IDS GLOBAL SERIES INC, 485BPOS, 1997-12-24

IDS GLOBAL SERIES INC
485BPOS, 1997-12-24

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Pre-Effective Amendment No.

Post-Effective Amendment No. 28 (File No. 33-25824) X

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY (ACT OF 1940)

Amendment No. 30 (File No. 811-5696) X

IDS GLOBAL SERIES, INC.
IDS Tower 10, Minneapolis, Minnesota 55440-0010

Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810,
Minneapolis, MN 55440-3268
(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 December 30, 1997 pursuant to paragraph (b) of rule 485
60 days after filing pursuant to paragraph (a)(1) on (date) pursuant to
paragraph (a)(1) of rule 485 75 days after filing pursuant to paragraph
(a)(2) on (date) pursuant to paragraph (a)(2) 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.

IDS Emerging Markets Fund, IDS Global Bond Fund, IDS Global Growth Fund and IDS
Innovations Fund series of the Registrant, have adopted a master/feeder
operating structure. This Post-Effective Amendment includes a signature page for
World Trust, the master fund.
<PAGE>
Cross reference sheet showing the location in the prospectus and Statement of
Additional Information of the information called for by items enumerated in
Parts A and B of Form N-1A.

Negative answers omitted are so indicated.

PART A

Item No. Section in Prospectus
1 Cover page of prospectus

2 (a) Sales charge and Fund expenses
(b) The Fund in brief
(c) The Fund in brief

3 (a) Financial highlights
(b) NA
(c) Performance
(d) Financial highlights

4 (a) The Fund in brief; Investment policies and risks; How the Fund
and Portfolio are organized
(b) Investment policies and risks
(c) Investment policies and risks

5 (a) Board members and officers
(b)(i) Investment manager; About American Express Financial Corporation
- General information
(b)(ii) Investment manager
(b)(iii) Investment manager
(c) Portfolio manager
(d) Administrator and transfer agent
(e) Administrator and transfer agent
(f) Distributor
(g) Investment manager; About American Express Financial Corporation
- General information

5A(a) *
(b) *

6 (a) Shares; Voting rights
(b) NA
(c) NA
(d) Voting rights
(e) Cover page; Special shareholder services
(f) Dividend and capital gain distributions; Reinvestments
(g) Taxes
(h) Alternative purchase arrangements; Special considerations
regarding master/feeder structure
7 (a) Distributor
(b) Valuing Fund shares
(c) How to purchase, exchange or redeem shares
(d) How to purchase shares
(e) NA
(f) Distributor
(g) Alternative purchase arrangements; Reductions and waivers of the
sales charge

8 (a) How to redeem shares
(b) NA
(c) How to purchase shares: Three ways to invest
(d) How to purchase, exchange or redeem shares: Redemption policies
- "Important..."

9 None

PART B

Item No. Section in Statement of Additional Information
10 Cover page of SAI

11 Table of Contents

12 NA

13 (a) Additional Investment Policies; all appendices except Dollar-Cost
Averaging
(b) Additional Investment Policies
(c) Additional Investment Policies
(d) Security Transactions

14 (a) Board members and officers**; Board Members and Officers
(b) Board Members and Officers
(c) Board Members and Officers

15 (a) NA
(b) Principal Holders of Securities, if applicable
(c) Board Members and Officers

16 (a)(i) How the Fund and Portfolio are organized; About American Express
Financial Corporation**
(a)(ii) Agreements: Investment Management Services Agreement, Plan and
Agreement of Distribution
(a)(iii) Agreements: Investment Management Services Agreement
(b) Agreements: Investment Management Services Agreement
(c) NA
(d) Agreements: Administrative Services Agreement, Shareholder
Service Agreement
(e) NA
(f) Agreements: Distribution Agreement
(g) NA
(h) Custodian Agreement; Independent Auditors
(i) Agreements: Transfer Agency Agreement; Custodian Agreement
17 (a) Security Transactions
(b) Brokerage Commissions Paid to Brokers Affiliated with American
Express Financial Corporation
(c) Security Transactions
(d) Security Transactions
(e) Security Transactions

18 (a) Shares; Voting rights**
(b) NA
<PAGE>
19(a) Investing in the Fund
(b) Valuing Fund Shares; Investing in the Fund
(c) Redeeming Shares

20 Taxes

21 (a) Agreements: Distribution Agreement
(b) NA
(c) NA

22 (a) Performance Information (for money market funds only)
(b) Performance Information (for all funds except money market funds)

23 Financial Statements
<PAGE>
* Designates information is located in annual report.
** Designates location in prospectus.
<PAGE>
IDS Emerging Markets Fund

Prospectus
Dec. 30, 1997

The goal of IDS Emerging Markets Fund, a part of IDS Global Series, Inc., is
long-term growth of capital.

The Fund seeks to achieve its goal by investing all of its assets in Emerging
Markets Portfolio of World Trust. The Portfolio is managed by American Express
Financial Corporation and has the same goal as the Fund. This arrangement is
commonly known as a master/feeder structure.

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 (SEC) and available for
reference, along with other related materials, on the SEC Internet web site
(http://www.sec.gov). The SAI is incorporated by reference. For a free copy,
contact American Express Shareholder Service.

Like all mutual fund shares, 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.

Please note that the Fund:

o is not a bank deposit
o is not federally insured
o is not endorsed by any bank or government agency
o is not guaranteed to achieve its goal

American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
800-862-7919
TTY: 800-846-4852
Web site address: http://www.americanexpress.com/advisors

<PAGE>
Table of contents

The Fund in brief
Goal
Investment policies and risks
Structure of the Fund
Manager and distributor
Portfolio manager
Alternative purchase arrangements

Sales charge and Fund expenses

Performance
Financial highlights
Total returns

Investment policies and risks
Facts about investments and their risks
Valuing Fund shares

How to purchase, exchange or redeem shares Alternative purchase
arrangements How to purchase shares How to exchange shares How to
redeem 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 to determine the correct TIN

How the Fund and Portfolio are organized
Shares
Voting rights
Shareholder meetings
Special considerations regarding master/feeder structure
Board members and officers

<PAGE>
Investment manager
Administrator and transfer agent
Distributor

About American Express Financial Corporation
General information

Appendices
Description of corporate bond ratings
Descriptions of derivative instruments

<PAGE>
The Fund in brief

Goal

IDS Emerging Markets Fund (the Fund) seeks to provide shareholders with
long-term growth of capital. It does so by investing all of its assets in
Emerging Markets Portfolio (the Portfolio) of World Trust (the Trust) rather
than by directly investing in and managing its own portfolio of securities. Both
the Fund and the Portfolio are diversified investment companies that have the
same goal. Because any investment involves risk, achieving this goal cannot be
guaranteed. The goal can be changed only by holders of a majority of outstanding
securities.

The Fund may withdraw its assets from the Portfolio at any time if the board
determines that it is in the best interests of the Fund to do so. In that event,
the Fund would consider what action should be taken, including whether to retain
an investment advisor to manage the Fund's assets directly or to reinvest all of
the Fund's assets in another pooled investment entity.

Investment policies and risks

Both the Fund and the Portfolio have the same investment policies. Accordingly,
the Portfolio invests primarily in equity securities of issuers in countries
with developing or emerging markets. The Portfolio also invests in debt
securities, derivative instruments and money market instruments.

