PAGE
IDS
Selective
Fund
1994 semiannual report
(icon of) skyline
The goals of IDS
Selective Fund, Inc.
are current income
and the preservation
of capital by investing
in investment grade
bonds.
Distributed by
IDS Financial Services Inc.
IDS
An American Express company
AMERICAN
EXPRESS<PAGE>
PAGE
A quest for quality
Not all bonds are created equal. A bond's quality depends on the ability
of its issuer to make the interest and principal payments owed to the
bondholders. The quality is determined by independent rating agencies,
which assign a credit rating (in the form of a letter grade) to each
bond.
Since its establishment in 1945, Selective Fund has concentrated its
investments in the four highest investment grades. Along the way,
investors have enjoyed a steady stream of interest income with minimal
risk to their principal.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 16
Directors and officers 24
IDS mutual funds 25
<PAGE>
PAGE
To our shareholders
(Photo of William R. Pearce)
William R. Pearce
President of the fund
(Photo of Ray Goodner)
Ray Goodner
Portfolio manager
From the president
As you read this semiannual report, you'll find that it complements the
newly designed annual report you received six months ago. We hope the
substantial changes we've made to the design and organization will help
make information easier to find and understand.
A good place to begin is with the portfolio manager's letter, which
describes the events and investment strategies that most influenced the
fund's performance during the past period.
For a broader financial perspective, please consult your IDS planner, who
can help you make sure your investment and protection strategies continue
to meet the objectives in your financial plan.
William R. Pearce
From the portfolio manager
Interest rates abruptly reversed direction and rose substantially during
the past six months, causing a sharp drop in the bond market. Although
this development had little effect on the fund's dividend, the decline
in bond values resulted in a negative total return for the fund.
At the beginning of the period, there were mixed signs of an impending
interest rate rise for the bond market. During December and January, the
first two months of the period, the economy was moving solidly forward,
but inflation, the key determinant of long-term interest-rate levels,
remained in a downtrend. As it had for some time, the fund responded well
to these conditions, generating gains in both months.
The Fed raises rates
The investment environment changed markedly in early February, however.
The Federal Reserve Board, in an effort to cool down the economy from its
torrid growth in the fourth quarter of 1993 and head off an increase in
inflation, began to push short-term interest <PAGE>
PAGE
To our shareholders
rates higher. By the end of April, the Fed raised rates twice more. (It
should be noted that the Fed's moves regarding short-term rates don't
directly affect rates on long-term bonds; long-term rates are still
determined by inflation expectations and the supply/demand situation
within the bond market.)
The market reacted immediately to the Fed's action, driving down bond
prices on the fear that inflation, contrary to the data at the time,
would soon soar. The sell-off became contagious, and bond prices spiraled
down from February through early May.
Defensive tactics
To counter the effect of this trend, we reduced the average maturity of
the portfolio (the longer the average maturity level, the more sensitive
a portfolio is to interest-rate changes) by reducing our holdings of U.S.
Treasury notes (intermediate-term investments) and raising our level of
cash reserves. These moves helped temper the downturn. But we also added
to our investments in U.S. dollar-denominated Asian bonds, where we
believe robust economies will make for good returns in the future.
Though still volatile on a day-to-day basis, the bond market was able to
hold its ground during the final weeks of the period and, in fact,
rallied briefly at one point. We view this as an indication that the
worst of the storm may have passed and that some positive fundamentals
are beginning to be appreciated. These include: the Clinton
administration's support of the Federal Reserve's inflation-fighting
tactics, disinflationary conditions internationally and a less-
threatening federal deficit. In light of those factors, we think it's
reasonable to expect bonds to improve on their first-half performance,
although the upside potential remains modest.
Ray Goodner
6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1994 $8.89
Nov. 30, 1993 $9.77
Decrease ($0.88)
Distributions
Dec. 1, 1993 - May 31, 1994
From income $0.35
From capital gains $0.11
Total distributions $0.46
Total return* (4.51%)
* 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.
<PAGE>
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<TABLE>
IDS Selective Fund, Inc.
