IDEX FUND 3
Supplement Dated June 5, 1996
to Prospectus Dated March 1, 1996
Please read this Supplement carefully and retain
it for future reference.
On May 22, 1996, the Boards of Trustees of IDEX Fund, IDEX Fund 3 and
IDEX II Series Fund (the "Funds") approved an Agreement and Plan of
Reorganization and Liquidation ("the Plan") pursuant to which all of the assets
of IDEX Fund and IDEX Fund 3 will be acquired by IDEX II Series Fund Growth
Portfolio (the "IDEX II Growth Portfolio") in exchange for the assumption by
IDEX II Growth Portfolio of all of the liabilities of IDEX Fund and IDEX Fund 3
and the issuance of a new class of shares of IDEX II Growth Portfolio, to be
designated Class T Shares (the "Reorganization"). The Plan was signed by
officers of the Funds on May 31, 1996. If the Reorganization is approved as
described below, all shareholders of IDEX Fund and IDEX Fund 3 will become
owners of Class T Shares of IDEX II Growth Portfolio as a result of the
Reorganization.
IDEX II Growth Portfolio has the same investment objective and
policies as each of IDEX Fund and IDEX Fund 3. The rights and responsibilities
of the shareholders of IDEX Fund and IDEX Fund 3 will not be materially affected
by the proposed Reorganization. The adviser, sub-adviser, portfolio manager,
principal underwriter and other service providers for each of IDEX Fund and IDEX
Fund 3 currently are the same as those for IDEX II Growth Portfolio. Like the
shares of IDEX Fund and IDEX Fund 3, Class T Shares of IDEX II Growth Portfolio
will be sold subject to a maximum initial 8.50% sales charge, but no ongoing
annual 12b-1 distribution or service fees. Class T Shares are not currently
anticipated to be offered or sold to new investors. After the closing of the
Reorganization, IDEX II Series Fund will be renamed IDEX Series Fund.
The Reorganization is subject to the approval of the shareholders of
both IDEX Fund and IDEX Fund 3. Further details about the Plan and the proposed
Reorganization will be included in proxy materials to be furnished to
shareholders entitled to vote later this year. The Board of Trustees has fixed
the close of business on July 18, 1996 as the record date for the determination
of shareholders entitled to vote.
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