<PAGE>
PAGE 1
1996 ANNUAL REPORT
IDS Cash Management Fund
(prospectus enclosed)
(Icon of) piggy bank
The goal of Cash Management Fund is to provide maximum current
income consistent with liquidity and stability of principal. The
Fund invests in money market securities.
(This annual report includes a prospectus that describes in detail
the Fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by American Express Financial Advisors Inc.
<PAGE>
PAGE 2
A cache for cash
(Icon of) piggy bank
Keeping a portion of your investment portfolio in a cash reserve is
a cornerstone of a sound financial strategy. And a money market
mutual fund that stresses stability of your investment principal
and easy access when you need it is an excellent way to meet that
need. That's what Cash Management Fund is all about. For you,
that translates into peace of mind, plus a competitive return on
your money.
<PAGE>
PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the Fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1996 annual report
From the president 4
From the portfolio manager 4
Making the most of the Fund 6
Independent auditors' report 7
Financial statements 8
Notes to financial statements 11
Investments in securities 15
IDS mutual funds 19
Federal income tax information 22
1996 prospectus
The Fund in brief 3p
Goal 3p
Investment policies and risks 3p
Manager and distributor 3p
Portfolio manager 3p
Purchases 3p
Sales charge and Fund expenses 4p
Performance 6p
Financial highlights 6p
Yield 8p
Investment policies and risks 9p
Facts about investments and their risks 9p
Alternative investment option 13p
Valuing Fund shares 13p
How to purchase, exchange or redeem shares 14p
Purchases 14p
How to purchase shares 16p
How to exchange shares 19p
How to redeem shares 21p
Class B - contingent deferred sales
charge alternative 27p
Waivers of the contingent deferred sales charge 28p
Special shareholder services 29p
Services 29p
Quick telephone reference 29p
<PAGE>
PAGE 4
Distributions and taxes 30p
Dividend and capital gain distributions 30p
Reinvestments 31p
Taxes 32p
How to determine the correct TIN 33p
How the Fund is organized 34p
Shares 34p
Voting rights 34p
Shareholder meetings 35p
Board members and officers 35p
Investment manager 37p
Administrator and transfer agent 37p
Distributor 38p
About American Express Financial Corporation 39p
General Information 39p
<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce
President of the Fund
(Photo of) Terry Fettig
Portfolio manager
From the president
The volatility in the stock market in recent months has put some
investors, even experienced ones, on edge. Although no one can
know exactly what will happen next, history tells us that ups and
downs are intrinsic to stock investing.
But history also shows that changing strategies with every twist
and turn of the market is an impractical and, worse yet, typically
unproductive way to invest. What matters more, therefore, is how
we react to market volatility. If we take a long-term view and
accept the downs with the ups, we improve our chances of success.
For in the investment world, the race most often goes not the
swift, but to the persistent.
Along the way, of course, you'll still want to review your
investment program to make sure it's on track to achieving your
financial goals. Your American Express financial advisor will help
you do just that, and I suggest you take advantage of his or her
services on a regular basis.
William R. Pearce
From the portfolio manager
IDS Cash Management Fund's yield fluctuated during its fiscal year
(August 1995 through July 1996), tracking a down-then-up trend in
short-term interest rates over the 12 months.
For the seven-day period ended July 31, 1996, the Fund's compound
annualized yield was 5.05%, and the simple annualized yield was
4.95% for Class A shares. In keeping with its objective, the Fund
maintained a stable $1 per share price throughout the 12-month
period. (Although the Fund seeks to maintain a stable $1 share
price, there is no assurance that it will be able to do so. An
investment in the Fund is neither insured nor guaranteed by the
U.S. government.)
Fed lowers rates
At the start of the fiscal year (July 1995), it appeared that
economic growth was moderating while inflation was remaining under
control. In that environment, the Federal Reserve decided to lower
short-term interest rates slightly. Two more of these so-called
"easing" moves were to follow -- one in December and another in
January of 1996. (By way of background, the Fed adjusts short-term
rates based on the condition of the economy and the inflation
outlook. When the economy appears weak and inflation is low, the
Fed usually lowers rates to stimulate economic growth. When the
economy is strong, the Fed usually raises rates to moderate
economic growth and thereby keep inflation in check.)<PAGE>
PAGE 6
While the effect was not dramatic, the rate reductions did lead to
lower rates on the securities this Fund invests in and, ultimately,
to a somewhat lower Fund yield. To counter that effect, we
emphasized investments in securities with longer maturities. By
last February, the average maturity of the portfolio had reached
approximately 53 days, compared with approximately 42 days at the
beginning of the fiscal year.
