<PAGE>
PAGE 1
Prospectus and Statement of Additional Information Supplement
November 17, 1994
<TABLE><CAPTION>
Prospectus SAI (MM/YY
Form # Form # Printed)
Publicly Offered Funds:
<S> <C> <C> <C>
IDS Blue Chip Advantage Fund (April 1, 1994) S-6025 G S-6025-20 G (3/94)
IDS Bond Fund (Oct. 29, 1993) S-6495 G S-6495-20 G (10/93)
IDS California Tax-Exempt Fund (Aug. 29, 1994) S-6328 G S-6328-20 J (8/94)
IDS Cash Management Fund (Sept. 29 1994) S-6320 G S-6320-20 N (9/94)
IDS Discovery Fund (Sept. 29, 1994) S-6457 G S-6457-20 L (9/94)
IDS Diversified Equity Income Fund
(Nov. 24, 1993) S-6475 F S-6475-20 F (11/93)
IDS Equity Plus Fund (Jan. 28, 1994) S-6426 G S-6426-20 G (1/94)
IDS Extra Income Fund (Oct. 28, 1994) S-6370 G S-6370-20 H (10/94)
IDS Federal Income Fund (Aug. 29, 1994) S-6042 G S-6042-20 H (8/94)
IDS Global Bond Fund (Dec. 30, 1993) S-6309 H S-6309-20 H (12/93)
IDS Global Growth Fund (Dec. 30, 1993) S-6334 G S-6334-20 G (12/93)
IDS Growth Fund (Sept. 29, 1994) S-6455 G S-6455-20 L (9/94)
IDS High Yield Tax-Exempt Fund (Jan. 28, 1994) S-6430 G S-6430-20 K (1/94)
IDS Insured Tax-Exempt Fund (Aug. 29, 1994) S-6327 G S-6327-20 K (8/94)
IDS International Fund (Dec. 30, 1993) S-6140 J S-6140-20 J (12/93)
IDS Managed Retirement Fund (Jan. 28, 1994) S-6141 G S-6141-20 G (1/94)
IDS Massachusetts Tax-Exempt Fund
(Aug. 29, 1994) S-6328 G S-6328-20 J (8/94)
IDS Michigan Tax-Exempt Fund (Aug. 29, 1994) S-6328 G S-6328-20 J (8/94)
IDS Minnesota Tax-Exempt Fund (Aug. 29, 1994) S-6328 G S-6328-20 J (8/94)
IDS Mutual (Nov. 24, 1993) S-6326 G S-6326-20 H (11/93)
IDS New Dimensions Fund,(Nov. 24, 1993) S-6440 G S-6440-20 G (11/93)
IDS New York Tax-Exempt Fund (Aug. 29, 1994) S-6328 G S-6328-20 J (8/94)
IDS Ohio Tax-Exempt Fund (Aug. 29, 1994) S-6328 G S-6328-20 J (8/94)
IDS Precious Metals Fund (May 27, 1994) S-6142 H S-6142-20 L (5/94)
IDS Progressive Fund (Nov. 24, 1993) S-6449 H S-6449-20 H (11/93)
IDS Selective Fund (Jan. 28, 1994) S-6376 G S-6376-20 G (1/94)
IDS Stock Fund (Dec. 30, 1993) S-6351 G S-6351-20 H (12/93)
IDS Strategy Fund (May 27, 1994) S-6380 H S-6380-20 K (5/94)
Aggressive Equity Fund
Equity Fund
Income Fund
Short-Term Income Fund
Worldwide Growth Fund
IDS Tax-Exempt Bond Fund (Jan. 28, 1994) S-6310 G S-6310-20 K (1/94)
IDS Tax-Free Money Fund (March 1, 1994) S-6433 G S-6433-20 K (2/94)
IDS Utilities Income Fund (Aug. 29, 1994) S-6341 G S-6341-20 J (8/94)
/TABLE
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SHAREHOLDER MEETINGS
At the regular meetings held on November 9, 1994, shareholders of
the funds listed on page one approved the following proposals:
1. New Investment Management Services Agreement ("IMS Agreement")
with IDS Financial Corporation ("IDS"). Except for shareholders of
Strategy - Income, Strategy - Short-Term Income and Strategy -
Worldwide Growth, shareholders approved a new IMS Agreement with
IDS. For the non-money market funds, the fee will no longer be
based in part on the assets of all non-money market funds in the
IDS MUTUAL FUND GROUP (the "GROUP"). Instead, the fee rate will be
based on the average daily net assets of each individual fund,
decreasing as the fund increases in size.
