<PAGE>
PAGE 1
1997 ANNUAL REPORT
IDS Blue Chip Advantage Fund
(prospectus enclosed)
(Icon of) Ribbon
The goal of IDS Blue Chip Advantage Fund, a part of IDS Market
Advantage Series, Inc., is to achieve a long-term total return
exceeding that of the U.S. stock market. The Fund invests in
common stocks that are included in a broad market index.
(This annual report includes a prospectus that describes in detail
the Fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
AMERICAN
EXPRESS
Financial
Advisors
Distributed by American Express Financial Advisors Inc.
<PAGE>
PAGE 2
(Icon of) Ribbon
Making the most of the market
If you were compiling a who's who of corporate America, a good
place to start would be the Standard & Poor's Index. Composed of
500 stocks representing a wide range of prominent companies, "the
S&P" is recognized as a good measure of overall stock market
performance. Of course, some of those stocks will fare better than
others. They're the ones that Blue Chip Advantage Fund tries to
identify and build its portfolio around. Result: a fund that's
like the S&P . . . only better.
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PAGE 3
Contents
The purpose of this annual report is to tell investors how the Fund
performed.
(Icon of) One open book inside of another.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1997 annual report
From the president 4
From the portfolio manager 4
The Fund's ten largest holdings 6
Making the most of the Fund 7
The Fund's long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 23
IDS mutual funds 26
Federal income tax information 30
1997 prospectus
The Fund in brief 3p
Goal 3p
Investment policies and risks 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative purchase arrangements 4p
Sales charge and Fund expenses 5p
Performance 7p
Financial highlights 7p
Total returns 9p
Investment policies and risks 11p
Facts about investments and their risks 12p
Alternative investment option 14p
Valuing Fund shares 14p
How to purchase, exchange or redeem shares 15p
Alternative purchase arrangements 15p
How to purchase shares 18p
How to exchange shares 20p
How to redeem shares 20p
Reductions and waivers of the sales charge 25p
Special shareholder services 29p
Services 29p
Quick telephone reference 29p
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PAGE 4
Distributions and taxes 30p
Dividend and capital gain distributions 30p
Reinvestments 31p
Taxes 32p
How to determine the correct TIN 34p
How the Fund is organized 35p
Shares 35p
Voting rights 35p
Shareholder meetings 35p
Board members and officers 35p
Investment manager 37p
Administrator and transfer agent 37p
Distributor 38p
About American Express Financial Corporation 39p
General information 39p
(This annual report is not part of the prospectus)<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce
President of the Fund
(Photo of) Guru Baliga
Portfolio manager
From the president
If you're an experienced investor, you know that the past two years
have been unusually strong ones in many financial markets. Perhaps
just as important, you also know that history shows that bull
markets don't last forever. Though they're often unpredictable,
declines - whether they're brief or long-lasting, moderate or
substantial - are always a possibility.
That fact reinforces the need for investors to periodically review
their long-term goals and examine whether their investment program
remains on tract to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is a
meeting with your American Express financial advisor. That becomes
even more important if there's a major change in your financial
situation or in the financial markets.
William R. Pearce
From the portfolio manager
The stock market unleashed a powerful rally during the past fiscal
year (February 1996 through January 1997), reaching an all-time
high in the final month of the period. In this positive
environment, IDS Blue Chip Advantage Fund's Class A shares
generated a total return of 23.8%, somewhat below that of the broad
stock market, as measured by the Standard & Poor's 500 stock index
(an unmanaged group of stocks commonly used to gauge performance of
the stock market as a whole).
The bull market continued during the first few months of the past
period, as the favorable forces of low inflation, healthy corporate
profits and strong cash flows into stock mutual funds provided
substantial support for stocks. By June, however, higher long-term
interest rates began taking a toll on the market, ultimately
driving it into a mid-summer slide. But with the remarkable
resilience that has characterized the market in recent years,
stocks soon gathered themselves and went on a largely uninterrupted
run from fall through the close of the period.
(This annual report is not part of the prospectus.)