Rates rise on inflation fear
From that point, and without any action on the part of the Federal
Reserve, short-term rates began edging higher. The impetus was
provided by signs of a strengthening economy and potentially higher
inflation. This modestly higher rate trend remained in place
through July and prompted me to reduce the portfolio's average
maturity to about 45 days by period-end.
It's important to point out that these subtle shifts in the
portfolio's maturity level did not alter the Fund's top priority of
providing a stable cash investment for shareholders. In keeping
with that, I maintained our conservative portfolio-management
approach, which results in an exclusive focus on high-grade
securities (high-quality commercial paper, bankers' acceptances and
certificates of deposit).
At this writing (mid-August), it appears that the most likely
scenario for the months ahead is that short-term rates will follow
a stable-to-rising course. If so, the rates on the securities the
Fund invests in may also increase slightly.
Terry Fettig
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
____________________________
July 31, 1996 $ 1.00
____________________________
July 31, 1995 $ 1.00
____________________________
Increase $ --
____________________________
Distributions
Aug. 1, 1995 - July 31, 1996
____________________________
From income $ 0.05
____________________________
From capital gains $ --
____________________________
Total distributions $ 0.05
____________________________
Total return* +5.1%**
____________________________
<PAGE>
PAGE 7
Class B
12-month performance
(All figures per share)
Net asset value (NAV)
____________________________
July 31, 1996 $ 1.00
____________________________
July 31, 1995 $ 1.00
____________________________
Increase $ --
____________________________
Distributions
Aug. 1, 1995 - July 31, 1996
____________________________
From income $ 0.04
____________________________
From capital gains $ --
____________________________
Total distributions $ 0.04
____________________________
Total return* +4.3%**
____________________________
Class Y
12-month performance
(All figures per share)
Net asset value (NAV)
____________________________
July 31, 1996 $ 1.00
____________________________
July 31, 1995 $ 1.00
____________________________
Increase $ --
____________________________
Distributions
Aug. 31, 1995 - July 31, 1996
____________________________
From income $ 0.05
____________________________
From capital gains $ --
____________________________
Total distributions $ 0.05
____________________________
Total return* +5.1%**
____________________________
*The prospectus discusses the effect of sales charges, if any,
on the various classes.
**The total return is a hypothetical investment in the Fund with
all distributions reinvested.
<PAGE>
PAGE 8
Making the most of the Fund
Average annual total return
(as of July 31, 1996)
1 year Since inception* 5 years 10 years
Class A +5.11% --% +3.77% +5.44%
Class B -0.67% +1.43% --% --%
Class Y +5.10% +5.09% --% --%
*Inception date was March 20, 1995.
The performance of Class B and Class Y will vary from the
performance of Class A based on differences in sales charges and
fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures for Class B reflect the effect of the maximum 5% sales
charge. This was a period of widely fluctuating security prices.
Past performance is no guarantee of future results.
<PAGE>
PAGE 9
Independent auditors' report
The board and shareholders
IDS Money Market Series, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Cash Management Fund (a series of IDS Money Market Series,
Inc.) as of July 31, 1996, and the related statement of operations
for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the ten-year period
ended July 31, 1996. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Cash Management Fund at July 31, 1996, and the results of its
operations for the year then ended, the changes in its net assets
for each of the years in the two-year period then ended, and the
financial highlights for the periods stated in the first paragraph
above, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
September 6, 1996
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PAGE 10
<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS Cash Management Fund
July 31, 1996
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $2,644,249,896) $2,644,249,896
Cash in bank on demand deposit 20,005,018
Accrued interest receivable 3,304,849
_____________________________________________________________________________________________________________
Total assets 2,667,559,763
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Dividends payable to shareholders 1,751,118
Accrued investment management services fee 20,876
Accrued distribution fees 5,518
Accrued transfer agency fee 15,221
Accrued administrative services fee 1,924
Other accrued expenses 551,740
_____________________________________________________________________________________________________________
Total liabilities 2,346,397
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,665,213,366
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 26,653,100
Additional paid-in capital 2,638,591,732
Excess of distributions over net investment income (4,105)
Accumulated net realized loss (Note 1) (27,361)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,665,213,366
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $2,335,391,027
Class B $ 273,151,843
Class Y $ 56,670,496
Net asset value per share of outstanding capital stock: Class A shares 2,335,437,412 $ 1.00
Class B shares 273,186,813 $ 1.00
Class Y shares 56,685,808 $ 1.00
See accompanying notes to financial statements.
