IDS STRATEGY FUND INC, 485BPOS, 1995-05-25

IDS STRATEGY FUND INC
485BPOS, 1995-05-25

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<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Post-Effective Amendment No. 27 (File No. 2-89288) X

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 29 (File No. 811-3956) X

IDS STRATEGY FUND, INC.
IDS Tower 10, Minneapolis, Minnesota 55440-0010

Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810,
Minneapolis, MN 55402-3268
(612) 330-9283

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check
appropriate box)
immediately upon filing pursuant to paragraph (b)
X on May 30, 1995 pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(i)
on (date) pursuant to paragraph (a)(i)
75 days after filing pursuant to paragraph (a)(ii)
on (date) pursuant to paragraph (a)(ii) of rule 485.
If appropriate, check the following box:
this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.

The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24f-2 of the Investment Company Act of 1940. Registrant filed or
will file its 24f-2 Notice for its most recent fiscal year on or
about May 23, 1995.
<PAGE>
PAGE 2
Cross reference sheet showing location in the prospectus and
Statement of Additional Information of the information called for
by the items enumerated in Part A and B of Form N-1A.

Negative answers omitted from prospectus are so indicated.
<TABLE><CAPTION>
PART A PART B
Page Number Page Number in Statement
Item No. in Prospectus Item No. of Additional Information
<S> <C> <C> <C>
1 Cover page of prospectus 10 Cover page of SAI

2 The fund in brief; Sales 11 Table of Contents
charge and fund expenses 12 NA
3(a) Financial highlights 13(a) Additional Investment Policies;
(b) NA all appendices except Dollar-Cost
(c) Performance Averaging
(d) Financial highlights (b) Additional Investment Policies

4(a) The fund in brief; Investment (c) Additional Investment Policies
policies and risks; How the (d) Portfolio Transactions
fund is organized 14(a) Directors and officers of the fund;**
(b) Investment policies and risks Directors and Officers
(c) Investment policies and risks (b) Directors and Officers

5(a) Directors and officers; (c) Directors and Officers
Directors and officers of the 15(a) NA
fund (listing) (b) NA
(b) How the fund is organized; (c) Directors and Officers
About American Express 16(a)(i) How the fund is organized; About American
Financial Corporation Express Financial Corporation**
(b)(i) About American Express (a)(ii) Agreements: Investment Management Services
Financial Corporation -- Agreement, Plan and Agreement of Distribution
General information (a)(iii) Agreements: Investment Management Services
(b)(ii) Investment manager and Agreement
transfer agent (b) Agreements: Investment Management Services
(b)(iii) Investment manager and Agreement
transfer agent (c) NA
(c) Portfolio manager (d) Agreements: Administrative Services Agreement,
(d) The fund in brief Shareholder Service Agreement
(e) Investment manager and (e) NA
transfer agent (f) Agreements: Distribution Agreement
(f) Distributor (g) NA
(g) Investment manager and (h) Custodian; Independent Auditors
transfer agent (i) Agreements: Transfer Agency Agreement; Custodian

5A(a) * 17(a) Portfolio Transactions
(b) * (b) Brokerage Commissions Paid to Brokers Affiliated

6(a) Shares; Voting rights with American Express Financial Corporation
(b) NA (c) Portfolio Transactions
(c) NA (d) Portfolio Transactions
(d) Voting rights (e) Portfolio Transactions
(e) Cover page; Special 18(a) Shares and Voting Rights**
shareholder services (b) NA
(f) Dividends and capital gain 19(a) Investing in the Fund
distributions; Reinvestments (b) Valuing Fund Shares; Investing in the Fund

7(a) Distributor (c) NA
(b) Key terms; Valuing assets 20 Taxes
(c) How to buy, exchange or 21(a) Agreements: Distribution Agreement
sell shares (b) Agreements: Distribution Agreement
(d) How to buy shares (c) NA
(e) NA 22(a) Performance Information (for money market funds only)
(f) Distributor (b) Performance Information (for all funds except money

8(a) How to sell shares market funds)
(b) NA 23 Financial Statements
(c) How to buy shares: Three
ways to invest
(d) How to buy, exchange or
sell shares: Redemption
policies -- "Important..."

9(a) None
*Designates page number in prospectus, which is hereby incorporated in this Statement of Additional Information.
/TABLE
<PAGE>
PAGE 3
IDS Strategy Aggressive Fund

Prospectus
May 30, 1995

The goal of IDS Strategy Aggressive Fund, a part of IDS Strategy
Fund, Inc., is long-term growth of capital. The fund invests
primarily in common stocks that are selected for their above-
average growth potential.

This prospectus contains facts that can help you decide if the fund
is the right investment for you. Read it before you invest and
keep it for future reference.

Additional facts about the fund are in a Statement of Additional
Information (SAI), filed with the Securities and Exchange
Commission. The SAI, dated May 30, 1995, is incorporated here by
reference. For a free copy, contact American Express Shareholder
Service.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.

SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENTS IN THE FUND
INVOLVE INVESTMENT RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.

American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
<PAGE>
PAGE 4
Table of contents

The fund in brief
Goal
Types of fund investments and their risks
Manager and distributor
Portfolio manager
Alternative sales arrangements

Sales charge and fund expenses
Sales charge and operating expenses

Performance
Financial highlights
Total returns
Key terms

Investment policies and risks
Facts about investments and their risks
Alternative investment option
Valuing assets

How to buy, exchange or sell shares
Alternative sales arrangements
How to buy shares
How to exchange shares
How to sell shares
Reductions and waivers of the sales charge

Special shareholder services
Services
Quick telephone reference

Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes

How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor

About American Express Financial Corporation
General information

Appendix

Descriptions of derivative instruments
<PAGE>
PAGE 5
The fund in brief

Goal

IDS Strategy Aggressive Fund seeks to provide shareholders with
long-term growth of capital. Because any investment involves risk,
achieving this goal cannot be guaranteed. Only shareholders can
change the goal.

Types of fund investments and their risks

The fund is a diversified mutual fund that invests primarily in
common stocks that are selected for their above-average growth
potential. Some of the fund's investments may be considered
speculative and involve additional investment risk.

Manager and distributor

The fund is managed by American Express Financial Corporation, a
provider of financial services since 1894. American Express
Financial Corporation currently manages more than $39 billion in
assets for the IDS MUTUAL FUND GROUP. Shares of the fund are sold
through American Express Financial Advisors Inc., a wholly owned
subsidiary of American Express Financial Corporation.

Portfolio manager

David Bayer joined American Express Financial Corporation in 1992
and became portfolio manager of this fund in July 1994. He
previously held the position of senior analyst. Prior to joining
American Express Financial Corporation, he had been an analyst with
Montgomery Securities.

Alternative sales arrangements

The fund offers its shares in three classes. Class A shares are
subject to a sales charge at the time of purchase. Class B shares
are subject to a contingent deferred sales charge (CDSC) on
redemptions made within six years of purchase and an annual
distribution (12b-1) fee. Class Y shares are sold without a sales
charge to qualifying institutional investors. Other differences
between the classes include the fees paid by each class. The fund
offers these alternatives so you may choose the method of
purchasing shares that is most beneficial given the amount of
purchase, length of time you expect to hold the shares and other
circumstances.

Sales charge and fund expenses

Sales charge and operating expenses

When you buy Class A shares, you pay a maximum sales charge of 5%
of the public offering price. This charge can be reduced,
depending on your total investments in IDS funds. See "Reductions
of the sales charge." No sales charge applies at the time of
purchase of Class B shares, although Class B shares may be subject
to a CDSC on redemptions made within six years and are subject to
<PAGE>
PAGE 6
annual distribution (12b-1) fees. Class Y shares are sold without
a sales charge to qualifying institutional investors. Shareholder
transaction expenses are incurred directly by an investor on the
purchase or redemption of fund shares. Fund operating expenses are
paid out of fund assets for each class of shares. Operating
expenses are reflected in the fund's daily share price and
dividends, and are not charged directly to shareholder accounts.

Shareholder transaction expenses
Class A Class B Class Y
Maximum sales charge on purchases
(as a percentage of offering price).......5% 0% 0%
Maximum deferred sales charge
imposed on redemptions (as a
percentage of original purchase price)....0% 5% 0%

Annual fund operating expenses*
(% of average daily net assets):

Class A* Class B Class Y*
Management fee 0.60% 0.60% 0.60%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses** 0.60% 0.61% 0.43%
Total 1.20% 1.96% 1.03%

*Expenses for Class B are based on actual expenses for the last
fiscal year, restated to reflect current fees. Expenses for Class
A and Class Y are estimated based on the restated expenses for
Class B, except that the 12b-1 fee and transfer agency fee (under
other expenses) for Class B are based on agreements for that class
and that Class Y does not have a service fee.

**Other expenses include an administrative services fee, a
shareholder services fee, a transfer agency fee, and other non-
advisory expenses.

Example: Suppose for each year for the next 10 years, fund
expenses are as above and annual return is 5%. If you sold your
shares at the end of the following years, for each $1,000 invested,
you would pay total expenses of:

1 year 3 years 5 years 10 years**
Class A $62 $ 86 $113 $189
Class B $70 $102 $126 $209
Class B* $20 $ 62 $106 $209
Class Y $11 $ 33 $ 57 $126

*Assuming Class B shares are not redeemed at the end of the period.
**Based on conversion of Class B shares to Class A shares after
eight years.

