IDS GLOBAL SERIES INC, 485APOS, 1998-10-28

IDS GLOBAL SERIES INC
485APOS, 1998-10-28

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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. 30 (File No. 33-25824) [X]
---------

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 32 (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 55402-3268
(612) 330-9283

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check appropriate box)
[ ] immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[X] on Dec. 30, 1998 pursuant to paragraph (a)(1)
[ ] 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:
[X] 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>
IDS Emerging Markets Fund

Prospectus
Dec. 30, 1998

IDS Emerging Markets Fund seeks to provide shareholders with long-term capital
growth.

Please note that this 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

Like all mutual funds, the Securities and Exchange Commission has not approved
or disapproved these securities or passed upon the adequacy of this prospectus.
Any representation to the contrary is a criminal offense.

<PAGE>

Table of Contents

We invite you to take a closer look at:

The Fund
Goal
Investment Strategy
Risks
Past Performance
Fees and Expenses
Management

Buying and Selling Shares
Valuing Fund Shares
Investment Options
Purchasing Shares
Sales Charges
Exchanging/Selling Shares

Distributions and Taxes

Personalized Shareholder Information

Master/Feeder Structure

About the Company

Quick Telephone Reference

Financial Highlights

FUND INFORMATION KEY

[icon of magnifying glass] Goal and Investment Strategy
The Fund's particular investment goal and
the strategies it intends to use in pursuing
its goal.

[icon of die] Risks
The major risk factors associated with the
Fund.

[icon of checkbook] Fees and Expenses
The overall costs incurred by an investor in
the Fund, including sales charges and annual
expenses.

[icon of folder] Management
The individual or group designated by the
investment advisor to handle the Fund's
day-to-day management.

[icon of umbrella] Master / Feeder Structure
Describes the Fund's investment structure.

[icon of stack of dollar bills] Financial Highlights
Tables showing the Fund's financial
performance.

<PAGE>

The Fund

Goal
IDS Emerging Markets Fund (the Fund) seeks to provide shareholders with
long-term capital growth.

Investment Strategy
The Fund's assets are invested primarily in equity securities of companies in
countries with emerging markets. Emerging markets are countries characterized as
developing or emerging by either the World Bank or the United Nations. Under
normal market conditions, at least 65% of the Fund's total assets will be
invested in companies located in at least three different emerging market
countries. The Fund may buy securities traded in any market if the company earns
50% or more of its total revenues from goods or services produced in emerging
market countries or from sales made in emerging market countries.

The selection of geographic regions is the primary decision in building the
investment portfolio.

American Express Financial Corporation (AEFC) chooses investments by:

o Considering opportunities and risks within developing or emerging markets.
o Determining the percentage of assets to invest in a particular country
based upon its economic outlook, political environment, and growth rate.
o Identifying companies with:
- strong management expertise,
- financial strength,
- sufficient liquidity in trading volume,
- good prospects for growth and development, and
- high demand for their products or services.
o Buying securities of those companies we consider to be industry market
leaders offering the best opportunity for long-term growth.

AEFC will review all holdings and will sell a security if any of the above
listed fundamental characteristics deteriorate. Because the economies of
emerging markets can change much more rapidly than that of the U.S., AEFC will
focus on the risks associated with potential currency devaluations or sharp
changes in monetary policy. If we believe economic or political developments may
result in lower share prices, we will attempt to reduce the investments in that
country.

AEFC closely monitors the Fund's exposure to foreign currency fluctuations. From
time to time, AEFC may purchase derivative instruments (such as options and
forward contracts) to hedge against currency fluctuations.

The Fund also can invest in money market securities, debt securities, and other
instruments. During weak or declining markets the Fund may invest more of its
assets in these securities. Although the Fund would invest in these securities
primarily to avoid losses, this type of investing also could reduce the benefit
from any improvement in the market. AEFC may make frequent securities trades
that could result in increased fees, expenses, and taxes.

For more information on recent strategies and holdings, see the Fund's Statement
of Additional Information (SAI) and the annual/semiannual reports.

<PAGE>

Risks
This Fund is designed for long-term investors with above-average risk tolerance.
Please remember that with any mutual fund investment you may lose money.
Principal risks associated with an investment in the Fund include:

Market Risk
Foreign/Emerging Markets Risk
Liquidity Risk
Issuer Risk
Style Risk
Sector/Concentration Risk

Market Risk

The market may drop and you may lose money. Market risk may affect a single
issuer, sector of the economy, industry, or the market as a whole. The market
value of all securities may move up and down, sometimes rapidly and
unpredictably.

Foreign/Emerging Markets Risk

The following are all components of foreign/emerging markets risk:

Country risk includes the political, economic, and other conditions of
a country. These conditions include lack of publicly available information, less
government oversight (including lack of accounting, auditing, and financial
reporting standards), the possibility of government-imposed restrictions, and
even the nationalization of assets.

Currency risk results from the constantly changing exchange rate
between local currency and the U.S. dollar. Whenever the Fund holds securities
valued in a foreign currency or holds the currency, changes in the exchange rate
add or subtract from the value of the investment.

Custody risk refers to the process of clearing and settling trades. It
also covers holding securities with local agents and depositories. Low trading
volumes and volatile prices in less developed markets make trades harder to
complete and settle. Local agents are held only to the standard of care of the
local market. Governments or trade groups may compel local agents to hold
securities in designated depositories that are not subject to independent
evaluation. The less developed a country's securities market is, the greater the
likelihood of problems occurring.

Liquidity Risk

Securities may be difficult or impossible to sell at the time that the Fund
would like. The Fund may have to lower the selling price, sell other
investments, or forego an investment opportunity.

Issuer Risk

The risk that an issuer, or the value of its stocks or bonds, will perform
poorly. Poor performance may be caused by poor management decisions, competitive
pressures, breakthroughs in technology, reliance on suppliers, labor problems or
shortages, corporate restructurings, fraudulent disclosures, or other factors.

<PAGE>

Style Risk

AEFC purchases growth stocks based on the expectation that the companies will
have strong growth in earnings. The price paid often reflects an expected rate
of growth. If that growth fails to occur, the price of the stock may decline
quickly.

Sector/Concentration Risk

Investments that are concentrated in a particular issuer, geographic region, or
industry will be more susceptible to changes in price (the more you diversify,
the more you spread risk).

Past Performance

The following bar chart and table indicate the risks and variability of
investing in the Fund by showing:

o changes in the performance of the Fund from year to year since the Fund's
inception date, and

o how the Fund's average annual total return compare to those of the indexes
below.

How the Fund has performed in the past does not indicate how the Fund will
perform in the future.

Performance (based on calendar years)
- -------------------------------------------------------------------------------

1996* 1997
- -------------------------------------------------------------------------------

During the period shown in the bar chart, the highest return for a calendar
quarter was ___% (quarter ending Sept. 1998) and the lowest return for a
calendar quarter was ___% (quarter ending Sept. 1998).

The 5% sales charge applicable to Class A shares of the Fund is not reflected in
the bar chart; if reflected, returns would be lower than those shown.

The Fund's year to date return as of Sept. 30, 1998 was _____%.

*Inception date was Nov. 13, 1996 (partial year).

<PAGE>

Average Annual Total Returns (for the calendar year periods ending Dec. 31,
1997)

Past 1 year Since inception

Emerging Markets:

Class A a

Class B a

Class Y a

MSCI Emerging Markets b
Free Index

Lipper Emerging b
Markets Fund Index

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

For purposes of this calculation we assumed:
o a sales charge of 5% for Class A shares,
o sales at the end of the period and deduction of the applicable contingent
deferred sales charge (CDSC) for Class B shares,
o no sales charge for Class Y shares,
o conversion of Class B shares into Class A shares in the ninth calendar year
of ownership, and
o no adjustments for taxes paid by an investor on the reinvested income and
capital gains.

Morgan Stanley Capital International (MSCI) Emerging Markets Free Index is an
unmanaged market capitalization-weighted index compiled from a composite of
securities markets of 26 emerging market countries. 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.

Fees and Expenses
Fund investors pay various expenses. The table below describes the fees and
expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)

Class A Class B Class Y
<S> <C> <C> <C>
Maximum sales charge
(load) imposed on purchasesa
(as percentage
of offering price) 5% none none
............................................... .................... .................... ...................
Maximum deferred sales
charge (load) imposed on
sales (as percentage
of offering price at time of purchase) none 5% none
............................................... .................... .................... ...................
</TABLE>

Annual Fund operating expensesb (expenses that are deducted from Fund assets)
<TABLE>
<CAPTION>

As percentage of average daily net assets: Class A Class B Class Y
<S> <C> <C> <C>
- ----------------------------------------------- -------------------- -------------------- -------------------
Management fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Distribution (12b-1) fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Other expensesc % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Total % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
</TABLE>

a This charge may be reduced depending on your total investments in IDS
funds. See "Sales Charges."

b Both in this table and the following example fund operating expenses
include expenses charged by both the Fund and its Master Portfolio as
described under "Management".

c Other expenses include an administrative services fee, a shareholder
services fee, a transfer agency fee and other nonadvisory expenses.