<PAGE>
PAGE 11
Financial statements
Statement of operations
IDS Cash Management Fund
Year ended July 31, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Interest $125,450,986
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 6,557,898
Distribution fee -- Class B 1,389,698
Transfer agency fee 5,056,171
Incremental transfer agency fee -- Class B 12,057
Administrative services fee 612,417
Compensation of board members 56,416
Compensation of officers 18,060
Custodian fees 200,244
Postage 654,952
Registration fees 492,443
Reports to shareholders 386,505
Audit fees 32,500
Administrative 14,899
Other 10,079
_____________________________________________________________________________________________________________
Total expenses 15,494,339
Earnings credits on cash balances (Note 2) (14,971)
_____________________________________________________________________________________________________________
Total net expenses 15,479,368
_____________________________________________________________________________________________________________
Investment income -- net 109,971,618
_____________________________________________________________________________________________________________
Realized loss -- net
_____________________________________________________________________________________________________________
Net realized loss (Note 3) (2,565)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $109,969,053
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 12
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Cash Management Fund
Year ended July 31,
_____________________________________________________________________________________________________________
Operations and distributions 1996 1995
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 109,971,618 $ 73,765,640
Net realized gain (loss) (2,565) 755
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 109,969,053 73,766,395
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (98,832,686) (71,448,349)
Class B (7,718,760) (871,329)
Class Y (3,425,225) (1,445,224)
_____________________________________________________________________________________________________________
Total distributions (109,976,671) (73,764,902)
_____________________________________________________________________________________________________________
Capital share transactions at constant $1 net asset value
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares 6,873,710,335 5,083,998,091
Class B shares 546,797,564 145,099,672
Class Y shares 137,595,869 149,989,216
Fund merger (Note 4)
Class A shares -- 12,051,967
Reinvestment of distributions at net asset value
Class A shares 96,280,970 68,543,809
Class B shares 7,549,183 804,519
Class Y shares 3,059,283 1,211,841
Payments for redemptions
Class A shares (6,341,900,642) (4,610,927,088)
Class B shares (Note 2) (379,219,480) (47,855,995)
Class Y shares (169,773,277) (65,397,125)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 774,099,805 737,518,907
_____________________________________________________________________________________________________________
Total increase in net assets 774,092,187 737,520,400
Net assets at beginning of year 1,891,121,179 1,153,600,779
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$(4,105) and $948) $2,665,213,366 $1,891,121,179
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 13
Notes to Financial Statements
IDS Cash Management Fund
___________________________________________________________________
1. Summary of significant accounting policies
The Fund is a series of IDS Money Market Series, Inc. and is
registered under the Investment Company Act of 1940 (as amended) as
a diversified, open-end management investment company. The Fund
invests in money market securities. The Fund offers Class A, Class
B and Class Y shares. Class A shares have no sales charge. Class B
shares may be subject to a contingent deferred sales charge and
such shares automatically convert to Class A after eight years.
Class Y shares have no sales charge and are offered only to
qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee and transfer agent fee (class
specific expenses) differs among classes. Income, expenses (other
than class specific expenses) and realized and unrealized gains or
losses on investments are allocated to each class of shares based
upon its relative net assets.
Significant accounting policies followed by the Fund are summarized
below:
Use of estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from
those estimates.
Valuation of securities
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued
daily at amortized cost, which approximates market value, in order
to maintain a constant net asset value of $1 per share.
Federal taxes
Since the Fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
<PAGE>
PAGE 14
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes. The character of
distributions made during the year from net investment income or
net realized gains may differ from their ultimate characterization
for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains (losses) were recorded by the Fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, additional paid-in-capital and
accumulated net realized loss have been decreased by $6,356.
Dividends to shareholders
Dividends from net investment income, declared daily and payable
monthly, are reinvested in additional shares of the Fund at net
asset value or payable in cash.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income, including amortization of
premium and discount, is accrued daily.