Your fund's ten largest holdings
<CAPTION>
Percent Value
(of fund's net assets) (as of May 31, 1994)
<S> <C> <C>
Japan Finance 1.82% $28,220,625
9.25% 1998
Province of Quebec 1.25 19,339,625
11% 2015
Tokyo Electric Power Euro 1.25 19,323,125
6.125% 2003
United Kingdom Treasury
8% 2003 1.07 16,524,555
Federal Paper Board 1.06 16,381,781
10% 2011
General Electric Capital 1.01 15,656,250
8.65% Reset Note 1996
Malaysia Government 1.01 15,637,875
9.875% 2000
Williams Companies .98 15,225,000
7.50% 1999
GTE South .97 14,988,187
9.375% 1st Mortgage 2030
First Security .94 14,568,750
7.50% Sub Notes 2002
(Pie chart) The ten holdings listed here make up 11.36% of the fund's net assets
Excludes U.S. Treasury and government agencies holdings that
total 25.7% of the fund's net assets.
/TABLE
<PAGE>
PAGE
<TABLE>
Financial statements
Statement of assets and liabilities
IDS Selective Fund, Inc.
May 31, 1994
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,556,046,112) $1,560,823,113
Dividends and accrued interest receivable 24,452,011
U.S. government securities held as collateral (Note 5) 38,376,207
_____________________________________________________________________________________________________________
Total assets 1,623,651,331
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 922,399
Dividends payable to shareholders 1,678,924
Payable for investments securities purchased 10,983,361
Payable upon return of securities loaned (Note 5) 60,135,857
Accrued investment management and services fee 717,975
Accrued distribution fee 60,017
Accrued transfer agency fee 154,350
Other accrued expenses 304,440
_____________________________________________________________________________________________________________
Total liabilities 74,957,323
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,548,694,008
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 174,199,663 shares $ 1,741,997
Additional paid-in capital 1,517,423,342
Undistributed net investment income 300,383
Accumulated net realized gain (Note 1) 24,916,910
Unrealized appreciation (Note 6) 4,311,376
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,548,694,008
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 8.89
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statement of operations
IDS Selective Fund, Inc.
Six months ended May 31, 1994
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Income:
Interest $ 58,992,508
Dividends 210,975
_____________________________________________________________________________________________________________
Total income 59,203,483
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 4,348,519
Distribution fee 342,834
Transfer agency fee 871,815
Compensation of directors 22,929
Compensation of officers 9,903
Custodian fees 74,002
Postage 104,264
Registration fees 66,102
Reports to shareholders 13,524
Audit fees 16,000
Administrative 15,121
Other 20,116
_____________________________________________________________________________________________________________
Total expenses 5,905,129
_____________________________________________________________________________________________________________
Investment income -- net 53,298,354
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (Note 3) 25,620,452
Net realized loss on closed interest rate futures contracts (1,002,819)
Net realized gain on options written (Note 4) 240,950
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 24,858,583
Net change in unrealized appreciation or depreciation (152,931,848)
_____________________________________________________________________________________________________________
Net loss on investments and foreign currency (128,073,265)
_____________________________________________________________________________________________________________
Net decrease in net assets resulting from operations $(74,774,911)
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
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Financial statements
Statements of changes in net assets
IDS Selective Fund, Inc.
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions May 31, 1994 Nov. 30, 1993
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 53,298,354 $ 109,885,488
Net realized gain on investments and foreign currency 24,858,583 27,637,411
Net change in unrealized appreciation or depreciation (152,931,848) 89,408,374
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations (74,774,911) 226,931,273
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (53,068,688) (110,889,838)
Net realized gains on investments (26,487,582) (18,273,614)
Excess distribution of realized gain (Note 1) (506,499) (473,077)
_____________________________________________________________________________________________________________
Total distributions (80,062,769) (129,636,529)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
12,675,343 and 29,056,630 shares (Note 2) 118,567,652 280,546,936
Net asset value of 6,552,979 and 10,006,921 shares
issued in reinvestment of distributions 61,873,076 95,735,511
Payments for redemptions of
22,830,599 and 28,767,588 shares (213,500,175) (277,656,557)
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from capital share transactions
representing net reduction of
3,602,277 and net addition of 10,295,963 shares (33,059,447) 98,625,890
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets (187,897,127) 195,920,634
Net assets at beginning of period 1,736,591,135 1,540,670,501
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$300,383 and $70,717) $1,548,694,008 $1,736,591,135
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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Notes to financial statements
IDS Selective Fund, Inc.