This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown. Because
Class B pays annual distribution (12b-1) fees, long-term
shareholders of Class B may indirectly pay an equivalent of more
than a 6.25% sales charge, the maximum permitted by the National
Association of Securities Dealers.<PAGE>
PAGE 7
Performance

Financial highlights

Performance
Financial highlights

Fiscal period ended March 31,
Per share income and capital changes*

1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
Classes
A** B Y**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $14.84 $14.39 $15.19 $15.12 $15.37 $13.73 $12.42 $ 9.98 $9.17 $12.29 $ 9.21 $6.24
beginning of period
Income from investment operations:
Net investment income .01 (.05) -- (.14) (.11) (.03) .15 .01 (.02) (.01) (.01) --
(loss)

Net gains (losses) .06 .71 (.30) .83 .61 2.35 2.01 2.43 .83 (2.71) 3.40 3.08
(both realized
and unrealized)

Total from investment .07 .66 (.30) .69 .50 2.32 2.16 2.44 .81 (2.72) 3.39 3.08
operations
Less distributions:
Dividends from net -- -- -- -- -- (.01) (.16) -- -- -- -- --
investment income

Distributions from -- (.15) -- (1.42) (.75) (.67) (.69) -- -- (.40) (.31) (.11)
realized gains

Total distributions -- (.15) -- (1.42) (.75) (.68) (.85) -- -- (.40) (.31) (.11)

Net asset value, $14.91 $14.90 $14.89 $14.39 $15.12 $15.37 $13.73 $12.42 $9.98 $9.17 $12.29 $9.21
end of period
Ratios/supplemental data

1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
Classes
A** B Y**
Net assets, end of period $7 $776 $-- $652 $582 $473 $352 $283 $246 $261 $279 $85
(in millions)

Ratio of expenses to 1.18%++ 1.80% --%+ 1.71% 1.75% 1.62% 1.61% 1.49% 1.69% 1.68% 1.64% 1.76%
average daily net assets

Ratio of net income 1.26%++ (.41%) --%+ (.99%) (.82%) (.27%) 1.17% .14% (.17%) (.12%) (.09%) .02%
(losses) to average
daily net assets

Portfolio turnover rate 111% 111% 111% 55% 49% 52% 64% 33% 48% 39% 43% 67%
(excluding short-term
securities)

Total return*** .04% 4.7% (2.0%) 4.1% 3.2% 16.8% 18.9% 24.4% 8.8% (21.9%) 36.9% 49.3%

*For a share outstanding throughout the period. Rounded to the nearest cent.
**Commencement of operations was March 20, 1995 for Class A and March 28, 1995 For Class Y.
***Total return does not reflect payment of a sales charge.
+Commencement of operations. Ratios of expenses and net investment income to average daily net assets is not presented for Class
Y as only one share was outstanding during the period.
++Adjusted to an annual basis.

The information in this table has been audited by KPMG Peat Marwick LLP, independent auditors. The independent auditors' report and
additional information about the performance of the fund are contained in the fund's annual report which, if not included with this
prospectus, may be obtained without charge.

</TABLE>

<PAGE>
PAGE 8
Total returns

Average annual total returns as of March 31, 1995

Purchase 1 year 5 years 10 years
made ago ago ago
Strategy Aggressive:
Class A - 0.52% + 8.21% + 12.36%
Class B + 0.50% + 9.10% + 12.94%
Class Y + 4.62% + 9.31% + 12.93%

S&P 500 +15.58% +11.43% + 14.43%

Lipper Small
Co. Growth
Fund Index + 9.28% +13.00% +11.72%

Cumulative total returns as of March 31, 1995

Purchase 1 year 5 years 10 years
made ago ago ago
Strategy Aggressive:
Class A - 0.52% +48.37% +220.71%
Class B + 0.50% +54.57% +237.66%
Class Y + 4.62% +56.06% +237.36%

S&P 500 +15.58% +71.85% +285.37%

Lipper Small
Co. Growth
Fund Index + 9.28% +84.23% +203.16%

These examples show total returns from hypothetical investments in
Class B shares of the fund. These returns are compared to those of
popular indexes for the same periods. Average annual and
cumulative total returns for Class A and Class Y are based on Class
B historical performance (adjusted for sales charge differences)
for the period prior to inception of the new classes.

For purposes of calculation, information about the fund assumes:

o a sales charge of 5% for Class A shares

o redemption at the end of each period and deduction of the
applicable contingent deferred sales charge for Class B shares

o no sales charge for Class Y shares

o no adjustments for taxes an investor may have paid on the
reinvested income and capital gains

o a period of widely fluctuating securities prices. Returns
shown should not be considered a representation of the fund's
future performance.

The fund includes primarily common stocks that may be different
from those in the indexes. The indexes reflect reinvestment of all
distributions and changes in market prices, but exclude brokerage
commissions or other fees.<PAGE>
PAGE 9
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 Small Company Growth Fund Index, published by Lipper
Analytical Services, Inc., includes 30 funds that are generally
similar to the fund, although some funds in the index may have
somewhat different investment policies or objectives.

Key terms

Net asset value (NAV)
Value of a single fund share. For each class, it is the total
market value of all of a fund's investments and other assets
attributable to that class, less any liabilities attributable to
that class, divided by the number of shares of that class
outstanding.

When you buy shares, you pay the NAV plus any applicable sales
charge. When you sell shares, the price you receive is the NAV
minus any applicable sales charge. The NAV usually changes daily,
and is calculated at the close of business, normally 3 p.m. Central
time, each business day (any day the New York Stock Exchange is
open).

Public offering price
Price at which you buy shares. It is the NAV plus the sales charge
for Class A. It is the NAV for Class B and Class Y. NAVs and
public offering prices of IDS funds are listed each day in major
newspapers and financial publications for classes of funds large
enough to be listed.

Investment income
Dividends and interest earned on securities held by the fund.

Capital gains or losses
Increase or decrease in value of the securities the fund holds.
Gains or losses are realized when securities that have increased or
decreased in value are sold. A fund also may have unrealized gains
or losses when securities increase or decrease in value but are not
sold.

Distributions
Payments to shareholders of two types: investment income
(dividends) and realized net long-term capital gains (capital gains
distributions).

Average annual total return
The annually compounded rate of return over a given time period
(usually two or more years) -- total return for the period
converted to an equivalent annual figure.<PAGE>
PAGE 10
Investment policies and risks

The fund invests primarily in securities of companies the
investment manager expects to grow at a rate faster than the
average of the companies that make up the S&P 500 Stock Index.
Under normal market conditions, 65% of its total assets will be
invested in equity securities. The fund may invest in preferred
stocks, convertible securities, debt securities, foreign
investments, derivative instruments and money market instruments.

The various types of investments the portfolio manager uses to
achieve investment performance are described in more detail in the
next section and in the SAI.

Facts about investments and their risks

Common stocks: Stock prices are subject to market fluctuations.
Stocks of larger, established companies that pay dividends may be
less volatile than the stock market as a whole. Stocks of smaller
companies (defined as having market capitalization of $1 billion or
less) may be subject to more abrupt or erratic price movements than
large company stocks. Also, small companies often have limited
product lines, smaller markets or fewer financial resources.
Therefore, some of the securities in which the fund invests involve
substantial risk and may be considered speculative.

Preferred stocks: If a company earns a profit, it generally must
pay its preferred stockholders a dividend at a pre-established
rate.

Convertible securities: These securities generally are preferred
stocks or bonds that can be exchanged for other securities, usually
common stock, at prestated prices. When the trading price of the
common stock makes the exchange likely, the convertible securities
trade more like common stock.

Debt securities: The price of an investment-grade bond fluctuates
as interest rates change or if its credit rating is upgraded or
downgraded. Prices of bonds below investment grade may react more
to the ability of the issuing company to pay interest and principal
when due. These bonds have greater price fluctuations and are more
likely to experience a default. The fund may invest in debt
securities given a B rating or higher by Moody's Investors Service,
Inc. or by Standard & Poor's Corporation or in bonds of comparable
quality in the judgment of the fund's portfolio manager. Debt
securities rated BB or B are considered below investment grade.
The fund will not invest more than 5% of its net assets in bonds
rated BB or B, or in unrated bonds of equivalent quality.
Securities that are subsequently downgraded in quality may continue
to be held by the fund, and will be sold only if the fund's
portfolio manager believes it is advantageous to do so.

Foreign investments: Securities of foreign companies and
governments may be traded in the United States, but often they are
traded only on foreign markets. Frequently, there is less
information about foreign companies and less government supervision
of foreign markets. Foreign investments are subject to political
and economic risks of the countries in which the investments are
made, including the possibility of seizure or nationalization of<PAGE>
PAGE 11
companies, imposition of withholding taxes on income, establishment
of exchange controls or adoption of other restrictions that might
affect an investment adversely. If an investment is made in a
foreign market, the local currency must be purchased. This is done
by using a forward contract in which the price of the foreign
currency in U.S. dollars is established on the date the trade is
made, but delivery of the currency is not made until the securities
are received. As long as the fund holds foreign currencies or
securities valued in foreign currencies, the price of a fund share
will be affected by changes in the value of the currencies relative
to the U.S. dollar. Because of the limited trading volume in some
foreign markets, efforts to buy or sell a security may change the
price of the security, and it may be difficult to complete the
transaction. The fund may invest up to 25% of its total assets in
foreign investments.