___________________________________________________________________
2. Expenses and sales charges
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for managing its portfolio,
providing administrative services and serving as transfer agent.
Under its Investment Management Services Agreement, AEFC determines
which securities will be purchased, held or sold. The management
fee is a percentage of the Fund's average daily net assets in
reducing percentages from 0.31% to 0.24% annually.
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the
Fund's average daily net assets in reducing percentages from 0.03%
to 0.02% annually.
Under a separate Transfer Agency Agreement, AEFC maintains
shareholder accounts and records. The Fund pays AEFC an annual fee
per shareholder account for this service as follows:
o Class A $20
o Class B $21
o Class Y $20
Also effective March 20, 1995, the Fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services. Under a Plan and Agreement
of Distribution, the Fund pays a distribution fee at an annual rate
of 0.75% of the Fund's average daily net assets attributable to
Class B shares for distribution-related services.
<PAGE>
PAGE 15
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges received by American Express Financial Advisors Inc.
for distributing Class B shares were $463,819 for the year ended
July 31, 1996.
During the year ended July 31, 1996 the Fund's custodian and
transfer agency fees were reduced by $14,971 as a result of
earnings credits from overnight cash balances.
Prior to April 30, 1996, the Fund had a retirement plan for its
independent board members. The plan was terminated April 30, 1996.
The retirement plan expense amounted to $19,134 for the year. The
total liability for the plan is $81,619, which will be paid out at
some future date.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities aggregated
$14,931,282,848 and $14,165,430,515, respectively, for the year
ended July 31, 1996. Realized gains and losses are determined on an
identified cost basis.
___________________________________________________________________
4. Fund merger
Effective with the close of business on Nov. 18, 1994, IDS Planned
Investment Account was acquired by IDS Cash Management Fund. The
merger was accomplished by a tax free exchange of 12,051,967 shares
of the IDS Cash Management Fund with a net asset value of $1 per
share for net assets of $12,051,967 from the IDS Planned Investment
Account.
___________________________________________________________________
5. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 6 and 7 of the prospectus.
<PAGE>
PAGE 16
<TABLE>
<CAPTION>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1996 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.7%)
Farm Credit Disc Nts
08-15-96 5.02% $20,000,000 $ 19,961,889
03-03-97 5.17 15,000,000 14,981,398
U.S. Treasury Bills
08-22-96 4.97 10,000,000 9,971,708
_____________________________________________________________________________________________________________________________
Total U.S. government agencies
(Cost: $44,914,995) 44,914,995
_____________________________________________________________________________________________________________________________
Certificates of deposit (5.2%)
Eurodollar
ABN Amro Yankee
03-18-97 5.53 15,000,000 14,991,819
Canadian Imperial Bank Yankee
08-28-96 5.37 15,000,000 15,000,000
01-09-97 5.50 10,000,000 10,000,000
03-20-97 5.71 10,000,000 10,000,000
04-15-97 5.75 5,000,000 5,000,000
Commerzbank Yankee
03-19-97 5.68 10,000,000 10,000,000
Deutsche Bank Yankee
03-21-97 5.73 20,000,000 20,000,000
04-11-97 5.73 5,000,000 4,999,502
Societe Generale Yankee
02-24-97 5.35 13,000,000 13,000,000
03-04-97 5.44 10,000,000 10,000,000
03-12-97 5.60 10,000,000 10,000,000
04-15-97 5.90 5,000,000 5,000,000
06-03-97 5.90 10,000,000 10,000,000
_____________________________________________________________________________________________________________________________
Total certificates of deposit
(Cost: $137,991,321) 137,991,321
_____________________________________________________________________________________________________________________________
Commercial paper (72.6%)
_____________________________________________________________________________________________________________________________
Banks and savings & loans (12.2%)
ABN Amro North American Finance
08-22-96 5.07 20,000,000 19,942,250
BBV Finance Delaware
08-09-96 5.39 20,000,000 19,976,133
Ciesco LP
08-16-96 5.43 18,100,000 18,059,426
08-21-96 5.40 9,200,000 (b) 9,172,655
09-03-96 5.33 8,700,000 8,657,732
First Bank
08-05-96 5.35 20,000,000 20,000,000
First Union Bank
06-06-97 5.95 5,000,000 5,000,000
See accompanying notes to investments in securities.
