<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS Growth Fund
1994 annual report
(prospectus enclosed)
(Icon of) Flower
The goal of IDS Growth Fund, Inc. is long-term growth of capital.
The fund invests primarily in common stocks and securities
convertible into common stocks.
(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.)
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.<PAGE>
PAGE 2
(Icon of) Flower
Going for Growth
In the long run, a company's stock price usually reflects its
business fortunes. Therefore, if a company thrives, its stock
tends to follow suit. That's why many long-term investors,
including Growth Fund, focus on growth stocks--those of companies
that enjoy rising sales and profits. While there will be
interruptions along the way, patient investors look forward to
sharing in that same prosperity.<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.
1994 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 21
IDS mutual funds 24
Federal income tax information 27
1994 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Key terms 7p
Investment policies
Facts about investments and their risks 9p
Valuing assets 13p
How to buy, exchange or sell shares
How to buy shares 14p
How to exchange shares 16p
How to sell shares 16p
Reductions of the sales charge 20p
Waivers of the sales charge 21p
Special shareholder services
Services 22p
Quick telephone reference 22p
<PAGE>
PAGE 4
Distributions and taxes
Dividend and capital gain distributions 23p
Reinvestments 23p
Taxes 24p
How the fund is organized
Shares 27p
Voting rights 27p
Shareholder meetings 27p
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About IDS
General information 31p
(This annual report is not part of the prospectus.)<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) Mitzi Malevich, Portfolio manager
From the president
Your fund, like all the funds in the IDS MUTUAL FUND GROUP, is
preparing for an important meeting of the shareholders on Nov. 9,
1994. If you have not already received the proxy statement by the
time you receive this annual report and prospectus, you will
receive it shortly.
The proxy statement presents the agenda for the shareholder meeting
as briefly and simply as possible, and in compliance with all the
applicable requirements. While it is long, and sometimes complex,
the issues it presents are important--as is your response. Unless
the hodlers of at least 50% of the outstanding shares vote their
shares promptly, we cannot consider all of the issues. If enough
votes are not returned, we will have to make an effort to obtain
additional votes, which will be costly for the fund. So, we
encourage you to study the proxy statement carefully and vote the
shares you own promptly.
As you read this report, you'll find it's substantially different
from those you've received from us in the past. We asked IDS
financial planners and some of you for suggestions and
recommendations. We hope the changes we've made to the design and
organization will help make information easier to find and
understand.
William R. Pearce
From the portfolio manager
A highly volatile environment for growth stocks made for an up-and-
down performance by the fund during the past fiscal year.
Nevertheless, the fund's gains exceeded its setbacks by a
comfortable margin, providing shareholders with a 7% total return
(net asset value change plus distributions) for the 12 months ended
July 31, 1994. In the process, the fund handily outperformed the
stock market as a whole, as measured by the Standard & Poor's 500
Stock Index, an unmanaged group of stocks commonly used to
determine how stocks in general performed. (As you'll note from
the table on the adjacent page, the fund's net asset value
declined. This was a result of a substantial capital gain
distribution made to shareholers last December. Capital gain
payouts reduce the net asset value by a like amount.)
A good portion of the fund's advance came in 1993, as growth stocks
fared very well from August through mid-October. Our holdings
among telecommunications, technology (especially in the computer
software sector) and foreign stocks were particularly productive
during that time.
<PAGE>
PAGE 6
A roller-coaster ride
That surge was short-lived, however. A general market decline
fueled by rising long-term interest rates in the latter half of
October carried over into November and had an adverse effect on the
fund. Our foreign stocks, particularly in Medico, picked up some
of the slack, though, as they received a boost from passage of
NAFTA (the North American Free Trade Agreement) late in 1993.
The roller-coaster investment environment continued through the
rest of the fiscal year, with monthly total-return swings of up to
plus or minus 5%. Much of the fluctuation resulted from the
conflict between rising interest rates (a trend that was set in
motion last February by the Federal Reserve Board, which wanted to
head off a potential jump in the inflation rate) and positive
economic and corporate earnings reports. While higher interest
rates periodically depressed the broad market, growth stocks were
particularly affected as investors were often more attracted to
"cyclical" stocks--those of companies that historically benefit the
most from a stronger economy. The good side of the occasional
downturns was that they enabled us to buy stocks with strong profit
potential at lower-than-normal prices. These included certain
health-care-related stocks, as well as some stocks of Mexico-based*
companies, which had gone into a slump last spring.