Derivative instruments: The portfolio manager may use derivative
instruments in addition to securities to achieve investment
performance. Derivative instruments include futures, options and
forward contracts. Such instruments may be used to maintain cash
reserves while remaining fully invested, to offset anticipated
declines in values of investments, to facilitate trading, to reduce
transaction costs, or to pursue higher investment returns.
Derivative instruments are characterized by requiring little or no
initial payment and a daily change in price based on or derived
from a security, a currency, a group of securities or currencies,
or an index. A number of strategies or combination of instruments
can be used to achieve the desired investment performance
characteristics. A small change in the value of the underlying
security, currency or index will cause a sizable gain or loss in
the price of the derivative instrument. Derivative instruments
allow the portfolio manager to change the investment performance
characteristics very quickly and at lower costs. Risks include
losses of premiums, rapid changes in prices, defaults by other
parties, and inability to close such instruments. The fund will
use derivative instruments only to achieve the same investment
performance characteristics it could achieve by directly holding
those securities and currencies permitted under the investment
policies. The fund will designate cash or appropriate liquid
assets to cover its portfolio obligations. No more than 5% of the
fund's net assets can be used at any one time for good faith
deposits on futures and premiums for options on futures that do not
offset existing investment positions. For descriptions of
derivative instruments, see the Appendix to this prospectus.

Securities and derivative instruments that are illiquid: Illiquid
means the security or derivative instrument cannot be sold quickly
in the normal course of business. Some investments cannot be
resold to the U.S. public because of their terms or government
regulations. All securities and derivative instruments, however,
can be sold in private sales, and many may be sold to other
institutions and qualified buyers or on foreign markets. The
portfolio manager will follow guidelines established by the board
of directors and consider relevant factors such as the nature of
the security and the number of likely buyers when determining
whether a security is illiquid. No more than 10% of the fund's net
assets will be held in securities and derivative instruments that
are illiquid.
<PAGE>
PAGE 12
Money market instruments: Short-term debt securities rated in the
top two grades are used to meet daily cash needs and at various
times to hold assets until better investment opportunities arise.
Generally less than 25% of the fund's total assets are in these
money market instruments. However, for temporary defensive
purposes these investments could exceed that amount for a limited
period of time.

The investment policies described above may be changed by the board
of directors.

Lending portfolio securities: The fund may lend its securities to
earn income so long as borrowers provide collateral equal to the
market value of the loans. The risks are that borrowers will not
provide collateral when required or return securities when due.
Unless shareholders approve otherwise, loans may not exceed 30% of
the fund's net assets.

Alternative investment option

In the future, the board of the fund may determine for operating
efficiencies to use a master/feeder structure. Under that
structure, the fund's investment portfolio would be managed by
another investment company with the same goal as the fund, rather
than investing directly in a portfolio of securities.

Valuing assets

o Securities (except bonds) and assets with available market
values are valued on that basis.

o Securities maturing in 60 days or less are valued at amortized
cost.

o Bonds and assets without readily available market values are
valued according to methods selected in good faith by the
board of directors.

How to buy, exchange or sell shares

Alternative sales arrangements

<PAGE>
PAGE 13
Class B No initial sales 0.175% of average Shares convert to
charge; maximum CDSC daily net assets Class A after eight
of 5% declines to 0% years; CDSC waived in
after six years; 12b-1 certain circumstances
fee of 0.75% of average
daily net assets

Class Y None None Available only to
certain qualifying
institutional
investors
</TABLE>
Conversion of Class B shares to Class A shares - Eight calendar
years after Class B shares are purchased, Class B shares will
convert to Class A shares and will no longer be subject to a
distribution fee. Current holdings of Class B shares will convert
beginning in 1996. The conversion will be on the basis of relative
net asset values of the two classes, without the imposition of any
sales charge. Class B shares purchased through reinvested
dividends and distributions will convert to Class A shares in a
pro-rata portion as the Class B shares purchased other than through
reinvestment.

Considerations in determining whether to purchase Class A or Class
B shares - You should consider the information below in determining
whether to purchase Class A or Class B shares. The sales charges
and distribution fee (included in "Ongoing expenses") are
structured so that you will have approximately the same total
return at the end of eight years regardless of which class you
chose.

Sales charges on purchase or redemption

If you purchase Class A If you purchase Class B
shares shares

o You will not have all o All of your money is
of your purchase price invested in shares of
invested. Part of your stock. However, you will
purchase price will go pay a sales charge if you
to pay the sales charge. redeem your shares within
You will not pay a sales six years of purchase.
charge when you redeem
your shares.

o You will be able to o No reductions of the
take advantage of sales charge are
reductions in the sales available for large
charge. purchases.

If your investments in IDS funds total $250,000 or more, you are
better off paying the reduced sales charge in Class A than paying
the higher fees in Class B. If you qualify for a waiver of the
sales charge, you should purchase Class A shares.

<PAGE>
PAGE 14
Ongoing expenses

If you purchase Class A If you purchase Class B
shares shares

o Your shares will have o The distribution and
a lower expense ratio transfer agency fees for
than Class B shares Class B will cause your
because Class A does not shares to have a higher
pay a distribution fee expense ratio and to pay
and the transfer agency lower dividends than
fee for Class A is lower Class A shares. After
than the fee for Class B. eight years, Class B
As a result, Class A shares shares will convert to
will pay higher dividends Class A shares and will
than Class B shares. no longer be subject to
higher fees.

You should consider how long you plan to hold your shares and
whether the accumulated higher fees and CDSC on Class B shares
prior to conversion would be less than the initial sales charge on
Class A shares. Also consider to what extent the difference would
be offset by the lower expenses on Class A shares. To help you in
this analysis, the example in the "Sales charge and fund expenses"
section of the prospectus illustrates the charges applicable to
each class of shares.

Class Y shares - Class Y shares are offered to certain
institutional investors. Class Y shares are sold without a front-
end sales charge or a CDSC and are not subject to either a service
fee or a distribution fee. The following investors are eligible to
purchase Class Y shares:

o Qualified employee benefit plans* if the plan:

- uses a daily transfer recordkeeping service offering
participants daily access to IDS funds and has

- at least $10 million in plan assets or

- 500 or more participants; or

- does not use daily transfer recordkeeping and has

- at least $3 million invested in funds of the IDS MUTUAL
FUND GROUP or

- 500 or more participants.

o Trust companies or similar institutions, and charitable
organizations that meet the definition in Section 501(c)(3) of
the Internal Revenue Code.* These must have at least $10
million invested in funds of the IDS MUTUAL FUND GROUP.

o Nonqualified deferred compensation plans* whose participants
are included in a qualified employee benefit plan described
above.

<PAGE>
PAGE 15

* Eligibility must be determined in advance by American Express
Financial Advisors. To do so, contact your financial advisor.

Financial advisors may receive different compensation for selling
Class A, Class B and Class Y shares.

How to buy shares

If you're investing in this fund for the first time, you'll need to
set up an account. Your financial advisor will help you fill out
and submit an application. Once your account is set up, you can
choose among several convenient ways to invest.

Important: When opening an account, you must provide American
Express Financial Corporation with your correct Taxpayer
Identification Number (Social Security or Employer Identification
number). See "Distributions and taxes."

When you buy shares for a new or existing account, the price you
pay per share is determined at the close of business on the day
your investment is received and accepted at the Minneapolis
headquarters.

Purchase policies:

o Investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to
be included in your account that day and to receive that day's
share price. Otherwise your purchase will be processed the
next business day and you will pay the next day's share price.

o The minimums allowed for investment may change from time to
time.

o Wire orders can be accepted only on days when your bank,
American Express Financial Corporation, the fund and Norwest
Bank Minneapolis are open for business.

o Wire purchases are completed when wired payment is received
and the fund accepts the purchase.

o American Express Financial Corporation and the fund are not
responsible for any delays that occur in wiring funds,
including delays in processing by the bank.

o You must pay any fee the bank charges for wiring.

o The fund reserves the right to reject any application for any
reason.

o If your application does not specify which class of shares you
are purchasing, it will be assumed that you are investing in
Class A shares.

<PAGE>
PAGE 16
Three ways to invest
<TABLE><CAPTION>
1
<S> <C> <C>
By regular account Send your check and application Minimum amounts
(or your name and account number Initial investment: $2,000
if you have an established account) Additional
to: investments: $ 100
American Express Financial Advisors Inc.Account balances: $ 300*
P.O. Box 74 Qualified retirement
Minneapolis, MN 55440-0074 accounts: none

Your financial advisor will help
you with this process.

2
By scheduled Contact your financial advisor Minimum amounts
investment plan to set up one of the following Initial investment: $100
scheduled plans: Additional
investments: $100/mo.
o automatic payroll deduction Account balances: none
(on active plans of
o bank authorization monthly payments)

o direct deposit of
Social Security check

o other plan approved by the fund

3
By wire If you have an established account, If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or
Minneapolis, MN American Express Financial
Attn: Domestic Wire Dept. Corporation incurs, will be
returned promptly.

Give these instructions: Minimum amounts
Credit IDS Account #00-30-015 Each wire investment: $1,000
for personal account # (your
account number) for (your name).

