Prospectus Supplement February 28, 2000*
AXP Bond Fund S-6495 N (10/99)
AXP Extra Income Fund S-6370 N (7/99)
AXP Federal Income Fund S-6042 P (7/99)
AXP Global Bond Fund S-6309 N (12/99)
AXP High Yield Tax-Exempt Fund S-6430 R (1/00)
AXP Insured Tax-Exempt Fund S-6327 N (8/99)
AXP Intermediate Tax-Exempt Fund S-6355 F (1/00)
AXP Massachusetts Tax-Exempt Fund S-6328 N (8/99)
AXP Michigan Tax-Exempt Fund S-6328 N (8/99)
AXP Minnesota Tax-Exempt Fund S-6328 N (8/99)
AXP New York Tax-Exempt Fund S-6328 N (8/99)
AXP Ohio Tax-Exempt Fund S-6328 N (8/99)
AXP Selective Fund S-6376 P (7/99)
AXP Tax-Exempt Bond Fund S-6310 R (1/00)
Effective March 20, 2000, the "SALES CHARGES" information is revised as follows:
Class A - initial sales charge alternative
When you purchase Class A shares, you pay a sales charge as shown in the
following table:
Total investment Sales charge as percentage of :
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Public offering pricea Net amount invested
- -------------------- ----------------------------------- -----------------------
- -------------------- ----------------------------------- -----------------------
Up to $50,000 4.75%
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- -------------------- ----------------------------------- -----------------------
$50,000-$99,999 4.50
- -------------------- ----------------------------------- -----------------------
- -------------------- ----------------------------------- -----------------------
$100,000-$249,999 3.75
- -------------------- ----------------------------------- -----------------------
- -------------------- ----------------------------------- -----------------------
$250,000-$499,999 2.50
- -------------------- ----------------------------------- -----------------------
- -------------------- ----------------------------------- -----------------------
$500,000-$999,999 2.00**
- -------------------- ----------------------------------- -----------------------
- -------------------- ----------------------------------- -----------------------
$1,000,000 or more 0.00
- -------------------- ----------------------------------- -----------------------
aOffering price includes a 4.75% sales charge.
**The sales charge will be waived until Dec. 31, 2000.
All other references to the sales charge on Class A shares are revised to
reflect a 4.75% Maximum sales charge. These references are found in the
paragraph on "Past Performance," "Fees and Expenses" and "Investment Options."
The second bullet under the section titled "Other Class A sales charge policies"
has been revised as follows:
o If you intend to invest a large amount over a period of 13 months, you can
reduce the sales charge in Class A by filing a letter of intent. For more
details, please see the SAI.
S-6319 A (2/00)
*Destroy next prospectus update