<PAGE>
PAGE 17
Fleet Funding
08-01-96 5.40 23,548,000 (b) 23,548,000
08-08-96 5.42 5,472,000 (b) 5,466,265
08-09-96 5.40 15,965,000 (b) 15,945,948
08-30-96 5.32 15,000,000 (b) 14,935,958
08-30-96 5.33 21,300,000 (b) 21,209,061
09-04-96 5.34 11,584,000 (b) 11,525,797
Kredietbank
North American Finance
08-05-96 5.41 26,200,000 26,184,309
10-15-96 5.49 8,000,000 7,909,500
10-29-96 5.50 8,500,000 8,385,895
11-18-96 5.47 15,000,000 14,757,475
Natl Australia Funding
Delaware
10-01-96 5.46 15,000,000 14,862,496
Natl Bank Detroit
08-12-96 5.40 15,000,000 14,975,342
NationsBank
09-04-96 5.40 20,000,000 20,000,000
PNC Bank
12-20-96 5.41 10,000,000 (c) 9,998,506
Societe Generale North America
08-08-96 5.43 15,000,000 14,984,221
_____________
Total 325,496,969
_____________________________________________________________________________________________________________________________
Brokers dealers (12.5%)
Goldman Sachs Group
08-05-96 5.36 19,000,000 18,988,769
08-08-96 5.39 6,300,000 6,293,434
08-23-96 5.39 25,000,000 24,918,569
09-09-96 5.50 18,000,000 17,893,725
10-21-96 5.53 27,800,000 27,457,852
Merrill Lynch
08-22-96 5.42 12,000,000 11,962,410
08-22-96 5.43 12,400,000 12,360,940
08-29-96 5.42 9,900,000 9,858,574
08-30-96 5.41 20,000,000 19,913,483
09-10-96 5.50 15,000,000 14,909,167
09-16-96 5.45 20,000,000 19,862,000
10-10-96 5.44 10,000,000 9,896,944
10-17-96 5.52 23,500,000 23,226,062
Morgan Stanley
Group
08-01-96 5.38 13,600,000 13,600,000
08-14-96 5.40 8,100,000 8,084,293
09-03-96 5.35 38,000,000 37,814,687
09-04-96 5.35 14,500,00 14,427,009
09-05-96 5.37 40,000,000 39,792,333
_____________
Total 331,260,251
_____________________________________________________________________________________________________________________________
Commercial finance (0.5%)
PACCAR Financial
08-02-96 5.42 14,150,000 14,147,878
_____________________________________________________________________________________________________________________________
Consumer finance -- personal loans (3.8%)
Avco Financial
08-01-96 5.40 2,000,000 2,000,000
08-27-96 5.34 13,300,000 13,249,379
10-17-96 5.53 5,000,000 4,941,608
10-30-96 5.49 19,600,000 19,334,420
10-30-96 5.52 8,000,000 7,891,000
11-01-96 5.51 10,900,000 10,748,466
Household Finance
08-26-96 5.42 20,000,000 19,925,417
10-01-96 5.47 24,500,000 24,274,995
_____________
Total 102,365,285
_____________________________________________________________________________________________________________________________
Energy (1.5%)
Chevron Transport
08-21-96 5.43 10,000,000 (b) 9,970,111
08-28-96 5.35 10,000,000 (b) 9,960,400
09-16-96 5.45 10,000,000 (b) 9,931,000
10-21-96 5.50 10,000,000 (b) 9,877,825
_____________
Total 39,739,336
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 18
Financial services (19.3%)
American General Capital Services
08-26-96 5.44 20,000,000 19,925,139
Associates
North America
08-06-96 5.39 6,000,000 5,995,525
08-23-96 5.45 20,000,000 19,933,755
08-26-96 5.43 9,000,000 8,966,375
08-29-96 5.37 15,500,000 15,435,623
08-30-96 5.38 19,000,000 18,918,115
09-03-96 5.35 14,000,000 13,931,727
09-09-96 5.40 25,000,000 24,854,563
09-25-96 5.42 15,000,000 14,876,937
Beneficial
08-15-96 5.40 15,000,000 14,968,617
08-29-96 5.35 20,000,000 19,917,089
09-12-96 5.39 15,500,000 15,403,254
CAFCO
08-20-96 5.34 6,000,000 5,983,312
CIT Group Holdings
08-22-96 5.43 6,100,000 6,080,821
Commercial Credit
08-08-96 5.39 18,000,000 17,981,205
08-14-96 5.40 10,500,000 10,479,601
Dean Witter, Discover & Co.