Better environment ahead
As we enter a new fiscal year, we believe growth stocks are in a
better position to advance than at any time in many months. Part
of our optimism stems from the fund's strong finish in July, which
may be an indication that growth stocks are beginning to attract
more sustained interest from investors. Still, the biggest key to
the stock market overall is likely to continue to be long-term
interest rates. If they stay relatively stable, as we expect,
stocks in general, and the fund, should gather forward momentum
before long.
Mitzi Malevich
*Foreign investments may involve certain currency, economic or
political risks and accounting practice differences.
12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1994 $17.39
July 31, 1993 $17.99
Decrease $(0.60)
Distributions
Aug. 1, 1993 - July 31, 1994
From income $ -
From capital gains $1.86
Total distributions $1.86
Total return** +7.0%
<PAGE>
PAGE 7
**If you purchased shares in the fund during this period, your
return also would have been affected by the sales charge, as
described in the prospectus.
<TABLE>
IDS Growth Fund, Inc.
Your fund's ten largest holdings
<CAPTION>
Pie Chart: The ten holdings listed here make up 26.40% of the fund's net assets
______________________________________________________________________________________________________________
Percent Value
(as fund's net assets)(as July 31, 1994)
_____________________________________________________________________________________
<S> <C> <C>
Nucor 2.90% $27,600,000
One of the largest and most profitable domestic steel mini-mills,
Nucor is a leading producer of joists and girders used in construction.
Ericsson (LM) Tel Cl B 2.86 27,250,000
L.M. Ericsson, A Sweden-based company with annual sales of $8 billion,
in the third largest international telecommunications equipment
manufacturer in the world.
Coca-Cola 2.80 26,625,000
The world's largest producer and distributor of soft drinks, concentrates
and syrups.
Motorola 2.78 26,500,000
A leading supplier of semiconductors and two-way radios, paging equipment
and cellular mobile telephone systems.
Microsoft 2.71 25,750,000
Microsoft has a leading franchise in microcomputer operating systems, DOS,
Windows and Windows NT.
Home Depot 2.59 24,600,000
Home Depot sells a broad range of building materials and home-improvement
products via retail warehouse stores. The company focuses on the
do-it-yourselfer and home remodeler.
Gillette 2.56 24,325,000
Gillette Co. is a leading marketer of blades and razors, toiletry products
and writing instruments.
Oracle Systems 2.41 22,950,000
One of the largest independent vendors of database-management software. They
offer a wide variety of new products, enhancements and applications software,
supported by excellent service.
Tellabs 2.40 22,843,125
Telllabs designs, manufactures and markets a broad range of products and
equipment for use by telephone companies, the Bell System, specialized
common carriers and other providers of telecommunication services.
United Healthcare 2.39 22,750,000
United Healthcare is a national leader in health care cost management and
is the largest publicly held operator of health maintenance organizations.
</TABLE>
<PAGE>
PAGE 8
Making the most of your fund
Average annual total return
(as of July 31, 1994)
1 year 5 years 10 years
+1.57% +11.35% +14.65%
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures included 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.
Build your assets systematically
To keep your assets growing steadily, one of the best ways to use
the fund is by dollar-cost averaging -- a time-tested strategy that
can make market fluctuations work for you. To dollar-cost average,
simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the fund's share price is low,
fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to August) and fewer shares when the per
share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well<PAGE>
PAGE 9
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's stock dividends, interest and
short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Growth Fund
Average annual total return
(as of July 31, 1994)
1 year 5 years 10 years
+1.57% +11.35% +14.65%
$39,236
Growth Fund
S&P 500
Stock Index
Lipper Growth
Fund Index
$9,500
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 7/31/84 to 7/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $27,725.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Growth Fund Index, published by Lipper Analytical Services,
Inc., includes 30 funds that are generally similar to this fund,
although some funds in the index may have somewhat different
investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited unmanaged performance indexes, the S&P 500
Stock Index and the Lipper Growth Fund Index. In comparing Growth
Fund to the two indexes, you should take into account the fact that
the fund's performance reflects the maximum sales charge of 5%,
while such charges are not reflected in the performance of the
indexes. If you were actually to buy either individual stocks or
growth mutual funds, any sales charges that you pay would reduce
your total return as well.
