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IDS New Dimensions Fund
1995 annual report
(prospectus enclosed)
(Icon of) A Dimension
The goal of IDS New Dimensions Fund, Inc. is long-term growth of
capital. The Fund invests primarily in common stocks of companies
showing potential for significant growth and operating in areas
where economic or technological changes are occurring.
(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.
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(Icon of) A Dimension
Fast-track stocks
What type of stock has been the driving force behind the dramatic
increases posted by U.S. and foreign stock markets in recent years?
The answer is growth stocks - that is, stocks of companies that
have a track record of increasing their business and profits at a
rapid pace. These companies, some large and well-known, others
smaller and newly discovered, form the foundation of IDS New
Dimensions Fund. The fund looks for companies from around the
world that not only have a history of continuous growth, but are
believed to be poised to continue growing over the long term due to
their management, marketing innovation and/or technological
advances.
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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.
1995 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 23
IDS mutual funds 28
Federal income tax information 31
1995 prospectus
The Fund in brief
Goal 3p
Types of Fund investments and their risks 3p
Proposed conversion to master/feeder structure 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative purchase arrangements 3p
Sales charge and Fund expenses 4p
Performance
Financial highlights 6p
Total returns 8p
Investment policies and risks
Facts about investments and their risks 11p
Valuing Fund shares 15p
How to purchase, exchange or redeem shares
Alternative purchase arrangements 16p
How to purchase shares 19p
How to exchange shares 22p
How to redeem shares 22p
Reductions and waivers of the sales charge 27p
Special shareholder services
Services 33p
Quick telephone reference 33p
Distributions and taxes
Dividend and capital gain distributions 34p
Reinvestments 35p
Taxes 35p
How to determine the correct TIN 37p
How the Fund is organized
Shares 38p
Voting rights 38p
Shareholder meetings 38p
Special considerations regarding master/
feeder structure 39p
Directors and officers 41p
Investment manager and transfer agent 43p
Distributor 44p
About American Express Financial Corporation
General information 45p
Appendix
Descriptions of derivative instruments 46p
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To our shareholders
(Photo of) William R. Pearce, President of the Fund
(Photo of) Gordon M. Fines, Portfolio manager
From the president
As I indicated in the Fund's previous reports new agreements
between the Fund and American Express Financial Corporation (AEFC)
were approved by shareholders in November 1994. The new agreements
became effective when the Fund began offering multiple classes of
shares on March 20, 1995.
The advantage of offering more than a single class of shares is
that investors may choose how they wish to pay sales charges. A
portion of these charges compensates your American Express
financial advisor (formerly called your IDS planner), who is
committed to providing you with outstanding services.
Adding new classes of mutual funds shares does make the
presentation of financial information in this report more complex.
However, we will continue our effort to make the reports easier to
read and understand. Meanwhile, your American Express financial
advisor is available to answer your questions.
William R. Pearce
From the portfolio manager
A surging stock market, often led by growth stocks, resulted in a
substantial gain by IDS New Dimensions Fund during the past fiscal
year (October 1994 through September 1995). The total return of
more than 20%, which includes net asset value change and
distributions to shareholders, marked the Fund's best 12-month
performance since 1991.
After struggling throughout most of 1994, the stock market began to
show some signs of strength last winter as an overall positive
investment environment began to emerge. The driving factors
included a low inflation rate, improving corporate profits and
declining long-term interest rates - almost a sure-fire formula for
rising stock prices. By spring, stocks were enjoying a robust
rally that continued almost unabated through the end of the fiscal
year.
Growth stocks catch fire
To the particular benefit of this Fund, growth stocks, which had
been lackluster performers for much of the previous two years,
responded especially well to the positive forces. Often at the
forefront of the market's advance were stocks of rapidly growing
technology companies. Particularly strong were stocks of
semiconductor producers, whose products related to the "information
superhighway" and whose generally impressive profits captured both
the fancy and the capital of investors.
This Fund was well-positioned to take advantage of the upturn
because of its heavy weighting in technology/telecommunications
stocks; they comprised about a third of the portfolio throughout
the 12 months. Technology leaders such as Intel, Motorola,
Microsoft and Cisco Systems were among several strong performers
for the Fund.