08-26-96 5.32 27,100,000 27,000,256
Ford Motor Credit
08-15-96 5.37 30,000,000 29,937,582
08-23-96 5.43 20,000,000 19,934,243
09-13-96 5.39 14,700,000 14,606,063
General Electric
Capital
08-28-96 5.44 10,000,000 9,959,575
08-29-96 5.32 18,000,000 17,925,800
General Electric
Capital Services
08-08-96 5.42 13,000,000 12,986,350
08-20-96 5.38 11,500,000 11,467,711
08-22-96 5.43 25,000,000 24,921,542
Toyota Motor Credit
08-01-96 5.39 13,600,000 13,600,000
08-26-96 5.39 17,300,000 17,235,605
Transamerica Financial
08-02-96 5.40 9,000,000 8,998,655
08-09-96 5.42 12,000,000 11,985,600
08-19-96 5.35 7,700,000 7,679,671
08-21-96 5.44 15,000,000 14,955,082
08-26-96 5.43 10,000,000 9,962,638
08-27-96 5.46 4,800,000 4,781,210
09-09-96 5.44 5,200,000 5,169,580
09-16-96 5.42 16,500,000 16,386,571
______________
Total 513,145,392
_____________________________________________________________________________________________________________________________
Food (3.1%)
Cargill Financial Services
08-01-96 5.65 1,500,000 1,500,000
10-08-96 5.53 12,000,000 11,876,240
CPC Intl
08-16-96 5.38 10,000,000 (b) 9,977,917
09-06-96 5.35 8,400,000 (b) 8,355,312
09-27-96 5.48 12,500,000 (b) 12,392,729
10-17-96 5.49 29,500,000 (b) 29,158,013
10-22-96 5.49 8,400,000 (b) 8,296,297
______________
Total 81,556,508
_____________________________________________________________________________________________________________________________
Health care (2.9%)
Becton Dickinson
08-28-96 5.44 22,000,000 21,910,900
Sandoz
08-02-96 5.35 10,000,000 (b) 9,998,533
09-05-96 5.41 12,000,000 11,937,350
09-10-96 5.47 12,100,000 (b) 12,027,131
09-11-96 5.40 15,000,000 14,908,262
09-11-96 5.41 6,200,000 (b) 6,162,082
SmithKline
08-13-96 5.40 1,100,000 1,098,027
______________
Total 78,042,285
<PAGE>
PAGE 19
Industrial equipment & services (1.4%)
Mobil Australia Finance
Delaware
08-02-96 5.35 9,000,000 (b) 8,998,675
08-09-96 5.39 16,879,000 (b) 16,858,933
09-17-96 5.39 11,098,000 (b) 11,020,483
______________
Total 36,878,091
_____________________________________________________________________________________________________________________________
Insurance (3.6%)
American General
Finance
08-13-96 5.41 30,000,000 29,946,300
08-23-96 5.42 15,200,000 15,150,119
09-27-96 5.42 13,500,000 13,385,216
Metlife
08-16-96 5.40 25,502,000 25,445,152
SAFECO Credit
08-21-96 5.42 11,000,000 10,967,183
______________
Total 94,893,970
_____________________________________________________________________________________________________________________________
Media (3.2%)
Gannett
10-11-96 5.54 7,600,000 (b) 7,518,011
10-16-96 5.54 8,300,000 (b) 8,204,153
10-17-96 5.54 17,800,000 (b) 17,591,745
10-18-96 5.54 15,000,000 (b) 14,822,225
Reed Elsevier
08-26-96 5.42 6,200,000 (b) 6,176,793
09-06-96 5.49 10,000,000 (b) 9,945,800
09-11-96 5.44 11,600,000 (b) 11,528,660
09-20-96 5.44 8,500,000 (b) 8,436,250
______________
Total 84,223,637
_____________________________________________________________________________________________________________________________
Retail (1.0%)
Penney (JC) Funding
08-27-96 5.37 20,000,000 19,922,867
09-24-96 5.41 7,700,000 7,638,092
______________
Total 27,560,959
_____________________________________________________________________________________________________________________________
Utilities -- electric (0.7%)
Northern States Power
08-26-96 5.43 19,500,000 19,427,146
_____________________________________________________________________________________________________________________________
Utilities -- gas (0.5%)
Southern California Gas
08-08-96 5.37 6,500,000 (b) 6,493,301
10-29-96 5.53 7,000,000 (b) 6,905,512