<PAGE>
PAGE 10
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 11
Independent auditors' report
The board of directors and shareholders
IDS Growth Fund, Inc.:
We have audited the accompanying statement of
assets and liabilities, including the schedule of
investments in securities, of IDS Growth Fund,
Inc. as of July 31, 1994, and the related
statement of operations for the year then ended
and the statements of changes in net assets for
each of the years in the two-year period ended
July 31, 1994, and the financial highlights for
each of the years in the ten-year period ended
July 31, 1994. 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. As to
securities sold but not delivered, and securities
on loan, we request confirmations from brokers,
and where replies are not received, we carry out
other appropriate auditing procedures. 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 Growth
Fund, Inc. at July 31, 1994, and the results of
its operations for the year then ended and the
changes in its net assets for each of the years
in the two-year period ended July 31, 1994, and
the financial highlights for the periods stated<PAGE>
PAGE 12
in the first paragraph above, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
September 2, 1994
<PAGE>
PAGE 13
<TABLE>
Financial statements
Statement of assets and liabilities
IDS Growth Fund, Inc.
July 31, 1994
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $749,502,607) $962,154,481
Receivable for investment securities sold 8,428,666
Dividends and accrued interest receivable 486,799
U.S. government securities held as collateral (Note 4) 152,760
_____________________________________________________________________________________________________________
Total assets 971,222,706
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 311,185
Payable upon return of securities loaned (Note 4) 18,413,360
Accrued investment management and services fee 472,780
Accrued distribution fee 38,815
Accrued transfer agency fee 96,809
Other accrued expenses 266,164
_____________________________________________________________________________________________________________
Total liabilities 19,599,113
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $951,623,593
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 54,708,952 shares $ 547,090
Additional paid-in capital 663,162,204
Undistributed net investment income 1,049,783
Accumulated net realized gain (Note 1) 74,212,642
Unrealized appreciation 212,651,874
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $951,623,593
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 17.39
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 14
Financial statements
Statement of operations
IDS Growth Fund, Inc.
Year ended July 31, 1994
_____________________________________________________________________________________________________________
Investment income
____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $65,240) $7,412,448
Interest 1,688,128
_____________________________________________________________________________________________________________
Total income 9,100,576
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 5,961,748
Distribution fee 489,348
Transfer agency fee 1,213,186
Compensation of directors 41,297
Compensation of officers 10,856
Custodian fees 80,890
Postage 122,931
Registration fees 36,977
Reports to shareholders 21,716
Audit fees 22,000
Administrative 18,731
Other 27,211
_____________________________________________________________________________________________________________
Total expenses 8,046,891
_____________________________________________________________________________________________________________
Investment income -- net 1,053,685
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $1,592 from foreign currency transactions)(Note 3) 132,940,828
Net change in unrealized appreciation or depreciation (69,264,677)
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 63,676,151
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $64,729,836
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 15
Financial statements
Statement of changes in net assets
IDS Growth Fund, Inc.
Year ended July 31,
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions 1994 1993
______________________________________________________________________________________________________________
<S> <C> <C>
Investment income--net $ 1,053,685 $ 44,759
Net realized gain on investments and foreign currency 132,940,828 56,347,374
Net change in unrealized appreciation or depreciation (69,264,677) 53,362,622
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 64,729,836 109,754,755
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (34,025) (112,283)
Net realized gain on investments (94,040,848) (137,270,413)
_____________________________________________________________________________________________________________
Total distributions (94,074,873) (137,382,696)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
5,591,678 and 5,950,126 shares (Note 2) 100,957,458 109,290,455
Net asset value of 5,261,628 and 7,517,771 shares
issued in reinvestment of distributions 92,378,509 135,011,696
Payments for redemptions of
7,981,768 and 8,124,757 shares (144,922,563) (147,380,792)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
2,871,538 and 5,343,140 shares 48,413,404 96,921,359
_____________________________________________________________________________________________________________
Total increase in net assets 19,068,367 69,293,418
Net assets at beginning of year 932,555,226 863,261,808
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$1,049,783 and $36,194) $951,623,593 $932,555,226
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 16
Notes to financial statements
IDS Growth Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment
Company Act of 1940 (as amended) as a
diversified, open-end management investment
company. Significant accounting policies
followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national
market systems are valued at the last quoted
sales price; securities for which market
quotations are not readily available are valued
at fair value according to methods selected in
good faith by the board of directors.
