GAM FUNDS INC
497, 1996-07-31
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Via EDGAR Transmission

July 31 ,1996

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549


Re: GAM Funds, Inc. - File Nos. 811-4062/2-92136
- ------------------------------------------------


Gentlemen:

Transmitted  herewith for filing on behalf of the above named Registrant are two
supplements to the Registrant's prospectus dated April 30, 1996.

The  prospectus  is being amended by the first  supplement  (i) to disclose that
Class A  shareholders  of records on this date are being asked to approve a Rule
12b-1  Plan  of  Distribution  for the  Class A  shares  of each  Series  of the
Registrant; and (ii) to inform shareholders that a co-manager for the GAM Europe
Fund  is no  longer  employed  by the  Fund's  adviser.  The  second  supplement
clarifies an investment policy relating to the GAM International Fund.

Please contact the undersigned should you have questions or comments relating to
these filings at (212) 407-4766.

Very truly yours,


Lisa M. Hurley
Secretary

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