value
of
$9,425.
The following table sets forth the Class D shares of the
Fund's average annualized total
return for the one, five, ten and fifteen year periods ended July
31, 1995:
<TABLE>
<S> <C> <C>
Relevant Average Annualized
Period Total Return
1 year 8.6%
5 year 12.5%
10 year 10.1%
15 year 10.9%
Past performance is not predictive of future performance.
See "Performance Information"
in the Statement of Additional Information for a discussion of the
method of calculating total return
and for a description of the S&P 500 and the Consumer Price Index.
</TABLE>