(Unaudited as to May 31, 1994)
______________________________________________________________________________
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 in 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 transaction if a
liquid secondary market does not exist. <PAGE>
PAGE
Notes to financial statements
IDS Selective Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
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
interest rate 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.
<PAGE>
<PAGE>
Notes to financial statements
IDS Selective Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
Foreign currency translations and
forward 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. It is not
practicable to identify that portion of realized and
unrealized gain (loss) arising from changes in the
exchange rates from the portion arising from changes in
the market value of investments.
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.
<PAGE>
PAGE
Notes to financial statements
IDS Selective Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
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.
<PAGE>
<PAGE>
Notes to financial statements
IDS Selective Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
Dividends to shareholders
Dividends from net investment income, declared daily
and payable monthly, are reinvested in additional
shares of the fund at net asset value or payable in
cash. Capital gains, when available, are distributed
along with the last income dividend of the calendar
year.
Other
Security transactions are accounted for on the date
securities are purchased or sold. Dividend income is
recognized on the ex-dividend date. For U.S. dollar
denominated bonds, interest income includes level-yield
amortization of premium and discount. For foreign
bonds, except for original issue discount, the fund
does not amortize premium and discount.
______________________________________________________________________________
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 0.13% of average
daily net assets.
<PAGE>
<PAGE>
Notes to financial statements
IDS Selective Fund, Inc.
______________________________________________________________________________
2. Expenses and sales charges
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 $15.50 per shareholder
account. The transfer agency fee is reduced by earnings
on monies pending shareholder redemptions.
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 $2,522,964 for the six
months ended May 31, 1994.
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 $8,317 for the six
months ended May 31, 1994.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities
(other than short-term obligations) aggregated
$169,080,028 and $421,963,023, respectively, for the
six months ended May 31, 1994.
Realized gains and losses are determined on an
identified cost basis.
<PAGE>
PAGE
<TABLE>
Notes to financial statements
IDS Selective Fund, Inc.
_____________________________________________________________________________
4. Option contracts written
<CAPTION>
The number of contracts and premium amounts associated
with put option contracts written is as follows:
Six months ended May 31, 1994
_____________________________
Contracts Premium
____________________________________________________
<S> <C> <C>
Balance Nov. 30, 1993 -- $ --
Opened 400 240,950
Expired (400) (240,950)
____________________________________________________
Balance May 31, 1994 -- $ --
____________________________________________________
</TABLE>
_____________________________________________________________________________
5. Lending of portfolio securities
At May 31, 1994, securities valued at $57,747,809 were
on loan to brokers. For collateral, the fund received
$21,759,650 in cash and U.S. government securities
valued at $38,376,207. Income from securities lending
amounted to $110,053 for the six months ended May 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.
______________________________________________________________________________
6. Interest rate futures contracts
At May 31, 1994, investments in securities included
securities valued at $2,098,700 that were pledged as
collateral to cover initial margin deposit on 100
purchase contracts. The market value of the open
contracts at May 31, 1994, was $9,143,750 with a net
unrealized loss of $465,625.
<PAGE>
PAGE
<TABLE>
Notes to financial statements
IDS Selective Fund, Inc.
_____________________________________________________________________________
7. Financial highlights
The table below shows certain important financial information
for evaluating the fund's results.
