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                                                                   EXHIBIT 10.86
                             AIM EQUITY FUNDS, INC.

                      MASTER INVESTMENT ADVISORY AGREEMENT


         THIS AGREEMENT is made this 28th day of February, 1997, by and between
AIM Equity Funds, Inc., a Maryland corporation (the "Company"), with respect to
its series of shares shown on the Appendix A attached hereto, as the same may
be amended from time to time, and A I M Advisors, Inc., a Delaware corporation
(the "Advisor").


                                    RECITALS

         WHEREAS, the Company is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end, diversified management
investment company;

         WHEREAS, the Advisor is registered under the Investment Advisers Act
of 1940, as amended (the "Advisers Act"), as an investment advisor and engages
in the business of acting as an investment advisor;

         WHEREAS, the Company's charter authorizes the Board of Directors of
the Company to classify or reclassify authorized but unissued shares of the
Company, and as of the date of this Agreement, the Company's Board of Directors
has authorized the issuance of six series of shares representing interests in
six investment portfolios (such portfolios and any other portfolios hereafter
added to the Company being referred to individually herein as a "Fund,"
collectively as the "Funds"); and

         WHEREAS, the Company and the Advisor desire to enter into an agreement
to provide for investment advisory services to the Funds upon the terms and
conditions hereinafter set forth;

         NOW  THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

         1.  Advisory Services.  The Advisor shall act as investment advisor
for the Funds and shall, in such capacity, supervise all aspects of the Funds'
operations, including the investment and reinvestment of cash, securities or
other properties comprising the Funds' assets, subject at all times to the
policies and control of the Company's Board of Directors.  The Advisor shall
give the Company and the Funds the benefit of its best judgment, efforts and
facilities in rendering its services as investment advisor.

         2.  Investment Analysis and Implementation.  In carrying out its
obligations under Section 1 hereof, the Advisor shall:

                 (a)  supervise all aspects of the operations of the Funds;

                 (b)  obtain and evaluate pertinent information about
         significant developments and economic, statistical and financial data,
         domestic, foreign or otherwise, whether affecting the economy
         generally or the Funds, and whether concerning the individual issuers
         whose securities are included in the assets of the Funds or the
         activities in which such issuers





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         engage, or with respect to securities which the Advisor considers
         desirable for inclusion in the Funds' assets;

                 (c)  determine which issuers and securities shall be
         represented in the Funds' investment portfolios and regularly report
         thereon to the Company's Board of Directors; and

                 (d)  formulate and implement continuing programs for the
         purchases and sales of the securities of such issuers and regularly
         report thereon to the Company's Board of Directors;

and take, on behalf of the Company and the Funds, all actions which appear to
the Company and the Funds necessary to carry into effect such purchase and sale
programs and supervisory functions as aforesaid, including but not limited to
the placing of orders for the purchase and sale of securities for the Funds.

         3.   Delegation of Responsibilities.  Subject to the approval of the
Board of Directors and the shareholders of the Funds, the Advisor may delegate
to a sub-advisor certain of its duties enumerated in Section 2 hereof, provided
that the Advisor shall continue to supervise the performance of any such
sub-advisor.

         4.  Control by Board of Directors.  Any investment program undertaken
by the Advisor pursuant to this Agreement, as well as any other activities
undertaken by the Advisor on behalf of the Funds, shall at all times be subject
to any directives of the Board of Directors of the Company.

         5.  Compliance with Applicable Requirements.  In carrying out its
obligations under this Agreement, the Advisor shall at all times conform to:

                 (a)  all applicable provisions of the 1940 Act and the
         Advisers Act and any rules and regulations adopted thereunder;

                 (b)  the provisions of the registration statement of the
         Company, as the same may be amended from time to time under the
         Securities Act of 1933 and the 1940 Act;

                 (c)  the provisions of the corporate charter of the Company,
         as the same may be amended from time to time;

                 (d)  the provisions of the by-laws of the Company, as the same
         may be amended from time to time; and

                 (e)  any other applicable provisions of state, federal or
         foreign law.

