CONVERTIBLE HOLDINGS INC
497, 1997-09-05
INVESTORS, NEC
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                     MERRILL LYNCH CONVERTIBLE FUND, INC.

                      Supplement dated September 2, 1997
                    to the Prospectus dated August 4, 1997

     With respect to  Fund shares that were purchased  in taxable accounts on
or after  August 4, 1997 through  August 27, 1997  and are redeemed  prior to
September 15, 1997:  (a) the  Fund will waive  any contingent deferred  sales
charge due  as a  result of  such redemption   and (b)  the Distributor  will
refund any initial sales charge paid on the purchase of such shares.

Code #19010-0897ALL











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