Fiscal year ended Nov. 30,
Per share income and capital changes*
<CAPTION>
1994** 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.77 $9.20 $8.93 $8.41 $8.69 $8.44
Income from investment operations:
Net investment income .30 .63 .66 .69 .70 .72
Net gains (losses) on securities
(both realized and unrealized) (.72) .69 .27 .52 (.30) .27
Total from investment operations (.42) 1.32 .93 1.21 .40 .99
Less distributions:
Dividends from net investment income (.31) (.64) (.66) (.69) (.68) (.74)
Distributions from realized gains (.15) (.11) -- -- -- --
Total distributions (.46) (.75) (.66) (.69) (.68) (.74)
Net asset value, end of period $8.89 $9.77 $9.20 $8.93 $8.41 $8.69
Ratios/supplemental data
1994** 1993 1992 1991 1990 1989
Net assets, end of period (in millions) $1,549 $1,737 $1,541 $1,403 $1,196 $1,167
Ratio of expenses to average daily net assets .71%*** .72% .74% .77% .76% .77%
Ratio of net income to average daily net assets 6.44%*** 6.57% 7.32% 7.94% 8.58% 8.42%
Portfolio turnover rate (excluding short-term
securities) 11% 30% 62% 59% 54% 79%
Total return+ (4.5%)++ 14.8% 10.8% 15.0% 4.8% 12.3%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended May 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended May 31, 1994, the annualized return is (8.8%).
/TABLE
<PAGE>
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<TABLE>
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
_____________________________________________________________________________________________________________________________
Bonds (79.9%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligations (18.4%)
U.S. Treasury 8.00 % 2021 $35,000,000 (j) $ 36,727,250
8.625 1995-97 85,745,000 (b) 89,692,135
10.375 2012 18,210,000 22,686,016
Resolution Funding Corp
Zero Coupon 7.60 2017 79,000,000 (c) 13,309,912
Zero Coupon 7.89 2016 85,900,000 (b,c) 15,819,335
Zero Coupon 7.98 2016 32,000,000 (c) 5,791,034
Zero Coupon 8.11 2016 35,073,000 (c) 6,104,101
Zero Coupon 8.12 2004 7,899,000 (c) 3,741,519
Zero Coupon 8.18 2005 13,000,000 (c) 5,523,439
Zero Coupon 8.19 2014 48,000,000 (c) 10,356,960
Zero Coupon 8.20 2005 38,048,000 (b,c) 16,997,940
Zero Coupon 8.27 2014 10,000,000 (c) 2,070,999
Zero Coupon 8.35 2006 48,000,000 (c) 19,685,755
Zero Coupon 8.94 2006 25,000,000 (c) 10,459,000
Zero Coupon 8.95 2006 68,000,000 (c) 26,701,560
_____________
Total 285,666,955
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (7.9%)
Federal Home Loan Mtge Corp
5.787 1994-22 7,600,477 7,706,428
8.00 1994-17 15,815 15,691
8.50 1994-22 15,613,741 15,878,871
9.00 1994-21 9,883,433 10,177,243
Collateralized Mtge Obligation 8.50 2019 12,000,000 12,281,520
Federal Housing Admin 7.43 1994-24 9,537,274 8,786,213
Federal Natl Mtge Assn 6.50 1994-23 14,743,234 13,526,917
10.00 1994-02 168 180
Collateralized Mtge Obligation 6.50 2020 9,202,836 8,941,568
8.00 2021 11,728,879 11,497,703
8.50 2019 8,305,000 8,456,898
Collateralized Mtge Obligation
Trust Series Z 6.00 2024 17,256,277 (d) 11,380,170
Principal Only 9.50 2018 2,291,819 (e) 1,719,025
Principal Only 9.89 2020 2,752,295 (e) 2,054,368
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (cont'd)
Prudential Bache
Collateralized Mtge Obligation 7.965% 2019 $ 4,635,922 $ 4,521,878
Salomon Brothers
GNMA Collateralized Mtge Obligation 7.75 2012 4,343,852 4,391,461
WestAm
Collateralized Mtge Obligation 8.95 2018 438,215 416,725
______________
Total 121,752,859
_____________________________________________________________________________________________________________________________
Financial (11.4%)
Banks and savings & loans (3.4%)
BankAmerica
Sub Nts 7.50 2002 8,810,000 8,600,763
Boatmen's Bancshares
Sub Nts 9.25 2001 8,950,000 9,688,375
First Chicago
Sr Nts 9.00 1999 7,900,000 8,393,750
First Security
Sub Nts 7.50 2002 15,000,000 14,568,750
NCNB
Sub Nts 9.125 2001 10,000,000 10,587,500
______________
Total 51,839,138