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PAGE 6
Winners far
exceed losers
While both the market and the Fund registered gains in 10 of the 12
months, until late December the Fund held a commanding lead in
terms of performance. The lead quickly evaporated, however, when
two major Fund holdings in the technology sector, Computer
Associates and Oracle, experienced sharp price declines after
months of stellar performance.
Still, there were many more winners than losers, as our securities
analysts, whose evaluations form the foundation for determing which
stocks are held in the portfolio, continued to do a first-rate job
of stock selection. On a sector basis, stocks of financial
services, industrial, pharmaceutical and consumer-product companies
made the greatest contributions to Fund gains. Technology also was
rewarding, but our gains were empered by our limited exposure to
exceptionally strong stocks such as IBM, Microsoft and Intel.
Although we made only a small foray into energy-related and gaming
stocks, the holdings proved quite productive. Overall, prominent
performers included, in no particular order: NationsBank, Norwest,
General Electric, Johnson & Johnson, Pfizer, Unum, Emerson
Electric, Northern Telecom, Annheiser Busch, Schlumberger, Hilton
Hotels, General Signal, American Home Products, Tyco Labs and
Crown, Cork & Seal.
Selectivity pays off
Also beneficial was the fact that we held relatively few stocks in
comparatively weak and, in come cases, negative sectors. For
example, we generally avoided so called "cyclical" issues in the
paper, chemical, copper, steel and retailing industries - a
strategy that worked to the Fund's advantage. However, we did hold
sizable positions in two food retailers, Kroger and American
Stores, whose shares appreciated substantially.
While the investment fundamentals remain largely positive as this
is being written in mid-February, I think the chances of the
Federal Reserve raising short-term interest rates will increase as
the year progresses. And if rates rise, that may well present at
least a temporary stumbling block for the stock market. In any
case, I am currently emphasizing investments in the consumer-
product, technology and industrial sectors, which I believe have
the potential to show above-average earnings growth in the year
ahead.
Guru Baliga
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PAGE 7
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
__________________________
Jan. 31, 1997 $ 8.97
__________________________
Jan. 31, 1996 $ 7.62
__________________________
Increase $ 1.35
__________________________
Distributions
Feb. 1, 1996-Jan. 31, 1997
__________________________
From income $ 0.25
__________________________
From capital gains $ 0.18
__________________________
Total distributions $ 0.43
__________________________
Total return* +23.8%
__________________________
Class B
12-month performance
____________________________
(All figures per share)
Net asset value (NAV)
____________________________
Jan. 31, 1997 $ 8.92
____________________________
Jan. 31, 1996 $ 7.59
____________________________
Increase $ 1.33
____________________________
Distributions
Feb. 1, 1996-Jan. 31, 1997
_____________________________
From income $ 0.20
_____________________________
From capital gains $ 0.18
_____________________________
Total distributions $ 0.38
_____________________________
Total return* +22.9%**
_____________________________
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PAGE 8
Class Y
12-month performance
_____________________________
(All figures per share)
Net asset value (NAV)
_____________________________
Jan. 31, 1997 $ 8.97
_____________________________
Jan. 31, 1996 $ 7.62
_____________________________
Increase $ 1.35
_____________________________
Distributions
Feb. 1, 1996-Jan. 31, 1997
_____________________________
From income $ 0.26
_____________________________
From capital gains $ 0.18
_____________________________
Total distributions $ 0.44
_____________________________
Total return* +24.0%**
_____________________________
*The prospectus discusses the
effect of the sales charge, if
any, on the various classes.
**The total return is a hypothetical
investment in the Fund with all
distributions reinvested.
(This annual report is not part of the prospectus.)<PAGE>
PAGE 9
<TABLE>
<CAPTION>
The Fund's ten largest holdings
(pie chart) The ten holdings listed here make up 25.80% of the Fund's net assets
_________________________________________________________________________________________________________________________________
Percent Value
(of Fund's net assets) as of Jan. 31, 1997)
_________________________________________________________________________________________________________________________________
<S> <C> <C>
Coca-Cola 3.59% $38,313,250
The world's largest producer and distributor of soft drinks, concentrates and syrups.
