Prospectus Supplement April 17, 2000*
AXP California Tax-Exempt Fund S-6328 N (8/99)
Effective March 20, 2000, the "SALES CHARGES" information is revised as follows:
Class A - initial sales charge alternative
When you purchase Class A shares, you pay a sales charge as shown in the
following table:
Total investment Sales charge as percentage of :
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Public offering price(a) Net amount invested
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Up to $50,000 4.75% 4.99%
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$50,000-$99,999 4.50 4.71
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$100,000-$249,999 3.75 3.90
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$250,000-$499,999 2.50 2.56
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$500,000-$999,999 2.00** 2.04**
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$1,000,000 or more 0.00 0.00
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aOffering price includes a 4.75% sales charge.
**The sales charge will be waived until Dec. 31, 2000.
All other references to the sales charge on Class A shares are revised to
reflect a 4.75% Maximum sales charge. These references are found in the
paragraph on "Past Performance," "Fees and Expenses" and "Investment Options."
The second bullet under the section titled "Other Class A sales charge policies"
has been revised as follows:
o If you intend to invest a large amount over a period of 13 months, you can
reduce the sales charge in Class A by filing a letter of intent. For more
details, please see the SAI.
S-6328-1 (4/00)
*Destroy next prospectus update
