<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> IDS SELECTIVE FUND CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 5
<ASSETS-OTHER> 1577074725
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1577074730
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 478189
<TOTAL-LIABILITIES> 478189
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1544604845
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<SHARES-COMMON-PRIOR> 133367536
<ACCUMULATED-NII-CURRENT> 791648
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 21737681
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9462367
<NET-ASSETS> 1170466872
<DIVIDEND-INCOME> 807137
<INTEREST-INCOME> 108469051
<OTHER-INCOME> 0
<EXPENSES-NET> 15614349
<NET-INVESTMENT-INCOME> 93661839
<REALIZED-GAINS-CURRENT> 41649023
<APPREC-INCREASE-CURRENT> (78138561)
<NET-CHANGE-FROM-OPS> 57172301
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 70803729
<DISTRIBUTIONS-OF-GAINS> 9639607
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<NUMBER-OF-SHARES-SOLD> 17815988
<NUMBER-OF-SHARES-REDEEMED> 27089924
<SHARES-REINVESTED> 6549613
<NET-CHANGE-IN-ASSETS> (29068736)
<ACCUMULATED-NII-PRIOR> 437407
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 6909688
<GROSS-ADVISORY-FEES> 6246109
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<GROSS-EXPENSE> 15647195
<AVERAGE-NET-ASSETS> 1217837835
<PER-SHARE-NAV-BEGIN> 9.23
<PER-SHARE-NII> .54
<PER-SHARE-GAIN-APPREC> (.20)
<PER-SHARE-DIVIDEND> .61
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.96
<EXPENSE-RATIO> .89
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> IDS SELECTIVE FUND CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 0
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<OVERDISTRIBUTION-GAINS> 0
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<OTHER-INCOME> 0
<EXPENSES-NET> 15614349
<NET-INVESTMENT-INCOME> 93661839
<REALIZED-GAINS-CURRENT> 41649023
<APPREC-INCREASE-CURRENT> (78138561)
<NET-CHANGE-FROM-OPS> 57172301
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9096813
<DISTRIBUTIONS-OF-GAINS> 1455785
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11571189
<NUMBER-OF-SHARES-REDEEMED> 5713123
<SHARES-REINVESTED> 1038289
<NET-CHANGE-IN-ASSETS> (29068736)
<ACCUMULATED-NII-PRIOR> 437407
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 6909688
<GROSS-ADVISORY-FEES> 1122483
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<AVERAGE-NET-ASSETS> 179880246
<PER-SHARE-NAV-BEGIN> 9.23
<PER-SHARE-NII> .47
<PER-SHARE-GAIN-APPREC> (.20)
<PER-SHARE-DIVIDEND> .54
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.96
<EXPENSE-RATIO> 1.65
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> IDS SELECTIVE FUND CLASS Y
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 0
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<OTHER-ITEMS-LIABILITIES> 478189
<TOTAL-LIABILITIES> 478189
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1544604845
<SHARES-COMMON-STOCK> 21851833
<SHARES-COMMON-PRIOR> 23955563
<ACCUMULATED-NII-CURRENT> 791648
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 21737681
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9462367
<NET-ASSETS> 195786065
<DIVIDEND-INCOME> 807137
<INTEREST-INCOME> 108469051
<OTHER-INCOME> 0
<EXPENSES-NET> 15614349
<NET-INVESTMENT-INCOME> 93661839
<REALIZED-GAINS-CURRENT> 41649023
<APPREC-INCREASE-CURRENT> (78138561)
<NET-CHANGE-FROM-OPS> 57172301
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13407056
<DISTRIBUTIONS-OF-GAINS> 1906262
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11212661
<NUMBER-OF-SHARES-REDEEMED> 14984989
<SHARES-REINVESTED> 1668598
<NET-CHANGE-IN-ASSETS> (29068736)
<ACCUMULATED-NII-PRIOR> 437407
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 6909688
<GROSS-ADVISORY-FEES> 1044798
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 15647195
<AVERAGE-NET-ASSETS> 227674791
<PER-SHARE-NAV-BEGIN> 9.23
<PER-SHARE-NII> .55
<PER-SHARE-GAIN-APPREC> (.20)
<PER-SHARE-DIVIDEND> .62
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.96
<EXPENSE-RATIO> .81
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</TABLE>
<TABLE>
<CAPTION>
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Selective Fund, Inc.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