Determination of fair value involves, among other
things, reference to market indexes, matrixes and
data from independent brokers. Short-term
securities maturing in more than 60 days from the
valuation date are valued at the market price or
approximate market value based on current
interest rates; those maturing in 60 days or less
are valued at amortized cost.
Options transactions
In order to produce incremental earnings, protect
gains, and facilitate buying and selling of
securities for investment purposes the fund may
buy or write options traded on any U.S. or
foreign exchange or in the over-the-counter
market where the completion of the obligation is
dependent upon the credit standing of the other
party. The fund also may buy and sell put and
call options and write covered call options on
portfolio securities and may write cash-secured
put options. The risk in writing a call option is
that the fund gives up the opportunity of profit
if the market price of the security increases.
The risk in writing a put option is that the fund
may incur a loss if the market price of the
security decreases and the option is exercised.
The risk in buying an option is that the fund
pays a premium whether or not the option is
exercised. The fund also has the additional risk
of not being able to enter into a closing<PAGE>
PAGE 17
Notes to financial statements
IDS Growth Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
transaction if a liquid secondary market does not
exist.
Option contracts are valued daily at the closing
prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. The
fund will realize a gain or loss upon expiration
or closing of the option transaction. When an
option is exercised, the proceeds on sales for a
written call option, the purchase cost for a
written put option or the cost of a security for
a purchased put or call option is adjusted by the
amount of premium received or paid.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities
denominated in foreign currencies are translated
daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the
purchase or sale of securities and income and
expenses are translated at the exchange rate on
the transaction date. The effect of changes in
foreign exchange rates on realized and unrealized
security gains or losses is reflected as a
component of such gains or losses. In the
statement of operations, net realized gains or
losses from foreign currency transactions may
arise from sales of foreign currency, closed
forward contracts, exchange gains or losses
realized between the trade date and settlement
dates on securities transactions, and other
translation gains or losses on dividends,
interest income and foreign withholding taxes.
<PAGE>
PAGE 18
Notes to financial statements
IDS Growth Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The fund may enter into forward foreign currency
exchange contracts for operational purposes and
to protect against adverse exchange rate
fluctuation. The net U.S. dollar value of
foreign currency underlying all contractual
commitments held by the fund and the resulting
unrealized appreciation or depreciation are
determined using foreign currency exchange rates
from an independent pricing service. The fund is
subject to the credit risk that the other party
will not complete the obligations of the
contract.
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.
Net investment income (loss) and net realized
gains (losses) may differ for financial statement
and tax purposes primarily because of the
deferral of losses on certain futures contracts,
the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax
purposes, and losses deferred due to "wash sale"
transactions. 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,
undistributed net investment income and
accumulated net realized gain have been decreased
by $6,071 and $409,respectively, resulting in a
net reclassification adjustment to increase
paid-in-capital by $6,480.
<PAGE>
PAGE 19
Notes to financial statements
IDS Growth Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
Dividends to shareholders
An annual dividend declared and paid at the end
of the calendar year from net investment income
is reinvested in additional shares of the fund at
net asset value or payable in cash. Capital
gains, when available, are distributed along with
the income dividend.
Other
Security transactions are accounted for on the
date securities are purchased or sold. Dividend
income is recognized on the ex-dividend date and
interest income, including level-yield
amortization of premium and discount is accrued
daily.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991,
the fund pays IDS Financial Corporation (IDS) a
fee for managing its investments, recordkeeping
and other specified services. The fee is a
percentage of the fund's average daily net assets
consisting of a group asset charge in reducing
percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market funds
in the IDS MUTUAL FUND GROUP and an individual
annual asset charge of 0.23% of average daily net
assets. The fee is adjusted upward or downward
by a performance incentive adjustment based on
the fund's average daily net assets over a
rolling 12-month period as measured against the
change in the Lipper Growth Fund Index. The
maximum adjustment is 0.12% of the fund's average
daily net assets after deducting 1% from the
performance difference. If the performance
difference is less than 1%, the adjustment will
be zero. The adjustment decreased the fee by
$87,401 for the year ended July 31, 1994.