Example

This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

Assume you invest $10,000 and the Fund earns a 5% annual return. The operating
expenses remain the same each year. If you hold your shares until the end of the
years shown, your costs would be:

1 year 3 years 5 years 10 years
Class Ad $ $ $ $
Class Be $ $ $ $ g
Class Bf $ $ $ $ g
Class Y $ $ $ $

d Includes a 5% sales charge.

e Assumes you sold your Class B shares at the end of the period and incurred
the applicable CDSC.

f Assumes you did not sell your Class B shares at the end of the period.

g Based on conversion of Class B shares to Class A shares in the ninth year
of ownership.

This example does not represent actual expenses, past or future. Actual expenses
may be higher or lower than those shown. [During the most recent fiscal year,
AEFC voluntarily reimbursed the Fund for certain expenses. If AEFC had not
reimbursed the Fund for operating expenses, the total paid by the Fund would
have been ____% of its average net assets.] [AEFC intends to continue to
voluntarily reimburse expenses so that the operating expenses for Class A do not
exceed ____% of its average net assets.]

Management
The Fund's assets are invested in Emerging Markets Portfolio (the Portfolio),
which is managed by AEFC and its London based subsidiary, American Express Asset
Management International Inc. Ian King, portfolio manager, joined AEFC in 1995.
He has managed the assets of the Portfolio since November 1996. He also is a
member of the portfolio management team for Total Return Portfolio. Prior to
joining AEFC he was director of Lehman Brothers Global Asset Management Ltd.
from 1992 to 1995.

<PAGE>

BUYING AND SELLING SHARES

Valuing Fund Shares

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

The NAV is the value of a single Fund share. The NAV usually changes daily, and
is calculated at the close of business of the New York Stock Exchange, normally
3 p.m. Central Standard Time (CST), each business day (any day the New York
Stock Exchange is open).

The Fund's investments are valued based on market value, or where market
quotations are not readily available, based on methods selected in good faith by
the board. Because the Fund invests in securities that are primarily listed on
foreign stock exchanges that trade on weekends or other days when the Fund does
not price its shares, the Fund's NAV may change on days when you could not buy
or sell shares of the Fund. Please see the SAI for further information.

Investment Options

1. Class A shares are sold to the public with a sales charge at the time of
purchase.

2. Class B shares are sold to the public with a CDSC and an annual
distribution (12b-1) fee.

3. Class Y shares are sold to qualifying institutional investors without a
sales charge or distribution fee. Please see the SAI for information on
eligibility to purchase Class Y shares.

Investment options summary:

Class A

Maximum sales charge of 5%

Initial sales charge waived or reduced for certain purchases

No annual distribution fee

Service fee of 0.175% of average daily net assets

Lower annual expenses than Class B shares

Class B

No initial sales charge

CDSC on shares sold in the first six years (maximum of 5% in first year, reduced
to 0% after year six)

CDSC waived in certain circumstances

Shares convert to Class A in ninth year of ownership

<PAGE>

Annual distribution fee of 0.75% of average daily net assets*

Service fee of 0.175% of average daily net assets

Higher annual expenses than Class A shares

Class Y

No initial sales charge

No annual distribution fee

Service fee of 0.10% of average daily net assets

Available only to certain qualifying institutional investors

* The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act
of 1940 that allows it to pay distribution fees for the sale of Class B
shares. Because these fees are paid out of the Fund's assets on an on-going
basis, long-term shareholders of Class B shares may end up paying more than
the 6.25% sales charge permitted by the National Association of Securities
Dealers.

Should you purchase Class A or Class B shares?

If your investments in IDS funds total $250,000 or more, Class A shares may be
the better option. If you qualify for a waiver of the sales charge, Class A
shares will be the best option.

If you invest less than $250,000, consider how long you plan to hold your
shares. Class B shares have an additional annual distribution fee of 0.75% and a
CDSC for six years. To help you determine what is best for you, consult your
financial advisor.

Class B shares convert to Class A shares in the ninth calendar year of
ownership. 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.

Purchasing Shares

If you do not have a mutual fund account, you need to establish one. 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.

When you purchase shares for a new or existing account, your order will be
priced at the next NAV calculated after your order is accepted by the Fund. If
your application does not specify which class of shares you are purchasing, we
will assume you are investing in Class A shares.

Important: When you open an account, you must provide your correct Taxpayer
Identification Number (TIN), which is either your Social Security or Employer
Identification number.

<PAGE>

If you do not provide the correct TIN, you could be subject to backup
withholding of 31% of taxable distributions and proceeds from certain sales and
exchanges. You also could be subject to further penalties, such as:

o a $50 penalty for each failure to supply your correct TIN,

o a civil penalty of $500 if you make a false statement that results in no
backup withholding, and

o criminal penalties for falsifying information.

You also could be subject to backup withholding because you failed to report
required interest or dividends on your tax return.

How to determine the correct TIN
<TABLE>
<CAPTION>

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

Individual or joint account The individual or one of the individuals listed on
the joint account
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------

Custodian account of a minor The minor
(Uniform 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 The organization
tax-exempt organization
- ------------------------------------------------------- -----------------------------------------------------

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."
</TABLE>

<PAGE>

Three ways to invest

(1) By mail:

Once your account has been established, send your check with the account number
on it to:

American Express Financial Advisors Inc.
P.O. Box 74
Minneapolis, MN 55440-0074

Minimum amounts
Initial investment: $2,000
Additional investments: $100
Account balances: $300
Qualified accounts: none

If your account balance falls below $300, you will be asked to increase it to
$300 or establish a scheduled investment plan. If you do not do so within 30
days, your shares can be sold and the proceeds mailed to you.

(2) By scheduled investment plan:

Contact your financial advisor to set up one of the following scheduled plans:
o automatic payroll deduction,
o bank authorization,
o direct deposit of Social Security check, or
o other plan approved by the Fund.

Minimum amounts
Initial investment: $100
Additional investments: $50/mo. for qualified accounts; $100/mo. for
nonqualified accounts
Account balances: none (on active plans of monthly payments)

If your account falls below $2,000, you must make payments at least monthly.

(3) By wire or electronic funds transfer:

If you have an established account, you may wire money to:

Norwest Bank Minnesota
Routing Transit No. 091000019

Give these instructions:
Credit American Express Financial Advisors Account #0000030015 for personal
account # (your account number) for (your name).

If this information is not included, the order may be rejected, and all money
received by the Fund, less any costs the Fund or American Express Client Service
Corporation (AECSC) incurs, will be returned promptly.

<PAGE>

Minimum amounts
Each wire investment: $1,000

If you are in a wrap fee program sponsored by AEFA and your balance falls below
the required program minimum or your program is terminated, your shares will be
sold and the proceeds will be mailed to you.

Sales Charges

Class A -- initial sales charge alternative

When you purchase 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 percentage of:a
Public offering Net amount
priceb 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

a To calculate the actual sales charge on an investment greater than $50,000
and less than $1,000,000, you must total the amounts of all increments that
apply.

b Offering price includes a 5% sales charge.

The sales charge on Class A shares may be lower than 5%, depending on the total
amount:

o you now are investing in this Fund,
o you have previously invested in this Fund, or
o you and your primary household group are investing or have invested in
other funds in the IDS MUTUAL FUND GROUP that have 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.) IDS Tax-Free Money Fund and
Class A shares of IDS Cash Management Fund do not have sales charges.

Other Class A sales charge policies:

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

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, please see the SAI.

<PAGE>

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
shares sold that were sponsored by the financial advisor's previous
broker-dealer, and (3) the proceeds are the result of a sale of an equal or
greater value where a sales load was assessed.

o qualified employee benefit plans using a daily transfer recordkeeping
system offering participants daily access to funds of the IDS MUTUAL FUND
GROUP. Eligibility must be determined in advance by AEFA. For assistance,
please contact your financial advisor. (Participants in certain qualified
plans for where initial sales charge is waived may be subject to a deferred
sales charge of up to 4%.)

o shareholders who have at least $1 million invested in funds of the IDS
MUTUAL FUND GROUP. If the investment is sold in the first year after
purchase, a CDSC of 1% will be charged. The CDSC will be waived only in the
circumstances described for waivers for Class B shares.

o purchases made within 30 days after a sale of shares (up to the amount
sold):

- of a product distributed by AEFA in a qualified plan subject to a
deferred sales charge, or

- in a qualified plan or account 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
date and the amount of the sale.

o purchases made:

- with dividend or capital gain distributions from this Fund or from the
same class of another fund in the IDS MUTUAL FUND GROUP that has a sales
charge,

- through or under a wrap fee product sponsored by AEFA,

- within the University of Texas System ORP,

- within a segregated separate account offered by Nationwide Life Insurance
Company or Nationwide Life and Annuity Insurance Company,

- within the University of Massachusetts After-Tax Savings Program,

- with the proceeds from IDS Life Real Estate Variable Annuity surrenders,
or

- through or under a subsidiary of AEFC offering Personal Trust Services'
Asset - Based pricing alternative.

<PAGE>

Class B -- contingent deferred sales charge (CDSC) alternative

A CDSC is based on the sale amount and the number of calendar years -- including
the year of purchase --between purchase and sale. The following table shows how
CDSC percentages on sales decline after a purchase:

If the sale is The CDSC
made during the: percentage rate 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 selling causes the value of your investment in Class B
shares to fall below the cost of the shares you have purchased during the last
six years including the current year, the CDSC is based on the lower of the cost
of those shares purchased or market value.