Risks arising from investments in foreign securities include fluctuations in
currency exchange rates, adverse political and economic developments and lack of
comparable regulatory requirements applicable to U.S. companies. You should
invest in the Fund only if you are willing to assume these risks. For further
information, refer to the later section in the prospectus titled "Investment
policies and risks."

Structure of the Fund

This Fund uses what is commonly known as a master/feeder structure. This means
that the Fund (the feeder fund) invests all of its assets in the Portfolio (the
master fund). The Portfolio invests in and manages the securities and has the
same goal and investment policies as the Fund. This structure is described in
more detail in the section captioned "Special considerations regarding
master/feeder structure." Here is an illustration of the structure:

<PAGE>
Investors buy
shares in the Fund

The Fund invests
in the Portfolio

The Portfolio invests
in securities, such
as stocks or bonds

Manager and distributor

The Portfolio is managed by American Express Financial Corporation (AEFC), a
provider of financial services since 1894. AEFC currently manages more than $68
billion in assets for the IDS MUTUAL FUND GROUP. Shares of the Fund are sold
through American Express Financial Advisors Inc. (AEFA), a wholly-owned
subsidiary of AEFC.

Portfolio manager

Ian King joined AEFC in 1995 and serves as portfolio manager. He has managed the
assets of the Portfolio since November 1996. Prior to joining AEFC he was
director of Lehman Brothers Global Asset Management Ltd. from 1992 to 1995.

Alternative purchase 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.

Sales charge and Fund expenses

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 and include expenses charged by both the
Fund and the Portfolio. Operating expenses are reflected in the Fund's daily
share price and dividends, and are not charged directly to shareholder accounts.

<PAGE>
<TABLE>
<CAPTION>
Shareholder transaction expenses
Class A Class B Class Y
<S> <C> <C> <C>
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%
</TABLE>

Annual Fund and allocated Portfolio operating expenses (as a percentage of
average daily net assets):

Class A Class B Class Y
Management fee** 1.10% 1.10% 1.10%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses*** 0.82% 0.84% 0.75%
Total**** 1.92% 2.69% 1.85%

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 $69 $107 $149 $264
Class B $77 $124 $163 $284**
Class B* $27 $84 $143 $284**
Class Y $19 $58 $100 $217

*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.

<PAGE>
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.

Performance

Financial highlights
<PAGE>
<TABLE>
<CAPTION>

Oct. 31, 1997
Per share income and capital changesa

Class A Class B Class Y
1997b 1997b 1997b

<S> <C> <C> <C>
Net asset value, $5.00 $5.00 $5.00
beginning of period

Income from investment operations:

Net investment income (loss) .01 (.04) .01
Net gains (both realized .33 .33 .33
and unrealized)
Total from investment operations .34 .29 .34

Less distributions:

Distributions from net (.01) -- (.01)
investment income

Net asset value, $5.33 $5.29 $5.33
end of period

Ratios/supplemental data
Class A Class B Class Y
1997b 1997b 1997b

Net assets, end of period $243 $114 $ 1
(in millions)

Ratio of expenses to 1.90%c,e 2.67%c,e 1.75%c,e
average daily net assetsd

Ratio of net income (loss) .28%c (.50%)c .33%c
to average daily net assets

Portfolio turnover rate 87% 87% 87%
(excluding short-term securities)
for the underlying Portfolio

Total returnf 6.8% 6.1% 6.9%

Average brokerage commission $.0034 $.0034 $.0034
rate for the underlying Portfoliog

a For a share outstanding throughout the period. Rounded to the nearest cent.

bPeriod from Nov. 13, 1996 (inception date) to October 31, 1997.

cAdjusted to an annual basis.

dExpense ratio is based on total expense of the Fund before reduction of earning
credits on cash balances.

eDuring the period from Nov. 13, 1996 to October 31, 1997, AEFC reimbursed the
Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses
would have been 1.92%, 2.69% and 1.77% for Class A, B and Y, respectively.

fTotal return does not reflect payment of a sales charge and are not annualized.

gThe Fund is required to disclose an average brokerage commission rate per share
for security trades on which commissions are charged. The comparability of this
information may be affected by the fact that commission rates per share vary
significantly among foreign countries.

</TABLE>
<PAGE>
The information in these tables 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.

Total returns

Total return is the sum of all of your returns for a given period, assuming you
reinvest all distributions. It is 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.

Average annual total return is the annually compounded rate of return over a
given time period (usually two or more years). It is the total return for the
period converted to an equivalent annual figure.

Average annual total returns as of Oct. 31, 1997

Purchase Since
made inception
- ------------------------------------------------------ -------------
Emerging Markets:
Class A +1.50%*
Class B +2.07%*
Class Y +6.86%*

MSCI Emerging Markets -11.34%**
Free Index

Lipper Emerging Markets -5.99%**
Fund Index

*Inception date was Nov. 13, 1996.
**Measurement period started Dec. 1, 1996.
<PAGE>
Cumulative total returns as of Oct. 31, 1997

Purchase Since
made inception
- ------------------------------------------------------ ------------------
Emerging Markets:
Class A +1.50%*
Class B +2.07%*
Class Y +6.86%*

MSCI Emerging Markets -11.34%**
Free Index

Lipper Emerging Markets -5.99%**
Fund Index

*Inception date was Nov. 13, 1996.
**Measurement period started Dec. 1, 1996.

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 the 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.

Morgan Stanley Capital International (MSCI) Emerging Markets Free Index, an
unmanaged market capitalization-weighted index compiled from a composite of
securities markets of 26 emerging market countries, is widely recognized by
investors as a measurement index for portfolios of emerging market securities.
The index reflects reinvestment of all distributions and changes in market
prices, but excludes brokerage commissions or other fees.

Lipper Emerging Markets Fund Index, an unmanaged index published by Lipper
Analytical Services, Inc., includes 31 funds that are generally similar to the
Fund, although some funds in the index may have somewhat different investment
policies or objectives.
<PAGE>
Investment policies and risks

The policies described below apply both to the Fund and the Portfolio. The
Portfolio invests primarily in equity securities of issuers in countries with
developing or emerging markets. Under normal market conditions, at least 65% of
the Portfolio's total assets will be invested in emerging market equity
securities of at least three different countries. The Portfolio also may invest
in debt securities, derivative instruments and money market instruments.

The various types of investments the investment 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

Emerging markets: Emerging markets are considered to be those countries
characterized as developing or emerging by either the World Bank or the United
Nations. Some examples of emerging market countries are Brazil, India, Malaysia
and Thailand. As used in this prospectus, emerging market equity securities
include securities traded in countries with developing or emerging markets as
well as securities traded in any market, if the issuer derives 50% or more of
its total revenue from goods or services produced in emerging market countries
or from sales made in emerging market countries. Equity investments in
developing markets are high risk investments, subject to significant price
fluctuation due to the potential lack of liquidity experienced by these market
places, the possibility that emerging markets will be less efficient in pricing
equity securities and the potential inability of emerging markets to deal with
significant price declines in an orderly manner. Emerging markets generally grow
more rapidly than developed markets. Emerging market companies tend to be
smaller companies producing goods or providing services in less developed global
economies. Emerging market companies retain a large part of their earnings for
research, development and reinvestment in capital assets. Therefore, they tend
not to emphasize the payment of dividends.

Common stocks: Stock prices are subject to market fluctuations. Stocks of
foreign companies may be subject to abrupt or erratic price movements. While
established companies in which the Portfolio invests generally have adequate
financial reserves, some of the Portfolio's investments 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.
<PAGE>
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,
convertible securities trade more like common stock.