The fund also pays IDS a distribution fee at an
annual rate of $6 per shareholder account and a
transfer agency fee at an annual rate of $15 per
shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder
redemptions.
<PAGE>
PAGE 20
Notes to financial statements
IDS Growth Fund, Inc.
___________________________________________________________________
2. Expenses and sales charges
IDS will assume and pay any expenses (except
taxes and brokerage commissions) that exceed the
most restrictive applicable state expense
limitation.
Sales charges by IDS Financial Services Inc. for
distributing fund shares were $1,999,115 for the
year ended July 31, 1994. The fund also pays
custodian fees to IDS Trust Company, an affiliate
of IDS.
The fund has a retirement plan for its
independent directors. Upon retirement, directors
receive monthly payments equal to one-half of the
retainer fee for as many months as they served as
directors up to 120 months. There are no death
benefits. The plan is not funded but the fund
recognizes the cost of payments during the time
the directors serve on the board. The retirement
plan expense amounted to $7,899 for the year
ended July 31, 1994.
__________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $520,213,713 and $530,612,385,
respectively, for the year ended July 31, 1994.
Realized gains and losses are determined on an
identified cost basis.
Brokerage commissions paid to brokers affiliated
with IDS were $107,901 for the year ended July
31, 1994.
<PAGE>
PAGE 21
Notes to financial statements
IDS Growth Fund, Inc.
__________________________________________________________________
4. Lending of portfolio securities
At July 31, 1994, securities valued at
$18,145,125 were on loan to brokers. For
collateral, the fund received $18,260,600 in cash
and U.S. government securities valued at
$152,760. Income from securities lending amounted
to $351,142 for the year ended July 31, 1994. The
risks to the fund of securities lending are that
the borrower may not provide additional
collateral when required or return the securities
when due.
___________________________________________________________________
5. Financial highlights
"Financial highlights" showing per share data and
selected information is presented on page 5 of
the prospectus.
<PAGE>
PAGE 22
<TABLE>
Investments in securities
IDS Growth Fund, Inc.
July 31, 1994 (Percentages represents value of
investments compared to net assets)
<CAPTION>
____________________________________________________________________________________________________________________________
Common stocks (97.1%)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Airlines (3.3%)
British Airways ADR 50,000 (c) $ 3,218,750
KLM Royal Dutch Air 200,000 (b,e) 6,200,000
Mesa Airlines 800,000 (b) 8,500,000
Southwest Airlines 500,000 13,562,500
____________
Total 31,481,250
_____________________________________________________________________________________________________________________________
Automotive & related (0.8%)
Ek Chor China Motorcycle 300,000 (c) 7,462,500
_____________________________________________________________________________________________________________________________
Banks and savings & loans (3.9%)
First Chicago 400,000 20,100,000
NationsBank 300,000 16,725,000
____________
Total 36,825,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (2.8%)
Coca-Cola 600,000 26,625,000
_____________________________________________________________________________________________________________________________
Building materials (0.7%)
Tyco Intl 150,000 6,487,500
_____________________________________________________________________________________________________________________________
Communications equipment (16.5%)
AirTouch Communications 400,000 (b) 10,400,000
Andrew 450,000 (b) 17,437,500
Cable & Wireless 720,500 (c) 14,319,937
Cisco Systems 400,000 (b) 8,400,000
Ericsson (LM) Tel Cl B ADR 500,000 (c) 27,250,000
Grupo Televisa 250,000 (c,d) 14,000,000
Intl Family Entertainment Cl B 196,800 (b) 2,952,000
MFS Communications 100,000 (b) 2,950,000
Motorola 500,000 26,500,000
Scientific-Atlanta 300,000 10,425,000
Tellabs 655,000 (b) 22,843,125
____________
Total 157,477,562
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 23
Investments in securities
IDS Growth Fund, Inc.
