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IDS HIGH YIELD TAX-EXEMPT FUND
Fund Profile
dated Dec. 22, 1995
This profile contains key information about the Fund. More details
appear in the Fund's accompanying prospectus.
1. Goal: The Fund seeks to provide shareholders with a high yield
generally exempt from federal income taxes.
2. Investment Strategies: The Fund usually invests in medium- and
lower-quality bonds and notes issued by or on behalf of state and
local governmental units whose interest generally is exempt from
federal income tax.
3. Risks: Some of the Fund's investments may be considered
speculative and involve additional investment risks. Medium- and
lower-quality bonds have greater price fluctuations and are more
likely to experience a default than investment grade bonds.
4. Appropriateness: The Fund is designed for long-term investors
who are willing to tolerate fluctuations in principal in exchange
for the potential for higher yields, and whose yield from
investments exempt from federal income tax would exceed their
after-tax return from similar taxable investments.
5. Fees and expenses: Shareholder transaction expenses are
incurred by an investor upon the purchase or redemption of Fund
shares. Fund operating expenses are paid out of the Fund's assets
and are not charged directly to shareholder accounts, and are
reflected in the Fund's daily share price and dividends.
Shareholder transaction expenses
Class A Class B Class Y
Maximum sales charge on purchases
(as a percentage of offering price).......5% 0% 0%
Maximum deferred sales charge
imposed on redemptions (as a
percentage of original purchase price)....0% 5% 0%
Annual fund operating expenses*
(% of average daily net assets):
Class A Class B Class Y
Management fee 0.44% 0.44% 0.44%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses 0.28% 0.28% 0.10%
Total 0.72% 1.47% 0.54%
* Expenses for Class A are based on actual expenses for the last
fiscal year, restated to reflect current fees. Expenses for
Class B and Class Y are estimated based on the restated expenses <PAGE>
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for Class A, except that the 12b-1 fee and transfer agency fee
(under other expenses) for Class B are based on agreements for
that class and that Class Y does not have a service fee.
Example: Suppose for each year for the next 10 years, Fund
expenses are as above and annual return is 5%. If you sold your
shares at the end of the following years, for each $1,000 invested,
you would pay total expenses of:
1 year 3 years 5 years 10 years
Class A $57 $72 $88 $135
Class B $65 $86 $99 $154**
Class B* $15 $46 $79 $154**
Class Y $ 6 $17 $30 $ 68
* Assuming Class B shares are not redeemed at the end of the
period.
** Based on conversion of Class B shares to Class A shares after
eight years.
This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown.
6. Past Performance:
Performance
(Average Annual Returns 1985-1994)
25
20 20.9 20.3
18.8 19.1
15
11.4 12.1 12.3
10 10.2 10.7 12.1 8.8 9.7
7.8 7.4 8.7
5 5.1
3.2
0 0.3
-4.6
-5 -5.2
-10
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
XX IDS High Yield Tax-Exempt
XX Lehman Muni. Bond Index
The graph above does not reflect the imposition of a sales charge
at the time of purchase or redemption.
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Average annual total returns as of Sept. 30, 1995
Purchase made 1 year ago 5 years ago 10 years ago
Class A 4.98% 7.02% 8.62%
The returns shown above reflect maximum sales charges. Total
returns for Class A, Class B and Class Y for the period from March
20, 1995 to Sept. 30, 1995 were +0.23%, +0.25% and +5.69%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
The Fund's SEC standardized yield for the 30-day period ending
Sept. 30, 1995 was 5.11% for Class A, 4.62% for Class B and 5.53%
for Class Y.
Returns shown should not be considered a representation of the
Fund's future performance.
7. Investment Advisor: The Fund's investment advisor is American
Express Financial Corporation.
8. Purchases: You may purchase shares by contacting your financial
advisor. The minimum initial investment (other than investments
made by scheduled investment plan or by wire) is $2,000. Sales
charges on Class A shares range from 5.0% of the public offering
price on the first $50,000 invested to 0% of the public offering
price on amounts invested of $1,000,000 or more. No sales charge
applies at the time of purchase of Class B shares although Class B
shares may be subject to a contingent deferred sales charge ranging
from 5% to 1% on redemptions made within six years and are subject
to annual distribution (12b-1) fees. Class Y shares are sold
without a sales charge to qualified institutional investors.
9. Redemptions: To sell (redeem) your shares, contact your
financial advisor. Holders of Class B shares may be subject to a
sales charge if they redeem within six years of purchase.
10. Distributions: The Fund distributes its net investment income,
including short-term capital gains, to shareholders of record
monthly. Net realized long-term capital gains, if any, from
selling securities are distributed at the end of the calendar year.
Dividends and capital gain distributions are automatically
reinvested in additional shares of the Fund unless you make
alternative arrangements.
11. Other Services: You may redeem or exchange shares, and obtain
additional information about your account and the Fund, by
telephone. The Fund also provides telephone service for the
hearing impaired. To help you track and evaluate the performance
of your shares, American Express Financial Corporation provides you
with quarterly statements, yearly tax statements and a personalized
mutual fund progress report.
