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                             AIM EQUITY FUNDS, INC.

                           AIM Aggressive Growth Fund

                          Supplement dated July 1, 1998
                    to the Prospectus dated February 27, 1998

The following paragraphs are inserted as a new item under "CERTAIN INVESTMENT
STRATEGIES AND POLICIES," before "Foreign Securities" on page 8 of the
prospectus:

        "REAL ESTATE INVESTMENT TRUSTS ("REITS").  The Fund may invest in 
        equity and/or debt securities issued by REITs.  Such investments will 
        not exceed 25% of the total assets of the Fund.

        REITs are trusts which sell equity or debt securities to investors and
        use the proceeds to invest in real estate or interests therein. A REIT
        may focus on particular projects, such as apartment complexes, or
        geographic regions, such as the Southeastern United States, or both.

        To the extent that the Fund has the ability to invest in REITs, the Fund
        could conceivably own real estate directly as a result of a default on
        the securities it owns. The Fund, therefore, may be subject to certain
        risks associated with the direct ownership of real estate including
        difficulties in valuing and trading real estate, declines in the value
        of real estate, risks related to general and local economic condition,
        adverse change in the climate for real estate, increases in property
        taxes and operating expense, changes in zoning laws, casualty or
        condemnation losses, limitations on rents, changes in neighborhood
        values, the appeal of properties to tenants, and increases in interest
        rates.

        In addition to the risks described above, equity REITs may be affected
        by any changes in the value of the underlying property owned by the
        trusts, while mortgage REITs may be affected by the quality of any
        credit extended. Equity and mortgage REITs are dependent upon management
        skill, are not diversified, and are therefore subject to the risk of
        financing single or a limited number of projects. Such trusts are also
        subject to heavy cash flow dependency, defaults by borrowers,
        self-liquidation, and the possibility of failing to maintain exemption
        from the 1940 Act. Changes in interest rates may also affect the value
        of debt securities held by the Fund. By investing in REITs indirectly
        through the Fund, a shareholder will bear not only his/her proportionate
        share of the expenses of the Fund, but also, indirectly, similar
        expenses of the REITs."

The following paragraphs should be inserted under the heading of "Risk Factors
Regarding Foreign Securities--Currency Risk" on page 9:

        "Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
        the Netherlands, Portugal, and Spain are members of the European
        Economic and Monetary Union (the "EEMU"). The EEMU intends to establish
        a common European currency for participating countries which will be
        known as the "euro." It is anticipated that each participating country
        will supplement its existing currency with the euro on January 1, 1999,
        and will replace its existing currency with the euro on July 1, 2002.
        Any other European country which is a member of the EEMU may elect to
        participate in the EEMU and may supplement its existing currency with
        the euro after January 1, 1999.

        The expected introduction of the euro presents unique risks and
        uncertainties, including whether the payment and operational systems of
        banks and other financial institutions will be ready by January 1, 1999;
        how outstanding financial contracts will be treated after



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        January 1, 1999; the establishment of exchange rates for existing 
        currencies and the euro; and the creation of suitable clearing and 
        settlement systems for the euro. These and other factors could cause 
        market disruptions before or after the introduction of the euro and 
        could adversely affect the value of securities held by the Portfolio."