         6.  Broker-Dealer Relationships.  The Advisor is responsible for
decisions to buy and sell securities for the Funds, broker-dealer selection,
and negotiation of brokerage commission rates.  The Advisor's primary
consideration in effecting a security transaction will be to obtain execution
at the most favorable price.  In selecting a broker-dealer to execute each
particular transaction, the Advisor will take the following into consideration:
the best net price available; the reliability, integrity and financial
condition of the broker-dealer; the size of and the difficulty in executing the
order; and the value of the expected contribution of the broker-dealer to the
investment performance of the Funds on a continuing basis.  Accordingly, the
price to the Funds in any transaction may be less favorable than that available
from another broker-dealer if the difference is reasonably justified by other
aspects of the portfolio execution services offered.  Subject to such policies
as the Board of Directors may from time to time determine, the Advisor shall
not be deemed to have acted unlawfully





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or to have breached any duty created by this Agreement or otherwise solely by
reason of its having caused the Funds to pay a broker or dealer that provides
brokerage and research services to the Advisor an amount of commission for
effecting a portfolio investment transaction in excess of the amount of
commission another broker or dealer would have charged for effecting that
transaction, if the Advisor determines in good faith that such amount of
commission was reasonable in relation to the value of the brokerage and
research services provided by such broker or dealer, viewed in terms of either
that particular transaction or the Advisor's overall responsibilities with
respect to a particular Fund, other Funds of the Company, and to other clients
of the Advisor as to which the Advisor exercises investment discretion.  The
Advisor is further authorized to allocate the orders placed by it on behalf of
the Funds to such brokers and dealers who also provide research or statistical
material, or other services to the Funds, to the Advisor, or to any
sub-advisor.  Such allocation shall be in such amounts and proportions as the
Advisor shall determine and the Advisor will report on said allocations
regularly to the Board of Directors of the Company indicating the brokers to
whom such allocations have been made and the basis therefor.  In making
decisions regarding broker-dealer relationships, the Advisor may take into
consideration the recommendations of any sub-advisor appointed to provide
investment research or advisory services in connection with the Funds, and may
take into consideration any research services provided to such sub-advisor by
broker-dealers.

         7.  Compensation.  The Company shall pay the Advisor as compensation
for services rendered to a Fund hereunder an annual fee, payable monthly, based
upon the average daily net assets of such Fund as the same is set forth in
Appendix A attached hereto.  Such compensation shall be paid solely from the
assets of such Fund.  The average daily net asset value of the Funds shall be
determined in the manner set forth in the corporate charter and registration
statement of the Company, as amended from time to time.

         8.  Additional Services.  Upon the request of the Company's Board of
Directors, the Advisor may perform certain accounting, shareholder servicing or
other administrative services on behalf of the Funds which are not required by
this Agreement.  Such services will be performed on behalf of the Funds and the
Advisor may receive from the Funds such reimbursement for costs or reasonable
compensation for such services as may be agreed upon between the Advisor and
the Company's Board of Directors based on a finding by the Board of Directors
that the provision of such services by the Advisor is in the best interests of
the Company and its shareholders.  Payment or assumption by the Advisor of any
Fund expense that the Advisor is not otherwise required to pay or assume under
this Agreement shall not relieve the Advisor of any of its obligations to the
Funds nor obligate the Advisor to pay or assume any similar Fund expense on any
subsequent occasions.  Such services may include, but are not limited to:

                 (a)  the services of a principal financial officer of the
         Company (including applicable office space, facilities and equipment)
         whose normal duties consist of maintaining the financial accounts and
         books and records of the Company and the Funds, including the review
         and calculation of daily net asset value and the preparation of tax
         returns; and the services (including applicable office space,
         facilities and equipment) of any of the personnel operating under the
         direction of such principal financial officer;

                 (b)  the services of staff to respond to shareholder inquiries
         concerning the status of their accounts; providing assistance to
         shareholders in exchanges among the mutual funds managed or advised by
         the Advisor; changing account designations or changing addresses;
         assisting in the purchase or redemption of shares; supervising the
         operations of the custodian, transfer agent(s) or dividend disbursing
         agent(s) for the Funds; or otherwise providing services to
         shareholders of the Funds; and





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                 (c)  such other administrative services as may be furnished
         from time to time by the Advisor to the Company or the Funds at the
         request of the Company's Board of Directors.

