<PAGE> 1
VAN KAMPEN AMERICAN CAPITAL
INSURED TAX FREE INCOME FUND
CALIFORNIA INSURED TAX FREE FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts
<PAGE> 2
established on or before May 1, 1997. Section 403(b) and similar
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
<PAGE> 3
VAN KAMPEN AMERICAN CAPITAL
TAX FREE HIGH INCOME FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar
<PAGE> 4
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
<PAGE> 5
VAN KAMPEN AMERICAN CAPITAL
MUNICIPAL INCOME FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar
<PAGE> 6
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
<PAGE> 7
VAN KAMPEN AMERICAN CAPITAL
INTERMEDIATE TERM MUNICIPAL INCOME FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar
<PAGE> 8
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
<PAGE> 9
VAN KAMPEN AMERICAN CAPITAL
FLORIDA INSURED TAX FREE INCOME FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar
<PAGE> 10
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
<PAGE> 11
VAN KAMPEN AMERICAN CAPITAL
NEW JERSEY TAX FREE INCOME FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996,
SEPTEMBER 5, 1996 AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar
<PAGE> 12
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
<PAGE> 13
VAN KAMPEN AMERICAN CAPITAL
NEW YORK TAX FREE INCOME FUND
SUPPLEMENT DATED JANUARY 2, 1997, TO THE PROSPECTUS DATED
APRIL 29, 1996, AS PREVIOUSLY SUPPLEMENTED ON JUNE 1, 1996, JULY 1, 1996
AND NOVEMBER 1, 1996.
References in the Prospectus that Class C shares automatically convert to
Class A shares are hereby deleted and the following sentence is added to the
section of the Prospectus captioned "ALTERNATIVE SALES ARRANGEMENTS -- PURCHASE
OF SHARES -- DEFERRED SALES CHARGE ALTERNATIVES -- CONVERSION FEATURE."
Class C shares purchased before January 1, 1997, and any dividend
reinvestment plan shares received thereon, automatically convert to Class A
shares ten years after the end of the calendar month in which such shares were
purchased. Such conversion will be on the basis of the relative net asset values
per share, without the imposition of any sales load, fee or other charge.
Paragraph (5) of the section of the Prospectus captioned "PURCHASE OF SHARES
- -- NAV PURCHASE OPTIONS" is hereby amended and restated with the following:
(5) Trustees and other fiduciaries purchasing shares for retirement plans of
organizations with retirement plan assets of $3 million or more and
which invest in multiple fund families through national wirehouse
alliance programs.
Paragraphs (8) and (9) of the section of the Prospectus captioned "PURCHASE
OF SHARES -- NAV PURCHASE OPTIONS" are hereby amended and restated with the
following:
(8) Trusts created under pension, profit sharing or other employee benefit
plans qualified under Section 401(a) of the Code, or custodial accounts
held by a bank created pursuant to Section 403(b) of the Code and
sponsored by non-profit organizations defined under Section 501(c)(3) of
the Code and assets held by an employer or trustee in connection with an
eligible deferred compensation plan under Section 457 of the Code. Such
plans will qualify for purchases at net asset value provided, for plans
initially establishing accounts with the Distributor in the
Participating Funds after February 1, 1997, that (1) the initial amount
invested in the Participating Funds is at least $500,000 or (2) such
shares are purchased by an employer sponsored plan with more than 100
eligible employees. Such plans that have been established with a
Participating Fund or have received proposals from the Distributor prior
to February 1, 1997 based on net asset value purchase privileges
previously in effect will be qualified to purchase shares of the
Participating Funds at net asset value for accounts established on or
before May 1, 1997. Section 403(b) and similar
<PAGE> 14
accounts for which Van Kampen American Capital Trust Company serves as
custodian will not be eligible for net asset value purchases based on
the aggregate investment made by the plan or the number of eligible
employees, except under certain uniform criteria established by the
Distributor from time to time. Prior to February 1, 1997, a commission
will be paid to authorized dealers who initiate and are responsible for
such purchases within a rolling twelve-month period as follows: 1.00% on
sales to $5 million, plus 0.50% on the next $5 million, plus 0.25% on
the excess over $10 million. For purchases on February 1, 1997 and
thereafter, a commission will be paid as follows: 1.00% on sales to $2
million, plus 0.80% on the next $1 million, plus 0.50% on the next $47
million, plus 0.25% on the excess over $50 million.
