SUPPLEMENT TO THE PROSPECTUS
Waddell & Reed Funds, Inc. Class B Shares
The following information replaces the seventh paragraph of disclosure in the
section entitled "WRIMCO and Its Affiliates" on page 60:
Michael L. Avery is primarily responsible for the day-to-day
management of the equity portion of the portfolio of Asset Strategy
Fund. Mr. Avery has held his Fund responsibilities since January
1997. He is Vice President of WRIMCO, Vice President of Waddell &
Reed Asset Management Company, an affiliate of WRIMCO, and Vice
President of other investment companies for which WRIMCO serves as
investment manager. Mr. Avery has served as the portfolio manager for
investment companies managed by Waddell & Reed, Inc. and its
successor, WRIMCO, since February 1, 1994, has served as the director
of research of Waddell & Reed, Inc. and its successor, WRIMCO, since
August 1987, and has been an employee of Waddell & Reed, Inc. and its
successor, WRIMCO, since June 1981.
Daniel J. Vrabac is primarily responsible for the day-to-day
management of the fixed-income portion of the portfolio of Asset
Strategy Fund. Mr. Vrabac has held his Fund responsibilities since
January 1997. He is Vice President of Waddell & Reed Asset Management
Company, an affiliate of WRIMCO. Mr. Vrabac has served as an
investment analyst with WRIMCO since May 1994, and was a Vice
President of Kansas City Life Insurance Company from May 1983 to May
1994.
To be attached to the cover page of the Prospectus of Waddell & Reed Funds, Inc.
Class B Shares dated June 30, 1996.
This supplement is dated January 30, 1997.
WRS3000D0
<PAGE>
SUPPLEMENT TO THE PROSPECTUS
Waddell & Reed Funds, Inc. Class Y Shares
The following information replaces the seventh paragraph of disclosure in the
section entitled "WRIMCO and Its Affiliates" on page 57:
Michael L. Avery is primarily responsible for the day-to-day
management of the equity portion of the portfolio of Asset Strategy
Fund. Mr. Avery has held his Fund responsibilities since January
1997. He is Vice President of WRIMCO, Vice President of Waddell &
Reed Asset Management Company, an affiliate of WRIMCO, and Vice
President of other investment companies for which WRIMCO serves as
investment manager. Mr. Avery has served as the portfolio manager for
investment companies managed by Waddell & Reed, Inc. and its
successor, WRIMCO, since February 1, 1994, has served as the director
of research of Waddell & Reed, Inc. and its successor, WRIMCO, since
August 1987, and has been an employee of Waddell & Reed, Inc. and its
successor, WRIMCO, since June 1981.
Daniel J. Vrabac is primarily responsible for the day-to-day
management of the fixed-income portion of the portfolio of Asset
Strategy Fund. Mr. Vrabac has held his Fund responsibilities since
January 1997. He is Vice President of Waddell & Reed Asset Management
Company, an affiliate of WRIMCO. Mr. Vrabac has served as an
investment analyst with WRIMCO since May 1994, and was a Vice
President of Kansas City Life Insurance Company from May 1983 to May
1994.
To be attached to the cover page of the Prospectus of Waddell & Reed Funds, Inc.
Class Y Shares dated June 30, 1996.
This supplement is dated January 30, 1997.
WRS3000YE