Debt securities: The price of bonds generally falls as interest rates increase,
and rises as interest rates decrease. The price of bonds also fluctuates if the
credit rating is upgraded or downgraded. The price of bonds below investment
grade may react more to the ability of the issuing company to pay interest and
principal when due than to changes in interest rates. They have greater price
fluctuations, are more likely to experience a default and sometimes are referred
to as junk bonds. Reduced market liquidity for these bonds may occasionally make
it more difficult to value them. In valuing bonds, the Portfolio relies both on
independent rating agencies and on the investment manager's credit analysis. The
Portfolio may invest up to 20% of its net assets in bonds. The Portfolio may
invest up to 10% of its net assets in bonds rated below investment grade,
including Brady bonds. Securities that are subsequently downgraded in quality
may continue to be held by the Portfolio and will be sold only when the
investment manager believes it is advantageous to do so.

For the fiscal period ended Oct. 31, 1997, the Portfolio held less than 5% of
its average daily net assets in bonds rated below investment grade. (See the
Appendix to this prospectus describing corporate bond ratings for further
information.)

Debt securities sold at a deep discount: Some bonds are sold at deep discounts
because they do not pay interest until maturity. They include zero coupon bonds
and PIK (pay-in-kind) bonds. Because such securities do not pay current cash
income, the market value of these securities may be subject to greater
volatility than other debt securities. To comply with tax laws, the Portfolio
has to recognize a computed amount of interest income and pay dividends to
shareholders even though no cash has been received. In some instances, the
Portfolio may have to sell securities to have sufficient cash to pay the
dividends.

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
currency fluctuations and 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 may be purchased 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 Portfolio holds foreign currencies or securities valued
in foreign currencies, the value of those assets will
<PAGE>
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. These risks are increased in countries
with emerging markets because they often have relatively unstable governments
and less established economies. The limited liquidity and price fluctuations in
emerging markets could make investments in developing countries more volatile.

Derivative instruments: The investment 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 investment 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 Portfolio 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 Portfolio will designate cash or appropriate
liquid assets to cover its portfolio obligations. No more than 5% of the
Portfolio'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. This does not, however, limit the portion of the
Portfolio's assets at risk to 5%. The Portfolio is not limited as to the
percentage of its assets that may be invested in permissible investments,
including derivatives, except as otherwise explicitly provided in this
prospectus or the SAI. For descriptions of these and other types of derivative
instruments, see the Appendix to this prospectus and the SAI.

Securities and other instruments that are illiquid: A security or other
instrument is illiquid if it 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. Securities and instruments, however, can be
sold in private sales, and many may be sold to other institutions and qualified
buyers or on foreign markets. The investment manager will follow guidelines
established by the board 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 Portfolio's net assets will be held in
securities and other instruments that are illiquid.
<PAGE>
Money market instruments: Short-term debt securities rated in the top two grades
or the equivalent 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 Portfolio'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 boards.

Lending portfolio securities: The Portfolio 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 a majority of the outstanding voting
securities approve otherwise, loans may not exceed 30% of the Portfolio's net
assets.

Valuing Fund shares

The public offering price is the net asset value (NAV) adjusted for the sales
charge for Class A. It is the NAV for Class B and Class Y.

To establish the net assets, all securities held by the Portfolio are valued as
of the close of each business day. In valuing assets:

o Securities 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 Assets without readily available market values are valued according to
methods selected in good faith by the board

o Assets and liabilities denominated in foreign currencies are translated
daily into U.S. dollars at a rate of exchange set as near to the close
of the day as practicable

How to purchase, exchange or redeem shares

Alternative purchase 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
<PAGE>
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 sales 0.175% of average daily net Initial sales charge waived
charge of 5%; no 12b-1 fee assets or reduced for certain
purchases

Class B No initial sales charge; 0.175% of average daily net Shares convert to Class A
maximum CDSC of 5% assets in the ninth year of
declines to 0% after six ownership; CDSC waived in
years; 12b-1 fee of 0.75% certain circumstances
of average daily net
assets
Class Y None 0.10% of average daily net Available only to certain
assets qualifying institutional
investors
</TABLE>
Conversion of Class B shares to Class A shares - During the ninth calendar year
of owning your Class B shares, Class B shares will convert to Class A shares and
will no longer be subject to a distribution fee. Class B shares that convert to
Class A shares are not subject to a sales charge. Class B shares purchased
through reinvested dividends and distributions also will convert to Class A
shares in the same proportion as the other Class B shares. This means more of
your money will be put to work for you.

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 distribution fee (included in "Ongoing expenses")
and sales charges are structured so that you will have approximately the same
total return at the end of eight years regardless of which class you chose.
<TABLE>
<CAPTION>
Sales charges on purchase or redemption
<S> <C>
If you purchase Class A shares If you purchase Class B shares

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

If your investments in IDS funds that are subject to a sales charge 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.

Ongoing expenses

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

o Your shares will have a lower expense ratio than o The distribution and
transfer agency fees for Class B shares because Class A does not pay a Class B
will cause your shares to have a higher distribution fee and the transfer agency
fee for expense ratio and to pay lower dividends than Class Class A is lower
than the fee for Class B. As a A shares. In the ninth year of ownership, Class B
result, Class A shares will pay higher dividends shares will convert to Class A
shares and you 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 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.
<PAGE>
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.

* Eligibility must be determined in advance by AEFA. To do so, contact your
financial advisor.

How to purchase shares

If you are investing in this Fund for the first time, you will 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 your correct Taxpayer
Identification Number (Social Security or Employer Identification number). See
"Distributions and taxes."

When you purchase 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, AEFC, 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 AEFC and the Fund are not responsible for any delays that occur in
wiring funds, including delays in processing by the bank.
<PAGE>
o You must pay any fee the bank charges for wiring.

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

Your financial advisor will help you with this
process.

o other plan approved by the Fund If account balance is below $2000,
frequency of payments must be at
least monthly.

3
By wire If you have an established account, you may If this information is not
wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the Fund, less any
Routing No. 091000019 costs the Fund or AEFC incurs,
Minneapolis, MN will be returned promptly.
Attn: Domestic Wire Dept.
Minimum amounts
Give these instructions: Each wire investment: $1,000
Credit IDS Account #00-30-015 for personal
account # (your account number) for (your
name)
</TABLE>

*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 do not do so
within 30 days, your shares can be redeemed and the proceeds mailed to you.

How to exchange shares

<PAGE>
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 redemption and purchase and may
result in a gain or loss. However, you cannot use the sales charge imposed on
the purchase of Class A shares to create or increase 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.

How to redeem shares

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

When you redeem 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 proceeds from your redemption are
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.

