ND INSURED INCOME FUND, INC.
Supplement dated January 5, 1998
to Prospectus dated May 1, 1997
For the fiscal year ended December 31, 1997, ND Holdings, Inc.
("Holdings") voluntarily assumed certain expenses of ND Insured Income Fund,
Inc. (the "Fund") in order to maintain total Fund operating expenses at or
below 1.00% of average daily net assets. Effective February 1, 1998, Holdings
will no longer assume any Fund expenses. To reflect this change in policy,
the Fee and Expense table on page 2 of the Prospectus is revised to read as
follows:
<TABLE>
<CAPTION>
Shareholder Transaction Expenses
<S> <C>
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)... 4.5% (1)
Maximum Sales Load Imposed on Reinvested Dividends............................ None
Deferred Sales Load........................................................... None
Redemption Fee................................................................ None
Exchange Fee.................................................................. None
Annual Fund Operating Expenses (as a percentage of average net assets)(2)
Management Fees............................................................... 0.60%
12b-1 Fees.................................................................... None
Other Expenses................................................................ 1.76%
-----
Total Fund Operating Expenses................................................. 2.36%
</TABLE>
<TABLE>
<CAPTION>
Example (3)
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000 1 Year 3 Years 5 Years 10 Years
investment, assuming (1) 5% annual return
and (2) redemption at the end of each time $68 $115 $165 $302
period:
</TABLE>
(1) Reduced sales charges apply to purchases of $100,000 or more.
(2) Based on actual expenses for the fiscal year ended December 31, 1996,
absent any expense assumptions by Holdings.
(3) The example is based upon percentages in the table above and should not
be considered a representation of past or future expenses. Actual
expenses may be greater or lesser than those shown. The Securities and
Exchange Commission requires the use of an assumed 5% annual return.
The example assumes the reinvestment of all dividends and distributions.
All dollar figures have been rounded to the nearest dollar.