On other fronts, we also enjoyed good overall results from our
holdings in the health care and financial services sectors (the
latter group benefited from falling long-term interest rates), as
well as stocks of large, consumer-products companies with
substantial international business operations. Our portfolio mix
stayed essentially the same during the fiscal year, and we stuck to
a relatively aggressive investment approach, which includes a cash-
reserve level of 10-12%.
Environment good for growth
After the exhilarating run we experienced in the past fiscal year,
it's natural to speculate about what the stock market will do for
an encore. The normal course of events calls for a market
"correction" - that is, a moderate, temporary decline - before too
long. While that certainly could happen, and could ultimately
prove to be healthy for longer-term market performance, we don't
find the current investment environment particularly threatening.
Inflation has yet to become a problem; the economy has slowed down
but appears unlikely to slip into recession; and, at this writing,
long-term interest rates remain at a reasonable level.
Therefore, unless there's a meaningful change to that backdrop, we
expect to stay with what has worked for the Fund: an emphasis on
large and mid-size companies with above-average growth rates,
especially those in the technology/telecommunications arena.
Gordon M. Fines
Class A
12-month performance
(All figures per share)
Net assest value (NAV)
Sept. 30, 1995 $17.24
Sept. 30, 1994 $14.06
Increase $ 3.18
Distributions
Oct. 1, 1994-Sept. 30, 1995
From income $ 0.12
From capital gains $ 0.50
Total distributions $ 0.62
Total return** +28.4%***
Class B
March 20, 1995-Sept. 30, 1995
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $17.18
March 20, 1995* $14.21
Increase $ 2.97
Distributions
March 20, 1995*-Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** +20.9%***
Class Y
March 20, 1995-Sept. 30, 1995
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $17.26
March 20, 1995* $14.21
Increase $ 3.05
Distributions
March 20, 1995*-Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** +21.5%***
*Inception date.
**The prospectus discusses the effects of sales charges, if any,
on the various classes.
***The total return is a hypothetical investment in the Fund with
all distributions reinvested.
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<TABLE>
<CAPTION>
IDS New Dimensions Fund, Inc.
Your Fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 22.91% of the Fund's net assets.
_______________________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Sept. 30, 1995)
_______________________________________________________________________________________________________
<S> <C> <C>
Cisco Systems 3.39% $220,800,000
A leading designer and builder of devices that link personal computers
for application in the fast-growing business network market.
Citicorp 3.26 212,250,000
The parent of Citibank, the largest bank in the U.S., it has a
substantial worldwide corporate and retail banking presence.
Intel 2.58 168,350,000
The world's number one semiconductor manufacturer, Intel produces
microcomputer components, modules and systems.
Pfizer 2.29 149,450,000
A leading producer of pharmaceuticals, hospitals products,
animal health items, non-prescription medications and
specialty chemicals.
General Electric 2.15 140,250,000
A diversified company with interest in manufacturing, broadcasting
(NBC), financial services and technology.
ConAgra 1.95 126,800,000
Engaged in a variety of basic food businesses, including
feed and fertilizer, grain processing and merchandising,
agricultural chemicals, worldwide trading, fresh and processed
red meats, poultry products, and frozen prepared foods and seafood.
Royal Dutch Petroleum 1.88 122,750,000
A major oil company that includes Royal Dutch (the Dutch version)
and Shell Transport (the English version).
Amgen 1.84 119,700,000
A premier biotechnology (biotech) company that develops,
manufactures and markets drugs based on advances in
recombinant DNA and molecular biology for human health care.
Medtronic 1.81 118,250,000
A major, diversified medical device company.
McDonald's 1.76 114,750,000
Operates, licenses and services the world's largest chain of
fast-food restaurants.
</TABLE>
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Making the most of your Fund
Average annual total return
(as of Sept. 30, 1995)
Class A
1 year 5 years 10 years
+22.00% +18.95% +17.64%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Sept. 30, 1995 were +15.33%, +15.89% and +21.48%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. 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 A and 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.
Build your assets systematically
One of the best ways to invest in 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 September) 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.
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Three ways to benefit from a mutual fund:
o your shares increase in value when the Fund's investments do
well
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.
Class A*
How your $10,000 has grown in IDS New Dimensions Fund
Average annual total return
(as of Sept. 30, 1995) $50,822
New Dimensions Fund
1 year 5 years 10 years
+22.00% +18.95% +17.64%
$30,000
S&P 500
Stock Index
$20,000 Lipper Growth
Fund Index
$9,500
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to Sept. 30, 1995 were +15.33%, +15.89%,
and +21.48%, respectively. March 20, 1995 was the inception date
for Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 9/30/85 to 9/30/95. Returns do not
reflect taxes payable on distributions. Reinvestment of all income
and capital gain distributions for the Fund, with a value of
$30,558. Also see "Performance" in the Fund's current prospectus.