*If your account balance falls below $300, you will be asked in writing to bring it up to $300 or establish a scheduled
investment plan. If you don't do so within 30 days, your shares can be redeemed and the proceeds mailed to you.
</TABLE>
How to exchange shares

You can exchange your shares of the fund at no charge for shares of
the same class of any other publicly offered fund in the IDS MUTUAL
FUND GROUP available in your state. Exchanges into IDS Tax-Free
Money Fund must be made from Class A shares. For complete
information, including fees and expenses, read the prospectus
carefully before exchanging into a new fund.

If your exchange request arrives at the Minneapolis headquarters
before the close of business, your shares will be redeemed at the
net asset value set for that day. The proceeds will be used to
purchase new fund shares the same day. Otherwise, your exchange
will take place the next business day at that day's net asset
value.

For tax purposes, an exchange represents a sale and purchase and
may result in a gain or loss. However, you cannot create a tax
loss (or reduce a taxable gain) by exchanging from the fund within
91 days of your purchase. For further explanation, see the SAI.

<PAGE>
PAGE 17
How to sell shares

You can sell (redeem) your shares at any time. American Express
Shareholder Service will mail payment within seven days after
receiving your request.

When you sell shares, the amount you receive may be more or less
than the amount you invested. Your shares will be redeemed at net
asset value, minus any applicable sales charge, at the close of
business on the day your request is accepted at the Minneapolis
headquarters. If your request arrives after the close of business,
the price per share will be the net asset value, minus any
applicable sales charge, at the close of business on the next
business day.

A redemption is a taxable transaction. If the fund's net asset
value when you sell shares is more or less than the cost of your
shares, you will have a gain or loss, which can affect your tax
liability. Redeeming shares held in an IRA or qualified retirement
account may subject you to certain federal taxes, penalties and
reporting requirements. Consult your tax advisor.
<TABLE><CAPTION>
Two ways to request an exchange or sale of shares

1
<S> <C>
By letter Include in your letter:
o the name of the fund(s)
o the class of shares to be exchanged or redeemed
o your account number(s) (for exchanges, both funds must be registered in the same
ownership)
o your Taxpayer Identification Number (TIN)
o the dollar amount or number of shares you want to exchange or sell
o signature of all registered account owners
o for redemptions, indicate how you want your sales proceeds delivered to you
o any paper certificates of shares you hold

Regular mail:
American Express Shareholder Service
Attn: Redemptions
P.O. Box 534
Minneapolis, MN 55440-0534

Express mail:
American Express Shareholder Service
Attn: Redemptions
733 Marquette Ave.
Minneapolis, MN 55402

2
By phone
American Express Telephone o The fund and American Express Financial Corporation will honor any telephone exchange or
Transaction Service: redemption request believed to be authentic and will use reasonable procedures to confirm
800-437-3133 or that they are. This includes asking identifying questions and tape recording calls. If
612-671-3800 reasonable procedures are not followed, the fund or American Express Financial Corporation
will be liable for any loss resulting from fraudulent requests.
o Phone exchange and redemption privileges automatically apply to all accounts except
custodial, corporate or qualified retirement accounts unless you request these privileges
NOT apply by writing American Express Shareholder Service. Each registered owner must sign
the request.
o American Express Financial Corporation answers phone requests promptly, but you may
experience delays when call volume is high. If you are unable to get through, use mail
procedure as an alternative.
o Acting on your instructions, your financial advisor may conduct telephone transactions
on your behalf.
o Phone privileges may be modified or discontinued at any time.

Minimum amount
Redemption: $100

Maximum amount
Redemption: $50,000
/TABLE
<PAGE>
PAGE 18
Exchange policies:

o You may make up to three exchanges within any 30-day period,
with each limited to $300,000. These limits do not apply to
scheduled exchange programs and certain employee benefit plans or
other arrangements through which one shareholder represents the
interests of several. Exceptions may be allowed with pre-approval
of the fund.

o Exchanges must be made into the same class of shares of the new
fund.

o If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.

o Once we receive your exchange request, you cannot cancel it.

o Shares of the new fund may not be used on the same day for
another exchange.

o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured party.

o American Express Financial Corporation and the fund reserve the
right to reject any exchange, limit the amount, or modify or
discontinue the exchange privilege, to prevent abuse or adverse
effects on the fund and its shareholders. For example, if
exchanges are too numerous or too large, they may disrupt the
fund's investment strategies or increase its costs.

Redemption policies:

o A "change of mind" option allows you to change your mind after
requesting a redemption and to use all or part of the proceeds to
buy new shares in the same class from which you redeemed. If you
reinvest in Class A, you will purchase the new shares at net asset
value rather than the offering price on the date of a new purchase.
If you reinvest in Class B, any CDSC you paid on the amount you are
reinvesting also will be reinvested. To take advantage of this
option, send a written request within 30 days of the date your
redemption request was received. Include your account number and
mention this option. This privilege may be limited or withdrawn at
any time, and it may have tax consequences.

o A telephone redemption request will not be allowed within 30
days of a phoned-in address change.

Important: If you request a redemption of shares you recently
purchased by a check or money order that is not guaranteed, the
fund will wait for your check to clear. Please expect a minimum of
10 days from the date of purchase before a check is mailed to you.
(A check may be mailed earlier if your bank provides evidence
satisfactory to the fund and American Express Financial Corporation
that your check has cleared.)

<PAGE>
PAGE 19
<TABLE><CAPTION>
Three ways to receive payment when you sell shares

1
<S> <C>
By regular or express mail o Mailed to the address on record.
o Payable to names listed on the account.

NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.

2
By wire o Minimum wire redemption: $1,000.
o Request that money be wired to your bank.
o Bank account must be in the same
ownership as the IDS fund account.

NOTE: Pre-authorization required. For
instructions, contact your financial
advisor or American Express Shareholder Service.

3
By scheduled payout plan o Minimum payment: $50.
o Contact your financial advisor or American Express
Shareholder Service to set up regular
payments to you on a monthly, bimonthly,
quarterly, semiannual or annual basis.
o Buying new shares while under a payout
plan may be disadvantageous because of
the sales charges.
</TABLE>
Reductions and waivers of the sales charge
Class A - initial sales charge alternative

On purchases of Class A shares, you pay a 5% sales charge on the
first $50,000 of your total investment and less on investments
after the first $50,000:

Total investment Sales charge as a
percent of:*

Public Net
offering amount
price invested

Up to $50,000 5.0% 5.26%
Next $50,000 4.5 4.71
Next $400,000 3.8 3.95
Next $500,000 2.0 2.04
$1,000,000 or more 0.0 0.00

* To calculate the actual sales charge on an investment greater
than $50,000, amounts for each applicable increment must be
totaled. See the SAI.

Reductions of the sales charge on Class A shares

Your sales charge may be reduced, depending on the totals of:

o the amount you are investing in this fund now,

o the amount of your existing investment in this fund, if any, and

o the amount you and your immediate family (spouse or unmarried
children under 21) are investing or have in other funds in the IDS
MUTUAL FUND GROUP that carry a sales charge.<PAGE>
PAGE 20
Other policies that affect your sales charge:

o IDS Tax-Free Money Fund and Class A shares of IDS Cash
Management Fund do not carry sales charges. However, you may count
investments in these funds if you acquired shares in them by
exchanging shares from IDS funds that carry sales charges.

o IRA purchases or other employee benefit plan purchases made
through a payroll deduction plan or through a plan sponsored by an
employer, association of employers, employee organization or other
similar entity, may be added together to reduce sales charges for
all shares purchased through that plan.

For more details, see the SAI.

Waivers of the sales charge for Class A shares

Sales charges do not apply to:

o Current or retired trustees, directors, officers or employees of
the fund or American Express Financial Corporation or its
subsidiaries, their spouses and unmarried children under 21.

o Current or retired American Express financial advisors, their
spouses and unmarried children under 21.

o Qualified employee benefit plans* using a daily transfer
recordkeeping system offering participants daily access to IDS
funds.

(Participants in certain qualified plans for which the initial
sales charge is waived may be subject to a deferred sales charge of
up to 4% on certain redemptions. For more information, see the
SAI.)

o Shareholders who have at least $1 million invested in funds of
the IDS MUTUAL FUND GROUP. If the investment is redeemed in the
first year after purchase, a CDSC of 1% will be charged on the
redemption.

o Purchases made within 30 days after a redemption of shares (up
to the amount redeemed):
- of a product distributed by American Express Financial
Advisors in a qualified plan subject to a deferred sales
charge or
- in a qualified plan where American Express Trust Company has a
recordkeeping, trustee, investment management or investment
servicing relationship.

Send the fund a written request along with your payment, indicating
the amount of the redemption and the date on which it occurred.

o Purchases made with dividend or capital gain distributions from
another fund in the IDS MUTUAL FUND GROUP that has a sales
charge.

*Eligibility must be determined in advance by American Express
Financial Advisors. To do so, contact your financial advisor.
<PAGE>
PAGE 21
Class B - contingent deferred sales charge alternative

Where a CDSC is imposed on a redemption, it is based on the amount
of the redemption and the number of calendar years, including the
year of purchase, between purchase and redemption. The following
table shows the declining scale of percentages that apply to
redemptions during each year after a purchase:

If a redemption is The percentage rate
made during the for the CDSC is:

First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%

If the amount you are redeeming reduces the current net asset value
of your investment in Class B shares below the total dollar amount
of all your purchase payments during the last six years (including
the year in which your redemption is made), the CDSC is based on
the lower of the redeemed purchase payments or market value.