<PAGE>
<TABLE>
<CAPTION>
Two ways to request an exchange or redemption of shares
<S> <C>
1
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 redeem
o signature of all registered account owners
o for redemptions, indicate how you want your money 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 Financial Advisors o The Fund and AEFC will honor any telephone exchange or redemption request believed
Telephone Transaction Service: to be authentic and will use reasonable procedures to confirm that they are. This includes
800-437-3133 asking identifying questions and tape recording calls. If reasonable procedures are not
612-671-3800 followed, the Fund or AEFC 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 AEFC 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>
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.
<PAGE>
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 AEFC 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 purchase new shares in the
same account 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. It may take up to 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 AEFC that your check has cleared.)
<TABLE>
<CAPTION>
Three ways to receive payment when you redeem shares
<S> <C>

1 o Mailed to the address on record
By regular or o Payable to names listed on the account
express mail NOTE: You will be charged a fee if you request express mail delivery.
<PAGE>
2 o Minimum wire redemption: $1,000
By wire 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 o Minimum payment: $50
By scheduled o Contact your financial advisor or American Express Shareholder Service
payout plan to set up regular payments to you on a monthly, bimonthly, quarterly,
semiannual or annual basis
o Purchasing 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
percentage 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 and
less than $1,000,000, 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 primary household group are investing or have in other
funds in the IDS MUTUAL FUND GROUP that carry a sales charge. (The primary
household group consists of accounts in any ownership for spouses or domestic
partners and their unmarried children under 21. Domestic partners are
individuals who maintain a shared primary residence and have joint property or
other insurable interests.)
<PAGE>
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 If you intend to invest $1 million over a period of 13 months, you can reduce
the sales charges in Class A by filing a letter of intent.

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 board members, officers or employees of the Fund or AEFC 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 Investors who have a business relationship with a newly associated financial
advisor who joined AEFA from another investment firm provided that (1) the
purchase is made within six months of the advisor's appointment date with AEFA,
(2) the purchase is made with proceeds of a redemption of shares that were
sponsored by the financial advisor's previous broker-dealer, and (3) the
proceeds must be the result of a redemption of an equal or greater value where a
sales load was previously assessed.

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. The CDSC will be waived only in
the circumstances described for waivers for Class B shares.
<PAGE>
o Purchases made within 30 days after a redemption of shares (up to the
amount redeemed): - of a product distributed by AEFA 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 the same class
of another fund in the IDS MUTUAL FUND GROUP that has a sales charge.

o Purchases made through or under a "wrap fee" product sponsored by AEFA (total
amount of all investments must be $50,000); the University of Texas System ORP;
or a segregated separate account offered by Nationwide Life Insurance Company or
Nationwide Life and Annuity Insurance Company.

o Purchases made with the proceeds from IDS Life Real Estate Variable Annuity
surrenders through December 31, 1997.

* Eligibility must be determined in advance by AEFA. To do so, contact your
financial advisor.

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%
<PAGE>
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.

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 contingent deferred sales charge 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 board member, officer or employee of a fund or AEFC or its
subsidiaries, o Held in a trusteed employee benefit plan, 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 AEFA,
or a custodian-to-custodian transfer to a product not distributed by
AEFA, the CDSC will not be waived), or
- redeeming under an approved substantially equal periodic payment
arrangement.

<PAGE>
Special shareholder services

Services

To help you track and evaluate the performance of your investments, AEFC
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 Financial Advisors 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

TTY Service
For the hearing impaired
800-846-4852

American Express Financial Advisors Easy Access Line
Automated account information (TouchToneR phones only), including current Fund
prices and performance, account values and recent account transactions
800-862-7919

Distributions and taxes

As a shareholder you are entitled to your share of the Fund's net income and any
net gains realized on its investments. The Fund distributes dividends and
capital gain distributions to qualify as a regulated investment company and to
avoid paying corporate income and excise taxes. Dividend and capital gain
distributions will have tax consequences you should know about.
<PAGE>
Dividend and capital gain distributions

The Portfolio allocates investment income from dividends and interest and net
realized capital gains or losses, if any, to the Fund. The Fund deducts direct
and allocated expenses from the investment income. The Fund's net investment
income is distributed to you by the end of the calendar year as dividends.
Capital gains are realized when a security is sold for a higher price than was
paid for it. Short-term capital gains are included in net investment income.
Long-term capital gains are realized when a security is held for more than one
year. The Fund will offset any net realized capital gains by any available
capital loss carryovers. Net realized long-term capital gains, if any, are
distributed at the end of the calendar year as capital gain distributions. These
long-term capital gains will be subject to differing tax rates depending on the
holding period of the underlying investments. Before they are distributed, both
net investment income and net long-term capital gains are included in the value
of each share. After they are 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.)

Dividends for each class will be calculated at the same time, in the same manner
and will be the same amount prior to deduction of expenses. Expenses
attributable solely to a class of shares will be paid exclusively by that class.

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 the same class of
another publicly available IDS fund for which you have previously
opened an account.

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. Prior to
reinvestment, no interest will accrue on amounts represented by uncashed
distribution or redemption checks.
<PAGE>
Taxes

The Fund has received a Private Letter Ruling from the Internal Revenue Service
stating that, for purposes of the Internal Revenue Code, the Fund will be
regarded as directly holding its allocable share of the income and gain realized
by the Portfolio.

Income received by the Fund may be subject to foreign tax and withholding. Tax
conventions between certain countries and the U.S. may reduce or eliminate such
taxes. You may be entitled to claim foreign tax credits or deductions subject to
provisions and limitations of the Internal Revenue Code. The Fund will notify
you if such credit or deduction is available.

Each January, you will receive a tax statement showing the kinds and total
amount of all distributions you received during the previous year. You must
report 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 short term (for shares held for one year or less) or long term (for shares
held for more than one year). Long-term capital gains will be taxed at rates
that vary depending upon the holding period. Long-term capital gains are divided
into two holding periods: (1) shares held more than one year but not more than
18 months and (2) shares held more than 18 months.

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.

If you do not 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:

<PAGE>
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
<S> <C>
Use the Social Security or
For this type of account: Employer Identification number of:

Individual or joint account The individual or individuals listed on the account
<PAGE>
Custodian account of a minor (Uniform The minor
Gifts/Transfers to Minors Act)

A living trust The grantor-trustee
(the person who puts the money into the trust)

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

Sole proprietorship The owner

Partnership The partnership

Corporate The corporation

Association, club or tax-exempt organization The 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."

<PAGE>
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 and Portfolio are organized

IDS Global Series, Inc. currently is composed of five funds, each issuing its
own series of capital stock: IDS Emerging Markets Fund, IDS Global Balanced
Fund, IDS Global Bond Fund, IDS Global Growth Fund and IDS Innovations Fund.
Each 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 a
fund. Par value is one cent per share. Both full and fractional shares can be
issued.

The shares of each fund making up IDS Global Series, 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.

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.
Shares of the Fund have cumulative voting rights. 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 board members
may call meetings at their discretion, or on demand by holders of 10% or more of
the outstanding shares, to elect or remove board members.

Special considerations regarding master/feeder structure

The Fund pursues its goal by investing its assets in a master fund called the
Portfolio. This means that the Fund does not invest directly in securities;
rather the Portfolio invests in and manages its portfolio of securities. The
Portfolio is a separate investment company, but it has the same goal and
investment policies as the Fund. The goal and investment policies of the
Portfolio are described under the captions "Investment policies and risks" and
"Facts about investments and their risks." Additional information on investment
policies may be found in the SAI.
<PAGE>
Board considerations: The board considered the advantages and disadvantages of
investing the Fund's assets in the Portfolio. The board believes that the
master/feeder structure can be in the best interest of the Fund and its
shareholders since it offers the opportunity for economies of scale. The Fund
may redeem all of its assets from the Portfolio at any time. Should the board
determine that it is in the best interest of the Fund and its shareholders to
terminate its investment in the Portfolio, it would consider hiring an
investment advisor to manage the Fund's assets, or other appropriate options.
The Fund would terminate its investment if the Portfolio changed its goal,
investment policies or restrictions without the same change being approved by
the Fund.

