PROSPECTUS SUPPLEMENT March 15, 2000*
            AXP(SM) Innovations Fund (March 15, 2000) S-6395 A (3/00)

American Express Financial Advisors Inc. will solicit orders to purchase Class A
shares of AXP Innovations  Fund with no sales charge during an initial  offering
period  from March 27, 2000 to April 18,  2000.  This no sales  charge  offer is
valid  only for the first $50  million  in orders  received  and  accepted.  The
minimum  purchase  amount  during the initial  offering  period is  $10,000.  As
explained  in the  following  paragraphs,  orders  received  during the  initial
offering  period  will not be  invested  in  Innovations  Fund until the fund is
opened to the public on April 19, 2000.

         Orders  Received  From March 27  through  April 16,  2000.  An order in
         proper form to purchase shares of Innovations  Fund that is accompanied
         by payment and is received by the Fund from March 27 through  April 16,
         2000 will be treated as:

          o   an order to purchase shares of AXP Cash Management Fund and
          o   an additional order to exchange shares of Cash Management Fund for
              shares of Innovations Fund as of April 19, 2000.

         The exchange  from Cash  Management  Fund to  Innovations  Fund will be
         priced at the net asset value of  Innovations  Fund on April 19,  2000.
         The  exchange  order may be revoked in writing at any time before April
         19, 2000.

         Orders  Received on April 17 or April 18, 2000. An order in proper form
         to purchase  shares of Innovations  Fund that is accompanied by payment
         and is  received  by the  Fund on April 17 or April 18 will be held and
         the money will be invested in Innovations  Fund on April 19, 2000. Your
         money will not earn dividends or interest while it is held.

This no sales charge offer is valid only for new purchases and does not apply to
exchanges from existing AXP fund accounts  subject to a sales charge.  Exchanges
will be permitted  from existing  money market fund  accounts  provided that the
money was not previously exchanged from a fund subject to a sales charge.

If your order is received  after the $50 million  limit has been  reached,  your
money will be invested as described above and you will be charged a sales charge
unless you revoke your order prior to April 19, 2000.

Shares of  Innovations  Fund will not be  available to the public prior to April
19, 2000 except through this subscription offer.


S-6395-1 A (3/00)
*Destroy December 29, 2000.