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 graph above you can see how the Fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Growth Fund Index. In comparing New Dimensions 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.
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.
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Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS New Dimensions Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS New Dimensions Fund, Inc. as of September 30, 1995, 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 September 30, 1995, and the financial
highlights for each of the years in the ten-year period ended
September 30, 1995. 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 purchased and
sold but not received or 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 New
Dimensions Fund, Inc. at September 30, 1995, 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
September 30, 1995, 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
November 3, 1995
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<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS New Dimensions Fund, Inc.
Sept. 30, 1995
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $4,783,096,717) $6,497,676,317
Cash in bank on demand deposit 6,921,258
Dividends and accrued interest receivable 7,304,208
Receivable for investment securities sold 24,639,611
U.S. government securities held as collateral (Note 5) 25,788,895
_____________________________________________________________________________________________________________
Total assets 6,562,330,289
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 19,126,668
Payable upon return of securities loaned (Note 5) 25,788,895
Accrued investment management services fee 359,397
Accrued distribution fee 5,977
Accrued service fee 44,795
Accrued transfer agency fee 41,244
Accrued administrative services fee 25,051
Other accrued expenses 835,567
_____________________________________________________________________________________________________________
Total liabilities 46,227,594
_____________________________________________________________________________________________________________
Net assets applicable to oustanding capital stock $6,516,102,695
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 3,778,716
Additional paid-in capital 4,573,433,293
Undistributed net investment income 44,674,789
Accumulated net realized gain (Note 1) 179,617,020
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies 1,714,598,877
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $6,516,102,695
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $4,574,550,532
Class B $ 149,746,709
Class Y $1,791,805,454
Net asset value per share of outstanding capital stock: Class A shares 265,330,276 $ 17.24
Class B shares 8,716,087 $ 17.18
Class Y shares 103,825,250 $ 17.26
See accompanying notes to financial statements.
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PAGE 10
Financial statements
Statement of operations
IDS New Dimensions Fund, Inc.
Year ended Sept. 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Interest $ 38,283,887
Dividends (net of foreign taxes withheld of $594,784) 63,023,110
_____________________________________________________________________________________________________________
Total income 101,306,997
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 29,578,200
Distribution fee
Class A 1,308,907
Class B 266,792
Transfer agency fee 7,380,832
Incremental transfer agency fee - Class B 7,932
Service fee
Class A 3,821,216
Class B 61,962
Administrative services fee 1,213,287
Compensation of directors 96,993
Compensation of officers 51,083
Custodian fees 418,415
Postage 479,572
Registration fees 311,170
Reports to shareholders 188,047
Audit fees 33,000
Administrative 39,986
Other 64,160
_____________________________________________________________________________________________________________
Total expenses 45,321,554
Earnings credits on cash balances (Note 2) (34,732)
_____________________________________________________________________________________________________________
Total net expenses 45,286,822
_____________________________________________________________________________________________________________
Investment income -- net 56,020,175
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $10,005 from foreign currency transactions) (Note 3) 188,746,482
Net realized loss on closed or expired option contracts written (Note 6) (711,754)
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 188,034,728
Net change in unrealized appreciation or depreciation of investments and
on translation of assets and liabilities in foreign currencies 1,122,806,020
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 1,310,840,748
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $1,366,860,923
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS New Dimensions Fund, Inc.
Year ended Sept. 30,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 56,020,175 $ 29,201,190
Net realized gain on investments and foreign currency 188,034,728 166,293,405
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 1,122,806,020 (222,741,514)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 1,366,860,923 (27,246,919)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (37,824,704) (17,668,942)
Net realized gain
Class A (161,781,539) (162,990,687)
Excess distributions of realized gain
Class A (10,005) --
_____________________________________________________________________________________________________________
Total distributions (199,616,248) (180,659,629)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 1,277,766,445 1,370,588,852
Class B shares 139,503,525 --
Class Y shares 1,678,216,434 --
Reinvestment of distributions at net asset value
Class A shares 197,521,609 178,695,921
Payments for redemptions
Class A shares (2,058,310,273) (588,638,959)
Class B shares (Note 2) (2,112,953) --
Class Y shares (180,172,610) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 1,052,412,177 960,645,814
_____________________________________________________________________________________________________________
Total increase in net assets 2,219,656,852 752,739,266
Net assets at beginning of year 4,296,445,843 3,543,706,577
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$44,674,789 and $26,440,936) $6,516,102,695 $4,296,445,843
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 12
Notes to financial statements
IDS New Dimensions 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.