Example:
Assume you had invested $10,000 in Class B shares and that your investment had
appreciated in value to $12,000 after 15 months, including reinvested dividends
and capital gain distributions. You could sell up to $2,000 worth of shares
without paying a CDSC ($12,000 current value less $10,000 purchase amount). If
you sold $2,500 worth of shares, the CDSC would apply to the $500 representing
part of your original purchase price. The CDSC rate would be 4% because the sale
was made during the second year after the purchase.

Because the CDSC is imposed only on sales that reduce your total purchase
payments, you never have to pay a CDSC on any amount that represents
appreciation in the value of your shares, income earned by your shares or
capital gains. In addition, the CDSC rate on your sale will be based on your
oldest purchase payment. The CDSC on the next amount sold will be based on the
next oldest purchase payment.

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

o in the event of the shareholder's death,
o held in trust for an employee benefit plan, or
o held in IRAs or certain qualified plans if American Express Trust Company
is the custodian, such as Keogh plans, tax-sheltered custodial accounts or
corporate pension plans, provided that the shareholder is:
o at least 59 1/2 years old and
o taking a retirement distribution (if the sale 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
o selling under an approved substantially equal periodic payment
arrangement.

<PAGE>

Exchanging/Selling Shares

Exchanges

You can exchange your Fund shares at no charge for shares of the same class of
any other publicly offered fund in the IDS MUTUAL FUND GROUP. Exchanges into IDS
Tax-Free Money Fund may only be made from Class A shares. For complete
information on the other funds, including fees and expenses, read that fund's
prospectus carefully. Your exchange will be priced at the next NAV calculated
after it is accepted by that fund.

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.

Other 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 AECSC receives written approval from the secured party.

AECSC 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.

Selling Shares

You can sell your shares at any time. AECSC will mail payment within seven days
after accepting your request.

When you sell shares, the amount you receive may be more or less than the amount
you invested. Your sale price will be the next NAV calculated after your request
is accepted by the Fund, minus any applicable CDSC.

You can change your mind after requesting a sale and use all or part of the
proceeds to purchase new shares in the same account from which you sold. If you
reinvest in Class A, you will purchase the new shares at NAV 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 request within 30 days of the date your sale
request was received and include your account number. This privilege may be
limited or withdrawn at any time and may have tax consequences.

Requests to sell shares of the Fund are not allowed within 30 days of a
telephoned-in address change.

The Fund reserves the right to redeem in kind.

<PAGE>

Important: If you request a sale 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 payment is made.
(Payment may be made earlier if your bank provides evidence satisfactory to the
Fund and AECSC that your check has cleared.)

For more details and a description of other sales policies, please see the SAI.

Two ways to request an exchange or sale of shares

(1) By letter:
Include in your letter:
o the name of the fund(s),
o the class of shares to be exchanged or sold,
o your mutual fund account number(s) (for exchanges, both funds must be
registered in the same ownership),
o your TIN,
o the dollar amount or number of shares you want to exchange or sell,
o signature(s) of all registered account owners,
o for sales, indicate how you want your money delivered to you, and
o any paper certificates of shares you hold.

Regular mail:
American Express Client Service Corporation
Attn: Transactions
P.O. Box 534
Minneapolis, MN 55440-0534

Express mail:
American Express Client Service Corporation
Attn: Transactions
733 Marquette Ave.
Minneapolis, MN 55402

(2) By telephone:
American Express Financial Advisors
Telephone Transaction Service
800-437-3133 or
612-671-3800

o The Fund and AECSC will use reasonable procedures to confirm authenticity
of telephone exchange or sale requests.
o Telephone exchange and sale privileges automatically apply to all accounts
except custodial, corporate or qualified retirement accounts. You may
request that these privileges NOT apply by writing AECSC. Each registered
owner must sign the request.
o Acting on your instructions, your financial advisor may conduct telephone
transactions on your behalf.
o Telephone privileges may be modified or discontinued at any time.

Minimum amount
Sale: $100

Maximum amount
Sale: $50,000

<PAGE>

Three ways to receive payment when you sell shares

(1) By regular or express mail:
o Mailed to the address on record.
o Payable to names listed on the account.

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

(2) By wire or electronic funds transfer:

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

NOTE: Pre-authorization required. For instructions, contact your financial
advisor or AECSC.

(3) By scheduled payout plan:

o Minimum payment: $50.
o Contact your financial advisor or AECSC to set up regular payments 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.

Distributions and Taxes

As a shareholder you are entitled to your share of the Fund's net income and net
gains. The Fund distributes dividends and capital gains to qualify as a
regulated investment company and to avoid paying corporate income and excise
taxes.

Dividends and capital gain distributions

The Fund's net investment income is distributed to you 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 offsets any net realized capital gains by any available capital loss
carryovers. Net realized long-term capital gains, if any, are distributed by the
end of the calendar year as capital gain distributions.

Reinvestments

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

o you request distributions in cash, or
o you direct the Fund to invest your distributions in the same class of any
publicly offered fund in the IDS MUTUAL FUND GROUP for which you have
previously opened an account.

We reinvest the distributions for you at the next calculated NAV after the
distribution is paid.

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

<PAGE>

Taxes

Distributions are subject to federal income tax and may be subject to state and
local taxes in the year they are declared. You must report distributions on your
tax returns, even if they are reinvested in additional shares.

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 these
taxes. You may be entitled to claim foreign tax credits or deductions subject to
provisions and limitations of the Internal Revenue Code. If so, the Fund will
notify you.

If you buy shares shortly before a distribution you will pay taxes on money
earned by the Fund before you were a shareholder. You pay the full
pre-distribution price for the shares, then receive a portion of your investment
back as a distribution, which is taxable.

For tax purposes, an exchange is considered a sale and purchase and may result
in a gain or loss. A sale is a taxable transaction. 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). If you sell shares for less than their cost, the difference is a
capital loss. If you buy Class A shares of another fund in the IDS Mutual Fund
Group and within 91 days exchange into this Fund, you may not include the sales
charge in your calculation of tax gain or loss on the sale of the first fund you
purchased. The sales charge may be included in the calculation of your tax gain
or loss on a subsequent sale of this Fund.

Selling shares held in an IRA or qualified retirement account may subject you to
federal taxes, penalties and reporting requirements. Please consult your tax
advisor.

Important: This information is a brief and selective summary of some of the tax
rules that apply to this Fund. Because tax matters are highly individual and
complex, you should consult a qualified tax advisor.

Personalized Shareholder Information

To help you track and evaluate the performance of your investments, AECSC
provides these individualized reports:

Quarterly statements
List your holdings and transactions during the previous three months, as well as
individualized return information.

Yearly tax statements
Feature average-cost-basis reporting of capital gains or losses if you sell your
shares, along with distribution information to simplify tax calculations.

Personalized mutual fund progress reports
Detail returns on your initial investment and cash-flow activity in your
account. This report calculates a total return reflecting your individual
history in owning Fund shares and is available from your financial advisor.

<PAGE>

Master/Feeder Structure
This Fund uses a master/feeder structure. This means that it is a feeder fund; a
fund that invests all of its assets in the Portfolio, which is the master fund.
Other feeder funds also invest in the Portfolio. The master/feeder structure
offers the potential for reduced costs because it spreads fixed costs of
portfolio management over a larger pool of assets. The Fund may withdraw its
assets from the Portfolio at any time if the Fund's board determines that it is
best. In that event, the board would consider what action should be taken,
including whether to hire an investment advisor to manage the Fund's assets
directly or to invest all of the Fund's assets in another pooled investment
entity. Here is an illustration of the structure:

---------------------------------------------

Investors buy shares in the Fund
---------------------------------------------

\/
---------------------------------------------

The Fund buys units in the Portfolio
---------------------------------------------

\/
---------------------------------------------

The Portfolio invests in securities, such
as stocks or bonds
---------------------------------------------

Other feeders may include mutual funds and institutional accounts. 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 800-AXP-SERV.

<PAGE>

About the Company

Business Structure
<TABLE>
<CAPTION>
<S> <C>
---------------------
Shareholders
---------------------

---------------------
Your American
Express financial
advisor and other
servicing agents

May receive a fee
for their sales
efforts and ongoing
service.
---------------------

- ----------------------- --------------------- --------------------- ---------------------
Transfer Agent: Administrative Distributor and
American Express Services Agent: Shareholder
Client Service American Express Services Agent:
Corporation Financial American Express
Corporation Financial Advisors
Maintains shareholder <-
accounts and records Provides The Fund -> Markets and
for the Fund; administrative and distributes shares;
receives a fee based accounting services The Fund receives portion of
on the number of for the Fund; invests sales charge or
accounts it services. receives a fee its CDSC and
based on assets. assets in distribution fee.
the Also provides a
Portfolio. variety of ongoing
The Fund shareholder
and/or services.
Portfolio
have
- ----------------------- --------------------- --------------------- ---------------------
Contracts
- ----------------------- --------------------- --------------------- ---------------------
Subadviser: Investment Manager: with Custodian:
American Express American Express certain American Express
Asset Management Financial service Trust Company
International Inc. Corporation providers.
<- Provides
Subadvises the Fund's Manages the The Portfolio -> safekeeping of
assets.** Portfolio's <- assets; receives a
investments and fee that varies
receives a fee based on the number
based on average of securities held.
daily net assets.*
- ----------------------- --------------------- --------------------- ---------------------
</TABLE>

* The Portfolio pays AEFC a fee for managing its assets. The Fund pays its
proportionate share of the fee. Under the Investment Management Services
Agreement, the fee for the most recent fiscal year was ____% of its average
daily net assets. Under the Agreement, the Portfolio also pays taxes,
brokerage commissions and nonadvisory expenses.