Other feeders: The Portfolio sells securities to other affiliated mutual funds
and may sell securities to non-affiliated investment companies and institutional
accounts (known as feeders). These feeders buy the Portfolio's securities on the
same terms and conditions as the Fund and pay their proportionate share of the
Portfolio's expenses. However, their operating costs and sales charges are
different from those of the Fund. Therefore, the investment returns for other
feeders are different from the returns of the Fund. Information about other
feeders may be obtained by calling American Express Financial Advisors at
1-800-AXP-SERV.

Each feeder that invests in the Portfolio is different and activities of its
investors may adversely affect all other feeders, including the Fund. For
example, if one feeder decides to terminate its investment in the Portfolio, the
Portfolio may elect to redeem in cash or in kind. If cash is used, the Portfolio
will incur brokerage, taxes and other costs in selling securities to raise the
cash. This may result in less investment diversification if entire investment
positions are sold, and it also may result in less liquidity among the remaining
assets. If in-kind distribution is made, a smaller pool of assets remains that
may affect brokerage rates and investment options. In both cases, expenses may
rise since there are fewer assets to cover the costs of managing those assets.

Shareholder meetings: Whenever the Portfolio proposes to change a fundamental
investment policy or to take any other action requiring approval of its security
holders, the Fund will hold a shareholder meeting. The Fund will vote for or
against the Portfolio's proposals in proportion to the vote it receives for or
against the same proposals from its shareholders.

Board members and officers

Shareholders elect a board 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. Board members and
officers serve 47 IDS and IDS Life funds and 15 Master Trust portfolios, except
for William H. Dudley, who does not serve
<PAGE>
the nine IDS Life funds. The board members also serve as members of the board of
the Trust which manages the investments of the Portfolio and other accounts.
Should any conflict of interest arise between the interests of the shareholders
of the Fund and those of the other accounts, the board will follow written
procedures to address the conflict.

Independent board members and officers

Chairman of the board

William R. Pearce*
Chairman of the board, Board Services Corporation (provides administrative
services to boards including the boards of the IDS and IDS Life funds and Master
Trust portfolios).

H. Brewster Atwater, Jr.
Former chairman and chief executive officer, General Mills, Inc.

Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public Policy Research.

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

Anne P. Jones
Attorney and telecommunications consultant.

Alan K. Simpson
Former United States senator for Wyoming.

Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.

Wheelock Whitney
Chairman, Whitney Management Company.

C. Angus Wurtele
Chairman of the board, The Valspar Corporation.

Officer

Vice president, general counsel and secretary

Leslie L. Ogg*
President, treasurer and corporate secretary of Board Services Corporation.
<PAGE>
Board members and officers associated with AEFC

President

John R. Thomas*
Senior vice president, AEFC.

William H. Dudley*
Senior advisor to the chief executive officer, AEFC.

David R. Hubers*
President and chief executive officer, AEFC.

Officers associated with AEFC

Vice president

Peter J. Anderson*
Senior vice president, AEFC.

Treasurer

Matthew N. Karstetter*
Vice president, AEFC.

Refer to the SAI for the board members' and officers' biographies.

* Interested person as defined by the Investment Company Act of 1940.

Investment manager

The Portfolio pays AEFC for managing its assets. The Fund pays its proportionate
share of the fee. Under the Investment Management Services Agreement, AEFC is
paid a fee for these services based on the average daily net assets of the
Portfolio, as follows:
<PAGE>
Assets Annual rate
(billions)at each asset level

First $0.25 1.10%
Next 0.25 1.08
Next 0.25 1.06
Next 0.25 1.04
Next 1.0 1.02
Over 2.0 1.00

For the fiscal period ended Oct. 31, 1997, the Portfolio paid AEFC a total
investment management fee of 1.10% of its average daily net assets. Under the
Agreement, the Portfolio also pays taxes, brokerage commissions and nonadvisory
expenses.

Administrator and transfer agent

Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at an annual rate of 0.10% decreasing in
gradual percentages to 0.05% as assets increase.

Under a separate Transfer Agency Agreement, American Express Client Service
Corporation (AECSC) maintains shareholder accounts and records. The Fund pays
AECSC 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 has an exclusive distribution agreement with American Express Financial
Advisors, a wholly-owned subsidiary of AEFC. Financial advisors representing
AEFA provide information to investors about individual investment programs, the
Fund and its operations, new account applications, and exchange and redemption
requests. The cost of these services is paid partially by the Fund's sales
charges.

Persons who buy Class A shares pay a sales charge at the time of purchase.
Persons who buy Class B shares are subject to a contingent deferred sales charge
on a redemption in the first six years and pay an asset-based sales charge (also
known as a 12b-1 fee) of 0.75% of the Fund's average daily net assets. Class Y
shares are sold without a sales charge and without an asset-based sales charge.
<PAGE>
Financial advisors may receive different compensation for selling Class A, Class
B and Class Y shares. Portions of the sales charge also may be paid to
securities dealers who have sold the Fund's shares or to banks and other
financial institutions. The amounts of those payments range from 0.8% to 4% of
the Fund's offering price depending on the monthly sales volume.

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 average daily net assets for Class A
and Class B shares and 0.10% for Class Y shares.

Total expenses paid by the Fund's Class A shares for the fiscal period ended
Oct. 31, 1997, were 1.90% of its average daily net assets. Expenses for Class B
and Class Y were 2.67% and 1.75%, respectively.

The expense ratio of the Fund and Portfolio may be higher than that of a fund
investing exclusively in domestic securities because the expenses of the Fund
and Portfolio, such as the investment management fee and the custodial costs,
are higher. The expense ratio generally is not higher, however, than that of
funds with similar investment goals and policies.

About American Express Financial Corporation

General information

The AEFC 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 funds in the IDS MUTUAL FUND GROUP, AEFC
also manages investments for itself and its subsidiaries, IDS Certificate
Company and IDS Life Insurance Company. Total assets under management on Oct.
31, 1997 were more than $168 billion.

AEFA serves individuals and businesses through its nationwide network of more
than 175 offices and more than 8,600 advisors.

Other AEFC subsidiaries provide investment management and related services for
pension, profit sharing, employee savings and endowment funds of businesses and
institutions.
<PAGE>

AEFC is located at IDS Tower 10, Minneapolis, MN 55440-0010. It is a
wholly-owned subsidiary of American Express Company (American Express), a
financial services company with headquarters at American Express Tower, World
Financial Center, New York, NY 10285. The Portfolio may pay brokerage
commissions to broker-dealer affiliates of AEFC.

<PAGE>

Appendix A

Description of corporate bond ratings

Bond ratings concern the quality of the issuing corporation. They are not an
opinion of the market value of the security. Such ratings are opinions on
whether the principal and interest will be repaid when due. A security's rating
may change, which could affect its price. Ratings by Moody's Investors Service,
Inc. are Aaa, Aa, A, Baa, Ba, B, Caa, Ca and C. Ratings by Standard & Poor's
Corporation are AAA, AA, A, BBB, BB, B, CCC, CC, C and D. The following is a
compilation of the two agencies' rating descriptions.
For further information, see the SAI.

Aaa/AAA - Judged to be of the best quality and carry the smallest degree of
investment risk. Interest and principal are secure.

Aa/AA - Judged to be high-grade although margins of protection for interest and
principal may not be quite as good as Aaa or AAA rated securities.

A - Considered upper-medium grade. Protection for interest and principal is
deemed adequate but may be susceptible to future impairment.

Baa/BBB - Considered medium-grade obligations. Protection for interest and
principal is adequate over the short-term; however, these obligations may have
certain speculative characteristics.