_____________________________________________________________________________________________________________________________
Financial services (7.3%)
Amer General Finance 6.35 1995 9,500,000 9,559,375
Aristar
Sr Deb 8.875 1998 10,520,000 11,046,000
Sr Deb 14.25 1994 6,000,000 6,120,000
Beneficial 9.125 1998 10,000,000 10,712,500
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Financial (cont'd)
Financial services (cont'd)
General Electric Capital
Reset Nt 8.65 % 1996 $15,000,000 (f) $ 15,656,250
General Motors Acceptance 5.95 1998 8,000,000 7,570,000
7.00 2000 14,300,000 13,906,750
8.20 1994 9,000,000 9,045,000
Goldman Sachs Group LP 7.125 2003 12,000,000 (g) 11,430,000
Greyhound Financial 7.95 1999 9,600,000 9,804,000
SunAmerica 9.95 2012 8,000,000 8,780,000
______________
Total 113,629,875
_____________________________________________________________________________________________________________________________
Insurance (0.7%)
Berkley (WR) 8.70 2022 10,000,000 10,162,500
USLICO
Cv 8.50 2014 600,000 609,000
_____________
Total 10,771,500
_____________________________________________________________________________________________________________________________
Industrial (10.9%)
Aerospace & defense (0.7%)
United Technologies 8.875 2019 10,000,000 10,625,000
_____________________________________________________________________________________________________________________________
Automotive & related (1.1%)
Ford Capital B.V.
Gtd Nts 9.00 1996 9,700,000 10,112,250
General Motors 8.875 2003 7,050,000 7,473,000
____________
Total 17,585,250
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.7%)
Philip Morris 8.10 1996 10,000,000 10,325,000
_____________________________________________________________________________________________________________________________
Chemicals (0.7%)
Dow Chemical 8.85 2021 10,000,000 10,712,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Industrial (cont'd)
Ecological services & equipment (0.5%)
Browning-Ferris Inds 9.25 % 2021 $ 7,000,000 $ 7,638,750
_____________________________________________________________________________________________________________________________
Electronics (0.3%)
Harris 10.375 2018 3,900,000 4,304,625
_____________________________________________________________________________________________________________________________
Energy (3.0%)
PDV Amer 7.875 2003 16,500,000 14,066,250
Texaco Capital
Gtd Deb 7.50 2043 12,000,000 10,770,000
Union Oil of California 9.25 2003 7,500,000 8,090,625
USX 9.125 2013 5,000,000 4,912,500
9.375 2022 9,200,000 9,154,000
______________
Total 46,993,375
_____________________________________________________________________________________________________________________________
Health care (0.8%)
Schering-Plough
Zero Coupon 7.31 1996 15,000,000 (c,g) 12,806,250
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.7%)
Deere 8.95 2019 10,000,000 10,900,000
_____________________________________________________________________________________________________________________________
Media (0.7%)
Time Warner Entertainment 8.375 2033 12,000,000 10,185,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Industrial (cont'd)
Paper & packaging (1.7%)
Federal Paper Board 10.00 % 2011 $14,775,000 $ 16,381,781
Georgia-Pacific
Credit Sensitive Nts 9.85 1997 10,000,000 10,562,500
______________
Total 26,944,281
_____________________________________________________________________________________________________________________________
Municipal (0.6%)
Washington Public Power Supply System
Bonneville Nuclear Project #1
Refunding Revenue Bonds Series 1993C 5.375 2015 10,000,000 8,801,100
_____________________________________________________________________________________________________________________________
Transportation (1.0%)
AMR 9.75 2021 2,500,000 2,443,750
10.00 2021 8,000,000 8,010,000
10.20 2020 5,000,000 5,093,750
______________
Total 15,547,500