** AEFC pays the Subadviser for managing the Fund's assets. The fee for the most
recent fiscal year was ___% of the Portfolio's average daily net assets.

American Express Financial Corporation

AEFC has been a provider of financial services since 1894. Its family of
companies offers not only mutual funds but also insurance, annuities, investment
certificates and a broad range of financial management services.

In addition to managing assets of more than $__ billion for all funds in the IDS
MUTUAL FUND GROUP, AEFC manages investments for itself and its subsidiaries, IDS
Certificate Company and IDS Life Insurance Company. Total assets under
management as of the end of the most recent fiscal year were more than $___
billion.

<PAGE>

AEFA serves individuals and businesses through its nationwide network of more
than ___ offices and more than ____ advisors.

AEFC, located at IDS Tower 10, Minneapolis, MN 55440-0010, is a wholly-owned
subsidiary of American Express Company, a financial services company with
headquarters at American Express Tower, World Financial Center, New York, NY
10285.

Year 2000

The Fund could be adversely affected if the computer systems used by AEFC and
the Fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000.

While Year 2000-related computer problems could have a negative effect on the
Fund, AEFC is working to avoid such problems and to obtain assurances from
service providers that they are taking similar steps. The companies or
governments in which the Fund invests also may be adversely affected by Year
2000 issues.

Quick Telephone reference

American Express Financial Advisors
Telephone Transaction Service
Sales and exchanges, dividend payments or reinvestments and automatic payment
arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 612-671-3800

American Express Client Service Corporation
Fund performance, objectives and account inquiries: 800-862-7919

TTY Service
For the hearing impaired: 800-846-4852

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

<PAGE>

financial highlights

<PAGE>

THE FUND
IDS Tower 10
Minneapolis, MN 55440-0010

AMERICAN
EXPRESS
Financial
Advisors

This Fund, along with the other funds in the IDS MUTUAL FUND GROUP, is
distributed by American Express Financial Advisors Inc. and can be found under
the "Amer Express" banner in most mutual fund quotations.

Additional information about the Fund and its investments is available in the
Fund's SAI, annual and semi-annual reports to shareholders. In the Fund's annual
report, you will find a discussion of market conditions and investment
strategies that significantly affected the Fund during its last fiscal year. The
SAI is incorporated by reference in this prospectus. For a free copy of the SAI,
annual or semi-annual report, contact American Express Client Service
Corporation.

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

You may review and copy information about the Fund, including the SAI, at the
Securities and Exchange Commission's (Commission) Public Reference Room in
Washington, D.C. (For information about the public reference room call
1-800-SEC-0330). Reports and other information about the Fund are available on
the Commission's Internet site at http://www.sec.gov. Copies of this information
may be obtained by writing and paying a duplicating fee to the Public Reference
Section of the Commission, Washington, D.C.
20549-6009.

Investment Company Act File #811-5696

<PAGE>

IDS Global Balanced Fund

Prospectus
Dec. 30, 1998

IDS Global Balanced Fund seeks to provide shareholders with a balance of growth
of capital and current income.

Please note that this 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

Like all mutual fund shares, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal offense.

<PAGE>

Table of Contents

We invite you to take a closer look at:

The Fund
Goal
Investment Strategy
Risks
Past Performance
Fees and Expenses
Management

Buying and Selling Shares
Valuing Fund Shares
Investment Options
Purchasing Shares
Sales Charges
Exchanging/Selling Shares

Distributions and Taxes

Personalized Shareholder Information

About the Company

Quick Telephone Reference

Financial Highlights

FUND INFORMATION KEY

[icon of magnifying glass] Goal and Investment Strategy
The Fund's particular investment goal and
the strategies it intends to use in pursuing
its goal.

[icon of die] Risks
The major risk factors associated with the
Fund.

[icon of checkbook] Fees and Expenses
The overall costs incurred by an investor in
the Fund, including sales charges and annual
expenses.

[icon of folder] Management
The individual or group designated by the
investment advisor to handle the Fund's
day-to-day management.

[icon of stack of dollar bills] Financial Highlights
Tables showing the Fund's financial
performance.

<PAGE>

The Fund

Goal
IDS Global Balanced Fund (the Fund) seeks to provide shareholders with a balance
of growth of capital and current income.

Investment Strategy
The Fund's assets are invested primarily in a combination of 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 companies
located in at least three different countries. No less than 25% of the Fund's
total assets will be invested in debt securities or debt convertible securities.
No more than 20% of the Fund's net assets will be invested in bonds below
investment grade.

The selections of geographic regions and investment-grade bonds are the primary
decisions in building the investment portfolio.

American Express Financial Corporation (AEFC) chooses equity investments by:

o Considering opportunities and risks within international regions or
countries.
o Identifying sectors or companies with strong growth potential and
sufficient liquidity in trading volume.
o Buying stocks of large companies AEFC believes have the following
fundamental strengths:
-financial strength,
-high demand for their products or services, and
-strong management expertise.

AEFC chooses debt investments by:

o Considering opportunities and risks by credit rating and currency.
o Identifying investment-grade U.S. and foreign government and corporate
bonds.
o Identifying below investment-grade U.S. and foreign government and
corporate bonds (junk bonds).
o Focusing on bonds that contribute to portfolio diversification.
o Buying bonds that can take advantage of currency movements and interest
rate differences among nations.

AEFC then decides how much to invest in various countries and local currencies,
and buys securities that offer the best opportunity for long-term growth or
current income.

AEFC will review all holdings and generally sell an equity security if there is
a change in the Fund's strategy, it has reached its price objective or any of
its fundamental characteristics deteriorate. A debt security also may be sold if
any of its fundamental characteristics deteriorate or if it is considered
overvalued.

The Fund also can invest in money market securities and other instruments.
During weak or declining markets, the Fund may invest more of its assets in
these securities. Although the Fund would invest in these securities primarily
to avoid losses, this type of investing also could reduce the benefit from any
improvement in the market. AEFC may make frequent securities trades that could
result in increased fees, expenses, and taxes.

<PAGE>

For more information on recent strategies and holdings, see the Fund's Statement
of Additional Information (SAI) and the annual/semiannual reports.

Risks
Please remember that with any mutual fund investment you may lose money.
Principal risks associated with an investment in the Fund include:
Market Risk
Interest Rate Risk
Foreign/Emerging Markets Risk
Sector/Concentration Risk
Liquidity Risk
Credit Risk

Market Risk

Interest Rate Risk

The risk of losses attributable to changes in interest rates. This term is
generally associated with, but not limited to, bond prices.

Foreign/Emerging Markets Risk

The following are all components of foreign/emerging markets risk:

Sector/Concentration Risk

Investments that are concentrated in a particular issuer, geographic region, or
industry will be more susceptible to changes in price (the more you diversify,
the more you spread risk).

Liquidity Risk

Securities may be difficult or impossible to sell at the time that the Fund
would like. The Fund may have to lower the selling price, sell other
investments, or forego an investment opportunity.

<PAGE>

Credit Risk

The risk that the issuer of a security, or the counterparty to a contract, will
default or otherwise become unable to honor a financial obligation.

Past Performance

The following bar chart and table indicate the risks and variability of
investing in the Fund by showing:

o changes in the performance of the Fund from year to year since the Fund's
inception date, and

o how the Fund's average annual total return compare to those of the indexes
below.

How the Fund has performed in the past does not indicate how the Fund will
perform in the future.

Performance (based on calendar years)
- --------------------------------------------------------------------------------

1996* 1997
- --------------------------------------------------------------------------------

During the period shown in the bar chart, the highest return for a calendar
quarter was ___% (quarter ending __ 19__) and the lowest return for a calendar
quarter was ___% (quarter ending __ 19__).

The 5% sales charge applicable to Class A shares of the Fund is not reflected in
the bar chart; if reflected, returns would be lower than those shown.

The Fund's year to date return as of Sept. 30, 1998 was _____%.

*Inception date was Nov. 13, 1996 (partial year).

Average Annual Total Returns (for the calendar year periods ending Dec. 31,
1997)

Past 1 year Since inception

Global Balanced:

Class A a

Class B a

Class Y a

MSCI World Index b

Salomon Brothers b
World Government
Bond Index

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

<PAGE>

For purposes of this calculation, we assumed:
o a sales charge of 5% for Class A shares,
o sales at the end of the period and deduction of the applicable contingent
deferred sales charge (CDSC) for Class B shares,
o no sales charge for Class Y shares,
o conversion of Class B shares into Class A shares in the ninth calendar year
of ownership, and
o no adjustments for taxes paid by an investor on the reinvested income and
capital gains.

Morgan Stanley Capital International (MSCI) World Index is 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.

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.

The indexes reflect reinvestment of all distributions and changes in market
prices, but exclude brokerage commissions or other fees.

Fees and Expenses
Fund investors pay various expenses. The table below describes the fees and
expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)
<TABLE>
<CAPTION>

Annual Fund operating expenses (expenses that are deducted from Fund assets)

As percentage of average daily net assets: Class A Class B Class Y
- ----------------------------------------------- -------------------- -------------------- -------------------
Management fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Distribution (12b-1) fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Other expensesb % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Total % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
</TABLE>

a This charge may be reduced depending on your total investments in IDS funds.
See "Sales Charges."

b Other expenses include an administrative services fee, a shareholder services
fee, a transfer agency fee and other nonadvisory expenses.