Ba/BB - Considered to have speculative elements. The protection of interest and
principal payments may be very moderate.

B - Lack characteristics of more desirable investments. There may be small
assurance over any long period of time of the payment of interest and principal.

Caa/CCC - Are of poor standing. Such issues may be in default or there may be
risk with respect to principal or interest.

Ca/CC - Represent obligations that are highly speculative. Such issues are often
in default or have other marked shortcomings.

C - Are obligations with a higher degree of speculation. These securities have
major risk exposures to default.

D - Are in payment default. The D rating is used when interest payments or
principal payments are not made on the due date.
<PAGE>
Non-rated securities will be considered for investment when they possess a risk
comparable to that of rated securities consistent with the Portfolio's
objectives and policies. When assessing the risk involved in each non-rated
security, the Portfolio will consider the financial condition of the issuer or
the protection afforded by the terms of the security.

Definitions of zero-coupon and pay-in-kind securities

A zero-coupon security is a security that is sold at a deep discount from its
face value and makes no periodic interest payments. The buyer of such a security
receives a rate of return by gradual appreciation of the security, which is
redeemed at face value on the maturity date.

A pay-in-kind security is a security in which the issuer has the option to make
interest payments in cash or in additional securities. The securities issued as
interest usually have the same terms, including maturity date, as the
pay-in-kind securities.
<PAGE>
Appendix B

Descriptions of derivative instruments

What follows are brief descriptions of derivative instruments the Portfolio may
use. At various times the Portfolio 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 Portfolio's investment goal and
policies. For more information on these instruments, see the SAI.

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 or sell an instrument for a set price on a future date. The
Portfolio 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 Portfolio's investments against price
fluctuations or to increase market exposure.

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.

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>
IDS Global Balanced Fund

Prospectus
Dec. 30, 1997

The goal of IDS Global Balanced Fund, a part of IDS Global Series, Inc., is to
provide a balance of growth of capital and current income. The Fund balances its
investments between equity and debt securities of issuers throughout the world.

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.

Please note that the Fund:

o is not a bank deposit
o is not federally insured
o is not endorsed by any bank or government agency
o is not guaranteed to achieve its goal

American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
800-862-7919
TTY: 800-846-4852
Web site address: http://www.americanexpress.com/advisors

<PAGE>
Table of contents

The Fund in brief
Goal
Investment policies and risks
Manager and distributor
Portfolio managers
Alternative purchase arrangements

Sales charge and Fund expenses

Performance
Financial highlights
Total returns

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

How to purchase, exchange or redeem shares Alternative purchase
arrangements How to purchase shares How to exchange shares How to
redeem 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 to determine the correct TIN

How the Fund is organized
Shares
Voting rights
Shareholder meetings
Board members and officers
Investment manager
Administrator and transfer agent
Distributor
<PAGE>
About American Express Financial Corporation
General information

Appendices

Description of corporate bond ratings
Descriptions of derivative instruments
<PAGE>
The Fund in brief

Goal

IDS Global Balanced Fund (the Fund) seeks to provide shareholders with a balance
of growth of capital and current income. Because any investment involves risk,
achieving this goal cannot be guaranteed. Only shareholders can change the goal.

Investment policies and risks

The Fund is a diversified mutual fund that balances its investments between
equity and debt securities of issuers throughout the world. The Fund also
invests in derivative instruments and money market instruments.

Manager and distributor

The Fund is managed by American Express Financial Corporation (AEFC), a provider
of financial services since 1894. AEFC currently manages more than $68 billion
in assets for the IDS MUTUAL FUND GROUP. Shares of the Fund are sold through
American Express Financial Advisors Inc. (AEFA), a wholly-owned subsidiary of
AEFC.

Portfolio managers

Ray Goodner joined AEFC in 1977 and serves as vice president and senior
portfolio manager. He has managed the fixed income portfolio of this Fund since
November 1996. He also serves as portfolio manager of Quality Income Portfolio,
World Income Portfolio and IDS Life Global Yield Fund.

Peter Lamaison joined AEFC in 1981 and has since served as president, chief
executive officer and chief investment officer of American Express Asset
Management International Inc. He has managed the equity portfolio of this Fund
since September 1997. He also provides day-to-day portfolio management for the
international equities portion of Total Return Portfolio and serves as portfolio
manager of IDS International Fund and IDS Life International Equity Fund.

<PAGE>
Alternative purchase arrangements

Sales charge and Fund expenses

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 (as a percentage of average daily net assets):

Class A Class B Class Y
Management fee 0.79% 0.79% 0.79%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses 0.71% 0.71% 0.64%
Total** 1.50% 2.25% 1.43%

*This charge may be reduced depending on your total investments in IDS funds.
See "Reductions of the sales charge." **AEFC and AEFA have agreed to waive
certain fees and reimburse expenses, with the exception of 12b-1 fees, to the
extent that total expenses for Class A shares exceed 1.50% for a minimum period
ending Oct. 31, 1998. Any waiver or reimbursement applies to each class on a pro
rata basis. Absent fee waivers and expense reimbursements, total expenses would
have been 2.96% for Class A, 2.14% for Class B and 2.29% for Class Y.
<PAGE>
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 $65 $ 95 $129 $221
Class B $73 $110 $141 $240
Class B* $23 $ 70 $121 $240
Class Y $15 $ 45 $ 78 $172

*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.

Performance

Financial highlights

Period ended Oct. 31,
Per share income and capital changesa

Class A Class B Class Y

1997b 1997b 1997b

Net asset value, $5.00 $5.00 $5.00
beginning of period

Income from investment operations:

Net investment income (loss) .09 .06 .10

Net gains (losses) (both .31 .30 .31
realized and unrealized)

Total from investment operations .40 .36 .41

Less distributions:

Dividends from net
investment income (.07) (.05) (.08)

Net asset value, $5.33 $5.31 $5.33
end of period

Ratios/supplemental data

Class A Class B Class Y
1997b 1997b 1997b

Net assets, end of $31 $19 $--
period (in millions)

Ratio of expenses to 1.45%c,f 2.22%c,f 1.30%c,f
average daily net assetsd

Ratio of net income (loss) to 2.18%c 1.41%c 2.46%c
average daily net assets

Portfolio turnover rate 44% 44% 44%
(excluding short-term
securities)

Total returne 8.1% 7.3% 8.2%

Average brokerage $.0339 $.0339 $.0339
commission rateg

aFor a share outstanding throughout the period. Rounded to the nearest cent.

b Inception date period from Nov. 13, 1996 to Oct. 31, 1997.

cAdjusted to an annual basis.

dExpense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.

eTotal return does not reflect payment of a sales charge.

fDuring the period from Nov. 13, 1996 to Oct. 31, 1997, AEFC reimbursed the Fund
for certain expenses. Had AEFC not done so, the annual ratios of expenses would
have been 2.29%, 2.96% and 2.14% for Class A, B, and Y, respectively.

g The Fund is required to disclose an average brokerage commission rate per
share for security trades on which commissions are charged. The comparability of
this information may be affected by the fact that commission rates per share
vary significantly among foreign countries.

The information in these tables 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.

<PAGE>
Total returns

Average annual total returns as of Oct. 31, 1997

Purchase Since
made inception
- ------------------------------------------------------------------ ------------
Global Balanced:
Class A +2.69%*
Class B +3.31%*
Class Y +8.24%*

MSCI World Index +11.02%**

Salomon Brothers World Government Bond Index +1.28%**

*Inception date was Nov. 13, 1996.
**Measurement period started Dec. 1, 1996.

