MERRILL LYNCH MUNICIPAL STRATEGY FUND INC, 497, 1995-10-30

MERRILL LYNCH MUNICIPAL STRATEGY FUND INC
497, 1995-10-30
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<PAGE>   1
 
   
                  MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
 
                    SUPPLEMENT DATED OCTOBER 30, 1995 TO THE
                       PROSPECTUS DATED OCTOBER 30, 1995
 
                          FOR USE IN THE STATE OF IOWA
 


     Investing in the Fund's Common Stock will involve a higher than normal
degree of risk. See "Risk Factors and Special Considerations" on page 8.

    
 
CODE # 18302-1095IA
<PAGE>   2
 
   
                  MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
 
                    SUPPLEMENT DATED OCTOBER 30, 1995 TO THE
                       PROSPECTUS DATED OCTOBER 30, 1995
 
                       FOR USE IN THE STATE OF MINNESOTA


     These securities may involve a high degree of risk because the Fund is
authorized to leverage more than ten percent of its total assets.

    
 
CODE # 18302-1095MN
<PAGE>   3
 
   
                  MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
 
                    SUPPLEMENT DATED OCTOBER 30, 1995 TO THE
                       PROSPECTUS DATED OCTOBER 30, 1995
 
                       FOR USE IN THE STATE OF NEW JERSEY
 


     THESE ARE SPECULATIVE SECURITIES. AN INVESTMENT IN THE FUND MAY INVOLVE
SIGNIFICANT RISKS. SEE "RISK FACTORS AND SPECIAL CONSIDERATIONS", "INVESTMENT
OBJECTIVES AND POLICIES -- OTHER INVESTMENT POLICIES" AND "RISKS AND SPECIAL
CONSIDERATIONS OF LEVERAGE".

     THE FUND MAY INVEST IN MEDIUM TO LOWER RATED MUNICIPAL OBLIGATIONS AND IN
CERTAIN MUNICIPAL OBLIGATIONS THAT ARE CONSIDERED DERIVATIVE INSTRUMENTS. SUCH
MUNICIPAL OBLIGATIONS MAY HAVE CERTAIN SPECULATIVE CHARACTERISTICS.

    
 
CODE # 18302-1095NJ
<PAGE>   4
 
   
                  MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
    
 
   
                    SUPPLEMENT DATED OCTOBER 30, 1995 TO THE
    
   
                       PROSPECTUS DATED OCTOBER 30, 1995
    
 
   
                          FOR USE IN THE STATE OF OHIO
    
 
   
     NOTWITHSTANDING THE FACT THAT THE BOARD OF DIRECTORS OF THE FUND MAY
DETERMINE THAT A RULE 144A SECURITY IS LIQUID AND NOT SUBJECT TO THE 15%
RESTRICTION ON ILLIQUID SECURITIES, THE STATE OF OHIO DOES NOT RECOGNIZE RULE
144A SECURITIES AS SECURITIES THAT ARE FREE OF RESTRICTIONS AS TO RESALE.
CONSEQUENTLY, TO THE EXTENT REQUIRED BY OHIO LAW, THE FUND WILL NOT INVEST MORE
THAN 50% OF ITS TOTAL ASSETS IN SECURITIES OF UNSEASONED ISSUERS OR IN
SECURITIES THAT ARE RESTRICTED AS TO DISPOSITION, INCLUDING RULE 144A
SECURITIES.
    
 
CODE # 18415-1095OH
<PAGE>   5
 
   
                  MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
 
                    SUPPLEMENT DATED OCTOBER 30, 1995 TO THE
                       PROSPECTUS DATED OCTOBER 30, 1995
 
                      FOR USE IN THE STATE OF SOUTH DAKOTA
 


     These securities may involve a high degree of risk because the Fund is
authorized to leverage more than ten percent of its total assets and to invest
more than five percent of such assets in any one issuer.

    
 
CODE # 18302-1095SD
<PAGE>   6
 
   
                  MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
 
                    SUPPLEMENT DATED OCTOBER 30, 1995 TO THE
                       PROSPECTUS DATED OCTOBER 30, 1995
 
                         FOR USE IN THE STATE OF TEXAS
 


     The Fund may invest a significant portion of its assets in derivative
financial products. These derivative financial products have different risks and
may have significantly more risk than traditional municipal obligations.

    
 
CODE # 18302-1095TX