THE ALGER FUNDS

                        SUPPLEMENT DATED NOVEMBER 2, 2005
                                     TO THE
                       PROSPECTUS DATED FEBRUARY 18, 2005
                        AS SUPPLEMENTED OCTOBER 11, 2005

      The following  information  supersedes  certain  information in the Funds'
Prospectus.

                                       I.

     The  Trustees  of  the  Trust  have  modified  the  Alger  Balanced  Fund's
non-fundamental  investment policies to permit limited investment by the Fund in
lower-rated  securities.  In  addition,  in the future  the Fund's  fixed-income
investments   may   include   mortgage-backed   and   asset-backed   securities.
Accordingly, the Prospectus is revised as follows:

     (1)  The  paragraph  headed  "Principal  Strategy" in the section  entitled
"Alger  Balanced Fund" on page 3 of the  Prospectus is hereby  replaced with the
following:

          The Fund focuses on stocks of companies  with growth  potential and on
          fixed-income securities,  with emphasis on income-producing securities
          that appear to have potential for capital  appreciation.  Under normal
          circumstances,   the  Fund  invests  in  equity   securities   and  in
          fixed-income securities, which may include corporate bonds, debentures
          and  notes,  U.S.  government  securities,  mortgage-backed  and other
          asset-backed  securities,  commercial  paper  and  other  fixed-income
          securities.  Most  of the  Fund's  fixed-income  investments  will  be
          concentrated  within the four highest rating  categories as determined
          by one of the nationally  recognized  statistical rating organizations
          ("NRSROs")  (or,  if  unrated,  will  have  been  determined  to be of
          comparable quality by the Manager). The Fund also may invest up to 10%
          of its  net  assets  in  lower-rated  securities  rated  "B"  (or  the
          equivalent)  or better by any one of those  rating  agencies  (or,  if
          unrated, determined to be of comparable quality by the Manager). Under
          normal  circumstances,  the Fund  will  invest at least 25% of its net
          assets in fixed-income securities.

     (2)  The bullet  points in the  subsection  entitled  "Risks  Applicable to
Alger  Balanced  Fund"  on  page 6 of  the  Prospectus  are  replaced  with  the
following:




          o  fixed-income  securities'  sensitivity to interest-rate  movements;
             their market values tend to fall when interest rates rise.

          o  lower-rated  securities'  greater risk of default,  generally  less
             liquidity, and susceptibility to greater price volatility.

          o  the  potential  for a decline in the value of the Fund's  portfolio
             securities  in the event of an issuer's  falling  credit  rating or
             actual default.

          o  Mortgage-backed   and  asset-backed   securities'   sensitivity  to
             interest rate movement;  their  duration and  volatility  move with
             interest rates.

     (3)  The following  subsection is added to the section entitled "Additional
Information About the Funds' Investments" on page 14 of the Prospectus:

     THE BALANCED FUND'S INVESTMENTS

     SECURITIES RATINGS.  Fixed-income securities rated below "investment grade"
     -- a term that refers to the top four rating  categories by an NRSRO -- are
     sometimes referred to as "high yield" securities because of their typically
     higher yields or as "junk bonds"  because of their lower credit quality and
     more  speculative   character.   The  Balanced  Fund  may  invest  in  such
     lower-rated  securities to achieve higher yields only if the securities are
     rated in one of the two categories just below investment grade (BB and B of
     Standard & Poor's,  Fitch, and Dominion,  Ba and B of Moody's,  bb and b of
     A.M.  Best).  See the  Appendix to the SAI for a fuller  discussion  of the
     rating categories.

     MORTGAGE-BACKED AND ASSET-BACKED SECURITIES.  Rising interest rates tend to
     extend the duration of mortgage-backed and asset-backed securities,  making
     them more sensitive to interest rate movements. As a result, in a period of
     rising interest rates, a fund that holds  mortgage-backed  and asset-backed
     securities may exhibit additional volatility. In addition,  mortgage-backed
     and  asset-backed  securities are subject to prepayment  risk. For example,
     when interest rates decline,  borrowers may pay off their mortgages  sooner
     than  expected.  This can reduce the  returns of the Fund  because the Fund
     will have to reinvest that money at the lower prevailing interest rates.



                                       II.

     (1)  The  following is inserted on page 1 of the  Prospectus  at the end of
the section entitled "The Alger Funds":

          All of the Funds  (other than the Money  Market Fund) may purchase put
          and call  options and sell  (write)  covered  put and call  options on
          securities and securities indexes to increase gain or to hedge against
          the risk of unfavorable price movements.

     (2)  The  following  is  inserted  as the third  paragraph  in the  section
entitled "Risks Applicable to All Equity Funds" on page 4:

          If the Manager  incorrectly  predicts the price movement of a security
          or market,  an option  held by a Fund may expire  unexercised  and the
          Fund will lose the premium it paid for the option,  or the Fund as the
          writer of an option may be required  to purchase or sell the  optioned
          security  at a  disadvantageous  price or settle an index  option at a
          loss.  Also,  an  imperfect   correlation  between  a  hedge  and  the
          securities hedged may render the hedge partially ineffective.

     The  following  subsection  is added to the  section  entitled  "Additional
Information About the Funds' Investments" on page 14:

     OPTIONS

     A call option on a security gives the purchaser of the option the right, in
     return  for a premium  paid,  to buy from the writer  (seller)  of the call
     option the security  underlying the option at a specified exercise price at
     any time  during  the term of the  option.  The  writer is  obligated  upon
     exercise of the option to deliver the  underlying  security upon payment of
     the  exercise  price.  A put option on a  security  gives the holder of the
     option,  in return for the premium paid,  the right to sell the  underlying
     security to the writer (seller) at a specified price during the term of the
     option. The writer, who receives the premium, is obligated upon exercise of
     the option to buy the underlying  security at the exercise price. An option
     on a stock  index  gives the holder the right to receive a cash  settlement
     during the term of the option  based on the  amount,  if any,  by which the
     exercise  price  exceeds (if the option is a put) or is exceeded by (if the
     option  is a call)  the  current  value of the  index,  which  is  itself a
     function of the market values of the securities  included in the index. The
     writer of the option is obligated,  in return for the premium received,  to
     make delivery of this amount.




     A Fund may purchase a put option on a portfolio security to seek to protect
     against a decline  in the  market  value of the  security,  or, if the Fund
     contemplates purchasing a security in the future, purchase a call option on
     the security in anticipation of an increase in the security's market value.
     When a Fund  writes  an  option,  if the  market  value  of the  underlying
     security  does not move to a level that would make  exercise  of the option
     profitable to its holder,  the option generally will expire unexercised and
     the Fund will realize as profit the premium it received. When a call option
     written  by a Fund is  exercised,  the Fund  will be  required  to sell the
     underlying  securities  to the  holder at the  exercise  price and will not
     participate in any increase in the securities' value above that price. When
     a put option  written by a Fund is exercised,  the Fund will be required to
     purchase  the  underlying  securities  at a price in excess of their market
     value.

     Use of options on securities  indexes  entails the risk that trading in the
     options may be interrupted if trading in certain securities included in the
     index is interrupted.  Price movements in a Fund's portfolio securities may
     not  correlate  precisely  with  movements  in the  level of an index  and,
     therefore,  the use of options on indexes  cannot serve as a complete hedge
     and would depend in part on the ability of the Manager to predict correctly
     movements in the  direction  of a particular  market or of the stock market
     generally.  Because options on indexes require settlement in cash, the Fund
     might be  forced  to  liquidate  portfolio  securities  to meet  settlement
     obligations.