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<PAGE> 1 VAN KAMPEN AMERICAN CAPITAL BALANCED FUND SUPPLEMENT DATED NOVEMBER 27, 1995, TO THE STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 1, 1995. The section of the Statement of Additional Information captioned "Fund Performance" is hereby supplemented as follows: From time to time marketing materials may provide a portfolio manager update on the Fund or discuss general economic conditions. The top 10 holdings of the Fund may also be listed in marketing pieces.
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