<PAGE>
Prospectus Supplement May 1, 1998*
IDS Managed Allocation Fund (Nov. 28, 1997) S-6141 M (11/97)
IDS Mutual (Nov. 28, 1997) S-6326 M (11/97)
The "London Team" paragraph in the "Portfolio management team" section of the
IDS Managed Allocation Fund prospectus has been revised as follows:
Ian King and John O'Brien, the "London Team," provide portfolio management for
the international equities portion of the Portfolio. Ian joined AEFC in 1995 and
serves as portfolio manager for Emerging Markets Portfolio. Prior to joining
AEFC he was director of Lehman Brothers Global Asset Management Ltd. from 1992
to 1995. John joined AEFC in 1988 and serves as vice president and portfolio
manager for American Express Management International Inc. He became portfolio
manager of World Growth Portfolio and IDS Life Series Fund, International Equity
Portfolio in September 1997.
The "Investment policies and risks" section of the prospectus has been revised
as follows:
The policies described below apply both to the Fund and the Portfolio. The
Portfolio allocates its investments generally among four asset classes (each of
which has its own particular risk attributes): U.S. equities, U.S. and foreign
debt securities, foreign equity securities and cash. Each of these asset classes
may include subcategories. For example, U.S. equities may include both large
capitalization and small capitalization companies. Foreign securities may
include both developed and emerging markets. The Portfolio may use derivative
instruments and make investments not in these classes. The portion to be
invested in each class is determined by the portfolio manager based on his
judgment as to which mix of assets will provide the most favorable total return.
That mix, called the market mix, may be reset periodically, and is expected to
be reset at least once every 12 to 18 months.
In IDS Mutual the following paragraph replaces the paragraph on Edward Labenski
in the "Portfolio manager" section of the prospectus:
Bradley Stone joined AEFC in 1996 and serves as portfolio manager. He has
managed the fixed income portion of the assets of the Fund since May 1998. Prior
to joining AEFC he was a fixed income portfolio manager at Piper Capital
Management, Inc. from 1990 to 1996.
S-6147 A (5/98)
*Valid until next prospectus update
Destroy Nov. 30, 1998
