THE ALGER FUND

                          ALGER MONEY MARKET PORTFOLIO

              SUPPLEMENT DATED DECEMBER 5, 2003, TO THE PROSPECTUS
                             DATED FEBRUARY 28, 2003

THE FOLLOWING SUBSECTION IS ADDED TO THE SECTION ENTITLED
"MANAGEMENT AND ORGANIZATION":

LEGAL PROCEEDINGS

In response to inquiries  from the New York  Attorney  General  ("NYAG") and the
Securities  and Exchange  Commission  ("SEC"),  the Manager and its counsel have
been  investigating  certain  shareholder  trading practices in the mutual funds
that it manages. Results of that investigation,  which is continuing,  are being
shared  with the NYAG,  the SEC and the boards of the  funds.  The  Manager  has
assured the boards of the funds that if it is determined  that  improper  market
timing in any of the funds detrimentally  affected the fund's  performance,  the
Manager will make appropriate restitution.

On October 16, 2003,  the SEC commenced and settled a civil  proceeding  against
James Connelly,  Jr., a former vice chairman of the Manager's  immediate parent,
in connection with alleged market timing  arrangements with certain investors in
The Alger Fund. That settlement  specifically provides: "The findings herein are
made pursuant to [Connelly's  settlement] Offer and are not binding on any other
person or entity in this or any other  proceeding."  Neither the Manager nor any
of the funds was a party to this proceeding.

On October 31,  2003,  Peter D.  DeMayo,  as  Custodian  for James Liam  DeMayo,
identifying  himself as a shareholder of Spectra Fund,  filed a purported  class
action lawsuit against The Alger Fund,  Spectra Fund,  various portfolios of The
Alger Fund, the Manager,  Connelly, Veras Management Partners, LLP and John Does
1-100 in the United States District Court for the Southern District of New York,
and served the  complaint in the lawsuit on the Manager and the fund  defendants
on November 10, 2003. The suit, based primarily upon the SEC settlement with Mr.
Connelly,  alleges,  among other things, that the fund defendants made false and
misleading  statements in their  prospectuses  in violation of Section 11 of the
Securities  Act of 1933,  that other  defendants  violated the "control  person"
provisions  of  Section  15 of the  Securities  Act  and  Section  20(a)  of the
Securities  Exchange  Act of  1934,  that  all  defendants  committed  fraud  in
violation  of  Section  10(b) of the  Securities  Exchange  Act and  Rule  10b-5
thereunder,  and that the Manager  breached a fiduciary duty to plaintiffs.  The
suit seeks, among other things,  compensatory damages, recovery of advisory fees
paid to the Manager, and payment of the plaintiff's counsel and expert fees.

Another class action which names the same  defendants and Alger American  Growth
[Fund],  includes the same allegations,  and seeks, among other things, the same
relief was filed in the same court on November 20, 2003,  and the  complaint was
served on the  Manager  and the fund  defendants  on that date.  The lawsuit was
filed by Robert  Garfield,  who  identified  himself as a shareholder  of a fund
defendant.

Another class action  similar to the DeMayo action but naming six  portfolios of
The Alger  Institutional  Fund as  additional  defendants  was filed in the same
court on November 13, 2003, by Dana Buhs,  identifying  herself as a shareholder
of Alger LargeCap Growth Portfolio,  and the complaint was served on the Manager
and the fund  defendants on December 2, 2003.  Another class action  against the
Buhs  defendants  was  filed in the same  court on  November  13,  2003 by Bryon
Billman,  identifying himself as a shareholder of Alger MidCap Growth Portfolio,
and the complaint was served on





the Manager and the fund defendants on December 2, 2003; the complaint alleges
violations of Section 34 of the Investment Company Act of 1940 and breach of
fiduciary duty and seeks injunctive relief, damages, fees and expenses and other
relief.

Similar class actions against the same and related parties and involving similar
allegations  and requests  for relief may be  commenced in the near future.  The
Manager has stated that it does not believe that such lawsuits  will  materially
affect its ability to perform its  management  contracts  with any of the mutual
funds that it manages,  and none of the fund defendants believes that it will be
materially adversely affected by the pending lawsuits.