______________
Total 13,398,813
_____________________________________________________________________________________________________________________________
Utilities -- telephone (4.5%)
Ameritech
08-13-96 5.40 7,500,000 7,486,625
11-25-96 5.43 10,000,000 9,829,544
Ameritech Capital
08-05-96 5.36 25,000,000 (b) 24,985,222
AT&T
08-28-96 5.43 43,700,000 43,524,007
BellSouth Capital Funding
09-03-96 5.42 16,000,000 15,921,093
U S WEST Communications
08-12-96 5.43 16,000,000 15,973,698
10-07-96 5.50 3,100,000 3,068,614
______________
Total 120,788,803
_____________________________________________________________________________________________________________________________
Miscellaneous (1.9%)
Canadian Wheat Board
08-22-96 4.94 6,400,000 6,381,557
Chevron UK
08-27-96 5.43 10,000,000 9,961,145
10-31-96 5.56 10,000,000 9,861,478
Natl West Canada
10-29-96 5.33 25,000,000 24,663,160
______________
Total 50,867,340
<PAGE>
PAGE 20
Total commercial paper
(Cost: $1,933,792,663) 1,933,792,663
_____________________________________________________________________________________________________________________________
Letters of credit (19.8%)
ABN Amro-
Omnicom Finance
08-14-96 5.43 10,000,000 9,980,464
Bank of America-
Hyundai Motor Finance
09-30-96 5.45 30,000,000 29,730,000
Bank of New York-
River Fuel
09-04-96 5.39 23,975,000 (b) 23,853,407
Barclays Bank-
Banco Real
10-01-96 5.43 12,000,000 11,892,234
Barclays Bank-
Centerior Fuel
08-06-96 5.43 12,440,000 12,430,670
Barclays Bank-
Petrobras
08-22-96 5.44 12,000,000 11,962,620
Canadian Imperial Bank-
Commed Fuel
08-16-96 5.43 8,285,000 8,266,359
08-20-96 5.43 5,750,000 5,733,704
Chase Manhattan-
Somerset Rail
08-23-96 5.40 12,300,000 12,259,560
Chemical Bank-
Somerset Rail
08-07-96 5.45 13,400,000 13,387,873
Credit Agricole-
Louis Dreyfus
08-07-96 5.42 22,000,000 21,980,200
08-07-96 5.44 25,000,000 24,977,416
08-08-96 5.45 10,000,000 9,989,461
08-23-96 5.43 14,100,000 14,053,556
Credit Suisse-
CAFCO Capital
08-07-96 5.39 15,000,000 14,986,650
08-19-96 5.45 15,000,000 14,959,500
08-26-96 5.41 10,000,000 9,962,917
Credit Suisse-
Commed Fuel
08-12-96 5.43 13,843,000 13,820,244
Credit Suisse-
North American Finance
09-10-96 5.49 13,000,000 12,921,278
Credit Suisse-
Sinochem
08-02-96 5.39 10,000,000 9,998,517
08-06-96 5.35 12,300,000 12,290,945
08-20-96 5.36 10,000,000 9,972,081
Credit Suisse-
Sunkyong
09-10-96 5.50 12,000,000 11,928,000
Dresdner Bank-
Galicia Buenos Aires Funding
10-21-96 5.52 20,000,000 (b) 19,754,750
First Chicago-
Commed Fuel
09-06-96 5.44 14,822,000 14,742,109
Societe Generale-
China Intl Marine Container
09-26-96 5.48 10,000,000 9,915,689
Societe Generale-
Natl Bank
10-01-96 5.47 15,000,000 14,862,242
Societe Generale-
Natl Finaceria
08-05-96 5.43 10,000,000 9,994,000
Swiss Bank-
Pemex Capital
10-10-96 5.52 10,000,000 9,894,028
Union Bank Switzerland-
Southwest Gas
08-01-96 5.66 27,400,000 27,400,000
09-09-96 5.49 15,537,000 15,445,435
<PAGE>
PAGE 21
Westdeutsche Landesbank-
Beal Cayman Brazil
08-22-96 5.38 11,000,000 10,965,863
08-26-96 5.44 15,000,000 14,943,854
08-27-96 5.48 15,000,000 14,941,174
Westdeutsche Landesbank-
Hillsborough County
08-27-96 5.42 20,000,000 19,922,144
09-24-96 5.50 13,615,000 13,504,106
Westdeutsche Landesbank-
Unibanco
09-18-96 5.46 10,000,000 9,927,867
_____________________________________________________________________________________________________________________________
Total letters of credit
(Cost: $527,550,917) 527,550,917
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $2,644,249,896)(d) $2,644,249,896
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors."