<PAGE>

Example

This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

Assume you invest $10,000 and the Fund earns a 5% annual return. The operating
expenses remain the same each year. If you hold your shares until the end of the
years shown, your costs would be:

1 year 3 years 5 years 10 years
Class Ac $ $ $ $
Class Bd $ $ $ $ f
Class Be $ $ $ $ f
Class Y $ $ $ $

c Includes a 5% sales charge.
d Assumes you sold your Class B shares at the end of the period and incurred the
applicable CDSC.
e Assumes you did not sell your Class B shares at the end of
the period.
f Based on conversion of Class B shares to Class A shares in the
ninth year of ownership.

Management
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 serves as portfolio manager of IDS International
Fund and IDS Life International Equity Fund.

Mike Ng joined AEFC in 1994 and began managing the bond portion of the Fund in
July 1998. He also serves as portfolio manager of IDS Life Global Yield Fund.
Prior to joining AEFC, he was a fixed income analyst for the St. Paul Companies.

BUYING AND SELLING SHARES

Valuing Fund Shares

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

<PAGE>

Investment Options

1. Class A shares are sold to the public with a sales charge at the time of
purchase.

2. Class B shares are sold to the public with a CDSC and an annual
distribution (12b-1) fee.

3. Class Y shares are sold to qualifying institutional investors without a
sales charge or distribution fee. Please see the SAI for information on
eligibility to purchase Class Y shares.

Investment options summary:

Class A

Maximum sales charge of 5%

Initial sales charge waived or reduced for certain purchases

No annual distribution fee

Service fee of 0.175% of average daily net assets

Lower annual expenses than Class B shares

Class B

No initial sales charge

CDSC on shares sold in the first six years (maximum of 5% in first year, reduced
to 0% after year six)

CDSC waived in certain circumstances

Shares convert to Class A in ninth year of ownership

Annual distribution fee of 0.75% of average daily net assets*

Service fee of 0.175% of average daily net assets

Higher annual expenses than Class A shares

Class Y

No initial sales charge

No annual distribution fee

Service fee of 0.10% of average daily net assets

Available only to certain qualifying institutional investors

<PAGE>

Should you purchase Class A or Class B shares?

If your investments in IDS funds total $250,000 or more, Class A shares may be
the better option. If you qualify for a waiver of the sales charge, Class A
shares will be the best option.

Purchasing Shares

Important: When you open an account, you must provide your correct Taxpayer
Identification Number (TIN), which is either your Social Security or Employer
Identification number.

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, and

o criminal penalties for falsifying information.

You also could be subject to backup withholding because you failed to report
required interest or dividends on your tax return.

<PAGE>

<TABLE>
<CAPTION>
How to determine the correct TIN

Association, club or The organization
tax-exempt organization
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>

For details on TIN requirements, ask your financial advisor or local American
Express Financial Advisors office for federal Form W-9, "Request for Taxpayer
Identification Number and Certification."

Three ways to invest

(1) By mail:

Once your account has been established, send your check with the account number
on it to:

American Express Financial Advisors Inc.
P.O. Box 74
Minneapolis, MN 55440-0074

Minimum amounts
Initial investment: $2,000
Additional investments: $100
Account balances: $300
Qualified accounts: none

<PAGE>

(2) By scheduled investment plan:

Minimum amounts
Initial investment: $100
Additional investments: $50/mo. for qualified accounts; $100/mo.
for nonqualified accounts
Account balances: none (on active plans of monthly payments)

If your account falls below $2,000, you must make payments at least monthly.

(3) By wire or electronic funds transfer:

If you have an established account, you may wire money to:

Norwest Bank Minnesota
Routing Transit No. 091000019

Give these instructions:
Credit American Express Financial Advisors Account #0000030015 for personal
account # (your account number) for (your name).

Minimum amounts
Each wire investment: $1,000

Sales Charges

<PAGE>

Class A -- initial sales charge alternative

When you purchase 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:

a To calculate the actual sales charge on an investment greater than $50,000
and less than $1,000,000, you must total the amounts of all increments that
apply.

b Offering price includes a 5% sales charge.

The sales charge on Class A shares may be lower than 5%, depending on the total
amount:

o you now are investing in this Fund,
o you have previously invested in this Fund, or
o you and your primary household group are investing or have invested in
other funds in the IDS MUTUAL FUND GROUP that have 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). IDS Tax-Free Money Fund and
Class A shares of IDS Cash Management Fund do not have sales charges.

Other Class A sales charge policies:

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, please 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 funds of the IDS MUTUAL FUND
GROUP. Eligibility must be determined in advance by AEFA. For assistance,
please contact your financial advisor. (Participants in certain qualified
plans where the initial sales charge is waived may be subject to a deferred
sales charge of up to 4%.)

o purchases made within 30 days after a sale of shares (up to the amount
sold):

- of a product distributed by AEFA in a qualified plan subject to a
deferred sales charge, or

- in a qualified plan or account 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
date and the amount of the sale.

o purchases made:

- with dividend or capital gain distributions from this Fund or from the
same class of another fund in the IDS MUTUAL FUND GROUP that has a sales
charge,

- through or under a wrap fee product sponsored by AEFA,

- within the University of Texas System ORP,

- within a segregated separate account offered by Nationwide Life Insurance
Company or Nationwide Life and Annuity Insurance Company,

- within the University of Massachusetts After-Tax Savings Program,

- with the proceeds from IDS Life Real Estate Variable Annuity surrenders,
or

- through or under a subsidiary of AEFC offering Personal Trust Services'
Asset - Based pricing alternative.

Class B -- contingent deferred sales charge (CDSC) alternative

A CDSC is based on the sale amount and the number of calendar years -- including
the year of purchase -- between purchase and sale. The following table shows how
CDSC percentages on sales decline after a purchase:

If the sale is The CDSC
made during the: percentage rate is:
First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%

<PAGE>

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

o in the event of the shareholder's death,
o held in trust for an employee benefit plan, or
o held in IRAs or certain qualified plans for which American Express Trust
Company is the custodian, such as Keogh plans, tax-sheltered custodial
accounts or corporate pension plans, provided that the shareholder is:
o at least 59 1/2 years old and
o taking a retirement distribution (if the sale 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
o selling under an approved substantially equal periodic payment arrangement.

Exchanging/Selling Shares

Exchanges

Other 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.

<PAGE>

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 AECSC receives written approval from the secured party.

Selling Shares

You can sell your shares at any time. AECSC will mail payment within seven days
after accepting your request.

Requests to sell shares of the Fund are not allowed within 30 days of a
telephoned-in address change.

The Fund reserves the right to redeem in kind.

For more details and a description of other sales policies, please see the SAI.

Two ways to request an exchange or sale of shares

<PAGE>

Regular mail:
American Express Client Service Corporation
Attn: Transactions
P.O. Box 534
Minneapolis, MN 55440-0534

Express mail:
American Express Client Service Corporation
Attn: Transactions
733 Marquette Ave.
Minneapolis, MN 55402

(2) By telephone:
American Express Financial Advisors
Telephone Transaction Service
800-437-3133 or
612-671-3800

Minimum amount
Sale: $100

Maximum amount
Sale: $50,000

Three ways to receive payment when you sell shares

(1) By regular or express mail:
o Mailed to the address on record.
o Payable to names listed on the account.

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

(2) By wire or electronic funds transfer:

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

NOTE: Pre-authorization required. For instructions, contact your financial
advisor or AECSC.

(3) By scheduled payout plan:
o Minimum payment: $50.
o Contact your financial advisor or AECSC to set up regular payments 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.

<PAGE>

Distributions and Taxes

Dividends and capital gain distributions

Reinvestments

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

We reinvest the distributions for you at the next calculated NAV after the
distribution is paid.

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

Taxes

<PAGE>

For tax purposes, an exchange is considered a sale and purchase, and may result
in a gain or loss. A sale is a taxable transaction. 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). If you sell shares for less than their cost, the difference is a
capital loss. If you buy Class A shares of another fund in the IDS Mutual Fund
Group and within 91 days exchange into this Fund, you may not include the sales
charge in your calculation of tax gain or loss on the sale of the first fund you
purchased. The sales charge may be included in the calculation of your tax gain
or loss on a subsequent sale of this Fund.

Selling shares held in an IRA or qualified retirement account may subject you to
federal taxes, penalties and reporting requirements. Please consult your tax
advisor.

Personalized Shareholder Information

To help you track and evaluate the performance of your investments, AECSC
provides these individualized reports:

Quarterly statements
List your holdings and transactions during the previous three months, as well as
individualized return information.

Yearly tax statements
Feature average-cost-basis reporting of capital gains or losses if you sell your
shares, along with distribution information to simplify tax calculations.