Small
Assets Int'l Cap
(Billions) Funds* Funds**
First $0.25 0.800% 0.640%
Next 0.25 0.775 0.615
Next 0.25 0.750 0.590
Next 0.25 0.725 0.565
Next 1.0 0.700 0.540
Over 2.0 0.675 0.515
* Global Growth, International, Precious Metals
** Discovery, Progressive
Federal
Assets Growth Municipal
(Billions) Funds* Mutual Income**
First $1.0 0.600% 0.530% 0.440%
Next 1.0 0.575 0.505 0.425
Next 1.0 0.550 0.480 0.400
Next 3.0 0.525 0.455 0.375
Over 6.0 0.500 0.430 0.350
* Growth, New Dimensions, Strategy - Aggressive Equity
** Insured Tax-Exempt, Tax-Exempt Bond
Taxable
Assets Extra Income High
(Billions) Income Funds* Yield
First $1.0 0.590% 0.520% 0.490%
Next 1.0 0.565 0.495 0.465
Next 1.0 0.540 0.470 0.440
Next 3.0 0.515 0.445 0.415
Next 3.0 0.490 0.420 0.390
Over 9.0 0.465 0.395 0.360
* Bond, Federal Income, Selective
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<TABLE><CAPTION>
State
Municipal Growth and
Assets Income Blue Global Assets Income
(Billions) Funds* Chip Bond (Billions) Funds**
<S> <C> <C> <C> <C> <C>
First $0.25 0.470% 0.440% 0.770% First $0.50 0.530%
Next 0.25 0.445 0.415 0.745 Next 0.50 0.505
Next 0.25 0.420 0.390 0.720 Next 1.0 0.480
Next 0.25 0.405 0.365 0.695 Next 1.0 0.455
Over 1.0 0.380 0.340 0.670 Next 3.0 0.430
Over 6.0 0.400
* California Tax-Exempt, Massachusetts Tax-Exempt, Michigan Tax-Exempt, Minnesota Tax-
Exempt, New York Tax-Exempt, Ohio Tax-Exempt
** Diversified Equity Income, Equity Plus, Managed Retirement, Stock, Strategy - Equity,
Utilities Income
Assets Money
(Billions) Market*
First $1 0.310%
Next 0.5 0.293
Next 0.5 0.275
Next 0.5 0.258
Over 2.5 0.240
*Cash Management, Tax-Free Money
</TABLE>
The IMS Agreement also will be modified to reflect the fact that,
in the future, IDS may manage master funds that are not part of the
GROUP.
Multiple Classes of Shares. The publicly offered funds, except for
Tax-Free Money, intend to offer multiple classes of shares. Each
fund will offer three classes of shares:
o Class A - sold with a front-end sales charge and a service
fee;
o Class B - sold with a contingent deferred sales
charge("CDSC"), a 12b-1 fee and a service fee;
o Class Y - for certain institutional shareholders meeting
eligibility requirements, sold with no sales charge, no 12b-1
fee and no service fee.
Multiple classes of shares are expected to be implemented in March
1995. Most shareholders of funds currently sold with a front-end
sales charge will receive shares of Class A. Most shareholders of
Strategy-Aggressive Equity and Strategy - Equity will receive
shares of Class B. Shareholders of those two funds who are
eligible for a waiver of the CDSC will receive shares of Class A.
Institutional shareholders who meet eligibility requirements will
receive shares of Class Y.
Prior to offering multiple classes, the Board of Directors/Trustees
(the "Board") will approve a new 12b-1 plan for Class B shares with
a fee equal to 0.75% of average daily net assets, a new shareholder
servicing agreement for both Class A and Class B shares with a fee
equal to 0.175% of average daily net assets, a new transfer agency
agreement for the new classes and a new Administration and<PAGE>
PAGE 4
Accounting Agreement (the "Admin Agreement"). Fees under the Admin
Agreement range from a high of 0.06% to a low of 0.02%, decreasing
as assets increase.These changes, including the changes in the IMS
Agreement, will be effective at the time multiple classes of
shares are offered.