This security has been determined to be liquid under guidelines established by the board.
(c) Interest rate varies to reflect current market conditions; rate shown is the effective rate on July 31, 1996.
(d) Also represents the cost of securities for federal income tax purposes at July 31, 1996.
</TABLE>
<PAGE>
PAGE 22
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) coins
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 23
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) shield with eagle head enclosed
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column enclosed
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with star enclosed
<PAGE>
PAGE 24
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Managed Allocation Fund
Invests in U.S. equity securities, U.S. and foreign debt
securities, foreign equity securities and money market instruments.
The fund provides diversification among these major investment
categories and has a target mix that represents the way the fund's
investments will be allocated over the long term. Seeks maximum
total return.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three pine trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 25
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) light bulb
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) two puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Small Company Index Fund
Invests in all or a representative group of the equity securities
comprising the S&P SmallCap 600 Index, as it strives to provide
long-term capital appreciation.
(icon of) office building
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
<PAGE>
PAGE 26
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Research Opportunities Fund
Invests primarily in equity securities of companies included in the
S&P 500 Index that are believed to have strong growth potential.
The Portfolio is managed using a research methodology by the
Research Department of AEFC. Goal is long-term appreciation.
(icon of) magnifying glass
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) trees
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) dimension
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
<PAGE>
PAGE 27
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 28
Federal income tax information
IDS Cash Management Fund
___________________________________________________________________
The Fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of last year
will be reported to you on a tax statement sent in January.
Shareholders should consult a tax advisor on how to report
distributions for state and local purposes.
IDS Cash Management Fund
Fiscal year ended July 31, 1996
Class A
Income distributions -- taxable as dividend income, none qualifying
for deduction by corporations.
Payable date Per share
Aug. 28, 1995 $0.00432
Sept. 27, 1995 0.00459
Oct. 27, 1995 0.00428
Nov. 28, 1995 0.00456
Dec. 28, 1995 0.00425
Jan. 26, 1996 0.00405
Feb. 28, 1996 0.00443
March 28, 1996 0.00380
April 29, 1996 0.00394
May 29, 1996 0.00414
June 27, 1996 0.00374
July 29, 1996 0.00394
Total distributions $0.05004
Class B
Income distributions -- taxable as dividend income, none qualifying
for deduction by corporations.
Payable date Per share
Aug. 28, 1995 $0.00371
Sept. 27, 1995 0.00393
Oct. 27, 1995 0.00366
Nov. 28, 1995 0.00390
Dec. 28, 1995 0.00363
Jan. 26, 1996 0.00345
Feb. 28, 1996 0.00375
March 28, 1996 0.00320
<PAGE>
PAGE 29
April 29, 1996 0.00332
May 29, 1996 0.00348
June 27, 1996 0.00314
July 29, 1996 0.00332
Total distributions $0.04249
Class Y
Income distributions -- taxable as dividend income, none qualifying
for deduction by corporations.
Payable date Per share
Aug. 28, 1995 $0.00432
Sept. 27, 1995 0.00459
Oct. 27, 1995 0.00428
Nov. 28, 1995 0.00456
Dec. 28, 1995 0.00424
Jan. 26, 1996 0.00405
Feb. 28, 1996 0.00443
March 28, 1996 0.00380
April 29, 1996 0.00394
May 29, 1996 0.00414
June 27, 1996 0.00374
July 29, 1996 0.00394
Total distributions $0.05003
<PAGE>
PAGE 30
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
AMERICAN
EXPRESS
Financial
Advisors
IDS Cash Management Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 31
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report are
placed in a blue strip
at the top of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