<PAGE>

<TABLE>
<CAPTION>
About the Company

Business Structure

<S> <C> <C> <C>
---------------------
Shareholders
---------------------

---------------------
Your American
Express financial
advisor and other
servicing agents

May receive a fee
for their sales
efforts and ongoing
service.
---------------------

--------------------- ---------------------
Investment Manager: Custodian:
American Express American Express
Financial Trust Company
Corporation
<- Provides
Manages the Fund's -> safekeeping of
investments and assets; receives a
receives a fee fee that varies
based on average based on the number
daily net assets.* of securities held.
--------------------- --------------------- ---------------------
</TABLE>

* The Fund pays AEFC a fee for managing its assets. Under the Investment
Management Services Agreement, the fee for the most recent fiscal year was
____% of its average daily net assets. Under the Agreement, the Fund also
pays taxes, brokerage commissions and nonadvisory expenses.

American Express Financial Corporation

AEFA serves individuals and businesses through its nationwide network of more
than ___ offices and more than ____ advisors.

<PAGE>

Year 2000

Quick Telephone reference

American Express Financial Advisors
Telephone Transaction Service
Sales and exchanges, dividend payments or reinvestments and automatic payment
arrangements

National/Minnesota: 800-437-3133
Mpls./St. Paul area: 612-671-3800

American Express Client Service Corporation
Fund performance, objectives and account inquiries: 800-862-7919

TTY Service
For the hearing impaired: 800-846-4852

<PAGE>

financial highlights

<PAGE>

THE FUND
IDS Tower 10
Minneapolis, MN 55440-0010

AMERICAN
EXPRESS
Financial
Advisors

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

Investment Company Act File #811-5696

<PAGE>
IDS Global Bond Fund

Prospectus
Dec. 30, 1998

IDS Global Bond Fund seeks to provide shareholders with high total return
through income and growth of capital.

Please note that this 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

<PAGE>

Table of Contents

We invite you to take a closer look at:

The Fund
Goal
Investment Strategy
Risks
Past Performance
Fees and Expenses
Management

Buying and Selling Shares
Valuing Fund Shares
Investment Options
Purchasing Shares
Sales Charges
Exchanging/Selling Shares

Distributions and Taxes

Personalized Shareholder Information

Master/Feeder Structure

About the Company

Quick Telephone Reference

Financial Highlights

FUND INFORMATION KEY

[icon of magnifying glass] Goal and Investment Strategy
The Fund's particular investment goal and
the strategies it intends to use in pursuing
its goal.

[icon of die] Risks
The major risk factors associated with the
Fund.

[icon of checkbook] Fees and Expenses
The overall costs incurred by an investor in
the Fund, including sales charges and annual
expenses.

[icon of folder] Management
The individual or group designated by the
investment advisor to handle the Fund's
day-to-day management.

[icon of umbrella] Master / Feeder Structure
Describes the Fund's investment structure.

[icon of stack of dollar bills] Financial Highlights
Tables showing the Fund's financial
performance.

<PAGE>

The Fund

Goal
IDS Global Bond Fund (the Fund) seeks to provide shareholders with high total
return through income and growth of capital.

Investment Strategy
The Fund's assets are invested primarily in debt securities of U.S. and foreign
issuers. Under normal market conditions, at least 80% of the Fund's net assets
will be invested in investment-grade corporate or government debt securities
including money market instruments of issuers located in at least three
different countries.

The selection of investment-grade government and corporate debt securities is
the primary decision in building the portfolio.

American Express Financial Corporation (AEFC) chooses investments by:

AEFC generally will sell a security if:
- it is considered overvalued, or
- any of the above noted fundamental characteristics deteriorate.

For more information on recent strategies and holdings, see the Fund's Statement
of Additional Information (SAI) and the annual/semiannual reports.

Risks
Please remember that with any mutual fund investment you may lose money. In
addition, since the Fund is a non-diversified mutual fund, it may concentrate
its investments in securities of fewer issuers than would a diversified fund.
Accordingly, the Fund may have more risk than mutual funds that have broader
diversification. Principal risks associated with an investment in the Fund
include:
Interest Rate Risk
Foreign/Emerging Markets Risk
Credit Risk
Sector/Concentration Risk

<PAGE>

Interest Rate Risk

The risk of losses attributable to changes in interest rates. This term is
generally associated with, but not limited to, bond prices.

Foreign/Emerging Markets Risk

The following are all components of foreign/emerging markets risk:

Credit Risk

The risk that the issuer of a security, or the counterparty to a contract, will
default or otherwise become unable to honor a financial obligation.

Sector/Concentration Risk

Investments that are concentrated in a particular issuer, geographic region, or
industry will be more susceptible to changes in price (the more you diversify,
the more you spread risk).

Past Performance
The following bar chart and table indicate the risks and variability of
investing in the Fund by showing:

o changes in the performance of the Fund from year to year since the Fund's
inception date, and
o how the Fund's average annual total return compare to those of the indexes
below.

How the Fund has performed in the past does not indicate how the Fund will
perform in the future.
<TABLE>
<CAPTION>

Performance (based on calendar years)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>

1989* 1990 1991 1992 1993 1994 1995 1996 1997
- --------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

During the period shown in the bar chart, the highest return for a calendar
quarter was ___% (quarter ending __ 19__) and the lowest return for a calendar
quarter was ___% (quarter ending __ 19__).

The 5% sales charge applicable to Class A shares of the Fund is not reflected in
the bar chart; if reflected, returns would be lower than those shown.

The Fund's year to date return as of Sept. 30, 1998 was _____%.

*Inception date was May 20, 1989 (partial year).

Average Annual Total Returns (for the calendar year periods ending Dec. 31,
1997)

Past 1 year Since inception Past 5 years Since inception (A)
(B&Y)
<S> <C> <C> <C> <C>
Global Bond:

Class A - a

Class B b - -

Class Y b - -

Salomon Brothers c d
Global Govt. Bond
Composite Index

Lipper Global Income c d
Fund Index

a Inception date was May 20, 1989.
b Inception date was March 20, 1995.
c Measurement period started April 1, 1995.
d Measurement period started April 1, 1989.
</TABLE>

This table shows total returns from hypothetical investments in Class A, Class B
and Class Y shares of the Fund. These returns are compared to the indexes shown
for the same periods. The performance of Classes A, B and Y vary because of
differences in sales charges and fees. Past performance for Class Y for the
periods prior to March 20, 1995 may be calculated based on the performance of
Class A, adjusted to reflect differences in sales charges, although not for
other differences in expenses.

Salomon Brothers Global Government Bond Composite Index is an unmanaged index
that includes all government bond markets tracked by Salomon Brothers. The index
is a general measure of government bond performance. Performance is expressed in
the U.S. dollar as well as the currencies of governments making up the index.
The bonds included in the index may not be the same as those in the Fund. The
index reflects reinvestment of all distributions and changes in market prices,
but excludes brokerage commissions or other fees.

<PAGE>

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

Yield
Yield is the net investment income earned per share for a specified time period,
divided by the offering price at the end of the period. The Fund's annualized
yield for the 30-day period ended Oct. 30, 1998, was ____% for Class A, ___% for
Class B and ___% for Class Y. This yield calculation does not include any
contingent deferred sales charge, ranging from 5% to 0% on Class B shares, which
would reduce the yield quoted. Past yields should not be considered an indicator
of future yields. For current yield information, please call 800-XXX-XXXX.

Fees and Expenses
Fund investors pay various expenses. The table below describes the fees and
expenses that you may pay if you buy and hold shares of the Fund.

<TABLE>
<CAPTION>
Shareholder Fees (fees paid directly from your investment)

Annual Fund operating expensesb (expenses that are deducted from Fund assets)

As percentage of average daily net assets: Class A Class B Class Y
- ----------------------------------------------- -------------------- -------------------- -------------------
Management feesc % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Distribution (12b-1) fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Other expensesc % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Total % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
</TABLE>

a This charge may be reduced depending on your total investments in IDS
funds. See "Sales Charges."

b Both in this table and the following example fund operating expenses
include expenses charged by both the Fund and its Master Portfolio as
described under "Management".

c Other expenses include an administrative services fee, a shareholder
services fee, a transfer agency fee and other nonadvisory expenses.

<PAGE>

Example

This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

Assume you invest $10,000 and the Fund earns a 5% annual return. The operating
expenses remain the same each year. If you hold your shares until the end of the
years shown, your costs would be:

1 year 3 years 5 years 10 years
Class Ad $ $ $ $
Class Be $ $ $ $ g
Class Bf $ $ $ $ g
Class Y $ $ $ $

d Includes a 5% sales charge.
e Assumes you sold your Class B shares at the end of the period and incurred
the applicable CDSC.
f Assumes you did not sell your Class B shares at the end of the period.
g Based on conversion of Class B shares to Class A shares in the ninth year
of ownership.

This example does not represent actual expenses, past or future. Actual expenses
may be higher or lower than those shown. [During the most recent fiscal year,
AEFC voluntarily reimbursed the Fund for certain expenses. If AEFC had not
reimbursed the Fund for operating expenses, the total paid by the Fund would
have been ____% of its average net assets.][AEFC intends to continue to
voluntarily reimburse expenses so that the operating expenses for Class A do not
exceed ____% of its average net assets.]

Management
The Fund's assets are invested in World Income Portfolio (the Portfolio), which
is managed by AEFC. Ray Goodner, vice president and senior portfolio manager,
joined AEFC in 1977. He has managed the assets of the Fund since 1989. He also
serves as portfolio manager of Quality Income Portfolio.

BUYING AND SELLING SHARES

Valuing Fund Shares
The public offering price for Class A is the net asset value (NAV) adjusted for
the sales charge. For Class B and Class Y, it is the NAV.