July 31, 1994 (Percentages represents value of
investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (continued)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Computers & office equipment (10.1%)
Compaq Computer 600,000 (b) $ 18,975,000
Danka Business Systems ADR 400,000 (c) 17,150,000
Microsoft 500,000 (b) 25,750,000
Oracle Systems 600,000 (b) 22,950,000
Solectron 400,000 (b,e) 10,800,000
____________
Total 95,625,000
______________________________________________________________________________________________________________________________
Electronics (4.0%)
C-Cube Microsystems 34,900 (b,e) 724,175
Harman Intl 200,000 5,375,000
Maxim Integrated Products 300,000 (b) 14,475,000
Sensormatic Electronics 300,000 9,000,000
Vishay Intertechnology 201,565 8,490,926
____________
Total 38,065,101
_____________________________________________________________________________________________________________________________
Energy (5.5%)
Devon Energy 250,000 5,062,500
Enron 400,000 12,950,000
Enron Oil & Gas 200,000 3,975,000
Renaissance Energy 73,100 (b,c) 1,559,084
Renaissance Energy 26,900 (b,c,d) 573,726
Royal Dutch Petroleum 200,000 22,600,000
Tarragon Oil & Gas 200,000 (b,c) 2,638,900
YPF Sociedad Anonima ADR 100,000 (c) 2,537,500
____________
Total 51,896,710
_____________________________________________________________________________________________________________________________
Financial services (6.3%)
ADVANTA Cl B 151,500 4,545,000
Block (H&R) 100,000 3,900,000
First Financial Management 400,000 22,300,000
Merrill Lynch 600,000 21,975,000
State Street Boston 200,000 7,675,000
____________
Total 60,395,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE 24
Investments in securities
IDS Growth Fund, Inc.
July 31, 1994 (Percentages represents value of
investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (continued)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Health care (8.7%)
Boston Scientific 800,000 (b) $ 10,900,000
HEALTHSOUTH Rehab 700,000 (b) 21,262,500
Johnson & Johnson 200,000 9,400,000
Pfizer 100,000 6,200,000
Stryker 400,000 (e) 12,500,000
United Healthcare 500,000 22,750,000
____________
Total 83,012,500
_____________________________________________________________________________________________________________________________
Insurance (2.5%)
SunAmerica 300,000 13,612,500
Travelers 300,000 9,937,500
____________
Total 23,550,000
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (2.8%)
Blockbuster Entertainment 200,000 5,200,000
Walt Disney 500,000 21,250,000
____________
Total 26,450,000
_____________________________________________________________________________________________________________________________
Media (1.9%)
Comcast 600,000 9,750,000
Comcast Cl A 300,000 4,987,500
Thomas Nelson 200,000 3,725,000
____________
Total 18,462,500
_____________________________________________________________________________________________________________________________
Metals (5.5%)
Birmingham Steel 524,100 13,364,550
Commercial Metals 100,000 2,637,500
Groupo Simec ADR 200,000 (b,c) 4,862,500
Maanshan Iron & Steel 100,000 (b,c,d) 3,559,778
Nucor 400,000 27,600,000
____________
Total 52,024,328
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE 25
Investments in securities
IDS Growth Fund, Inc.
July 31, 1994 (Percentages represents value of
investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (continued)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (5.1%)
Alco Standard 250,000 $ 15,218,750
Interim Services 200,000 (b) 4,700,000
Kelly Services 198,750 5,863,125
Mayne Nickless 500,000 (c) 2,873,000
Olsten 600,000 20,250,000
____________
Total 48,904,875
_____________________________________________________________________________________________________________________________
Restaurants & lodging (1.8%)
Brinker Intl 400,000 (b) 8,950,000
Marriott Intl 200,000 5,550,000
Wendy's Intl 200,000 3,075,000
____________
Total 17,575,000
_____________________________________________________________________________________________________________________________
Retail (11.2%)
Best Buy 100,000 (b,e) 2,450,000
Duracell Intl 400,000 16,850,000
Gillette 350,000 24,325,000
Home Depot 600,000 24,600,000
Nordstrom 300,000 (e) 13,125,000
Office Depot 600,000 (b) 12,675,000
St. John Knits 200,000 (b) 5,175,000
Wal-Mart Stores 300,000 7,500,000
____________
Total 106,700,000
_____________________________________________________________________________________________________________________________
Utilities - telephone (3.7%)
Century Telephone 500,000 13,000,000
KENETECH 250,000 (b,e) 4,000,000
Telefonos de Mexico L ADR 300,000 (c) 18,225,000
____________
Total 35,225,000
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $711,592,223) $924,244,826
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE 26
Investments in securities
IDS Growth Fund, Inc.