_____________________________________________________________________________________________________________________________
Utilities (11.0%)
Electric (7.5%)
Arizona Public Service
1st Mtge 8.75 2024 5,000,000 5,100,000
Sale Lease-Backed Obligation 8.00 2015 9,000,000 8,516,250
Cajun Electric Power Cooperative
Mtge Trust 8.92 2019 4,960,000 5,586,200
Cleveland Toledo Consolidated Mansfield Funds
Sale Lease-Backed Obligation 10.25 2003 1,500,000 1,417,500
Commonwealth Edison 6.50 2000 9,000,000 8,358,750
Long Island Lighting 9.625 2024 4,600,000 4,255,000
Ohio Edison 8.75 2022 11,000,000 11,990,000
Ohio Power Scherer Funding 9.70 2011 6,000,000 6,165,000
Public Service Electric & Gas
1st Mtge 8.50 2022 13,859,000 13,910,971
See accompanying notes to investments in securities.<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Utilities (cont'd)
Electric (cont'd)
RGS Funding
Sale Lease-Backed Obligation 9.82 % 2022 $ 9,943,030 $ 11,024,335
San Diego Gas & Electric
1st Mtge 9.625 2020 9,950,000 11,405,188
Southern California Edison
1st Mtge 8.875 2023 13,000,000 13,845,000
Texas Utilities Electric 10.35 2018 1,500,000 1,640,625
1st Mtge 9.75 2021 7,000,000 7,490,000
1st Mtge 9.875 2019 6,000,000 6,472,500
______________
Total 117,177,319
_____________________________________________________________________________________________________________________________
Gas (1.0%)
Williams Companies 7.50 1999 15,000,000 15,225,000
_____________________________________________________________________________________________________________________________
Telephone (2.5%)
GTE 10.25 2020 2,000,000 2,337,500
GTE South
1st Mtge 9.375 2030 13,975,000 14,988,187
New York Tel 9.375 2031 7,000,000 7,525,000
U S WEST Communications 8.875 2031 12,660,000 13,467,075
______________
Total 38,317,762
_____________________________________________________________________________________________________________________________
Foreign (18.7%)(h)
ABN Amro Bank
(U.S. Dollar) 7.125 2093 8,200,000 6,990,500
(U.S. Dollar) 7.75 2023 3,800,000 3,619,500
Alcan Aluminium
(U.S. Dollar) 8.875 2022 9,600,000 9,888,000
Austria Republic Euro
(U.S. Dollar) 10.00 1998 5,000,000 5,521,875
Banca Comm Italia
(U.S. Dollar) 8.25 2007 5,000,000 4,962,500
Euratom Euro
(U.S. Dollar) 7.75 1997 6,100,000 6,189,853
Govt of Canada
(Canadian Dollar) 10.50 2001 17,000,000 13,447,714
Guang Dong Enterprise
(U.S. Dollar) 8.75 2003 15,000,000 (g) 13,725,000
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Foreign (cont'd)
Hanson Inds Cv
(British Pound) 9.50 % 2006 $ 3,000,000 $ 5,128,380
Hydro-Quebec
(Canadian Dollar) 9.50 2030 10,000,000 10,887,500
Intl Finance Euro
(U.S. Dollar) 8.25 1996 8,000,000 8,265,000
Intl Bank Reconstruction & Development
(U.S. Dollar) 12.375 2002 6,000,000 7,920,000
Japan Finance
(U.S. Dollar) 9.25 1998 25,950,000 28,220,625
KFW Intl Finance
(U.S. Dollar) 8.50 1999 10,000,000 10,600,000
Kingdom of Denmark Euro
(U.S. Dollar) 7.25 1996 8,000,000 8,160,000
Korea Development Bank
(U.S. Dollar) 8.90 1996 9,000,000 9,360,000
Korea Electric Power
(U.S. Dollar) 8.00 2002 9,000,000 8,865,000
Korea Telecom
(U.S. Dollar) 7.40 1999 6,700,000 6,607,875
Malaysia Govt
(U.S. Dollar) 9.875 2000 14,025,000 15,637,875
People's Republic of China
(U.S. Dollar) 6.50 2004 16,000,000 (b) 13,900,000
Province of Ontario
(U.S. Dollar) 7.375 2003 5,000,000 4,881,250
Province of Quebec
(U.S. Dollar) 11.00 2015 16,150,000 19,339,625
Republic of Columbia
(U.S. Dollar) 7.25 2004 8,400,000 7,455,000
Republic of Italy
(U.S. Dollar) 6.875 2023 17,000,000 14,195,000
Roche Holdings
(U.S. Dollar) 2.75 2000 12,000,000 9,412,440
Tokyo Electric Power Euro
(U.S. Dollar) 6.125 2003 21,500,000 19,323,125
United Kingdom Treasury
(British Pound) 8.00 2003 11,300,000 16,524,555
______________
Total 289,028,192
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $1,232,112,964) $1,236,777,231
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks (0.5%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