1. Election of Board members.
H. Brewster Atwater, Jr.
<S> <C> <C> <C>
Affirmative 98,031,805.859 55.197% 98.938%
Withhold 1,052,457.177 0.592% 1.062%
TOTAL 99,084,263.036 55.789% 100.000%
Arne H. Carlson
Affirmative 97,827,031.111 55.081% 98.731%
Withhold 1,257,231.925 0.708% 1.269%
TOTAL 99,084,263.036 55.789% 100.000%
Lynne V. Cheney
Affirmative 98,013,684.093 55.186% 98.920%
Withhold 1,070,578.943 0.603% 1.080%
TOTAL 99,084,263.036 55.789% 100.000%
William H. Dudley
Affirmative 98,027,814.825 55.194% 98.934%
Withhold 1,056,448.211 0.595% 1.066%
TOTAL 99,084,263.036 55.789% 100.000%
David R. Hubers
Affirmative 98,040,037.995 55.201% 98.946%
Withhold 1,044,225.041 0.588% 1.054%
TOTAL 99,084,263.036 55.789% 100.000%
Heinz F. Hutter
Affirmative 98,010,242.508 55.184% 98.916%
Withhold 1,074,020.528 0.605% 1.084%
TOTAL 99,084,263.036 55.789% 100.000%
Anne P. Jones
Affirmative 98,041,947.377 55.202% 98.948%
Withhold 1,042,315.659 0.587% 1.052%
TOTAL 99,084,263.036 55.789% 100.000%
William R. Pearce
Affirmative 97,996,551.545 55.177% 98.902%
Withhold 1,087,711.491 0.612% 1.098%
TOTAL 99,084,263.036 55.789% 100.000%
Alan K. Simpson
Affirmative 97,980,888.065 55.168% 98.886%
Withhold 1,103,374.971 0.621% 1.114%
TOTAL 99,084,263.036 55.789% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Selective Fund, Inc.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
John R. Thomas
Affirmative 98,048,470.934 55.206% 98.955%
Withhold 1,035,792.102 0.583% 1.045%
TOTAL 99,084,263.036 55.789% 100.000%
C. Angus Wurtele
Affirmative 98,033,729.819 55.198% 98.940%
Withhold 1,050,533.217 0.591% 1.060%
TOTAL 99,084,263.036 55.789% 100.000%
2. Ratify the selection of independent auditors
Affirmative 97,062,313.264 54.651% 97.959%
Against 843,352.093 0.475% 0.852%
Abstain 1,178,597.679 0.663% 1.189%
TOTAL 99,084,263.036 55.789% 100.000%
3. Change the Fund name from "IDS" to "AXP"
Affirmative 89,548,077.000 50.420% 90.376%
Against 7,670,424.657 4.319% 7.741%
Abstain 1,865,761.379 1.050% 1.883%
TOTAL 99,084,263.036 55.789% 100.000%
6. Changes to investment policies
6.1 Prohibited conflict of interest
Affirmative 90,905,139.416 51.184% 93.172%
Against 3,265,613.991 1.839% 3.347%
Abstain 3,396,642.629 1.912% 3.481%
TOTAL 97,567,396.036 54.935% 100.000%
Not Voting 1,516,867.000
6.2 Senior Securities
Affirmative 90,929,963.625 51.198% 93.197%
Against 3,222,992.610 1.815% 3.303%
Abstain 3,414,439.801 1.922% 3.500%
TOTAL 97,567,396.036 54.935% 100.000%
Not Voting 1,516,867.000
FUND TOTALS Shares
Record Total 177,604,887.042
Voted Shares 99,084,263.036
Percent Voted 55.789%
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Selective Fund, Inc. Class B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
4. Approve a new shareholder service and distribution plan.
Affirmative 10,353,542.233 46.189% 90.400%
Against 794,604.413 3.545% 6.937%
Abstain 304,947.145 1.361% 2.663%
TOTAL 11,453,093.791 51.095% 100.000%
Not Voting 7,744.000
FUND TOTALS Shares
Record Total 22,415,449.446
Voted Shares 11,460,837.791
Percent Voted 51.129%
SHAREHOLDER RESPONSE SUMMARY REPORT
IDS FUNDS
IDS Selective Fund, Inc. Class A & B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
4. Approve a new shareholder service and distribution plan.
Affirmative 78,067,170.113 50.370% 90.504%
Against 5,616,020.511 3.624% 6.510%
Abstain 2,575,451.507 1.661% 2.986%
TOTAL 86,258,642.131 55.655% 100.000%
Not Voting 1,516,867.000
FUND TOTALS Shares
Record Total 154,987,457.084
Voted Shares 87,775,509.131
Percent Voted 56.634%
</TABLE>
Independent Auditors' Report
on Internal Accounting Control
The Board of Directors and Shareholders
AXP Selective Fund, Inc.:
In planning and performing our audit of the financial statements of
AXP Selective Fund, Inc. for the year ended May 31, 1999, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements
of Form N-SAR, not to provide assurance on the internal control.
The management of AXP Selective Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented
in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants.
A material weakness is a condition in which the
design or operation of one or more of the internal
control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts
that would be material in relation to the financial
statements being audited may occur and not be detected
within a timely period by employees in the normal course
of performing their assigned functions. However, we
noted no matters involving the internal control and
its operation, including controls for safeguarding
securities, that we consider to be a material weakness
as defined above.
This report is intended solely for the information and use
of management, the Board of Directors of AXP Selective Fund, Inc.,
and the Securities and Exchange Commission and is not intended to be
and should not be used by anyone other than these specified parties.
KPMG LLP
Minneapolis, Minnesota
July 2, 1999