2. Name Changes. Shareholders of Equity Plus Fund approved a
change in the name of the fund to Equity Select Fund. The Board
will change the names of Strategy - Aggressive Equity Fund and
Strategy - Equity Fund to Strategy Aggressive Fund and Equity Value
Fund at the time multiple classes are offered.
3. Diversification Status. Shareholders of Precious Metals
approved a change in the status of the fund from diversified to
non-diversified. While concentration of investments in fewer
issuers may result in more risk, the change will provide the
portfolio manager with more flexibility in investing the fund's
assets.
4. New 12b-1 Plan. Shareholders of Strategy - Aggressive Equity
and Strategy - Equity approved a new 12b-1 plan. Under the new
plan, each fund will pay a fee of 0.75% of average daily net
assets. In addition, each fund will pay a service fee of 0.175% of
average daily net assets. This change will be effective at the
time multiple classes of shares are offered as discussed above.
5. Mergers. Shareholders of Strategy - Income, Strategy - Short-
Term Income and Strategy - Worldwide Growth approved the merger of
those funds into other funds in the GROUP. The Strategy funds
originally were developed to give investors a CDSC option for
paying the sales charge. The Strategy Funds were modeled on
existing IDS funds that imposed a front-end sales charge. Once
multiple classes of shares are implemented, as discussed in
paragraph 1, there will no longer be any reason to have separate
funds and the Strategy funds will be merged into the comparable IDS
funds in March 1995. Income will be merged with Bond. Short-Term
Income will be merged with Federal Income. Worldwide Growth will
be merged with International.
6. Master-Feeder Investment Policy. At some future time, the
Board of Directors/Trustees (the "Board") may determine that it is
in the best interest of the Fund and its shareholders to create
what is known as a master/feeder fund structure. This structure
allows several investment companies and other investment groups,
including pension plans and trust accounts, to have their
investment portfolios managed as a combined pool called the master
fund. The purpose of the structure is to achieve operational
efficiencies. Except for shareholders of Strategy - Income,
Strategy - Short-Term Income and Strategy - Worldwide Growth,
shareholders approved a new investment policy permitting the
structure if the Board decides it is appropriate.
The section of the prospectus titled "How the fund is organized" is
modified by adding the following: At some time in the future, the
Board of the fund may decide to convert to a master/feeder
structure. If the Board makes that decision, the fund would seek
to achieve its goal by investing all of its assets in another<PAGE>
PAGE 5
investment company with the same goal as the fund, rather than
investing directly in a portfolio of securities.
7. Changes in Fundamental Policies. Except for shareholders of
Cash Management, Strategy - Income, Strategy - Short-Term Income,
Strategy - Worldwide Growth andTax-Free Money, shareholders changed
the status of a number of policies from fundamental (changeable
only with shareholder approval) to nonfundamental (changeable by
the Board without shareholder vote). Policies changed include
those regarding: buying on margin or selling short; pledging
assets as collateral; investing in issuers with less than 3 years
of operating history; investing in other investment companies;
investing for purposes of exercising control or management;
investing in oil, gas or mineral exploration or development
programs; investing in warrants; investing in illiquid securities;
and investing in interest rate futures contracts.
In addition, shareholders approved a revision in the fundamental
policy on making loans to permit the fund to make cash loans up to
5% of its total assets; and a revision in the policy on investing
in real estate to clarify that the Fund may invest in securities or
other instruments backed by real estate or securities of companies
engaged in the real estate business; and a revision in the policy
on investing in commodities to clarify that the Fund may invest in
securities or other instruments backed by, or whose value is
derived from, physical commodities.
Extra Income shareholders voted to eliminate the policy on
concentrating in electric utility securities.
NAME CHANGES OF ADVISOR, DISTRIBUTOR AND CUSTODIAN
Effective January 1, 1995, the name of IDS Financial Corporation,
the Funds' investment adviser and transfer agent, will be changed
to American Express Financial Corporation. The name of IDS
Financial Services Inc., the Funds' distributor, will be changed to
American Express Financial Advisors Inc. For those Funds for which
IDS Trust Company serves as custodian, the name of the custodian
will be changed to American Express Trust Company.
S-6508 C (11/94)
*Valid until next prospectus update.