The following example illustrates how the CDSC is applied. Assume
you had invested $10,000 in Class B shares and that your investment
had appreciated in value to $12,000 after 15 months, including
reinvested dividend and capital gain distributions. You could
redeem any amount up to $2,000 without paying a CDSC ($12,000
current value less $10,000 purchase amount). If you redeemed
$2,500, the CDSC would apply only to the $500 that represented part
of your original purchase price. The CDSC rate would be 4% because
a redemption after 15 months would take place during the second
year after purchase.

Because the CDSC is imposed only on redemptions that reduce the
total of your purchase payments, you never have to pay a CDSC on
any amount you redeem that represents appreciation in the value of
your shares, income earned by your shares or capital gains. In
addition, when determining the rate of any CDSC, your redemption
will be made from the oldest purchase payment you made. Of course,
once a purchase payment is considered to have been redeemed, the
next amount redeemed is the next oldest purchase payment. By
redeeming the oldest purchase payments first, lower CDSCs are
imposed than would otherwise be the case.

Waivers of the sales charge for Class B shares

The CDSC on Class B shares will be waived on redemptions of shares:

o In the event of the shareholder's death,
o Purchased by any trustee, director, officer or employee of a fund
or American Express Financial Corporation or its subsidiaries,
o Purchased by any American Express financial advisor,
o Held in a trusteed employee benefit plan,
<PAGE>
PAGE 22
o Held in IRAs or certain qualified plans for which American
Express Trust Company acts as custodian, such as Keogh plans, tax-
sheltered custodial accounts or corporate pension plans, provided
that the shareholder is:
- at least 59-1/2 years old, and
- taking a retirement distribution
(if the redemption is part of a transfer to an IRA or
qualified plan in a product distributed by American Express
Financial Advisors, or a custodian-to-custodian transfer to a
product not distributed by American Express Financial
Advisors, the CDSC will not be waived), or
- redeeming under an approved substantially equal periodic
payment arrangement.

Special shareholder services

Services

To help you track and evaluate the performance of your investments,
American Express Financial Corporation provides these services:

Quarterly statements listing all of your holdings and transactions
during the previous three months.

Yearly tax statements featuring average-cost-basis reporting of
capital gains or losses if you redeem your shares along with
distribution information - which simplifies tax calculations.

A personalized mutual fund progress report detailing returns on
your initial investment and cash-flow activity in your account. It
calculates a total return to reflect your individual history in
owning fund shares. This report is available from your financial
advisor.

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

<PAGE>
PAGE 23
Distributions and taxes

The fund distributes to shareholders investment income and net
capital gains. It does so to qualify as a regulated investment
company and to avoid paying corporate income and excise taxes.
Dividend and capital gains distributions will have tax consequences
you should know about.

Dividend and capital gain distributions

The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record by the end of the calendar
year. Net realized capital gains, if any, from selling securities
are distributed at the end of the calendar year. Before they're
distributed, both net investment income and net capital gains are
included in the value of each share. After they're distributed,
the value of each share drops by the per-share amount of the
distribution. (If your distributions are reinvested, the total
value of your holdings will not change.) Short-term capital gains
earned by the fund are paid to shareholders as part of their
ordinary income dividend and are taxable.

Dividends paid by each class will be calculated at the same time,
in the same manner and in the same amount, except the expenses
attributable solely to Class A, Class B and Class Y will be paid
exclusively by that class. Class B shareholders will receive lower
per share dividends than Class A and Class Y shareholders because
expenses for Class B are higher than for Class A or Class Y. Class
A shareholders will receive lower per share dividends than Class Y
shareholders because expenses for Class A are higher than for Class
Y.

Reinvestments

Dividends and capital gain distributions are automatically
reinvested in additional shares in the same class of the fund,
unless:

o you request the fund in writing or by phone to pay
distributions to you in cash, or
o you direct the fund to invest your distributions in any
publicly available IDS fund for which you've previously opened
an account. You pay no sales charge on shares purchased
through reinvestment from this fund into any IDS fund.

The reinvestment price is the net asset value at close of business
on the day the distribution is paid. (Your quarterly statement
will confirm the amount invested and the number of shares
purchased.)

If you choose cash distributions, you will receive only those
declared after your request has been processed.

If the U.S. Postal Service cannot deliver the checks for the cash
distributions, we will reinvest the checks into your account at the
then-current net asset value and make future distributions in the
form of additional shares.
<PAGE>
PAGE 24
Taxes

Distributions are subject to federal income tax and also may be
subject to state and local taxes. Distributions are taxable in the
year the fund pays them regardless of whether you take them in cash
or reinvest them.

Each January, you will receive a tax statement showing the kinds
and total amount of distributions you received during the previous
year. You must report all distributions on your tax returns, even
if they are reinvested in additional shares.

"Buying a dividend" creates a tax liability. This means buying
shares shortly before a net investment income or a capital gain
distribution. You pay the full pre-distribution price for the
shares, then receive a portion of your investment back as a
distribution, which is taxable.

Redemptions and exchanges subject you to a tax on any capital gain.
If you sell shares for more than their cost, the difference is a
capital gain. Your gain may be either short term (for shares held
for one year or less) or long term (for shares held for more than
one year).

Your Taxpayer Identification Number (TIN) is important. As with
any financial account you open, you must list your current and
correct Taxpayer Identification Number (TIN) -- either your Social
Security or Employer Identification number. The TIN must be
certified under penalties of perjury on your application when you
open an account at American Express Financial Corporation.

If you don't provide the TIN, or the TIN you report is incorrect,
you could be subject to backup withholding of 31% of taxable
distributions and proceeds from certain sales and exchanges. You
also could be subject to further penalties, such as:

o a $50 penalty for each failure to supply your correct TIN
o a civil penalty of $500 if you make a false statement that
results in no backup withholding
o criminal penalties for falsifying information

You also could be subject to backup withholding because you failed
to report interest or dividends on your tax return as required.
<TABLE><CAPTION>
How to determine the correct TIN

Use the Social Security or
For this type of account: Employer Identification number
of:
<S> <C>
Individual or joint account The individual or first person
listed on the account

Custodian account of a minor The minor
(Uniform Gifts/Transfers to
Minors Act)

<PAGE>
PAGE 25
A living trust The grantor-trustee (the person
who puts the money into the
trust)

An irrevocable trust, pension The legal entity (not the
trust or estate personal representative or
trustee, unless no legal entity
is designated in the account
title)

Sole proprietorship or The owner or partnership
partnership

Corporate The corporation

Association, club or The organization
tax-exempt organization
</TABLE>
For details on TIN requirements, ask your financial advisor or
local American Express Financial Advisors office for Federal Form
W-9, "Request for Taxpayer Identification Number and
Certification."

Important: This information is a brief and selective summary of
certain federal tax rules that apply to this fund. Tax matters are
highly individual and complex, and you should consult a qualified
tax advisor about your personal situation.

How the fund is organized

IDS Strategy Fund, Inc., of which Strategy Aggressive Fund is a
part, is an open-end management investment company, as defined in
the Investment Company Act of 1940. It was incorporated on Jan.
24, 1984 in Minnesota. The fund headquarters are at 901 S.
Marquette Ave., Suite 2810, Minneapolis, MN 55402-3268.

IDS Strategy Fund, Inc. currently is composed of two funds, each
issuing its own series of capital stock: IDS Equity Value and IDS
Strategy Aggressive Fund. The fund is owned by its shareholders.
Each fund issues shares in three classes - Class A, Class B and
Class Y. Each class has different sales arrangements and bears
different expenses. Each class represents interests in the assets
of the fund. Par value is 1 cent per share. Both full and
fractional shares can be issued.

The shares of each fund making up IDS Strategy Fund, Inc. represent
an interest in that fund's assets only (and profits or losses),
and, in the event of liquidation, each share of a fund would have
the same rights to dividends and assets as every other share of
that fund.

The fund no longer issues stock certificates.

<PAGE>
PAGE 26
Voting rights

As a shareholder, you have voting rights over the fund's management
and fundamental policies. You are entitled to one vote for each
share you own. Each class has exclusive voting rights with respect
to the provisions of the fund's distribution plan that pertain to a
particular class and other matters for which separate class voting
is appropriate under applicable law.

Shareholder meetings

The fund does not hold annual shareholder meetings. However, the
directors may call meetings at their discretion, or on demand by
holders of 10% or more of the outstanding shares, to elect or
remove directors.

Directors and officers

Shareholders elect a board of directors that oversees the
operations of the fund and chooses its officers. Its officers are
responsible for day-to-day business decisions based on policies set
by the board. The board has named an executive committee that has
authority to act on its behalf between meetings. The directors
also serve on the boards of all of the other funds in the IDS
MUTUAL FUND GROUP, except for Mr. Dudley, who is a director of all
publicly offered funds.

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.

Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.

Anne P. Jones
Attorney and telecommunications consultant.

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).<PAGE>
PAGE 27
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.

Wheelock Whitney
Chairman, Whitney Management Company.

C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar
Corporation.

Interested directors who are officers and/or employees of American
Express Financial Corporation

William H. Dudley
Executive vice president, American Express Financial Corporation.