First Chicago
2.875% Cm Cv 60,000 $ 3,285,000
Occidental Petroleum
3.875% Cm Cv 41,000 (g) 2,019,250
Sonoco Products
2.25% Cv 51,200 2,419,200
_____________________________________________________________________________________________________________________________
Total preferred stocks
(Cost: $7,609,300) $ 7,723,450
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (20.4%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.7%)
Federal Home Loan Bank Disc Note
06-09-94 4.24% $ 2,700,000 $ 2,697,468
06-21-94 4.18 3,300,000 3,292,355
Federal Home Loan Mtge Corp Disc Note
06-02-94 3.85 2,900,000 2,899,691
06-17-94 4.22 3,100,000 3,094,213
07-01-94 4.30 3,100,000 3,088,943
Federal Natl Mtge Assn Disc Note
06-13-94 4.20 2,700,000 2,696,238
06-22-94 4.19 8,200,000 8,180,054
______________
Total 25,948,962
_____________________________________________________________________________________________________________________________
Certificate of deposit (0.3%)
Natl Bank of Detroit
06-23-94 4.26 4,000,000 4,000,000
_____________________________________________________________________________________________________________________________
Commercial paper (17.3%)
ABB Treasury Center
06-20-94 4.24 1,000,000 (i) 997,768
AIG Funding
06-03-94 3.86 7,980,000 7,978,293
Amer Cyanamid
06-13-94 4.32 4,300,000 4,293,837
Amer General Investment
06-09-94 3.92 5,900,000 (i) 5,894,887
06-17-94 4.30 9,400,000 (i) 9,382,119
Associates Corp of North Amer
07-13-94 4.39 5,000,000 4,974,508
Becton Dickinson & Co.
06-14-94 4.30 6,500,000 6,489,954
BellSouth Capital Funding
06-02-94 3.96 5,300,000 5,299,418
See accompanying notes to investments in securities.<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
Cafco
06-10-94 4.34% $9,000,000 $ 8,990,280
Ciesco LP
07-21-94 4.38 6,500,000 6,460,729
Colgate Palmolive
06-02-94 3.96 6,010,000 (i) 6,009,341
06-03-94 4.33 7,700,000 (i) 7,698,152
Columbia Fuels
06-15-94 4.31 6,498,000 6,487,159
07-25-94 4.40 7,234,000 7,185,791
Eiger Capital
06-29-94 4.27 9,700,000 (i) 9,667,936
Fleet Funding
06-02-94 3.77 4,459,000 (i) 4,458,536
Gateway Fuel
07-01-94 4.27 6,615,000 6,591,572
Goldman Sachs Group LP
07-11-94 4.37 11,300,000 11,245,383
Kredietbank North Amer Finance
06-03-94 3.97 4,700,000 4,698,966
07-18-94 4.39 2,100,000 2,088,046
08-19-94 4.55 5,000,000 4,950,000
Lincoln Natl
06-15-94 4.34 4,900,000 (i) 4,891,768
06-20-94 4.32 8,700,000 (i) 8,680,256
06-23-94 4.25 5,700,000 (i) 5,685,265
MetLife Funding
06-08-94 4.02 4,200,000 4,196,733
Mobil Australia Finance (Delaware)
06-09-94 4.34 6,700,000 (i) 6,693,568
Morgan Bank of Canada Schedule B
06-20-94 4.32 5,000,000 4,988,653
Norfolk Southern
06-02-94 3.82 2,900,000 (i) 2,899,694
06-16-94 4.34 4,600,000 (i) 4,591,720
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Pacific Energy Fuels
06-02-94 3.72% $3,800,000 $ 3,799,609
Penney (JC) Funding
06-06-94 3.94 8,500,000 8,495,372
07-06-94 4.32 7,500,000 7,468,646
Pennsylvania Power & Light
Energy Trust
06-13-94 4.34 7,000,000 6,989,920
Sandoz
06-01-94 3.86 4,200,000 4,200,000
Sara Lee
07-21-94 4.38 3,200,000 3,180,667
SBT Funding
06-20-94 4.30 6,168,000 (i) 6,154,067
Southern California Gas
06-16-94 4.37 9,843,000 (i) 9,825,159
St. Paul Companies
06-14-94 4.13 15,000,000 (i) 14,977,737
06-21-94 4.31 3,900,000 (i) 3,890,705
06-22-94 4.30 7,500,000 (i) 7,481,275
Toyota Motor Credit
06-24-94 4.27 10,000,000 9,972,847
USAA Capital
06-07-94 3.94 7,300,000 7,295,231
______________
Total 268,201,567
_____________________________________________________________________________________________________________________________
Letters of credit (1.1%)
Bank of New York-
River Fuel
06-03-94 3.90 6,792,000 (i) 6,790,536
NationsBank North Carolina-
Comdisco
06-01-94 3.84 5,400,000 5,400,000
06-27-94 4.32 6,000,000 5,981,367
______________
Total 18,171,903
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $316,323,848) $ 316,322,432