Royal Dutch Petroleum ADR 3.51% $37,441,300
A major oil company that includes Royal Dutch (the Dutch version)
and Shell Transport (the English version).
NationsBank 3.26% $34,776,000
A bank holding company with a strong presence in North Carolina, South Carolina, Texas, Virginia,
Florida and Georgia.
General Electric 2.78% $29,612,500
A diversified company with interest in manufacturing, broadcasting (NBC), financial services
and technology.
Johnson & Johnson 2.61% $27,781,012
A major producer of health-care products, including consumer products, medical and dental
devices and products and a wide variety of ethical and over-the-counter drugs.
Emerson Electric 2.29% $24,450,500
A diversified manufacturer of electrical and electronic products for use in commercial and
industrial products, appliance and construction-related components.
American Home Products 2.12% $22,624,875
A company engaged in the discovery, development, manufacture, distribution and sale of a
diversified line of products in three business segments: health care products, agricultural
products and food products.
AirTouch Communications 2.04% $21,745,350
Engaged in non-regulated wireless communication operations, with cellular interest in the
United States, Germany, Japan, Italy, South Korea and Belgium.
Microsoft 1.80% $19,206,600
This company develops, manufactures, licenses, sells, and supports a wide range of software
products, including operating systems for personal computers and servers.
Schering Plough 1.80% $19,140,688
This company is already a leading producer of prescription and OTC pharmaceuticals and has
important interests in sun care, animal health and foot care products.
(This annual report is not part of the prospectus.)
</TABLE>
<PAGE>
PAGE 10
Making the most of the Fund
Build your assets systematically
One of the best ways to invest in the Fund is by dollar-cost
averaging -- a time-tested strategy that can make market
fluctuations work for you. To dollar-cost average, simply invest a
fixed amount of money regularly. You'll automatically buy more
shares when the Fund's share price is low, fewer shares when it is
high.
Using this strategy does not ensure a profit or avoid a loss if the
market declines and requires that you be able to keep on investing
on a regular basis, even when the price of your shares falls or the
market declines. Investing in this manner can be an effective way
to accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00 XXXXX
Feb 100 18 5.56 XXXXXx
March 100 17 5.88 XXXXXx
April 100 15 6.67 XXXXXXx
May 100 16 6.25 XXXXXXx
June 100 18 5.56 XXXXXx
July 100 17 5.88 XXXXXx
Aug 100 19 5.26 XXXXXx
Sept 100 21 4.76 XXXXx
Oct 100 20 5.00 XXXXX
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low...
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the Fund's investments do
well
o you receive capital gains when the gains on investments sold
by the Fund exceed losses
o you receive income when the Fund's stock dividends, interest
and short-term gains exceed its expenses.
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PAGE 11
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the Fund or another fund.
(This annual report is not part of the prospectus.)
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PAGE 12
The Fund's long-term performance
How your $10,000 has grown in IDS Blue Chip Advantage Fund
$26,160
IDS Blue Chip
Advantage Fund
Class A
S&P
Stock Index
$9,500
4/1/90 '91 '92 '93 '94 '95 '96 '97
Average annual total return
(as of Jan. 31, 1997)
1 year 5 years Since inception
Class A* +17.60% +15.57% +15.30%
Class B** +18.86% --% +30.90%
Class Y** +24.00% --% +33.78%
*Inception date was March 5, 1990.
**Inception date was March 20, 1995.
On the graph above you can see how the Fund's total return compared
to a widely cited performance index, the S&P 500 Stock Index. In
comparing Blue Chip Advantage Fund (Class A) to this index, you
should take into account the fact that the Fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the index. Class B and Class Y are
not shown. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees. If you were actually to buy either individual stocks or
growth mutual funds, any sales charges that you pay would reduce
your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
Assumes: Holding period from 4/1/90 to 1/31/97. Returns do not
reflect taxes payable on distributions. Reinvestment of all income
and capital gain distributions for the Fund, with a value of
$9,498. Also see "Performance" in the Fund's current prospectus.