David R. Hubers
President and chief executive officer, American Express Financial
Corporation.

John R. Thomas
Senior vice president, American Express Financial Corporation.

Officers who also are officers and/or employees of American Express
Financial Corporation

Peter J. Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.

Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.

Other officer

Leslie L. Ogg
Vice president, general counsel and secretary of all funds in the
IDS MUTUAL FUND GROUP.

Refer to the SAI for the directors' and officers' biographies.

Investment manager and transfer agent

The fund pays American Express Financial Corporation for managing
its portfolio, providing administrative services and serving as
transfer agent (handling shareholder accounts).

Under its Investment Management Services Agreement, American
Express Financial Corporation determines which securities will be
purchased, held or sold (subject to the direction and control of
the fund's board of directors). Under the current agreement,
effective March 20, 1995, the fund pays American Express Financial
Corporation a fee for these services based on the average daily net
assets of the fund, as follows:
<PAGE>
PAGE 28
Assets Annual rate
(billions) at each asset level

First $1.0 0.600%
Next 1.0 0.575
Next 1.0 0.550
Next 3.0 0.525
Over 6.0 0.500

For the fiscal year ended March 31, 1995, under the prior and
current agreements, the fund paid American Express Financial
Corporation a total investment management fee of 0.62% of its
average daily net assets. Under the Agreement, the fund also pays
taxes, brokerage commissions and nonadvisory expenses.

Under an Administrative Services Agreement, the fund pays American
Express Financial Corporation for administration and accounting
services at an annual rate of 0.05% decreasing in gradual
percentages to 0.03% as assets increase.

In addition, under a separate Transfer Agency Agreement, American
Express Financial Corporation maintains shareholder accounts and
records. The fund pays American Express Financial Corporation an
annual fee per shareholder account for this service as follows:

o Class A $15
o Class B $16
o Class Y $15

Distributor

The fund sells shares through American Express Financial Advisors,
a wholly owned subsidiary of American Express Financial
Corporation, under a Distribution Agreement. Financial advisors
representing American Express Financial Advisors provide
information to investors about individual investment programs, the
fund and its operations, new account applications, exchange and
redemption requests. The cost of these services is paid partially
by the fund's sales charge.

Portions of sales charges may be paid to securities dealers who
have sold the fund's shares, or to banks and other financial
institutions. The proceeds paid to others range from 0.8% to 4% of
the fund's offering price depending on the monthly sales volume.

For Class B shares, to help defray costs not covered by sales
charges, including costs for marketing, sales administration,
training, overhead, direct marketing programs, advertising and
related functions, the fund pays American Express Financial
Advisors a distribution fee, also known as a 12b-1 fee. This fee
is paid under a Plan and Agreement of Distribution that follows the
terms of Rule 12b-1 of the Investment Company Act of 1940. Under
this Agreement, 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. The total 12b-1
fee paid by the fund under the prior and current agreements for the
fiscal year ended March 31, 1995 was 0.79% of its average daily net
assets. This fee will not cover all of the costs incurred by
American Express Financial Advisors.
<PAGE>
PAGE 29
Under a Shareholder Service Agreement, the fund also 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.

Total expenses paid by the fund for Class B shares in the fiscal
year ended March 31, 1995 were 1.80% of its average daily net
assets.

Total fees and expenses (excluding taxes and brokerage commissions)
cannot exceed the most restrictive applicable state expense
limitation.

About American Express Financial Corporation

General information

The American Express Financial Corporation family of companies
offers not only mutual funds but also insurance, annuities,
investment certificates and a broad range of financial management
services.

Besides managing investments for all publicly offered funds in the
IDS MUTUAL FUND GROUP, American Express Financial Corporation also
manages investments for itself and its subsidiaries, IDS
Certificate Company and IDS Life Insurance Company. Total assets
under management on March 31, 1995 were more than $113 billion.

American Express Financial Advisors serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7,900 advisors.

Other American Express Financial Corporation subsidiaries provide
investment management and related services for pension, profit
sharing, employee savings and endowment funds of businesses and
institutions.

American Express Financial Corporation is located at IDS Tower 10,
Minneapolis, MN 55440-0010. It is a wholly owned subsidiary of
American Express Company, a financial services company with
headquarters at American Express Tower, World Financial Center, New
York, NY 10285. The fund may pay brokerage commissions to broker-
dealer affiliates of American Express and American Express
Financial Corporation.
<PAGE>
PAGE 30
Appendix

Descriptions of derivative instruments

What follows are brief descriptions of derivative instruments the
fund may use. At various times the fund may use some or all of
these instruments and is not limited to these instruments. It may
use other similar types of instruments if they are consistent with
the fund's investment goal and policies. For more information on
these instruments, see the Statement of Additional Information.

Options and futures contracts. An option is an agreement to buy or
sell an instrument at a set price during a certain period of time.
A futures contract is an agreement to buy and sell an instrument
for a set price on a future date. The fund may buy and sell
options and futures contracts to manage its exposure to changing
interest rates, security prices and currency exchange rates.
Options and futures may be used to hedge the fund's investments
against price fluctuations or to increase market exposure.

Asset-backed and mortgage-backed securities. Asset-backed and
mortgage-backed securities include interests in pools of consumer
loans or mortgages, such as collateralized mortgage obligations and
stripped mortgage-backed securities. Interest and principal
payments depend on payment of the underlying loans or mortgages.
The value of these securities may also be affected by changes in
interest rates, the market's perception of the issuers and the
creditworthiness of the parties involved. Stripped mortgage-backed
securities include interest only (IO) and principal only (PO)
securities. Cash flows and yields on IOs and POs are extremely
sensitive to the rate of principal payments on the underlying
mortgage loans or mortgage-backed securities.

Indexed securities. The value of indexed securities is linked to
currencies, interest rates, commodities, indexes or other financial
indicators. Most indexed securities are short- to intermediate-
term fixed income securities whose values at maturity or interest
rates rise or fall according to the change in one or more specified
underlying instruments. Indexed securities may be more volatile
than the underlying instrument itself.

Inverse floaters. Inverse floaters are created using the interest
payment on securities. A portion of the interest received is paid
to holders of instruments based on current interest rates for
short-term securities. The remainder, minus a servicing fee, is
paid to holders of inverse floaters. Inverse floaters are
extremely sensitive to changes in interest rates.

Structured products. Structured products are over-the-counter
financial instruments created specifically to meet the needs of one
or a small number of investors. The instrument may consist of a
warrant, an option or a forward contract embedded in a note or any
of a wide variety of debt, equity and/or currency combinations.
Risks of structured products include the inability to close such
instruments, rapid changes in the market and defaults by other
parties.
<PAGE>
PAGE 31
IDS Equity Value Fund

Prospectus
May 30, 1995

The goal of IDS Equity Value Fund, a part of IDS Strategy Fund,
Inc., is growth of capital and income. The fund invests primarily
in equity securities that provide income, offer the opportunity for
long-term capital growth, or both.

This prospectus contains facts that can help you decide if the fund
is the right investment for you. Read it before you invest and
keep it for future reference.

American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
<PAGE>
PAGE 32
Table of contents

The fund in brief
Goal
Types of fund investments and their risks
Manager and distributor
Portfolio manager
Alternative sales arrangements

Sales charge and fund expenses
Sales charge and operating expenses

Performance
Financial highlights
Total returns
Key terms

Investment policies and risks
Facts about investments and their risks
Alternative investment option
Valuing assets

How to buy, exchange or sell shares
Alternative sales arrangements
How to buy shares
How to exchange shares
How to sell shares
Reductions and waivers of the sales charge

Special shareholder services
Services
Quick telephone reference

Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes

How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor

About American Express Financial Corporation
General information

Appendix

Descriptions of derivative instruments
<PAGE>
PAGE 33
The fund in brief

Goal

IDS Equity Value Fund seeks to provide shareholders with growth of
capital and income. Because any investment involves risk,
achieving this goal cannot be guaranteed. Only shareholders can
change the goal.

Types of fund investments and their risks

The fund is a diversified mutual fund that invests primarily in
equity securities that the investment manager believes are
undervalued and therefore have intrinsic investment value. Some of
the fund's investments may be considered speculative and involve
additional investment risk.

Manager and distributor

Portfolio manager

Tom Medcalf joined American Express Financial Corporation in 1977
and serves as vice president and senior portfolio manager. He was
appointed portfolio manager of this fund in 1989. He also manages
the equity portfolio of IDS Mutual.

Alternative sales arrangements

Sales charge and fund expenses

Sales charge and operating expenses

When you buy Class A shares, you pay a maximum sales charge of 5%
of the public offering price. This charge can be reduced,
depending on your total investments in IDS funds. See "Reductions
of the sales charge." No sales charge applies at the time of
purchase of Class B shares, although Class B shares may be subject
to a CDSC on redemptions made within six years and are subject to
<PAGE>
PAGE 34
annual distribution (12b-1) fees. Class Y shares are sold without
a sales charge to qualifying institutional investors. Shareholder
transaction expenses are incurred directly by an investor on the
purchase or redemption of fund shares. Fund operating expenses are
paid out of fund assets for each class of shares. Operating
expenses are reflected in the fund's daily share price and
dividends, and are not charged directly to shareholder accounts.