The Fund offers Class A, Class B and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B shares, which the
Fund began offering on March 20, 1995, may be subject to a
contingent deferred sales charge. Class B shares automatically
convert to Class A after eight years. Class Y shares, which the
Fund also began offering on March 20, 1995, 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, transfer agency fee and service 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:
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.
Option 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
<PAGE>
PAGE 13
is exercised. The Fund also has the additional risk of not being
able to enter into a closing 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.
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, the Fund may buy and sell stock index futures contracts
traded on any U.S. or foreign exchange. The Fund also may buy or
write put and call options on these futures contracts. Risks of
entering into futures contracts and related options include the
possibility that there may be an illiquid market and that a change
in the value of the contract or option may not correlate with
changes in the value of the underlying securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities in an amount (initial margin)
equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the Fund each
day. The variation margin payments are equal to the daily changes
in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the
contract is closed or expires.
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.
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.
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PAGE 14
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. The effect on dividend distributions of certain book-to-
tax differences is presented as "excess distributions" in the
statement of changes in net assets. 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 has been increased by $40,784 and accumulated net realized
gain has been decreased by $8,493, resulting in a net
reclassification adjustment to decrease additional paid-in capital
by $32,291.
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 a prior agreement that ended March 19, 1995, the
Fund paid AEFC a fee for managing its investments, recordkeeping
and other specified services. The fee was 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 was 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
<PAGE>
PAGE 15
is 0.12% of the Fund's average daily net assets after deducting 1%
from the performance difference. If the performance difference was
less than 1%, the adjustment would have been zero. The adjustment
decreased the fee by $123,296 for the year ended Sept. 30, 1995.
Also under terms of a prior agreement, the Fund paid AEFC 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.
During the year ended Sept. 30, 1995, the Fund's custodian and
transfer agency fees were reduced by $34,732 as a result of
earnings credits from overnight cash balances.
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with AEFC for
managing its portfolio, providing administrative services and
serving as transfer agent as follows: 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 0.6% to 0.5% annually. The performance incentive
adjustment remains unchanged from the prior agreement.
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 0.05%
to 0.03% 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 $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: 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.
Under a Shareholder Service Agreement, the Fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of the
Fund's average daily net assets attributable to Class A and Class B
shares.
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 Fund shares were $17,019,008 for Class A and
$18,252 for Class B for the year ended Sept. 30, 1995.
<PAGE>
PAGE 16
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 $40,550 for the year ended Sept. 30, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $3,158,444,447 and
$2,440,411,185, respectively, for the year ended Sept. 30, 1995.
Realized gains and losses are determined on an identified cost
basis.
Brokerage commissions paid to brokers affiliated with AEFC were
$617,469 for the year ended Sept. 30, 1995.
___________________________________________________________________
4. Capital share transactions
<TABLE>
<CAPTION>
Transactions in shares of capital stock for the periods indicated are as follows:
________________________________________________________________________________________
Year ended Sept. 30, 1995 Year ended
9/30/94
Class A Class B* Class Y* Class A
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 87,791,383 8,845,958 115,253,413 96,121,314
Issued for reinvested 14,863,540 -- -- 12,444,004
distributions
Redeemed (142,988,018) (129,871) (11,428,163) (41,274,919)
________________________________________________________________________________________
Net increase (decrease) (40,333,095) 8,716,087 103,825,250 67,290,399
________________________________________________________________________________________
*Inception date was March 20, 1995.
</TABLE>
___________________________________________________________________
5. Lending of portfolio securities
At Sept. 30, 1995, securities valued at $24,949,250 were on loan to
brokers. For collateral, the Fund received U.S. government
securities valued at $25,788,895. Income from securities lending
amounted to $561,132 for the year ended Sept. 30, 1995. 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.
