Supplement dated June 16, 1998 to the
                 Prospectus for the Pilgrim America Elite Series
                             Dated November 1, 1997

         Paragraph  number (2) under the caption  "Special  Purchases  without a
Sales Charge" on page 17 is hereby replaced with the following paragraph:

2)       Any  person who can  document  that Fund  shares  were  purchased  with
         proceeds  from the  redemption  (within the previous 90 days) of shares
         from any  unaffiliated  mutual fund on which a sales charge was paid or
         which were subject at any time to a CDSC, and which  unaffiliated  fund
         was: with respect to purchases of the MagnaCap Fund, a domestic  growth
         fund,  with  respect to  purchases of the High Yield Fund, a high yield
         bond fund, and with respect to purchases of the  Government  Securities
         Income Fund, a government securities fund.






                      Supplement dated June 16, 1998 to the
                       Statement of Additional Information
                for the Pilgrim America High Yield Fund series of
                     Pilgrim America Investment Funds, Inc.
                             Dated November 1, 1997


         The  following  disclosure  is added  to the  Statement  of  Additional
Information, and this disclosure also effectively modifies current disclosure in
the  Prospectus  for the Pilgrim  America  Elite Series  dated  November 1, 1997
regarding this type of dealer concession:

                  The  Distributor  of the Trust may,  at its own  expense,  pay
         concessions   to  dealers   which  may,   depending   on  the  dealer's
         satisfaction of the required  conditions,  be periodic and may be up to
         0.30% of the value of the Funds'  shares  sold by the  dealer  during a
         particular period.





                      Supplement dated June 16, 1998 to the
                       Statement of Additional Information
                 for the Pilgrim America MagnaCap Fund series of
                     Pilgrim America Investment Funds, Inc.
                             Dated November 1, 1997


         The  following  disclosure  is added  to the  Statement  of  Additional
Information, and this disclosure also effectively modifies current disclosure in
the  Prospectus  for the Pilgrim  America  Elite Series  dated  November 1, 1997
regarding this type of dealer concession:

                  The  Distributor  of the Trust may,  at its own  expense,  pay
         concessions   to  dealers   which  may,   depending   on  the  dealer's
         satisfaction of the required  conditions,  be periodic and may be up to
         0.30% of the value of the Funds'  shares  sold by the  dealer  during a
         particular period.