         9.    Expenses of the Funds.  All of the ordinary business expenses
incurred in the operations of the Funds and the offering of their shares shall
be borne by the Funds unless specifically provided otherwise in this Agreement.
These expenses borne by the Funds include, but are not limited to, brokerage
commissions, taxes, legal, accounting, auditing, or governmental fees, the cost
of preparing share certificates, custodian, transfer and shareholder service
agent costs, expenses of issue, sale, redemption and repurchase of shares,
expenses of registering and qualifying shares for sale, expenses relating to
directors and shareholder meetings, the cost of preparing and distributing
reports and notices to shareholders, the fees and other expenses incurred by
the Company on behalf of the Funds in connection with membership in investment
company organizations and the cost of printing copies of prospectuses and
statements of additional information distributed to the Funds' shareholders.

         10.  Expense Limitation.  If, for any fiscal year of the Company, the
total of all ordinary business expenses of the Funds, including all investment
advisory fees, but excluding brokerage commissions and fees, taxes, interest
and extraordinary expenses, such as litigation costs, would exceed the
applicable expense limitations imposed by state securities regulations in any
state in which the Funds' shares are qualified for sale, as such limitations
may be raised or lowered from time to time, the aggregate of all such
investment advisory fees shall be reduced by the amount of such excess.  The
amount of any such reduction to be borne by the Advisor shall be deducted from
the monthly investment advisory fee otherwise payable to the Advisor during
such fiscal year.  If required pursuant to such state securities regulations,
the Advisor will, not later than the last day of the first month of the next
succeeding fiscal year, reimburse the Funds for any such annual operating
expenses (after reduction of all investment advisory fees in excess of such
limitation).  For the purposes of this paragraph, the term "fiscal year" shall
exclude the portion of the current fiscal year which shall have elapsed prior
to the date hereof and shall include the portion of the then current fiscal
year which shall have elapsed at the date of termination of this Agreement.
The application of expense limitations shall be applied to each Fund of the
Company separately unless the laws or regulations of any state shall require
that the expense limitations be imposed with respect to the Company as a whole.

         11.  Non-Exclusivity.  The services of the Advisor to the Company and
the Funds are not to be deemed to be exclusive, and the Advisor shall be free
to render investment advisory and administrative or other services to others
(including other investment companies) and to engage in other activities.  It
is understood and agreed that officers or directors of the Advisor may serve as
officers or directors of the Company, and that officers or directors of the
Company may serve as officers or directors of the Advisor to the extent
permitted by law; and that the officers and directors of the Advisor are not
prohibited from engaging in any other business activity or from rendering
services to any other person, or from serving as partners, officers, directors
or trustees of any other firm or trust, including other investment advisory
companies.

         12.  Term and Approval.  This Agreement shall become effective with
respect to a Fund if approved by the shareholders of such Fund, and if so
approved, this Agreement shall thereafter continue in force and effect until
February 28, 1999, and may be continued from year to year thereafter, provided
that the continuation of the Agreement is specifically approved at least
annually;

                 (a)  (i) by the Company's Board of Directors or (ii) by the
         vote of "a majority of the outstanding voting securities" of such Fund
         (as defined in Section 2(a)(42) of the 1940 Act); and





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                 (b)  by the affirmative vote of a majority of the directors
         who are not parties to this Agreement or "interested persons" (as
         defined in the 1940 Act) of a party to this Agreement (other than as
         Company directors), by votes cast in person at a meeting specifically
         called for such purpose.

         13.  Termination.  This Agreement may be terminated as to the Company
or as to any one or more of the Funds at any time, without the payment of any
penalty, by vote of the Company's Board of Directors or by vote of a majority
of the outstanding voting securities of the applicable Fund or by the Advisor,
on sixty (60) days' written notice to the other party.  The notice provided for
herein may be waived by the party entitled to receipt thereof.  This Agreement
shall automatically terminate in the event of its assignment, the term
"assignment" for purposes of this paragraph having the meaning defined in
Section 2(a)(4) of the 1940 Act.

         14.  Liability of Advisor and Indemnification.  In the absence of
willful misfeasance, bad faith, gross negligence or reckless disregard of
obligations or duties hereunder on the part of the Advisor or any of its
officers, directors or employees, the Advisor shall not be subject to liability
to the Company or to the Funds or to any shareholder of the Funds for any act
or omission in the course of, or connected with, rendering services hereunder
or for any losses that may be sustained in the purchase, holding or sale of any
security.