___________________________________________________________________
6. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
<PAGE>
PAGE 17
<TABLE>
<CAPTION>
Period ended Sept. 30, 1995
________________________________________________________________________
Puts Calls
Contracts Premium Contracts Premium
________________________________________________________________________
<S> <C> <C> <C> <C>
Balance Sept. 30, 1994 -- $ -- -- $ --
Opened 4,750 205,905 250 18,249
Closed (2,500) (89,997) (250) (18,249)
Exercised (1,000) (47,998) -- --
Expired (1,250) (67,910) -- --
________________________________________________________________________
Balance Sept. 30, 1995 -- $ -- -- $ --
________________________________________________________________________
</TABLE>
___________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 6 and 7 of the prospectus.
<PAGE>
PAGE 18
<TABLE>
<CAPTION>
Investments in securities
IDS New Dimensions Fund, Inc. (Percentages represent value of
Sept. 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (88.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (3.4%)
Boeing 1,050,000 $ 71,662,500
Loral 630,000 35,910,000
Raytheon 700,000 59,500,000
United Technologies 600,000 53,025,000
______________
Total 220,097,500
_____________________________________________________________________________________________________________________________
Automotive & related (0.3%)
General Motors 400,000 18,750,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (5.6%)
Ahmanson (HF) 2,000,000 50,750,000
Citicorp 3,000,000 212,250,000
First Chicago 1,000,000 68,625,000
State Street Boston 800,000 32,000,000
______________
Total 363,625,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.8%)
Coca-Cola 1,600,000 110,400,000
PepsiCo 150,000 7,650,000
______________
Total 118,050,000
_____________________________________________________________________________________________________________________________
Chemicals (1.6%)
Hercules 300,000 17,400,000
Monsanto 885,000 89,163,750
______________
Total 106,563,750
_____________________________________________________________________________________________________________________________
Communications equipment (4.3%)
ADC Telecommunications 430,000 (b) 19,565,000
Andrew 280,000 (b) 17,115,000
DSC Communications 1,200,000 (b) 71,100,000
General Instrument 500,000 (b) 15,000,000
Glenayre Technologies 260,000 (b) 18,720,000
Motorola 1,000,000 76,375,000
StrataCom 350,000 (b) 19,337,500
Tellabs 1,000,000 (b) 42,125,000
______________
Total 279,337,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 19
Computers & office equipment (14.9%)
Ceridian 400,000 (b) 17,750,000
Cisco Systems 3,200,000 (b) 220,800,000
Compaq Computer 650,000 (b) 31,443,750
Computer Assn Intl 1,500,000 63,375,000
Computer Sciences 970,000 (b) 62,443,750
Diamond Multimedia Systems 72,900 (b) 2,351,025
First Data 500,000 31,000,000
Hewlett-Packard 1,200,000 100,050,000
Intl Business Machines 360,000 33,975,000
Macromedia 10,000 (b) 571,250
Microsoft 1,000,000 (b) 90,500,000
Novell 1,500,000 (b) 27,375,000
Oracle Systems 2,300,000 (b) 88,262,500
Parametric Technology 1,200,000 (b) 73,800,000
Reynolds & Reynolds Cl A 2,020,000 69,437,500
Silicon Graphics 600,000 (b) 20,625,000
3Com 750,000 (b) 34,125,000
______________
Total 967,884,775
_____________________________________________________________________________________________________________________________
Electronics (5.9%)
Applied Materials 350,000 (b) 35,787,500
AVX 250,000 (b) 8,375,000
Intel 2,800,000 168,350,000
Linear Technology 840,000 34,860,000
LSI Logic 650,000 (b) 37,537,500
Teradyne 900,000 (b) 32,400,000
Texas Instruments 400,000 31,950,000
Vishay Intertechnology 900,000 (b) 37,800,000
______________
Total 387,060,000
_____________________________________________________________________________________________________________________________
Energy (3.9%)
Amoco 1,600,000 102,600,000
Exxon 1,000,000 72,250,000
Mobil 800,000 79,700,000
______________
Total 254,550,000
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.5%)
Fluor 600,000 33,600,000
_____________________________________________________________________________________________________________________________
Financial services (3.8%)
Dean Witter 1,300,000 73,125,000
First Financial Management 1,000,000 97,625,000
Household Intl 600,000 37,200,000
MBNA 900,000 37,462,500
______________
Total 245,412,500
_____________________________________________________________________________________________________________________________
Food (2.2%)
ConAgra 3,200,000 126,800,000