<PAGE>

Investment Options

1. Class A shares are sold to the public with a sales charge at the time of
purchase.

2. Class B shares are sold to the public with a CDSC and an annual
distribution (12b-1) fee.

3. Class Y shares are sold to qualifying institutional investors without a
sales charge or distribution fee. Please see the SAI for information on
eligibility to purchase Class Y shares.

Investment options summary:

Class A

Maximum sales charge of 5%

Initial sales charge waived or reduced for certain purchases

No annual distribution fee

Service fee of 0.175% of average daily net assets

Lower annual expenses than Class B shares

Class B

No initial sales charge

CDSC on shares sold in the first six years (maximum of 5% in first year, reduced
to 0% after year six)

CDSC waived in certain circumstances

Shares convert to Class A in ninth year of ownership

Annual distribution fee of 0.75% of average daily net assets*

Service fee of 0.175% of average daily net assets

Higher annual expenses than Class A shares

Class Y

No initial sales charge

No annual distribution fee

Service fee of 0.10% of average daily net assets

Available only to certain qualifying institutional investors

<PAGE>

Should you purchase Class A or Class B shares?

If your investments in IDS funds total $250,000 or more, Class A shares may be
the better option. If you qualify for a waiver of the sales charge, Class A
shares will be the best option.

Purchasing Shares
If you do not have a mutual fund account, you need to establish one. 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 you open an account, you must provide your correct Taxpayer
Identification Number (TIN), which is either your Social Security or Employer
Identification number.

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, and

o criminal penalties for falsifying information.

You also could be subject to backup withholding because you failed to report
required interest or dividends on your tax return.

How to determine the correct TIN

Association, club or The organization
tax-exempt organization
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>

For details on TIN requirements, ask your financial advisor or local American
Express Financial Advisors office for federal Form W-9, "Request for Taxpayer
Identification Number and Certification."

Three ways to invest

(1) By mail:

Once your account has been established, send your check with the account number
on it to:

American Express Financial Advisors Inc.
P.O. Box 74
Minneapolis, MN 55440-0074

Minimum amounts
Initial investment: $2,000
Additional investments: $100
Account balances: $300
Qualified accounts: none

<PAGE>

(2) By scheduled investment plan:

Minimum amounts
Initial investment: $100
Additional investments: $50/mo. for qualified accounts; $100/mo. for
nonqualified accounts
Account balances: none (on active plans of monthly payments)

If your account falls below $2,000, you must make payments at least monthly.

(3) By wire or electronic funds transfer:

If you have an established account, you may wire money to:

Norwest Bank Minnesota
Routing Transit No. 091000019

Give these instructions:
Credit American Express Financial Advisors Account #0000030015 for personal
account # (your account number) for (your name).

Minimum amounts
Each wire investment: $1,000

<PAGE>

Sales Charges

Class A -- initial sales charge alternative
When you purchase 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:

a To calculate the actual sales charge on an investment greater than $50,000
and less than $1,000,000, you must total the amounts of all increments that
apply.

b Offering price includes a 5% sales charge.

The sales charge on Class A shares may be lower than 5%, depending on the total
amount:

Other Class A sales charge policies:

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, please 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 funds of the IDS MUTUAL FUND
GROUP. Eligibility must be determined in advance by AEFA. For assistance,
please contact your financial advisor. (Participants in certain qualified
plans where the initial sales charge is waived may be subject to a deferred
sales charge of up to 4%.)

o purchases made within 30 days after a sale of shares (up to the amount
sold):

- of a product distributed by AEFA in a qualified plan subject to a
deferred sales charge, or

- in a qualified plan or account 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
date and the amount of the sale.

o purchases made:

- with dividend or capital gain distributions from this Fund or from the
same class of another fund in the IDS MUTUAL FUND GROUP that has a sales
charge,

- through or under a wrap fee product sponsored by AEFA,

- within the University of Texas System ORP,

- within a segregated separate account offered by Nationwide Life Insurance
Company or Nationwide Life and Annuity Insurance Company,

- within the University of Massachusetts After-Tax Savings Program,

- with the proceeds from IDS Life Real Estate Variable Annuity surrenders,
or

- through or under a subsidiary of AEFC offering Personal Trust Services'
Asset - Based pricing alternative.
<PAGE>

Class B -- contingent deferred sales charge (CDSC) alternative

A CDSC is based on the sale amount and the number of calendar years -- including
the year of purchase -- between purchase and sale. The following table shows how
CDSC percentages on sales decline after a purchase:

If the sale is The CDSC
made during the: percentage rate is:
First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%

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

o at least 59 1/2 years old and

o taking a retirement distribution (if the sale 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

o selling under an approved substantially equal periodic payment
arrangement.

<PAGE>

Exchanging/Selling Shares
Exchanges

Other 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 AECSC receives written approval from the secured party.

Selling Shares

You can sell your shares at any time. AECSC will mail payment within seven days
after accepting your request.

Requests to sell shares of the Fund are not allowed within 30 days of a
telephoned-in address change.

The Fund reserves the right to redeem in kind.

<PAGE>

For more details and a description of other sales policies, please see the SAI.

Two ways to request an exchange or sale of shares

o the dollar amount or number of shares you want to exchange or sell,

o signature(s) of all registered account owners,

o for sales, indicate how you want your money delivered to you, and

o any paper certificates of shares you hold.

Regular mail:
American Express Client Service Corporation
Attn: Transactions
P.O. Box 534
Minneapolis, MN 55440-0534

Express mail:
American Express Client Service Corporation
Attn: Transactions
733 Marquette Ave.
Minneapolis, MN 55402

(2) By telephone:
American Express Financial Advisors
Telephone Transaction Service
800-437-3133 or
612-671-3800

Minimum amount
Sale: $100

Maximum amount
Sale: $50,000

<PAGE>

Three ways to receive payment when you sell shares

(1) By regular or express mail:
o Mailed to the address on record.
o Payable to names listed on the account.

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

(2) By wire or electronic funds transfer:
o Minimum wire sale: $1,000.
o Request that money be wired to your bank.
o Bank account must be in the same ownership as the IDS fund account.

NOTE: Pre-authorization required. For instructions, contact your financial
advisor or AECSC.

Distributions and Taxes

Dividends and capital gain distributions
The Fund's net investment income is distributed to you 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 offsets any net realized capital gains by any available capital loss
carryovers. Net realized long-term capital gains, if any, are distributed by the
end of the calendar year as capital gain distributions.

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

We reinvest the distributions for you at the next calculated NAV after the
distribution is paid.

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

<PAGE>

Taxes
Distributions are subject to federal income tax and may be subject to state and
local taxes in the year they are declared. You must report distributions on your
tax returns, even if they are reinvested in additional shares.

Selling shares held in an IRA or qualified retirement account may subject you to
federal taxes, penalties and reporting requirements. Please consult your tax
advisor.

Important: This information is a brief and selective summary of some some of the
tax rules that apply to this Fund. Because tax matters are highly individual and
complex, you should consult a qualified tax advisor.

Personalized Shareholder Information

To help you track and evaluate the performance of your investments, AECSC
provides these individualized reports:

Quarterly statements
List your holdings and transactions during the previous three months, as well as
individualized return information.

Yearly tax statements
Feature average-cost-basis reporting of capital gains or losses if you sell your
shares, along with distribution information to simplify tax calculations.

<PAGE>

---------------------------------------------

Investors buy shares in the Fund
---------------------------------------------

\/
---------------------------------------------

The Fund buys units in the Portfolio
---------------------------------------------

\/
---------------------------------------------

The Portfolio invests in securities, such
as stocks or bonds
---------------------------------------------

About the Company

Business Structure
<S> <C>
---------------------
Shareholders
---------------------

---------------------
Your American
Express financial
advisor and other
servicing agents

May receive a fee
for their sales
efforts and ongoing
service.
---------------------

- ----------------------- --------------------- --------------------- ---------------------
Transfer Agent: Administrative Distributor and
American Express Services Agent: Shareholder
Client Service American Express Services Agent:
Corporation Financial American Express
Corporation Financial Advisors
Maintains shareholder
accounts and records Provides <- The Fund -> Markets and
for the Fund; administrative and distributes shares;
receives a fee based accounting services The Fund receives portion of
on the number of for the Fund; invests sales charge or
accounts it services. receives a fee its CDSC and
based on assets. assets in distribution fee.
the Also provides a
Portfolio. variety of ongoing
The Fund shareholder
and/or services.
Portfolio
have
- ----------------------- --------------------- --------------------- ---------------------
Contracts
--------------------- --------------------- ---------------------
Investment Manager: with Custodian:
American Express certain American Express
Financial service Trust Company
Corporation providers.
Provides
Manages the <- The Portfolio -> safekeeping of
Portfolio's assets; receives a
investments and fee that varies
receives a fee based on the number
based on average of securities held.
daily net assets.*
--------------------- --------------------- ---------------------
</TABLE>

American Express Financial Corporation
AEFC has been a provider of financial services since 1894. Its 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 ___ offices and more than ____ advisors.

<PAGE>

Year 2000
The Fund could be adversely affected if the computer systems used by AEFC and
the Fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000.