         15.  Notices.   Any notices under this Agreement shall be in writing,
addressed and delivered, telecopied or mailed postage paid, to the party
entitled to receipt thereof at such address as such party may designate for the
receipt of such notice.  Until further notice to the other party, it is agreed
that the address of the Company shall be and that of the Advisor shall be
Eleven Greenway Plaza, Suite 1919, Houston, Texas 77046.

         16.  Questions of Interpretation.  Any question of interpretation of
any term or provision of this Agreement having a counterpart in or otherwise
derived from a term or provision of the 1940 Act or the Advisers Act shall be
resolved by reference to such term or provision of the 1940 Act or the Advisers
Act and to interpretations thereof, if any, by the United States Courts or in
the absence of any controlling decision of any such court, by rules,
regulations or orders of the Securities and Exchange Commission issued pursuant
to said Acts.  In addition, where the effect of a requirement of the 1940 Act
or the Advisers Act reflected in any provision of the Agreement is revised by
rule, regulation or order of the Securities and Exchange Commission, such
provision shall be deemed to incorporate the effect of such rule, regulation or
order.

         17.  License Agreement.  The Company shall have the non-exclusive
right to use the name "AIM" to designate any current or future series of shares
only so long as A I M Advisors, Inc. serves as investment manager or advisor to
the Company with respect to such series of shares.





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         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in duplicate by their respective officers on the day and year first
written above.


                                        AIM EQUITY FUNDS, INC.
                                        (a Maryland corporation)
Attest:

   /s/ DAVID L. KITE                     By: /s/ ROBERT H. GRAHAM
-------------------------------             --------------------------
    Assistant Secretary                              President


(SEAL)



                                        A I M ADVISORS, INC.
Attest:

    /s/ OFELIA M. MAYO                   By:  /s/ ROBERT H. GRAHAM
-------------------------------             --------------------------
    Assistant Secretary                              President


(SEAL)





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                                   APPENDIX A
                                       TO
                      MASTER INVESTMENT ADVISORY AGREEMENT
                                       OF
                             AIM EQUITY FUNDS, INC.


         The Company shall pay the Advisor, out of the assets of a Fund, as
full compensation for all services rendered and all facilities furnished
hereunder, a management fee for such Fund set forth below.  Such fee shall be
calculated by applying the following annual rates to the average daily net
assets of such Fund for the calendar year computed in the manner used for the
determination of the net asset value of shares of such Fund.


                           AIM AGGRESSIVE GROWTH FUND

<TABLE>
<CAPTION>
        NET ASSETS                                       ANNUAL RATE
        ----------                                       -----------
        <S>                                                  <C>
        First $150 million . . . . . . . . . . . . . . . .    0.80%
        Over $150 million. . . . . . . . . . . . . . . . .   0.625%
</TABLE>


                               AIM BLUE CHIP FUND
                          AIM CAPITAL DEVELOPMENT FUND

<TABLE>
<CAPTION>
        NET ASSETS                                       ANNUAL RATE
        ----------                                       -----------
        <S>                                                  <C>
        First $350 million . . . . . . . . . . . . . . . . .  0.75%
        Over $350 million  . . . . . . . . . . . . . . . . . 0.625%
</TABLE>


                                AIM CHARTER FUND
                             AIM CONSTELLATION FUND

<TABLE>
<CAPTION>
        NET ASSETS                                       ANNUAL RATE
        ----------                                       -----------
        <S>                                                  <C>
        First $30 million . . . . . . . . . . . . . . . . .   1.00%
        Over $30 million to and including $150 million  . .   0.75%
        Over $150 million . . . . . . . . . . . . . . . . .  0.625%
</TABLE>


                              AIM WEINGARTEN FUND

<TABLE>
<CAPTION>
        NET ASSETS                                       ANNUAL RATE
        ----------                                       -----------
        <S>                                                  <C>
        First $30 million . . . . . . . . . . . . . . . . .   1.00%
        Over $30 million to and including $350 million  . .   0.75%
        Over $350 million. . . . . . . . . . . . . . .  . .  0.625%
</TABLE>





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