Cumulative total returns as of Oct. 31, 1997

Purchase Since
made inception
- ------------------------------------------------------------------ -----------
Global Balanced:
Class A +2.69%*
Class B +3.31%*
Class Y +8.24%*

MSCI World Index +11.02%**

Salomon Brothers World Government Bond Index +1.28%**

*Inception date was Nov. 13, 1996.
**Measurement period started Dec. 1, 1996.
<PAGE>
These examples show total returns from hypothetical investments in Class A,
Class B and Class Y shares of the Fund. These returns are compared to those of
popular indexes for the same period. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales charges and
fees.

Morgan Stanley Capital International (MSCI) World Index, an unmanaged index
compiled from a composite of over 1500 companies listed on the stock exchanges
of North America, Europe, New Zealand and the Far East, is widely recognized by
investors as the measurement index for portfolios of global securities. The
index reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.

Salomon Brothers World Government Bond Index is an unmanaged
market-capitalization weighted benchmark that tracks the performance of the 17
government bond markets around the world. It is widely recognized by investors
as a measurement index for portfolios of world government bond securities. The
index reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.

Investment policies and risks

The Fund balances its investments between equity and debt securities of issuers
throughout the world. Under normal market conditions, at least 65% of the Fund's
total assets will be invested in securities of issuers located in at least three
different countries including the United States. The Fund buys equity securities
that it believes offer both current income and growth potential. The Fund buys
debt securities (including U.S. Government securities, municipal obligations and
sovereign debt of foreign governments) for stability of value and regular
income. No less than 25% of the Fund's total assets will be invested in debt
securities and debt convertible securities. The Fund also invests in derivative
instruments and money market instruments.

The various types of investments the investment managers use to achieve
investment performance are described in more detail in the next section and in
the SAI.
<PAGE>
Facts about investments and their risks

Common stocks: Stock prices are subject to market fluctuations. Stocks of
foreign companies may be subject to abrupt or erratic price movements. While
established companies in which the Fund invests generally have adequate
financial reserves, some of the Fund's investments 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,
convertible securities trade more like common stock.

The price of bonds below investment grade may react more to the ability of the
issuing company to pay interest and principal when due than to changes in
interest rates. They have greater price fluctuations, are more likely to
experience a default and sometimes are referred to as junk bonds. Reduced market
liquidity for these bonds may occasionally make it more difficult to value them.

In valuing bonds, the Fund relies both on independent rating agencies and on the
investment manager's credit analysis. The Fund will not invest more than 20% of
its net assets in bonds below investment grade, including Brady bonds. The Fund
may not purchase securities rated lower than B by Moody's Investors Service,
Inc. (Moody's) or Standard & Poor's Corporation (S&P). Securities that are
subsequently downgraded in quality may continue to be held by the Fund and will
be sold only when the investment manager believes it is advantageous to do so.
<PAGE>
<TABLE>
<CAPTION>
Bond ratings and holdings for fiscal 1997

Percent of net assets in
S&P rating Protection of unrated securities
Percent of (or Moody's principal and assessed by AEFC
net assets equivalent) interest
<S> <C> <C> <C>
19.11% AAA Highest quality 0.20%
1.84 AA High quality --
0.75 A Upper medium grade --
2.73 BBB Medium grade --
4.14 BB Moderately speculative 0.05
-- B Speculative --
-- CCC Highly speculative --
-- CC Poor quality --
-- C Lowest quality --
-- D In default --
0.96 Unrated Unrated securities 0.71
</TABLE>
(See the Appendix to this prospectus describing corporate bond ratings for
further information.)

Debt securities sold at a deep discount: Some bonds are sold at deep discounts
because they do not pay interest until maturity. They include zero coupon bonds
and PIK (pay-in-kind) bonds. Because such securities do not pay current cash
income, the market value of these securities may be subject to greater
volatility than other debt securities. To comply with tax laws, the Fund has to
recognize a computed amount of interest income and pay dividends to shareholders
even though no cash has been received. In some instances, the Fund may have to
sell securities to have sufficient cash to pay the dividends.

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 value of those assets 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 limited
liquidity and price fluctuations in emerging markets could make investments in
developing countries more volatile. The Fund may invest in debt obligations
issued or guaranteed by foreign governments or their agencies, instrumentalities
or political subdivisions, or by supranational issuers. Investment in sovereign
debt involves special risks. Certain foreign countries, particularly developing
countries, have experienced, and may continue to experience, high rates of
inflation and high interest rates; exchange-rate fluctuations; large amounts of
external debt, balance-of-payments, and trade difficulties; and extreme poverty
and unemployment. In addition, the Fund may have limited legal recourse in the
event a sovereign government is unwilling or unable to pay its debt.

Derivative instruments: The investment 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 investment 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. This does
not, however, limit the portion of the Fund's assets at risk to 5%. The Fund is
not limited as to the percentage of its assets that may be invested in
permissible investments, including derivatives, except as otherwise explicitly
provided in this prospectus or the SAI. For descriptions of these and other
types of derivative instruments, see the Appendix to this prospectus and the
SAI.
<PAGE>
Securities and other instruments that are illiquid: A security or other
instrument is illiquid if it 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. Securities and instruments, however, can be
sold in private sales, and many may be sold to other institutions and qualified
buyers or on foreign markets. The investment manager will follow guidelines
established by the board 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 other instruments that are illiquid.

Money market instruments: Short-term debt securities rated in the top two grades
or the equivalent 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.

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 a majority of the outstanding voting securities
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 assets would be
invested in an investment company with the same goal as the Fund, rather than
invested directly in a portfolio of securities.

Valuing Fund shares

The public offering price is the net asset value (NAV) adjusted for the sales
charge for Class A. It is the NAV for Class B and Class Y.

The NAV is the value of a single Fund share. 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).
<PAGE>
To establish the net assets, all securities are valued as of the close of each
business day. In valuing assets:

o Securities 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 Assets without readily available market values are valued according to
methods selected in good faith by the board

o Assets and liabilities denominated in foreign currencies are translated
daily into U.S. dollars at a rate of exchange set as near to the close of
the day as practicable

How to purchase, exchange or redeem shares

Alternative purchase 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 sales 0.175% of average daily net Initial sales charge waived
charge of 5%; no 12b-1 fee assets or reduced for certain
purchases

<PAGE>
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 distribution fee (included in "Ongoing expenses")
and sales charges are structured so that you will have approximately the same
total return at the end of eight years regardless of which class you chose.
<TABLE>
<CAPTION>
Sales charges on purchase or redemption
<S> <C>
If you purchase Class A shares If you purchase Class B shares

o You will be able to take advantage of reductions o No reductions of the sales charge are available
in the sales charge. for large purchases.
</TABLE>
If your investments in IDS funds that are subject to a sales charge 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.
<TABLE>
<CAPTION>
Ongoing expenses
<S> <C>
If you purchase Class A shares If you purchase Class B shares

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

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.

* Eligibility must be determined in advance by AEFA. To do so, contact your
financial advisor.

How to purchase shares

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

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

o Wire orders can be accepted only on days when your bank, AEFC, 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 AEFC 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.
<TABLE>
<CAPTION>

Three ways to invest
<S> <C> <C>
1
By regular account Send your check and application (or your name Minimum amounts
and account number if you have an established Initial investment: $2,000
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.