Annual fund operating expenses*
(% of average daily net assets):

Class A* Class B Class Y*
Management fee 0.51% 0.51% 0.51%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses** 0.50% 0.51% 0.33%
Total 1.01% 1.77% 0.84%

**Other expenses include an administrative services fee, a
shareholder services fee, a transfer agency fee, and other non-
advisory expenses.

1 year 3 years 5 years 10 years**
Class A $60 $81 $103 $168
Class B $68 $96 $116 $189
Class B* $18 $56 $ 96 $189
Class Y $ 9 $27 $ 47 $104

*Assuming Class B shares are not redeemed at the end of the period.
**Based on conversion of Class B shares to Class A shares after
eight years.

Financial highlights

<TABLE>
<CAPTION>
IDS Equity Value Fund

Performance
Financial highlights

Fiscal period ended March 31,
Per share income and capital changes*

1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Classes
A** B Y**
Net asset value, $9.10 $9.17 $9.23 $9.46 $8.90 $8.22 $7.92 $7.96 $7.26 $7.85 $7.38 $5.78
beginning of period
Income from investment operations:
Net investment income .01 .19 -- .18 .19 .22 .26 .29 .27 .27 .23 .21

Net gains (losses) .15 .47 .03 .37 1.18 .98 .48 .51 1.29 (.19) .90 1.69
(both realized
and unrealized)

Total from investment .16 .66 .03 .55 1.37 1.20 .74 .80 1.56 .08 1.13 1.90
operations
Less distributions:
Dividends from net (.05) (.19) (.05) (.18) (.19) (.22) (.26) (.31) (.27) (.27) (.22) (.21)
investment income
Distributions from -- (.43) -- (.66) (.62) (.30) (.18) (.53) (.59) (.40) (.44) (.09)
realized gains

Total distributions (.05) (.62) (.05) (.84) (.81) (.52) (.44) (.84) (.86) (.67) (.66) (.30)

Net asset value, $9.21 $9.21 $9.21 $9.17 $9.46 $8.90 $8.22 $7.92 $7.96 $7.26 $7.85 $7.38
end of period
Ratios/supplemental data

1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
Classes
A** B Y**
Net assets, end of period $6 $1,304 $--+ $1,031 $758 $497 $370 $311 $230 $162 $119 $51
(in millions)

Ratio of expenses to .91%++ 1.61% --%+ 1.56% 1.63% 1.66% 1.66% 1.61% 1.65% 1.65% 1.67% 1.86%
average daily net assets

Ratio of net income 2.43%++ 2.10% --%+ 1.93% 2.15% 2.56% 3.41% 3.61% 3.70% 3.78% 3.47% 3.93%
to average daily net assets

Portfolio turnover rate 85% 85% 85% 70% 48% 72% 65% 67% 54% 49% 30% 28%
(excluding short-term
securities)

Total return*** 1.79% 7.7% .03% 5.5% 16.0% 15.0% 10.1% 9.9% 22.2% 1.3% 15.7% 33.4%

*For a share outstanding throughout the period. Rounded to the nearest cent.
**Commencement of operations was March 20, 1995 for Class A and March 28, 1995 for Class Y.
***Total return does not reflect payment of a sales charge.
+Ratios of expenses and net investment income to average daily net assets is not presented Class Y as only two shares were
outstanding during the period.
++Adjusted to an annual basis.

</TABLE>

The information in this table has been audited by KPMG Peat Marwick
LLP, independent auditors. The independent auditors' report and <PAGE>
PAGE 36
additional information about the performance of the fund are
contained in the fund's annual report which, if not included with
this prospectus, may be obtained without charge.

Total returns

Average annual total returns as of March 31, 1995

Purchase 1 year 5 years 10 years
made ago ago ago
Equity Value:
Class A + 2.37% + 9.67% + 12.79%
Class B + 3.69% +10.64% + 13.36%
Class Y + 7.75% +10.80% + 13.37%

S&P 500 +15.58% +11.43% + 14.43%

Lipper Growth and
Income Fund Index +10.69% +11.47% +13.00%

Cumulative total returns as of March 31, 1995

Purchase 1 year 5 years 10 years
made ago ago ago
Equity Value:
Class A + 2.37% +58.69% +233.46%
Class B + 3.69% +65.87% +250.80%
Class Y + 7.75% +67.05% +251.01%

S&P 500 +15.58% +71.85% +285.37%

Lipper Growth and
Income Fund Index +10.69% +72.14% +239.34%

These examples show total returns from hypothetical investments in
Class B shares of the fund. These returns are compared to those of
popular indexes for the same periods. Average annual and
cumulative total returns for Class A and Class Y are based on Class
B historical performance (adjusted for sale charge differences) for
the period prior to the inception of the new classes.

For purposes of calculation, information about the fund assumes:

o a sales charge of 5% for Class A shares

o redemption at the end of each period and deduction of the
applicable contingent deferred sales charge for Class B shares

o no sales charge for Class Y shares

o no adjustments for taxes an investor may have paid on the
reinvested income and capital gains

o a period of widely fluctuating securities prices. Returns
shown should not be considered a representation of the fund's
future performance.

<PAGE>
PAGE 37
The fund invests in common stocks that may be different from those
in the indexes. The indexes reflect reinvestment of all
distributions and changes in market prices, but exclude brokerage
commissions or other fees.

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 and Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.

Key terms

Investment income
Dividends and interest earned on securities held by the fund.

Distributions
Payments to shareholders of two types: investment income
(dividends) and realized net long-term capital gains (capital gains
distributions).

Total return
Sum of all of your returns for a given period, assuming you
reinvest all distributions. Calculated by taking the total value
of shares you own at the end of the period (including shares
acquired by reinvestment), less the price of shares you purchased
at the beginning of the period.<PAGE>
PAGE 38
Average annual total return
The annually compounded rate of return over a given time period
(usually two or more years) -- total return for the period
converted to an equivalent annual figure.

Investment policies and risks

The fund invests primarily in securities that provide income, offer
the opportunity for long-term capital appreciation, or both. Under
normal market conditions, 65% of its total assets will be invested
in equity securities. The fund may invest in preferred stocks,
convertible securities, debt securities, foreign investments,
derivative instruments and money market instruments.

The various types of investments the portfolio manager uses to
achieve investment performance are described in more detail in the
next section and in the SAI.

Facts about investments and their risks

Common stocks: Stock prices are subject to market fluctuations.
Stocks of larger, established companies that pay dividends may be
less volatile than the stock market as a whole. Stocks of smaller
companies may be subject to abrupt or erratic price movements.
Also, small companies often have limited product lines, smaller
markets or fewer financial resources. Therefore, some of the
securities in which the fund invests involve substantial risk and
may be considered speculative.

Preferred stocks: If a company earns a profit, it generally must
pay its preferred stockholders a dividend at a pre-established
rate.

Securities that are subsequently downgraded in quality may continue
to be held by the fund, and will be sold only if the fund's
portfolio manager believes it is advantageous to do so.

Foreign investments: Securities of foreign companies and
governments may be traded in the United States, but often they are
traded only on foreign markets. Frequently, there is less <PAGE>
PAGE 39
information about foreign companies and less government supervision
of foreign markets. Foreign investments are subject to political
and economic risks of the countries in which the investments are
made, including the possibility of seizure or nationalization of
companies, imposition of withholding taxes on income, establishment
of exchange controls or adoption of other restrictions that might
affect an investment adversely. If an investment is made in a
foreign market, the local currency must be purchased. This is done
by using a forward contract in which the price of the foreign
currency in U.S. dollars is established on the date the trade is
made, but delivery of the currency is not made until the securities
are received. As long as the fund holds foreign currencies or
securities valued in foreign currencies, the price of a fund share
will be affected by changes in the value of the currencies relative
to the U.S. dollar. Because of the limited trading volume in some
foreign markets, efforts to buy or sell a security may change the
price of the security, and it may be difficult to complete the
transaction. The fund may invest up to 25% of its total assets in
foreign investments.

Money market instruments: Short-term debt securities rated in the
top two grades are used to meet daily cash needs and at various
times to hold assets until better investment opportunities arise.
Generally less than 25% of the fund's total assets are in these
money market instruments. However, for temporary defensive
purposes these investments could exceed that amount for a limited
period of time.

The investment policies described above may be changed by the board
of directors.

Alternative investment option

Valuing assets

o Securities (except bonds) and assets with available market
values are valued on that basis.

o Securities maturing in 60 days or less are valued at amortized
cost.

o Bonds and assets without readily available market values are
valued according to methods selected in good faith by the
board of directors.

How to buy, exchange or sell shares

Alternative sales arrangements

The fund offers three different classes of shares - Class A, Class
B and Class Y. The primary differences among the classes are in
the sales charge structures and in their ongoing expenses. These
differences are summarized in the table below. You may choose the
class that best suits your circumstances and objectives.
<TABLE><CAPTION>
Sales charge and
distribution
(12b-1) fee Service fee Other information
<S> <C> <C> <C>
Class A Maximum initial 0.175% of average Initial sales charge
sales charge of daily net assets waived or reduced
5%; no 12b-1 fee for certain purchases<PAGE>
PAGE 41
Class B No initial sales 0.175% of average Shares convert to
charge; maximum CDSC daily net assets Class A after eight
of 5% declines to 0% years; CDSC waived in
after six years; 12b-1 certain circumstances
fee of 0.75% of average
daily net assets

Sales charges on purchase or redemption

If you purchase Class A If you purchase Class B
shares shares

o You will be able to o No reductions of the
take advantage of sales charge are
reductions in the sales available for large
charge. purchases.

