ASM FUND, INC.
Supplement dated November 12, 1996
to Prospectus dated March 2, 1996
1. The Fund's investments are supervised by Vector Index
Advisers, Inc. (the "Adviser"). The Advisory Agreement described
in this Prospectus between the Fund and the Adviser terminated on
April 15, 1995. The Adviser continues to provide its services to
the Fund, and will continue to do so until other arrangements,
such as approval by the Fund of a new agreement between the Fund
and the Adviser, can be completed. The Adviser has not retained
any management fee from the Fund during the period from April 15,
1995 to the present, and will not collect any advisory fee from
the Fund until a new advisory agreement is approved. The Adviser
has agreed in writing to continue to fulfill its expense
limitation commitment to the Fund until that time.
2. The Fund may not have qualified as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986
during certain prior periods. If the Fund becomes obligated to
pay any additional taxes, interest and/or penalties with respect
to any prior period, the Adviser has committed in writing to the
Fund that it will pay such amounts on behalf of the Fund to
assure that the Fund does not incur any financial impact as a
result of this development.
a:asm-stkr.end