Quick Telephone reference

American Express Client Service Corporation
Fund performance, objectives and account inquiries: 800-862-7919

TTY Service
For the hearing impaired: 800-846-4852

<PAGE>

financial highlights

<PAGE>

THE FUND
IDS Tower 10
Minneapolis, MN 55440-0010

AMERICAN
EXPRESS
Financial
Advisors

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

Investment Company Act File #811-5696

<PAGE>
IDS Global Growth Fund

Prospectus
Dec. 30, 1998

IDS Global Growth Fund seeks to provide shareholders with long-term capital
growth.

Please note that this 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

<PAGE>

Table of Contents

We invite you to take a closer look at:

The Fund
Goal
Investment Strategy
Risks
Past Performance
Fees and Expenses
Management

Buying and Selling Shares
Valuing Fund Shares
Investment Options
Purchasing Shares
Sales Charges
Exchanging/Selling Shares

Distributions and Taxes

Personalized Shareholder Information

Master/Feeder Structure

About the Company

Quick Telephone Reference

Financial Highlights

FUND INFORMATION KEY

[icon of magnifying glass] Goal and Investment Strategy
The Fund's particular investment goal and
the strategies it intends to use in pursuing
its goal.

[icon of die] Risks
The major risk factors associated with the
Fund.

[icon of checkbook] Fees and Expenses
The overall costs incurred by an investor in
the Fund, including sales charges and annual
expenses.

[icon of folder] Management
The individual or group designated by the
investment advisor to handle the Fund's
day-to-day management.

[icon of umbrella] Master / Feeder Structure
Describes the Fund's investment structure.

[icon of stack of dollar bills] Financial Highlights
Tables showing the Fund's financial
performance.

<PAGE>

The Fund

Goal
IDS Global Growth Fund (the Fund) seeks to provide shareholders with long-term
capital growth.

Investment Strategy
The Fund's assets are invested primarily in equity securities of companies
around the world that are positioned to meet market needs in a changing world
economy. Under normal market conditions, at least 65% of the Fund's total assets
are invested in common stocks and convertible securities of companies located in
at least three different countries.

The selection of companies is the primary decision in building the investment
portfolio.

American Express Financial Corporation (AEFC) chooses investments by:

o Considering opportunities and risks by country and currency.
o Identifying large companies around the world.
o Focusing on companies with:
-financial strength,
-high demand for their products or services,
-competitive market position, and
-strong management expertise.

AEFC then decides how much to invest in various countries and then buys those
securities that offer the best opportunity for long-term growth.

AEFC generally will sell a security if it fails to meet growth expectations over
a reasonable period of time.

The Fund also can invest in money market securities, debt securities, and other
instruments. During weak or declining markets or when growth opportunities are
unavailable, the Fund may invest more of its assets in these securities.
Although the Fund would invest in these securities primarily to avoid losses,
this type of investment also could reduce the benefit from any improvement in
the market. AEFC may make frequent securities trades that could result in
increased fees, expenses, and taxes.

For more information on recent strategies and holdings, see the Fund's Statement
of Additional Information (SAI) and the annual/semiannual reports.

<PAGE>

Market Risk

Foreign/Emerging Markets Risk

The following are all components of foreign/emerging markets risk:

Style Risk

Past Performance
The following bar chart and table indicate the risks and variability of
investing in the Fund by showing:

o changes in the performance of the Fund from year to year since the Fund's
inception date, and

o how the Fund's average annual total return compare to those of the indexes
below.

How the Fund has performed in the past does not indicate how the Fund will
perform in the future.

Performance (based on calendar years)
- ----------------------------------------------------------------------------------------------------------

During the period shown in the bar chart, the highest return for a calendar
quarter was ___% (quarter ending __ 19__) and the lowest return for a calendar
quarter was ___% (quarter ending __ 19__).

The 5% sales charge applicable to Class A shares of the Fund is not reflected in
the bar chart; if reflected, returns would be lower than those shown.

The Fund's year to date return as of Sept. 30, 1998 was _____%.

*Inception date was May 29, 1990 (partial year).

Average Annual Total Returns (for the calendar year periods ending Dec. 31,
1997)

Past 1 year Since inception Past 5 years Since inception (A)
(B&Y)
<S> <C> <C> <C> <C>
IDS Global Growth:

Class A - a

Class B b - -

Class Y b - -

MSCI All Country c d
World Free Index

Lipper International c d
Fund Index

a Inception date was May 29, 1990.
b Inception date was March 20, 1995.
c Measurement period started April 1, 1995.
d Measurement period started June 1, 1990.
</TABLE>

<PAGE>

Morgan Stanley Capital International (MSCI) All Country World Free Index is an
unmanaged index compiled from a composite of securities markets of 47 countries,
including Canada, the Untied States and 26 emerging market countries. The index
reflects reinvestment of all distributions and changes in market prices, but
excludes brokerage commissions or other fees.

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

Fees and Expenses
Fund investors pay various expenses. The table below describes the fees and
expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)
<TABLE>
<CAPTION>

Annual Fund operating expensesb (expenses that are deducted from Fund assets)

As percentage of average daily net assets: Class A Class B Class Y
- ----------------------------------------------- -------------------- -------------------- -------------------
Management fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Distribution (12b-1) fees % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Other expensesc % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
- ----------------------------------------------- -------------------- -------------------- -------------------
Total % % %
- ----------------------------------------------- -------------------- -------------------- -------------------
</TABLE>

a This charge may be reduced depending on your total investments in IDS
funds. See "Sales Charges."
b Both in this table and the following example fund operating expenses
include expenses charged by both the Fund and its Master Portfolio as
described under "Management".
c Other expenses include an administrative services fee, a shareholder
services fee, a transfer agency fee and other nonadvisory expenses.

Example

This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

Assume you invest $10,000 and the Fund earns a 5% annual return. The operating
expenses remain the same each year. If you hold your shares until the end of the
years shown, your costs would be:

1 year 3 years 5 years 10 years
Class Ad $ $ $ $
Class Be $ $ $ $ g
Class Bf $ $ $ $ g
Class Y $ $ $ $

<PAGE>

Management
The Fund's assets are invested in World Growth Portfolio (the Portfolio), which
is managed by AEFC and its London based subsidiary, American Express Asset
Management International Inc. John O'Brien, vice president and portfolio
manager, joined AEFC in 1988. He became portfolio manager of World Growth
Portfolio and IDS Life Series Fund, International Equity Portfolio in September
1997. He also is a member of the portfolio management team for Total Return
Portfolio.

BUYING AND SELLING SHARES

Valuing Fund Shares
The public offering price for Class A is the net asset value (NAV) adjusted for
the sales charge. For Class B and Class Y, it is the NAV.

Investment Options

1. Class A shares are sold to the public with a sales charge at the time of
purchase.

2. Class B shares are sold to the public with a CDSC and an annual
distribution (12b-1) fee.

3. Class Y shares are sold to qualifying institutional investors without a
sales charge or distribution fee. Please see the SAI for information on
eligibility to purchase Class Y shares.

Investment options summary:

Class A

Maximum sales charge of 5%

Initial sales charge waived or reduced for certain purchases

No annual distribution fee

Service fee of 0.175% of average daily net assets

Lower annual expenses than Class B shares

<PAGE>

Class B

No initial sales charge

CDSC on shares sold in the first six years (maximum of 5% in first year, reduced
to 0% after year six)

CDSC waived in certain circumstances

Shares convert to Class A in ninth year of ownership

Annual distribution fee of 0.75% of average daily net assets*

Service fee of 0.175% of average daily net assets

Higher annual expenses than Class A shares

Class Y

No initial sales charge

No annual distribution fee

Service fee of 0.10% of average daily net assets

Available only to certain qualifying institutional investors

Should you purchase Class A or Class B shares?

If your investments in IDS funds total $250,000 or more, Class A shares may be
the better option. If you qualify for a waiver of the sales charge, Class A
shares will be the best option.

<PAGE>

Important: When you open an account, you must provide your correct Taxpayer
Identification Number (TIN), which is either your Social Security or Employer
Identification number.

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, and

o criminal penalties for falsifying information.

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

How to determine the correct TIN

Association, club or The organization
tax-exempt organization
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>

For details on TIN requirements, ask your financial advisor or local American
Express Financial Advisors office for federal Form W-9, "Request for Taxpayer
Identification Number and Certification."

<PAGE>

Three ways to invest

(1) By mail:

Once your account has been established, send your check with the account number
on it to:

American Express Financial Advisors Inc.
P.O. Box 74
Minneapolis, MN 55440-0074

Minimum amounts
Initial investment: $2,000
Additional investments: $100
Account balances: $300
Qualified accounts: none

(2) By scheduled investment plan:

Contact your financial advisor to set up one of the following scheduled plans:

o automatic payroll deduction,
o bank authorization,
o direct deposit of Social Security check, or
o other plan approved by the Fund.

Minimum amounts
Initial investment: $100
Additional investments: $50/mo. for qualified accounts; $100/mo.
for nonqualified accounts
Account balances: none (on active plans of monthly payments)

If your account falls below $2,000, you must make payments at least monthly.

(3) By wire or electronic funds transfer:

If you have an established account, you may wire money to:

Norwest Bank Minnesota
Routing Transit No. 091000019

Give these instructions:
Credit American Express Financial Advisors Account #0000030015 for personal
account # (your account number) for (your name).

<PAGE>

Minimum amounts
Each wire investment: $1,000

Sales Charges
Class A -- initial sales charge alternative