<PAGE>
3
By wire If you have an established account, you may If this information is not
wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the Fund, less any
Routing No. 091000019 costs the Fund or AEFC incurs,
Minneapolis, MN will be returned promptly.
Attn: Domestic Wire Dept.
Minimum amounts
Give these instructions: Each wire investment: $1,000
Credit IDS Account #00-30-015 for personal
account # (your account number) for (your
name).
</TABLE>

How to exchange shares

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.

How to redeem shares

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

<TABLE>
<CAPTION>
Two ways to request an exchange or redemption of shares
<S> <C>
1
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 redeem o signature of all
registered account owners o for redemptions,
indicate how you want your money 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 Financial o The Fund and AEFC will honor any telephone exchange
Advisors or redemption request believed to be authentic and will use reasonable procedures to
Telephone Transaction Service confirm that they are. This includes asking identifying questions and tape recording calls.
800-437-3133 or If reasonable procedures are not followed, the Fund or AEFC will be liable for any loss
612-671-3800 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 AEFC 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>
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.

o AEFC 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 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. It may take up to 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 AEFC that your check has cleared.)
<PAGE>
<TABLE>
<CAPTION>
Three ways to receive payment when you redeem shares
<S> <C>
1 o Mailed to the address on record
By regular or o Payable to names listed on the account
express mail NOTE: You will be charged a fee if you request express mail delivery.

2 o Minimum wire redemption: $1,000
By wire 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 o Minimum payment: $50
By scheduled o Contact your financial advisor or American Express Shareholder Service
payout plan to set up regular payments to you on a monthly, bimonthly, quarterly,
semiannual or annual basis
o Purchasing 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
percentage 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 and
less than $1,000,000, amounts for each applicable increment must be totaled. See
the SAI.
<PAGE>
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

Other policies that affect your sales charge:

o If you intend to invest $1 million over a period of 13 months, you can reduce
the sales charges in Class A by filing a letter of intent.

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 board members, officers or employees of the Fund or AEFC 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.

<PAGE>
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 AEFA 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 the same class
of another fund in the IDS MUTUAL FUND GROUP that has a sales charge.

o Purchases made with the proceeds from IDS Life Real Estate Variable Annuity
surrenders through December 31, 1997.

* Eligibility must be determined in advance by AEFA. To do so, contact your
financial advisor.

<PAGE>
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%

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.

o In the event of the shareholder's death,
o Purchased by any board member, officer or employee of a fund or AEFC or its
subsidiaries, o Held in a trusteed employee benefit plan, 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 AEFA,
or a custodian-to-custodian transfer to a product not distributed by
AEFA 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, AEFC
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.

TTY Service
For the hearing impaired
800-846-4852

American Express Financial Advisors Easy Access Line
Automated account information (TouchTone(R) phones only), including current Fund
prices and performance, account values and recent account transactions
800-862-7919

Distributions and taxes

Dividend and capital gain distributions

The Fund's net investment income from dividends and interest is distributed to
you by the end of the calendar year as dividends. Capital gains are realized
when a security is sold for a higher price than was paid for it. Short-term
capital gains are included in net investment income. Long-term capital gains are
realized when a security is held for more than one year. The Fund will offset
any net realized capital gains by any available capital loss carryovers. Net
realized long-term capital gains, if any, are distributed at the end of the
calendar year as capital gain distributions. These long-term capital gains will
be subject to differing tax rates depending on the holding period of the
underlying investments. Before they are distributed, both net investment income
and net long-term capital gains are included in the value of each share. After
they are 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.)

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 the same class of
another publicly available IDS fund for which you have previously
opened an account.

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.

Taxes

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

Individual or joint account The individual or individuals listed on the account

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

A living trust The grantor-trustee
(the person who puts the money into the trust)

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

Partnership The partnership

Corporate The corporation

Association, club or tax-exempt organization The 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

Voting rights

Board members and officers

Independent board members and officers

Chairman of the board

William R. Pearce *
Chairman of the board, Board Services Corporation (provides administrative
services to boards including the boards of the IDS and IDS Life funds and Master
Trust portfolios).

H. Brewster Atwater, Jr.
Former chairman and chief executive officer, General Mills, Inc.

Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public Policy Research.

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

Anne P. Jones
Attorney and telecommunications consultant.

Alan K. Simpson
Former United States senator for Wyoming.

Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.

Wheelock Whitney
Chairman, Whitney Management Company.
<PAGE>
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.

Officer

Vice president, general counsel and secretary

Leslie L. Ogg*
President, treasurer and corporate secretary of Board Services Corporation

Board members and officers associated with AEFC

President

John R. Thomas*
Senior vice president, AEFC.

William H. Dudley*
Senior advisor to the chief executive officer, AEFC.

David R. Hubers*
President and chief executive officer, AEFC.

Officers associated with AEFC

Vice President

Peter J. Anderson*
Senior vice president, AEFC.

Treasurer

Matthew N. Karstetter*
Vice president, AEFC.

Refer to the SAI for the board members' and officers' biographies.

*Interested person as defined by the Investment Company Act of 1940.
<PAGE>
Investment manager

The Fund pays AEFC for managing its assets. Under its Investment Management
Services Agreement, AEFC is paid a fee for these services based on the average
daily net assets of the Fund, as follows:

Assets Annual rate
(billions)at each asset level
First $0.25 0.790%
Next 0.25 0.765
Next 0.25 0.740
Next 0.25 0.715
Next 1.0 0.690
Over 2.0 0.665

For the fiscal period ended Oct. 31, 1997, the Fund paid AEFC a total investment
management fee of 0.79% of its average daily net assets. Under the Agreement,
the Fund also pays taxes, brokerage commissions and nonadvisory expenses.

Administrator and transfer agent

Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at an annual rate of 0.06% decreasing in
gradual percentages to 0.035% as assets increase.

Transfer Agency Agreement, American Express Client Service Corporation (AECSC)
maintains shareholder accounts and records. The Fund pays AECSC an annual fee
per shareholder account for this service as follows:

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

Distributor

<PAGE>
Persons who buy Class A shares pay a sales charge at the time of purchase.
Persons who buy Class B shares are subject to a contingent deferred sales charge
on a redemption in the first six years and pay an asset-based sales charge (also
known as a 12b-1 fee) of 0.75% of the Fund's average daily net assets. Class Y
shares are sold without a sales charge and without an asset-based sales charge.

Financial advisors may receive different compensation for selling Class A, Class
B and Class Y shares. Portions of the sales charge also may be paid to
securities dealers who have sold the Fund's shares or to banks and other
financial institutions. The amounts of those payments range from 0.8% to 4% of
the Fund's offering price depending on the monthly sales volume.

Total expenses paid by the Fund's Class A shares for the fiscal period ended
Oct. 31, 1997, were 1.45% of its average daily net assets. Expenses for Class B
and Class Y were 2.22% and 1.30%, respectively.

The expense ratio of the Fund may be higher than that of a fund investing
exclusively in domestic securities because the expenses of the Fund, such as the
investment management fee and the custodial costs, are higher. The expense ratio
generally is not higher, however, than that of funds with similar investment
goals and policies.

About American Express Financial Corporation

General information

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

<PAGE>

AEFA serves individuals and businesses through its nationwide network of more
than 175 offices and more than 8,600 advisors.

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

AEFC is located at IDS Tower 10, Minneapolis, MN 55440-0010. It is a
wholly-owned subsidiary of American Express Company (American Express), 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 AEFC.
<PAGE>
Appendix A