July 31, 1994 (Percentages represents value of
investments compared to net assets)
____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (4.0%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (0.6%)
Federal Home Loan
Mtge Corp Disc Note
08-01-94 4.34% $1,200,000 $ 1,199,711
Federal Home Loan Bank
Disc Note
08-11-94 4.39 4,500,000 4,493,445
____________
Total 5,693,156
_____________________________________________________________________________________________________________________________
Commercial paper (2.9%)
Aon
08-23-94 4.37 5,000,000 4,985,500
Colgate Palmolive
08-29-94 4.39 1,800,000 (f) 1,793,445
Consolidated Rail
08-19-94 4.39 1,600,000 (f) 1,596,115
CPC Intl
08-19-94 4.40 1,500,000 (f) 1,496,358
08-22-94 4.35 3,500,000 (f) 3,489,611
Mobil Australia
Finance
08-15-94 4.45 5,100,000 (f) 5,089,959
08-18-94 4.39 4,200,000 (f) 4,190,302
Nestle Capital
08-24-94 4.35 5,100,000 5,084,665
_____________
Total 27,725,955
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE 27
Investments in securities
IDS Growth Fund, Inc.
July 31, 1994 (Percentages represents value of
investments compared to net assets)
____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
Letter of credit (0.5%)
NationsBank of North Carolina -
Comdisco
08-16-94 4.47% $4,500,000 $ 4,490,544
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $37,910,384) $ 37,909,655
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $749,502,607)(g) $962,154,481
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act
of 1933, as amended. This security has been determined to be liquid under guidelines established by
the board of directors.
(e) Security is partially or fully on loan. See Note 4 to the financial statements.
(f) 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 the guidelines
established by the board of directors.
(g) At July 31, 1994, the cost of securities for federal income tax purposes was $749,502,607
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $232,136,752
Unrealized depreciation (19,484,878)
______________________________________________________________________________________________
Net unrealized appreciation $212,651,874
______________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 28
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conversation 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
achieve 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
provide high current income. Secondary objective is capital
growth.
(icon of) cornucopia
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 29
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
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
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) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
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
<PAGE>
PAGE 30
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75 percent in the four highest rated, lowest
risk bond categories.
(icon of) shield with Greek column
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 eagle head
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 Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holding may range
from small- to large-capitalization stocks, including those of
companies involve in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Plus Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
<PAGE>
PAGE 31
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS 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 primarily in common stocks of blue chip U.S. companies
representing almost every major sector of the economy. Seeks
current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to
provide high current income and growth of income and capital with
reduced volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to provide high
current income and, secondarily to benefit from the growth
potential offered by stock investments.
(icon of) four 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.
<PAGE>
PAGE 32
IDS Discovery Fund
Invests in small and medium-sized, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity 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 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) flower
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 New Dimensions Fund
Invests primarily in domestic companies with significant growth
potential due to superiority in technology, marketing or
management. The Fund frequently changes its industry mix.
(icon of) dimension
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
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
<PAGE>
PAGE 33
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
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial planner or writing to IDS Shareholder Service, P.O.
Box 534, Minneapolis, MN 55440-0534. Read it carefully before you
invest or send money.
<PAGE>
PAGE 34
<TABLE>
IDS Growth Fund, Inc.
<CAPTION>
Federal income tax information
______________________________________________________________________________
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.
The dividends listed below were reported to
you on a Form 1099-DIV, Dividends and Distributions,
last January. Shareholders should consult a tax
adviser on how to report distributions for state and
local purposes.
IDS Growth Fund, Inc.
Fiscal year ended July 31, 1994
Income distributions
taxable as dividend income,
100% qualifying for deductions by
corporations.
Payable date Per share
<S> <C>
Dec. 30, 1993 $0.0008
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1993 $1.8574
Total distributions $1.8582
/TABLE
<PAGE>
PAGE 35
Quick telephone reference
IDS 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
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS 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
Your IDS financial planner:
IDS GROWTH FUND
IDS Tower 10
Minneapolis, MN 55440-0010