Pioneer Hi-Bred Intl 400,000 18,400,000
______________
Total 145,200,000
_____________________________________________________________________________________________________________________________
Health care (9.8%)
Abbott Laboratories 1,000,000 42,625,000
Amgen 2,400,000 (b) 119,700,000
Boston Scientific 700,000 (b) 29,837,500
Johnson & Johnson 1,500,000 111,187,500
Medtronic 2,200,000 118,250,000
Merck 1,200,000 67,200,000
Pfizer 2,800,000 149,450,000
______________
Total 638,250,000
_____________________________________________________________________________________________________________________________
Health care services (1.5%)
HBO 550,000 34,375,000
United Healthcare 1,300,000 63,537,500
______________
Total 97,912,500
_____________________________________________________________________________________________________________________________
Household products (3.9%)
Duracell Intl 1,200,000 53,850,000
Gillette 2,000,000 95,250,000
Procter & Gamble 1,400,000 107,800,000
______________
Total 256,900,000
<PAGE>
PAGE 20
Industrial equipment & services (1.8%)
Caterpillar 1,000,000 56,875,000
Deere 180,000 14,647,500
Illinois Tool Works 280,000 16,485,000
WMX Technologies 1,000,000 28,500,000
______________
Total 116,507,500
_____________________________________________________________________________________________________________________________
Industrial transportation (0.4%)
CSX 350,000 29,443,750
_____________________________________________________________________________________________________________________________
Insurance (2.5%)
Amer Intl Group 1,300,000 110,500,000
General Re 250,000 37,750,000
UNUM 225,000 11,868,750
______________
Total 160,118,750
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.9%)
Marriott Intl 700,000 26,162,500
Mirage Resorts 900,000 (b) 29,587,500
______________
Total 55,750,000
_____________________________________________________________________________________________________________________________
Media (1.9%)
Time Warner 1,400,000 55,650,000
Tribune 250,000 16,593,750
Viacom Cl B 1,000,000 (b) 49,750,000
______________
Total 121,993,750
_____________________________________________________________________________________________________________________________
Metals (0.9%)
Aluminum Co Amer 1,100,000 58,162,500
Multi-industry conglomerates (3.3%)
Alco Standard 500,000 42,375,000
General Electric 2,200,000 140,250,000
Manpower 1,200,000 34,800,000
______________
Total 217,425,000
_____________________________________________________________________________________________________________________________
Paper & packaging (0.2%)
Crown Cork & Seal 400,000 (b) 15,500,000
_____________________________________________________________________________________________________________________________
Restaurants & lodging (2.8%)
Hospitality Franchise System 920,000 48,185,000
McDonald's 3,000,000 114,750,000
Promus Hotel 760,000 (b) 17,290,000
______________
Total 180,225,000
_____________________________________________________________________________________________________________________________
Retail (2.1%)
Albertson's 1,000,000 34,125,000
CUC Intl 1,100,000 (b) 38,362,500
Home Depot 1,000,000 39,875,000
Wal-Mart Stores 1,000,000 24,875,000
______________
Total 137,237,500
_____________________________________________________________________________________________________________________________
Utilities - gas (1.0%)
Enron 2,000,000 67,000,000
_____________________________________________________________________________________________________________________________
Utilities - telephone (2.2%)
AirTouch Communications 1,000,000 (b) 30,625,000
AT&T 300,000 19,725,000
BellSouth 300,000 21,937,500
SBC Communications 400,000 22,000,000
U S WEST 1,000,000 47,125,000
______________
Total 141,412,500
_____________________________________________________________________________________________________________________________
Foreign (5.4%)(c)
British Airways 400,000 28,550,000
Ericsson Cl B ADR 1,400,000 34,300,000
Nokia Preferred 800,000 55,800,000
Reuters Holdings ADR 300,000 15,862,500
Royal Dutch Petroleum 1,000,000 122,750,000
Schlumberger 500,000 32,625,000
Seagram 928,000 33,292,000
SmithKline Beecham 350,000 17,718,750
Teva Pharmaceutical Inds ADR 420,000 15,172,500
<PAGE>
PAGE 21
______________
Total 356,070,750
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $4,076,548,158) $5,790,040,525
_____________________________________________________________________________________________________________________________
Preferred stock & other (0.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Ericsson ADR
