<PAGE>
PAGE 1
Statement of Additional Information
Supplement-----July 31, 1995*
IDS Discovery Fund Form No. S-6457-20 M (3/95)
In the "Additional Investment Policies" section , the following
policies were added to the beginning of the section and can only
be changed by shareholders :
The fund will not:
'Act as an underwriter (sell securities for others). However,
under the securities laws, the fund may be deemed to be an
underwriter when it purchases securities directly from the issuer
and later resells them.
'Borrow money or property, except as a temporary measure for
extraordinary or emergency purposes, in an amount not exceeding
one-third of the market value of its total assets (including
borrowings) less liabilities (other than borrowings) immediately
after the borrowing. The fund has not borrowed in the past and has
no present intention to borrow.
'Make cash loans if the total commitment amount exceeds 5% of the
fund's total assets.
The following policies that may be changed by the board of
directors were modified to read:
'The fund may make contracts to purchase securities for a
fixed price at a future date beyond normal settlement time (when-
issued securities or forward commitments). Under normal market
conditions, the fund does not intend to commit more than 5% of its
total assets to these practices.
The fund does not pay for the securities or receive dividends or
interest on them until the contractual settlement date. The fund
will designate cash or liquid high-grade debt securities at least
equal in value to its commitments to purchase the securities.
When-issued securities or forward commitments are subject to market
fluctuations and they may affect the fund's total assets the same
as owned securities.
''The fund may maintain a portion of its assets in cash and cash-
equivalent investments. The cash-equivalent investments the fund
may use are short-term U.S. and Canadian government securities and
negotiable certificates of deposit, non-negotiable fixed-time
deposits, bankers' acceptances and letters of credit of banks or
savings and loan associations having capital, surplus and undivided
profits (as of the date of its most recently published annual
financial statements) in excess of $100 million (or the equivalent
in the instance of a foreign branch of a U.S. bank) at the date of
investment. Any cash-equivalent investment in foreign securities
will be subject to the limitations on foreign investments described
in the prospectus. The fund also may repurchase short -term
corporate notes and obligations rated in the top two
classifications by Moody's Investors Service, Inc. or Standard &
Poor's Corporation or the equivalent and may use repurchase
agreements with broker-dealers registered under the Securities
Exchange Act of 1934 and with commercial banks. A risk of a<PAGE>
PAGE 2
repurchase agreement is that if the seller seeks the protection of
the bankruptcy laws, the fund's ability to liquidate the security
involved could be impaired.
S- 6457-22A ( 7/95)
* Valid until next prospectus update
