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AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. CAPITAL APPRECIATION FUND
AIM V.I. DIVERSIFIED INCOME FUND
AIM V.I. GLOBAL UTILITIES FUND
AIM V.I. GOVERNMENT SECURITIES FUND
AIM V.I. GROWTH FUND
AIM V.I. GROWTH AND INCOME FUND
AIM V.I. INTERNATIONAL EQUITY FUND
AIM V.I. MONEY MARKET FUND
AIM V.I. VALUE FUND
Supplement dated October 9, 1996
to the Prospectus dated May 1, 1996
The fourth sentence of the third paragraph under the caption "Investment
Objectives and Programs - AIM V.I. Diversified Income Fund" on page 8 is
revised to read in its entirety as follows:
"The Fund may invest up to 10% of its total assets in common stocks,
preferred stocks, similar equity securities and convertible securities
of U.S. and foreign companies."
The following sentence is added after the fifth sentence of the fifth paragraph
under the caption "Investment Objectives and Programs - AIM V.I. Global
Utilities Fund" on page 9:
"The Fund may invest up to 25% of its total assets in convertible
securities."
The seventh sentence of the fifth paragraph under the caption "Investment
Objectives and Programs - AIM V.I. Global Utilities Fund" on page 9 is revised
to read in its entirety as follows:
"Investments in non-convertible bonds, however, will not exceed 25% of
the Fund's total assets."
The second sentence of the first paragraph under the caption "Certain
Investment Strategies and Techniques" on page 11 is revised to read in its
entirety as follows:
"Each of the Funds may invest in money market obligations, foreign
securities (including ADRs and EDRs), repurchase agreements, reverse
repurchase agreements, taxable municipal securities, illiquid
securities and Rule 144A securities; the Diversified Income Fund and
the Government Fund may invest in U.S. Government Agency
Mortgage-Backed Securities; each of the Funds may purchase or sell
securities on a delayed delivery or when-issued basis and may borrow
money; each of the Funds, other than the Money Market Fund, may lend
portfolio securities and make short sales "against the box.""
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The fourth paragraph under the caption "Certain Investment Strategies and
Techniques - Foreign Securities" on page 12 is revised to read in its entirety
as follows:
"Under normal market conditions, the International Fund will invest at
least 70% of its total assets in marketable equity securities
(including common and preferred stock and depositary receipts for
stock) and may invest up to 20% of its total assets in securities
exchangeable for or convertible into stock of foreign companies. The
issuers of such securities will, along with their predecessors, have
been in continuous operation for three years or more and (except in
the case of ADRs, EDRs and other securities representing underlying
securities of foreign issuers) will be listed on a recognized foreign
securities exchange or traded in a foreign over-the-counter market."
The following sentences are added at the end of the fifth paragraph under the
caption "Portfolio Management" on page 18:
"Paula A. Permenter has been responsible for the Fund since 1996. Ms.
Permenter has been associated with AIM since 1996 and has 8 years of
experience as an investment professional. Prior to joining AIM, she
was an Associate Trader and Investment Assistant with Van Kampen
American Capital Asset Management, Inc."
