Statement of Additional Information Supplement

May 15, 2001*



AXP(R)Bond Fund                                        S-6495-20 T (10/00)

AXP(R)Diversified Equity Income Fund                   S-6475-20 P (11/00)

AXP(R)Equity Select Fund                               S-6426-20 P (1/01)

AXP(R)Federal Income Fund                              S-6042-20 U (7/00)

AXP(R)International Fund                               S-6140-20 V (12/00)

AXP(R)New Dimensions Fund(R)                           S-6440-20 T (9/00)

The  following  revision  applies to the  "Investing in the Fund" section of the
Statement of Additional  Information under the "Sales Charge" heading and "Class
Y" subheading.

The following bullet point has been added:

o State  sponsored  college savings plans  established  under section 529 of the
Internal Revenue Code.



* Valid until next Statement of Additional Information update.

S-6426-22 A (5/01)