<PAGE>
PAGE 42
Ongoing expenses

If you purchase Class A If you purchase Class B
shares shares

o Qualified employee benefit plans* if the plan:

- uses a daily transfer recordkeeping service offering
participants daily access to IDS funds and has

- at least $10 million in plan assets or

- 500 or more participants; or

- does not use daily transfer recordkeeping and has

- at least $3 million invested in funds of the IDS MUTUAL
FUND GROUP or

- 500 or more participants.

o Nonqualified deferred compensation plans* whose participants
are included in a qualified employee benefit plan described
above.

<PAGE>
PAGE 43
* Eligibility must be determined in advance by American Express
Financial Advisors. To do so, contact your financial advisor.

Financial advisors may receive different compensation for selling
Class A, Class B and Class Y shares.

How to buy shares

Purchase policies:

o The minimums allowed for investment may change from time to
time.

o Wire orders can be accepted only on days when your bank,
American Express Financial Corporation, the fund and Norwest
Bank Minneapolis are open for business.

o Wire purchases are completed when wired payment is received
and the fund accepts the purchase.

o American Express Financial Corporation and the fund are not
responsible for any delays that occur in wiring funds,
including delays in processing by the bank.

o You must pay any fee the bank charges for wiring.

o The fund reserves the right to reject any application for any
reason.

o If your application does not specify which class of shares you
are purchasing, it will be assumed that you are investing in
Class A shares.

<PAGE>
PAGE 44
<TABLE><CAPTION> Three ways to invest

1
<S> <C> <C>
By regular account Send your check and application Minimum amounts
(or your name and account number Initial investment: $2,000
if you have an established account) Additional
to: investments: $ 100
American Express Financial Advisors Inc. Account balances: $ 300*
P.O. Box 74 Qualified retirement
Minneapolis, MN 55440-0074 accounts: none

Your financial advisor will help
you with this process.

o direct deposit of
Social Security check

o other plan approved by the fund

3
By wire If you have an established account, If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or American
Minneapolis, MN Express Financial Corporation
Attn: Domestic Wire Dept. incurs, will be returned
promptly.

Give these instructions: Minimum amounts
Credit IDS Account #00-30-015 Each wire investment: $1,000
for personal account # (your
account number) for (your name).

<PAGE>
PAGE 45
How to sell shares

You can sell (redeem) your shares at any time. American Express
Shareholder Service will mail payment within seven days after
receiving your request.

Regular mail:
American Express Shareholder Service
Attn: Redemptions
P.O. Box 534
Minneapolis, MN 55440-0534

Express mail:
American Express Shareholder Service
Attn: Redemptions
733 Marquette Ave.
Minneapolis, MN 55402

Minimum amount
Redemption: $100

Maximum amount
Redemption: $50,000
/TABLE
<PAGE>
PAGE 46
Exchange policies:

o Exchanges must be made into the same class of shares of the new
fund.

o If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.

o Once we receive your exchange request, you cannot cancel it.

o Shares of the new fund may not be used on the same day for
another exchange.

o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured party.

Redemption policies:

o A telephone redemption request will not be allowed within 30
days of a phoned-in address change.

<PAGE>
PAGE 47
<TABLE><CAPTION>
Three ways to receive payment when you sell shares

1
<S> <C>
By regular or express mail o Mailed to the address on record.
o Payable to names listed on the account.

NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.

2
By wire o Minimum wire redemption: $1,000.
o Request that money be wired to your bank.
o Bank account must be in the same
ownership as the IDS fund account.

NOTE: Pre-authorization required. For
instructions, contact your financial
advisor or American Express Shareholder Service.

On purchases of Class A shares, you pay a 5% sales charge on the
first $50,000 of your total investment and less on investments
after the first $50,000:

Total investment Sales charge as a
percent of:*

Public Net
offering amount
price invested

Up to $50,000 5.0% 5.26%
Next $50,000 4.5 4.71
Next $400,000 3.8 3.95
Next $500,000 2.0 2.04
$1,000,000 or more 0.0 0.00

* To calculate the actual sales charge on an investment greater
than $50,000, amounts for each applicable increment must be
totaled. See the SAI.

Reductions of the sales charge on Class A shares

Your sales charge may be reduced, depending on the totals of:

o the amount you are investing in this fund now,

o the amount of your existing investment in this fund, if any, and

For more details, see the SAI.

Waivers of the sales charge for Class A shares

Sales charges do not apply to:

o Current or retired trustees, directors, officers or employees of
the fund or American Express Financial Corporation or its
subsidiaries, their spouses and unmarried children under 21.

o Current or retired American Express financial advisors, their
spouses and unmarried children under 21.

o Qualified employee benefit plans* using a daily transfer
recordkeeping system offering participants daily access to IDS
funds.

(Participants in certain qualified plans for which the initial
sales charge is waived may be subject to a deferred sales charge of
up to 4% on certain redemptions. For more information, see the
SAI.)

o Purchases made within 30 days after a redemption of shares (up
to the amount redeemed):
- of a product distributed by American Express Financial
Advisors in a qualified plan subject to a deferred sales
charge or
- in a qualified plan where American Express Trust Company has a
recordkeeping trustee, investment management or investment
servicing relationship.

Send the fund a written request along with your payment, indicating
the amount of the redemption and the date on which it occurred.

o Purchases made with dividend or capital gain distributions from
another fund in the IDS MUTUAL FUND GROUP that has a sales charge.

*Eligibility must be determined in advance by American Express
Financial Advisors. To do so, contact your financial advisor.

<PAGE>
PAGE 49
Class B - contingent deferred sales charge alternative

If a redemption is The percentage rate
made during the for the CDSC is:

First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%

Waivers of the sales charge for Class B shares

The CDSC on Class B shares will be waived on redemptions of shares:

o In the event of the shareholder's death,
o Purchased by any trustee, director, officer or employee of a fund
or American Express Financial Corporation or its subsidiaries,
o Purchased by any American Express financial advisor,
o Held in a trusteed employee benefit plan,
<PAGE>
PAGE 50
o Held in IRAs or certain qualified plans for which American
Express Trust Company acts as custodian, such as Keogh plans, tax-
sheltered custodial accounts or corporate pension plans, provided
that the shareholder is:
- at least 59-1/2 years old, and
- taking a retirement distribution
(if the redemption is part of a transfer to an IRA or
qualified plan in a product distributed by American Express
Financial Advisors, or a custodian-to-custodian transfer to a
product not distributed by American Express Financial
Advisors, the CDSC will not be waived), or
- redeeming under an approved substantially equal periodic
payment arrangement.

Special shareholder services

Services

To help you track and evaluate the performance of your investments,
American Express Financial Corporation provides these services:

Quarterly statements listing all of your holdings and transactions
during the previous three months.

Yearly tax statements featuring average-cost-basis reporting of
capital gains or losses if you redeem your shares along with
distribution information - which simplifies tax calculations.

Quick telephone reference

American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733

TTY Service
For the hearing impaired
800-846-4852

<PAGE>
PAGE 51
Distributions and taxes

Dividend and capital gain distributions

The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record at the end of each calendar
quarter. Net realized capital gains, if any, from selling
securities are distributed at the end of the calendar year. Before
they're distributed, both net investment income and net capital
gains are included in the value of each share. After they're
distributed, the value of each share drops by the per-share amount
of the distribution. (If your distributions are reinvested, the
total value of your holdings will not change.) Short-term capital
gains earned by the fund are paid to shareholders as part of their
ordinary income dividend and are taxable.

Reinvestments

Dividends and capital gain distributions are automatically
reinvested in additional shares in the same class of the fund,
unless:

The reinvestment price is the net asset value at close of business
on the day the distribution is paid. (Your quarterly statement
will confirm the amount invested and the number of shares
purchased.)

If you choose cash distributions, you will receive only those
declared after your request has been processed.

You also could be subject to backup withholding because you failed
to report interest or dividends on your tax return as required.
<TABLE><CAPTION>
How to determine the correct TIN

Use the Social Security or
For this type of account: Employer Identification number
of:
<S> <C>
Individual or joint account The individual or first person
listed on the account

Custodian account of a minor The minor
(Uniform Gifts/Transfers to
Minors Act)

<PAGE>
PAGE 53
A living trust The grantor-trustee (the person
who puts the money into the
trust)

An irrevocable trust, pension The legal entity (not the
trust or estate personal representative or
trustee, unless no legal entity
is designated in the account
title)

Sole proprietorship or The owner or partnership
partnership

Corporate The corporation

How the fund is organized

IDS Strategy Fund, Inc., of which Equity Value Fund is a part, is
an open-end management investment company, as defined in the
Investment Company Act of 1940. It was incorporated on Jan. 24,
1984 in Minnesota. The fund headquarters are at 901 S. Marquette
Ave., Suite 2810, Minneapolis, MN 55402-3268.

The fund no longer issues stock certificates.

<PAGE>
PAGE 54
Voting rights

Shareholder meetings

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.

Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.

Anne P. Jones
Attorney and telecommunications consultant.

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).<PAGE>
PAGE 55
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.