AMENDMENTS TO INVESTORS RESEARCH FUND, INC. PROSPECTUS
DATED JANUARY 30, 1996
1. Restrictions On Purchase Of New Shares By Check.
Our transfer agent, DST Systems, Inc., has informed the Fund that all transfer
agents are experiencing increased efforts by criminals to tap into the resources
of mutual fund investors. Therefore, effective Abril 15, 1996, the fund can no
longer accept "third party checks" for the purchase of new shares of Investors
Research Fund, Inc, "Third party checks" are defined as checks made payable to a
payee other than Investors Research Fund, DST Systems, Inc., or the custodian of
an account (such as Investors Fiduciary Trust Company). The Fund recommends that
checks for new shares be made payable to Investors Research Fund, inc.
2. Safeguards Against Fraudulent Redemption Requests.
Our transfer agent is also concerned about fraudulent redemption requests,
particularly the practice of requesting change of a shareholder's mailing
address without the knowledge of the shareholder. The Criminal then requests
redemption of some or all of the shareholders shares, with check to be sent to
the new address. All of that without the knowledge of the shareholder.
Accordingly, effective April 15, 1996, the Fund will no longer honor a
redemption request which is received less than (60) sixty days after the
requesting shareholder's record address has been changed unless the request is
accompanied by a guarantee of the shareholder's signature, please refer to page
18 of the prospectus for a discussion of signature guarantees. Additionally, any
changes in a shareholder's banking information to be effected after the initial
information has been received by the Fund or the Transfer Agent will require
that the request be accompanied by a signature guarantee.
3. Elimination of the Fund's Policy of using Leverage To Purchase Additional
Shares.
Effective March 26, 1996, the shareholder's of the fund voted to eliminate the
policy granting authorization to borrow Money to purchase more shares than the
number that could be purchased with the assets of the Fund. By virtue of that
action, the discussion of the technique of borrowing money from banks for the
purpose of purchasing shares of stock contained on page 5 and the discussion of
fundamental policies concerning that type of borrowing on pages 5 and 6 are no
longer effective and should be disregarded.
4. Election of Director.
At the annual meeting of Shareholders hold March 26, 1996, William J. Nasif,
C.P.A. was elected as a director of the Fund by the shareholders. Mr. Nasif had
previously been elected as a director by the Board of Directors on February 14,
1996 to fill a vacancy, Mr. Nasif is a certified public accountant and is the
managing partner of Nasif, Hicks, Harris & Co., Certified Public Accountants, of
Santa Barbara, California.
5. Two Directors Are Affiliated With A Broker-Dealer.
On page 11 of the prospectus, it is stated that none of the directors is
affiliated with a broker-dealer except Mr. Robert P. Moseson. That statement is
amended to report that Mr. Fredric J. French is also affiliated with Lakeview
Securities Corporation, a licensed broker-dealer.
6. Current Composition of the Audit Committee.
On page 8 of the prospectus, there is an identification of the then members of
the Audit Committee. Following the annual meeting of shareholders, the Audit
Committee is now composed of James A. Corradi, William J. Nasif, and Mark
Schniepp.
