SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM N-17f-2

Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies

Pursuant to Rule 17f-2 [17 CFR 270.17f-2]

1.    Investment Company Act File Number:    Date examination completed:

              811-1629                            October 22, 2001

2. State identification Number:

AL       AK       AZ       AR       CA      CO
CT       DE       DC       FL       GA      HI
ID       IL       IN       IA       KS      KY
LA       ME       MD       MA       MI      MN
MS       MO       MT       NE       NV      NH
NJ       NM       NY       NC       ND      OH
OK       OR       PA       RI       SC      SD
TN       TX       UT       VT       VA      WA
WV       WI       WY       PUERTO RICO

Other  (specify):

3. Exact name of investment company as specified in registration statement:

     AXP New Dimensions Fund, Inc.

4. Name under which business is conducted, if different from above:


5. Address of principal place of business (number,street,city,state,zip code):

     200 AXP Financial Center, Minneapolis, MN 55474



INSTRUCTIONS

This Form must be completed by investment companies that have custody of
securities or similar investments.

Investment Company

1.   All items must be completed by the investment company.

2.   Give this Form to the independent public accountant who, in compliance with
     Rule 17f-2 under the Act and applicable state law, examines  securities and
     similar investments in the custody of the investment company.

Accountant

3.   Submit this Form to the Securities and Exchange  Commission and appropriate
     state securities  administrators  when filing the certificate of accounting
     required by Rule 17f-2  under the Act and  applicable  state law.  File the
     original  and one  copy  with  the  Securities  and  Exchange  Commission's
     principal  office in Washington,  D. C., one copy with the regional  office
     for the  region  in  which  the  investment  company's  principal  business
     operations  are  conducted,   and  one  copy  with  the  appropriate  state
     administrator(s), if applicable.

          THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT

Note:  The  estimated  average  burden hours are made solely for purposes of the
Paperwork  Reduction  Act,  and are not derived from a  comprehensive  or even a
representative  survey or study of the costs of SEC rules and forms.  Direct any
comments  concerning  the  accuracy of the  estimated  average  burden hours for
compliance  with SEC rules and forms to  Kenneth  A.  Fogash.  Duputy  Executive
Director,  U.S.  Securities  and Exchange  Commission,  450 Fifth Street,  N.W.,
Washington,  D.C. 20549 and Gary Waxman, Clearance Officer, Office of Management
and Budget, Room 3208 New Executive Office Building, Washington, D.C. 20503.




                          Independent Auditors' Report


To the Board of Directors of
AXP New Dimensions Fund, Inc.:

We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that AXP Growth Dimensions Fund of AXP New Dimensions Fund, Inc.
(the Fund) complied with the provisions of subsection (b) and (c) of Rule 17f-2
under the Investment Company Act of 1940 as of July 31, 2001 and during the
period from May 31, 2001 (the date of our last examination) through July 31,
2001. Management is responsible for the Fund's compliance with those provisions.
Our responsibility is to express an opinion on management's assertion about the
Fund's compliance based on our examination.

Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of July 31, 2001 and the period from May 31, 2001 through July 31,
2001, with respect to securities transactions:

o    Count and  inspection of all  securities  located in the vault,  if any, of
     American Express Trust Company, the Custodian;

o    Confirmation of all securities,  if any, held by institutions in book entry
     form  (Wells  Fargo Bank  Minnesota,  N.A.,  The Bank of New York,  and The
     Depository Trust Company);

o    Confirmation or examination of underlying  documentation  of all securities
     purchased but not received, hypothecated, pledged, placed in escrow, or out
     for transfer with brokers, pledges and/or transfer agents;

o    Reconciliation  of all such securities to the books and records of the Fund
     and the Custodian; and

o    Test of selected security transactions since the date of our last report.

We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
the specified requirements.

In our opinion, management's assertion that AXP New Dimensions Fund, Inc. was in
compliance with the above mentioned provisions of Rule 17f-2 of the Investment
Company Act of 1940 as of July 31, 2001 and for the period from May 31, 2001
through July 31, 2001 is fairly stated in all material respects.

This report is intended solely for the information and use of management of AXP
New Dimensions Fund, Inc. and the Securities and Exchange Commission and should
not be used for any other purpose and is not intended to be and should not be
used by anyone other than these specified parties.




                                /s/ KPMG LLP
                                    --------
                                    KPMG LLP

Minneapolis, MN
October 22, 2001





             Management Statement Regarding Compliance With Certain
                Provisions of the Investment Company Act of 1940



     We, as members of management of AXP Growth Dimensions Fund, Inc. (the Fund)
     are responsible for complying with the requirements of subsections (b) and
     (c) of Rule 17f-2, Custody of Investments by Registered Management
     Investment Companies, of the Investment Company Act of 1940. We are also
     responsible for establishing and maintaining effective internal controls
     over compliance with those requirements. We have performed an evaluation of
     the Fund's compliance with the requirements of subsections (b) and (c) of
     Rule 17f-2 as of July 31, 2001 and from May 31, 2001 through July 31, 2001.

     Based on this evaluation, we assert that the Fund was in compliance with
     the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
     Company Act of 1940 as of July 31, 2001 and from May 31, 2001 through July
     31, 2001, with respect to securities reflected in the investment account of
     the Fund.



     AMERICAN EXPRESS FINANCIAL CORPORATION




By: /s/ John M. Knight
        --------------
        John M. Knight, Vice President-Investment Accounting