Standard & Poor's 500 Stock index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance.
(This annual report is not part of the prospectus.)
<PAGE>
The financial statements contained in Post-Effective Amendment #18
to Registration Statement No. 33-30770 filed on or about March 27,
1997 are incorporated herein by reference.<PAGE>
PAGE 13
IDS mutual funds
Global/International funds
Funds in this group seek capital growth and/or income by investing
primarily in foreign securities. Foreign investments may be
subject to currency fluctuations and political and economic risks
of the countries in which the investments are made. They are high
risk mutual funds with a potential for high reward.
IDS Emerging Markets Fund
Invests in a Portfolio comprised primarily of stocks of companies
in developing countries throughout the world that are believed to
offer growth potential. Seeks to provide long-term growth of
capital.
(icon of) world with countries
IDS Global Growth Fund
Invests in a Portfolio comprised primarily of stocks of companies
throughout the world that are positioned to meet market needs in a
changing world economy. These companies offer above-average
potential for long-term growth.
(icon of) world
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Global Balanced Fund
Invests in stocks and bonds in, for the most part, major markets
throughout the world, including the U.S. Seeks to provide a
balance of growth of capital and current income.
(icon of) scale holding two worlds
IDS Global Bond Fund
Invests in a Portfolio comprised primarily of debt securities of
U.S. and foreign issuers to seek high total return through income
and growth of capital.
(icon of) globe
Growth funds
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
(This annual report is not part of the prospectus.)<PAGE>
PAGE 14
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. A highly aggressive and speculative fund
that seeks long-term growth of capital.
(icon of) cart of precious gems
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Small Company Index Fund
Invests in all or a representative group of the equity securities
comprising the S&P SmallCap 600 Index, as it strives to provide
long-term capital appreciation.
(icon of) office building
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Research Opportunities Fund
Invests in a Portfolio comprised primarily of equity securities of
companies included in the S&P 500 Index that are believed to have
strong growth potential. The Portfolio is managed using a research
methodology by the Research Department of AEFC. Goal is long-term
appreciation.
(icon of) magnifying glass
IDS Growth Fund
Invests in a Portfolio comprised primarily of companies that have
above-average potential for long-term growth as a result of new
management, marketing opportunities or technological superiority.
(icon of) trees
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 15
IDS New Dimensions Fund
Invests in a Portfolio comprised primarily of companies with
significant growth potential due to superiority in technology,
marketing or management. The Fund frequently changes its industry
mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Growth & income funds
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Foreign investments
may be subject to currency fluctuations and political and economic
risks of the countries in which the investments are made.
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three pine trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Managed Allocation Fund
Invests in a Portfolio comprised primarily of U.S. equity
securities, U.S. and foreign debt securities, foreign equity
securities and money market instruments. The Fund provides
diversification among these major investment categories and has a
target mix that represents the way the Fund's investments will be
allocated over the long term. Seeks maximum total return.
(icon of) gyroscope
(This annual report is not part of the prospectus.)
<PAGE>
<PAGE> 16
IDS Stock Fund
Invests in a Portfolio comprised primarily of common stock of
companies representing many sectors of the economy. Seeks current
income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) light bulb
IDS Diversified Equity Income Fund
Invests in a Portfolio comprised primarily of high-yielding common
stocks to seek high current income and, secondarily, to benefit
from the growth potential offered by stock investments.
(icon of) two puzzle pieces
IDS Mutual
Invests in a Portfolio which seeks to balance between common stocks
and senior securities (preferred stocks and bonds). Seeks a
balance of growth of capital and current income.
(icon of) scale of justice
Income funds
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Extra Income Fund
Invests in a Portfolio comprised mainly of long-term, high-yielding
corporate fixed-income securities in the lower rated, higher risk
bond categories to seek high current income. Secondary objective
is capital growth.
(icon of) coins
(This annual report is not part of the prospectus.)
