PROSPECTUS SUPPLEMENT -- November 13, 2002*

AXP(R) Cash Management Fund (Sept. 27, 2002) S-6320-99 Y (9/02)

The first paragraph of the "Principal Investment Strategies" section is revised
to state:

The Fund's assets primarily are invested in money market instruments, such as
marketable debt obligations issued by the U.S. government or its agencies, bank
certificates of deposit, bankers' acceptances, letters of credit, and commercial
paper, including asset-backed commercial paper. The Fund may invest more than
25% of its total assets in U.S. banks, U.S. branches of foreign banks and U.S.
government securities. Additionally, the Fund may invest up to 35% of its total
assets in U.S. dollar-denominated foreign investments.

The "Principal Risks" section is revised to delete the Foreign Risk disclosure.

The "Investment Manager" section is revised as follows:

Colin Lundgren, vice president and senior portfolio manager, manages the
day-to-day operations of the Fund. Mr. Lundgren joined American Express
Financial Corporation in 1986 as Manager of the Investment Statistical Group.
Since then, he has held various positions of responsibility for the development
and operation of enhanced equity index products, fixed income quantitative
analysis, and mortgage sector analysis. In 1995, Mr. Lundgren became an
Associate Portfolio Manager for IDS Advisory and Wealth Management Service and
in 1997, he was promoted to Portfolio Manager with new responsibilities covering
the IDS Life Series - Government Securities Portfolio. He also leads a team of
portfolio managers on AXP Mutual and AXP Selective Fund and manages AXP Variable
Portfolio - Cash Management Fund and IDS Life Series - Money Market Portfolio.
Mr. Lundgren was awarded his CFA designation in 1995 and is a member of the Twin
Cities Society of Securities Analysts. He holds a BA in Political Science from
Lake Forest College.


S-6320-2 A (11/02)

* Valid until next prospectus update

Destroy Sept. 29, 2003