THE ALGER FUND

    SUPPLEMENT DATED MAY 18, 1998 TO THE PROSPECTUS DATED FEBRUARY 25, 1998

     The first  paragraph of the section of the Prospectus  entitled  "Portfolio
Managers" is amended to read as follows:

     David D. Alger,  Seilai  Khoo,  Ron  Tartaro  and David Hyun are  primarily
responsible  for the  day-to-day  management of the  Portfolios of the Fund. Mr.
Alger has been  employed by Alger  Management  as Executive  Vice  President and
Director of Research  since 1971 and as President  since 1995. Ms. Khoo has been
employed by Alger  Management  since 1989, as senior research analyst until 1995
and as a Senior Vice  President  since 1995.  Mr.  Tartaro has been  employed by
Alger  Management  since 1990, as a senior research  analyst until 1995 and as a
Senior Vice President since 1995. Mr. Hyun has been employed by Alger Management
since 1991 as an analyst until 1998 and as a Portfolio  Manager since 1998.  Mr.
Alger,  Ms. Khoo, Mr. Tartaro and Mr. Hyun also serve as portfolio  managers for
other mutual  funds  and/or  investment  accounts  managed by Alger  Management.
Steven R. Thumm serves as co-manager of the Alger Balanced Portfolio,  and other
mutual  funds  managed  by  Alger  Management.  He has  been  employed  by Alger
Management as a fixed income analyst since 1991.