Supplement Dated February 28, 1997
to the Prospectus dated August 22, 1996
Technology Portfolio
A Portfolio of the
Morgan Stanley Institutional Fund, Inc.
P.O. Box 2798
Boston, Massachusetts
02208-2798
The prospectus dated August 22, 1996 (the "Prospectus") of the
Technology Portfolio of the Morgan Stanley Institutional Fund, Inc.
(the "Fund") is hereby amended and supplemented as follows:
The following section is added before the section under the
heading "PROSPECTUS SUMMARY:"
FINANCIAL HIGHLIGHTS
The following table provides financial highlights for the
Technology Portfolio for the period ended December 31, 1996 and is part
of the Fund's unaudited financial statements which are included in the
Fund's Statement of Additional Information (the "SAI"). The SAI is
available at no cost from the Fund at the address and telephone number
noted on the cover page of this Prospectus. The following information
should be read in conjunction with the financial statements and notes
thereto.
Class A Class B
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Period from Period from
September 16, 1996* to September 16, 1996* to
December 31, 1996 December 31, 1996
(Unaudited) (Unaudited)
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NET ASSET VALUE, BEGINNING OF PERIOD................ $10.00 $10.00
------ ------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss(1)........................... (0.02) (0.02)
Net Realized and Unrealized Gain on
Investments................................... 0.73 0.73
------ ------
Total from Investment Operations................. 0.71 0.71
------ ------
NET ASSET VALUE, END OF PERIOD...................... $10.71 $10.71
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TOTAL RETURN........................................ 7.10% 7.10%
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RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Period (Thousands)............... $3,595 $1,487
Ratio of Expenses to Average Net Assets(1).......... 1.25%** 1.50%**
Ratio of Net Investment Income to Average
Net Assets (1).................................... (0.70)%** (1.00)%**
Portfolio Turnover Rate............................. 77% 77%
Average Commission Rate.............................$0.0374 $0.0374
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(1) Effect of voluntary expense limitation during the period:
Per share benefit to net investment income.... $0.22 $0.19
Ratios before expense limitation:
Expenses to Average Net Assets................ 8.51%** 9.14%**
Net Investment Income to Average Net Assets... (7.96)%** (8.65)%**
* Commencement of Operations
** Annualized
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