Rights 1,400,000 (c) $ 1,539,586
Jan Bell
Warrants 2,689 (e) --
Sap 93,500 15,236,292
_____________________________________________________________________________________________________________________________
Total preferred stock & other
(Cost: $7,357,430) $ 16,775,878
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Bond (0.4%)
_____________________________________________________________________________________________________________________________
Issue Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligation
U.S. Treasury 4.25% 1995 $25,000,000(d) $ 24,949,250
_____________________________________________________________________________________________________________________________
Total bond
(Cost: $24,883,662) $ 24,949,250
_____________________________________________________________________________________________________________________________
Options purchased (--%)
_____________________________________________________________________________________________________________________________
Issuer Number Exercise Expiration Value(a)
of contracts price date
_____________________________________________________________________________________________________________________________
Put
S&P 500 10,000 $550 Oct. 1995 $ 625,000
_____________________________________________________________________________________________________________________________
Total options purchased
(Cost: $8,924,657) $ 625,000
Short-term securities (10.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
U.S. government agency (0.1%)
Federal Home Loan Bank Disc Note
10-23-95 5.61% $ 5,370,000 $ 5,350,856
_____________________________________________________________________________________________________________________________
Commercial paper (10.1%)
ABN Amro NA
10-13-95 5.73 8,400,000 8,381,684
A.I. Credit
10-10-95 5.75 11,700,000 11,681,410
Amer General Finance
10-11-95 5.78 7,000,000 6,987,723
Ameritech
12-11-95 5.94 6,000,000 5,928,217
Amgen
10-13-95 5.79 4,500,000 4,490,673
11-17-95 5.72 5,700,000 5,656,908
AON
10-10-95 5.75 9,700,000 9,682,474
10-27-95 5.76 7,000,000 6,967,575
11-02-95 5.94 5,000,000 4,972,399
Associates
North Amer
10-12-95 5.79 6,500,000 6,487,563
10-18-95 5.77 6,900,000 6,880,232
<PAGE>
PAGE 22
AT&T Capital
10-16-95 5.72 5,300,000 5,285,990
Avco Financial Services
11-02-95 5.74 7,400,000 7,361,403
Barclays U.S. Funding
11-01-95 5.77 15,000,000 14,923,467
BBV Finance (Delaware)
11-15-95 5.83 10,700,000 10,617,399
Bell Atlantic Network Funding
10-19-95 5.75 13,200,000 13,160,151
BellSouth Telecommunications
10-19-95 5.73 6,800,000 6,779,543
Beneficial
10-18-95 5.78 3,000,000 2,991,390
10-25-95 5.76 7,900,000 7,868,619
CAFCO
10-03-95 5.76 6,400,000 6,396,949
10-26-95 5.75 9,000,000 8,962,950
11-20-95 5.72 4,900,000 4,860,641
Campbell Soup
11-30-95 5.70 8,000,000 (f) 7,918,711
Ciesco LP
10-13-95 5.75 5,100,000 5,089,466
10-30-95 5.76 8,000,000 7,961,800
10-31-95 5.75 6,700,000 6,667,114
11-09-95 5.72 8,800,000 8,744,560
11-21-95 5.74 5,200,000 5,155,480
11-22-95 5.77 12,500,000 12,394,736
CIT Group Holdings
10-20-95 5.76 10,000,000 9,968,222
Coca-Cola
11-16-95 5.73 10,000,000 9,922,572
Colgate-Palmolive
12-01-95 5.71 8,000,000 (f) 7,917,400
12-04-95 5.72 20,000,000 (f) 19,783,667
12-21-95 5.80 4,700,000 (f) 4,638,017
Commercial Credit
10-12-95 5.77 3,600,000 3,593,124
Consolidated Railway
10-04-95 5.76 10,000,000 (f) 9,993,633
11-07-95 5.80 3,500,000 (f) 3,477,839
11-17-95 5.71 5,300,000 (f) 5,257,402
Dresdner U.S. Finance
10-02-95 5.75 7,000,000 6,997,772
Dun & Bradstreet
10-31-95 5.75 11,900,000 11,836,578
11-21-95 5.79 8,000,000 7,931,508
Fleet Funding
10-24-95 5.77 5,000,000 (f) 4,980,900
11-02-95 5.74 3,741,000 (f) 3,721,453
11-10-95 5.84 4,300,000 (f) 4,271,596
Gateway Fuel
10-23-95 5.77 8,450,000 8,416,327
General Electric Capital Services
10-23-95 5.73 9,000,000 8,967,225
Harris Trust
11-03-95 5.75 1,000,000 1,000,000
Household Finance
10-17-95 5.77 13,200,000 13,164,283
Lilly (Eli)
10-13-95 5.70 10,000,000 9,976,668
Lincoln Natl
11-20-95 5.73 10,800,000 (f) 10,711,803
Merrill Lynch
12-08-95 5.80 7,000,000 6,919,694
Metlife Funding
11-03-95 5.80 6,500,000 6,464,579
11-09-95 5.77 5,000,000 4,968,167
Mobil Australia Finance
10-31-95 5.79 6,500,000 (f) 6,466,163
Morgan Stanley Group
10-06-95 5.78 36,900,000 36,864,822
Natl Australia Funding
(Delaware)
10-05-95 5.70 7,000,000 6,993,568
10-05-95 5.71 4,500,000 4,495,865
Norfolk Southern
11-08-95 5.74 7,900,000 (f) 7,849,708
12-01-95 5.75 8,400,000 (f) 8,313,270
12-13-95 5.70 10,000,000 (f) 9,877,083
