IVY FUND

                              Ivy US Blue Chip Fund

                              ADVISOR CLASS SHARES

                        Supplement Dated December 9, 1998
          to Statement of Additional Information Dated November 2, 1998


                                       *

The following  paragraph is added after the first paragraph in the "Distribution
Services" section on page 29:

         The Fund has  authorized  IMDI to accept  on its  behalf  purchase  and
redemption orders. IMDI is also authorized to designate other  intermediaries to
accept  purchase and redemption  orders on the Fund's  behalf.  The Fund will be
deemed to have  received  a purchase  or  redemption  order  when an  authorized
intermediary or, if applicable, an intermediary's  authorized designee,  accepts
the order.  Client  orders  will be priced at the  Fund's  Net Asset  Value next
computed  after an  authorized  intermediary  or the  intermediary's  authorized
designee accepts them.

                                       *







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IUSBCAC1298