PROSPECTUS SUPPLEMENT -- October 17, 2003*

       AXP(R) Emerging Markets Fund ("Fund") (Dec. 30, 2002) S-6354-99 K

The following changes will be effective on Oct. 20, 2003:

The "Principal Investment Strategies" section and the first two paragraphs under
"Investment Manager" section of the AXP Emerging Markets Fund prospectus are
revised as follows:

PRINCIPAL INVESTMENT STRATEGIES

The Fund's assets are primarily invested in equity securities of emerging
markets companies. Emerging markets are countries characterized as developing or
emerging by either the World Bank or the United Nations. Under normal market
conditions, at least 80% of the Fund's net assets will be invested in securities
of companies that are located in emerging market countries, or that earn 50% or
more of their total revenues from goods or services produced in emerging market
countries or from sales made in emerging market countries. The Fund will provide
shareholders with at least 60 days' notice of any change in the 80% policy.

American Express Financial Corporation (AEFC) serves as the investment manager
to the Fund and is responsible for the Fund's overall administration,
distribution and oversight of the investment process. AEFC has entered into an
agreement with American Express Asset Management International, Inc. (AEAMI), a
wholly-owned subsidiary, to act as subadviser to the Fund. Investment decisions
for the Fund are made by a team of seasoned investment professionals at
Threadneedle Asset Management Limited (Threadneedle) who are associated with
AEAMI. Threadneedle is also a wholly-owned subsidiary of AEFC.

Threadneedle chooses investments by:

o    Deploying an integrated approach to equity research that incorporates
     regional analyses, a global sector strategy, and stock specific
     perspectives.

o    Conducting detailed research on companies in a consistent strategic and
     macroeconomic framework.

o    Looking for catalysts of change and identifying the factors driving
     markets, which will vary over economic and market cycles.

o    Implementing rigorous risk control processes that ensure that the risk and
     return characteristics of the Fund's portfolio are consistent with
     established portfolio management parameters.


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Using the global sector strategy, the Fund's portfolio management team
constructs the portfolio by selecting geographic regions in which to invest and
by investing in most of the stocks on two core lists of holdings, the Largest
Companies List and the Preferred List. In addition, the portfolio will hold
other securities selected by the portfolio management team. These discretionary
holdings will typically make up a much smaller portion of the Fund.

o    The Largest Companies List includes the largest stocks in the Fund's
     benchmark. Threadneedle's research on regions, sectors, and specific
     companies is used to determine recommended weightings for each stock.

o    The Preferred List includes the stocks not included in the Largest
     Companies List that represent the best ideas generated by Threadneedle's
     research. Stocks on the Preferred List are selected by:

     o   Evaluating the opportunities and risks within regions and sectors;

     o   Assessing valuations; and

     o   Evaluating one or more of the following: balance sheets and cash flows,
         the demand for a company's products or services, its competitive
         position, or its management.

     The Fund will normally be overweight in the stocks on the Preferred List
     compared to the benchmark.

o    Discretionary holdings are selected by the portfolio management team based
     on the same criteria used to generate the Preferred List. These stocks are
     assigned ratings based on their ability to outperform within their sector.
     The team typically selects the highest rated stocks outside the core
     category.

A number of factors may prompt the portfolio management team to sell securities.
A sale may result from a change in the composition of the Fund's benchmark, a
change in sector strategy, or a change in the economic or political conditions
in a particular country. A sale may also be prompted by factors specific to a
stock, such as valuation or company fundamentals.

The Fund will normally have exposure to foreign currencies. The portfolio
management team closely monitors the Fund's exposure to foreign currency. From
time to time the team may use forward currency transactions or other derivative
instruments to hedge against currency fluctuations.

During weak or declining markets, the Fund may invest more of its assets in
money market securities. The Fund will invest in these securities primarily to
avoid losses, however this type of investment also could prevent the Fund from
achieving its investment objective. During these times, the Fund may make
frequent securities trades that could result in increased fees, expenses, and
taxes.


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INVESTMENT MANAGER

The Fund's assets are invested in Emerging Markets Portfolio (the Portfolio).

The team that manages the Portfolio is led by:

Julian A.S. Thompson, Portfolio Manager

o    Managed the Portfolio since 1999.

o    Joined AEFC in 1999.

o    Prior to that, Investment Manager for Stewart Ivory, a Scottish investment
     company, from 1993 to 1999.

o    Began investment career in 1993.

o    BA and PhD., Magdalene College, Cambridge University.

and

Jules Mort, Deputy Portfolio Manager

o    Managed the Portfolio since 2003.

o    Joined Threadneedle in 2001.

o    Prior to that, Analyst and Portfolio Manager, Baillie Gifford & Co., 1997
     to 2001.

o    Began investment career in 1997.

o    MSc, University of Stirling.



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S-6354-4 A (10/03)

* Valid until next prospectus update
Destroy Dec. 30, 2003