<PAGE>
PAGE 23
PACCAR Financial
10-26-95 5.73 7,000,000 6,971,284
Pacific Mutual Life
10-16-95 5.76 22,300,000 22,243,308
11-07-95 5.73 8,000,000 7,952,078
Penney (JC) Funding
10-06-95 5.77 4,525,000 4,520,679
10-19-95 5.76 2,380,000 2,372,815
10-20-95 5.76 4,600,000 4,585,382
Pioneer Hi-Bred Intl
10-18-95 5.73 4,000,000 3,988,600
Pitney Bowes Credit
10-27-95 5.74 4,600,000 4,580,370
11-02-95 5.72 6,000,000 5,967,615
11-06-95 5.74 6,000,000 5,963,637
SAFECO Credit
10-02-95 5.77 4,600,000 4,598,232
11-17-95 5.74 7,000,000 6,941,059
Sandoz
10-05-95 5.74 3,500,000 3,496,697
10-24-95 5.75 6,000,000 5,975,179
11-20-95 5.79 4,500,000 4,462,149
Siemens
10-04-95 5.75 6,000,000 5,996,187
SmithKline Beecham
10-23-95 5.74 3,300,000 3,287,982
Southwestern Bell Capital
10-25-95 5.75 8,800,000 (f) 8,765,167
Toyota Motor Credit
10-16-95 5.77 7,805,000 7,785,158
10-26-95 5.75 7,700,000 7,668,302
Transamerica Finance
11-09-95 5.78 6,000,000 5,961,733
11-15-95 5.77 3,000,000 2,977,240
USAA Capital
10-03-95 5.74 6,000,000 5,997,145
10-11-95 5.77 6,300,000 6,288,989
USL Capital
10-12-95 5.77 5,400,000 5,389,686
Wachovia Bank
10-17-95 5.75 5,000,000 5,000,000
10-26-95 5.73 13,200,000 13,200,000
______________
Total $ 659,934,808
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $665,382,810) $ 665,285,664
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $4,783,096,717)(g) $6,497,676,317
_____________________________________________________________________________________________________________________________
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) Security is partially or fully on loan. See Note 5 to the financial statements.
(e) Presently negligible market value.
(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
guidelines established by the board of directors.
(g) At Sept. 30, 1995, the cost of securities for federal income tax purposes was $4,784,312,477
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $1,733,572,786
Unrealized depreciation (20,208,946)
________________________________________________________________________________________________
Net unrealized appreciation $1,713,363,840
________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 24
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) 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 25
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) federal building
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
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
<PAGE>
PAGE 26
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 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 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 apple 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.
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PAGE 27
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) electrical cord
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.
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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 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 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
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PAGE 28
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.
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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.
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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.
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 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.
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PAGE 29
Federal income tax information
IDS New Dimensions Fund, Inc.
___________________________________________________________________
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 advisor on how to
report distributions for state and local purposes.
IDS New Dimensions Fund, Inc.
Fiscal year ended Sept. 30, 1995
Income distribution taxable as dividend income, 100% qualifying for
deduction by corporations.
Payable date Per share
Dec. 30, 1994 $0.1180
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1994 $0.5050
Total distributions $0.6230
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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 New Dimensions Fund
IDS Tower 10
Minneapolis, MN 55440-0010
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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 and
prospectus 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 and prospectus. 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.