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,556,046,112)(k) $1,560,823,113
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investments in securities
IDS Selective Fund, Inc.
May 31, 1994 (Unaudited)
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Security is partially or fully on loan. See Note 5 to the financial statements.
(c) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(d) This security is a collateralized mortgage obligation whose payment of principal has been deferred until payment of
previous series within the trust have been paid off.
(e) Principal Only-interest rate disclosed for these securities represent current yields based upon estimated
future cash flows.
(f) Interest rate varies, rate shown is the effective rate on May 31, 1994.
(g) 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.
(h) Foreign security values are stated in U.S. dollars. For bonds principal amounts are denominated in the
currency indicated.
(i) 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.
(j) Partially pledged as initial deposit on the following open interest rate futures purchase contracts (see Note 6 to the
financial statements):
<CAPTION>
Type of security Par value
________________________________________________________
<S> <C>
Municipal Bond, June 1994 $10,000,000
________________________________________________________
(k) On May 31, 1994, the cost of securities for federal income tax purposes was approximately $1,554,473,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $43,662,000
Unrealized depreciation (37,312,000)
____________________________________________________________________________________________
Net unrealized appreciation $ 6,350,000
____________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
_____________________________________________________________________
Interested director who is a partner in a law firm that has
represented an IDS subsidiary
Anne P. Jones
Partner, law firm of Sutherland, Asbill & Brennan.
_____________________________________________________________________
Interested directors who are officers and/or employees of IDS
William H. Dudley
Executive vice president, IDS.
David R. Hubers
President and chief executive officer, IDS.
John R. Thomas
Senior vice president, IDS.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and general
counsel and treasurer of the publicly offered funds.<PAGE>
PAGE
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 deposit (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<PAGE>
PAGE
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
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 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
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<PAGE>
PAGE
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
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. Holdings may range from
small- to large- capitalization stocks, including those of companies
involved 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
<PAGE>
PAGE
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
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 in common stocks of companies representing many
sectors 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 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.
(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<PAGE>
PAGE
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 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 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
<PAGE>
PAGE
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
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
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 (TouchTone 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
AN AMERICAN EXPRESS COMPANY
1894 IDS 1994
A CENTURY OF INVESTING IN THE FUTURE
IDS Selective Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
