PROSPECTUS SUPPLEMENT - November 6, 2002*

AXP(R) Selective Fund (July 30, 2002) S-6376-99 W (7/02)

Effective immediately, the "Investment Manager" section is revised to read:

INVESTMENT MANAGER
The Fund's assets are invested in Quality Income Portfolio (the Portfolio),
which is managed by AEFC.

The Portfolio is managed by a team of portfolio managers led by Colin Lundgren,
vice president and senior portfolio manager.

Mr. Lundgren joined AEFC 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 the team of
portfolio managers on AXP Mutual. 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.

The team includes:

Willie Brown, portfolio manager, joined AEFC in January 1995 after working as a
financial consultant for a subsidiary of Raymond James Financial. Prior to
becoming a Quantitative Analyst, he worked as a Pricing Analyst in the
Investment Operations Department at AEFC and most recently, as a Statistical
Analyst with the Fixed Income Support Team. Mr. Brown received his MBA in
Finance from the University of Minnesota and a BS in Finance from Drake
University, Des Moines, Iowa. He also co-manages AXP Mutual.

Tim Palmer, senior portfolio manager, joined AEFC in April 2001 with more than
14 years of investment experience. Prior to that he was CEO and managing
principal at Atlas Capital Management, a hedge fund firm. Prior to that he was a
fixed income senior portfolio manager at Investment Advisors, Inc. Mr. Palmer
graduated with a BA in Economics from University of St. Thomas and an MBA in
Finance from Columbia University. He earned his CFA designation in 1993. Mr.
Palmer also co-manages AXP Mutual and IDS Life Series - Managed Portfolio.




Tim Doubek, senior portfolio manager, joined AEFC in June 2001 with more than 13
years of investment experience. For the last five years, Mr. Doubek was
principal and senior portfolio manager at Lincoln Capital Management in Chicago.
Prior to Lincoln Capital, he was fixed income portfolio manager at Northwestern
Mutual Life Insurance Company in Milwaukee. Mr. Doubek graduated with a BA in
Chemistry from the University of Wisconsin and an MBA from the University of
Michigan School of Business. He also was awarded a CFA designation. Mr. Doubek
also co-manages AXP Mutual.

(The rest of the section remains unchanged)


S-6376-1 A (11/02)

*Valid until next prospectus date

Destroy July 30, 2003