<PAGE>
<PAGE> 17
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
IDS Selective Fund
Invests in a Portfolio comprised primarily of high-quality
corporate bonds and other highly rated debt instruments including
government securities and short-term investments. Seeks current
income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests in a Portfolio comprised primarily of securities issued or
guaranteed as to the timely payment of principal and interest by
the U.S. government, its agencies and instrumentalities. Seeks a
high level of current income and safety of principal consistent
with its type of investments.
(icon of) shield with eagle head enclosed
Tax-exempt income funds
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax, but a
portion of the income may be subject to state and local taxes.
Risk varies by bond quality.
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column enclosed
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the Fund but does not guarantee
the market value of the Fund's shares.
(icon of) shield with star enclosed
(This annual report is not part of the prospectus.)
<PAGE>
<PAGE> 18
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS High Yield Tax-Exempt Fund
Invests in a Portfolio comprised primarily of medium- and lower-
quality municipal bonds and notes. Lower-quality securities
generally involve greater risk of principal and income.
(icon of) shield with basket of apples enclosed
IDS Intermediate Tax-Exempt Fund
Invests in mainly investment-grade bonds and other debt securities
with intermediate-term maturities issued by state and local
government units. Goal is to seek a high level of current income
exempt from federal taxes.
(icon of) shield with a tree enclosed
Money market funds
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. An investment in these funds is
neither insured nor guaranteed by the U.S. government, and there
can be no assurance that these funds will be able to maintain a
stable net asset value of $1.00 per share. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
(This annual report is not part of the prospectus.)<PAGE>
PAGE 19
Federal income tax information
IDS Blue Chip Advantage Fund
______________________________________________________________
The Fund is required by the Internal Revenue Code of
1986 to tell its shareholders about the tax treatment
of the dividends it pays during its fiscal year.
The dividends listed below were reported to you on Form
1099-DIV, Dividends and Distributions, last January.
Shareholders should consult a tax advisor on how to report
distributions for state and local purposes.
IDS Blue Chip Advantage Fund
Fiscal year ended Jan. 31, 1997
Class A
Income distributions
taxable as dividend income, 18.85% qualifying for deduction by
corporations.
Payable date Per share
March 29, 1996 $0.02379
June 28, 1996 0.02154
Sept. 27, 1996 0.02336
Dec. 27, 1996 0.17940
Total $0.24809
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 27, 1996 $0.18338
Total distributions $0.43147
The distribution of $0.36278 per share,
payable Dec. 27, 1996, consisted of
$0.02422 derived from net investment
income, $0.15518 from net short-term
capital gains (a total of $0.17940
taxable as dividend income) and $0.18338
from net long-term capital gains.
(This annual report is not part of the prospectus.)<PAGE>
PAGE 20
Class B
Income distributions
taxable as dividend income, 18.85% qualifying for deduction by
corporations.
March 29, 1996 $0.01320
June 28, 1996 0.01028
Sept. 27, 1996 0.01132
Dec. 27, 1996 0.16542
Total $0.20022
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 27, 1996 $0.18338
Total distributions $0.38360
The distribution of $0.34880 per share,
payable Dec. 27, 1996, consisted of
$0.01024 derived from net investment
income, $0.15518 from net short-term
capital gains (a total of $0.16542
taxable as dividend income) and $0.18338
from net long-term capital gains.
Class Y
Income distributions
taxable as dividend income, 18.85% qualifying for deduction by
corporations.
March 29, 1996 $0.02681
June 28, 1996 0.02460
Sept. 27, 1996 0.02644
Dec. 27, 1996 0.18289
Total $0.26074
<PAGE>
PAGE 21
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 27, 1996 $0.18338
Total distributions $0.44412
The distribution of $0.36627 per share,
payable Dec. 27, 1996, consisted of
$0.02771 derived from net investment
income, $0.15518 from net short-term
capital gains (a total of $0.18289
taxable as dividend income) and $0.18338
from net long-term capital gains.
(This annual report is not part of the prospectus.)<PAGE>
PAGE 22
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
AMERICAN
EXPRESS
Financial
Advisors
IDS Blue Chip Advantage Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 23
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report are
placed in a blue strip
at the top of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
