AXP(R)
Blue Chip
Advantage
Fund

AXP Blue Chip Advantage Fund seeks to provide shareholders with a long-term
total return exceeding that of the U.S. stock market.

PROSPECTUS

APRIL 1, 2003

Please note that this Fund:

o is not a bank deposit

o is not federally insured

o is not endorsed by any bank or government agency

o is not guaranteed to achieve its goal

Like all mutual funds, the Securities and Exchange Commission has not approved
or disapproved these securities or passed upon the adequacy of this prospectus.
Any representation to the contrary is a criminal offense.

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(logo) (logo)
American AMERICAN
Express(R) EXPRESS
Funds (R)
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Table of Contents

TAKE A CLOSER LOOK AT:

The Fund 3p

Goal 3p

Principal Investment Strategies 3p

Principal Risks 4p

Past Performance 5p

Fees and Expenses 7p

Investment Manager 8p

Other Securities and
Investment Strategies 9p

Buying and Selling Shares 9p

Valuing Fund Shares 9p

Investment Options 9p

Purchasing Shares 11p

Transactions Through American Express
Brokerage or Third Parties 13p

Sales Charges 14p

Exchanging/Selling Shares 17p

Distributions and Taxes 20p

Financial Highlights 21p

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2p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

The Fund

GOAL

AXP Blue Chip Advantage Fund (the Fund) seeks to provide shareholders with a
long-term total return exceeding that of the U.S. stock market. Because any
investment involves risk, achieving this goal cannot be guaranteed.

PRINCIPAL INVESTMENT STRATEGIES

Under normal market conditions, at least 80% of the Fund's net assets are
invested in blue chip stocks. Blue chip stocks are issued by companies with a
market capitalization of at least $1 billion, an established management, a
history of consistent earnings and a leading position within their respective
industries. A common measure of blue chip stocks is the S&P 500 Index. The S&P
500 Index is an unmanaged market index used to measure the total return of the
U.S. stock market (the Fund may change this market index from time to time).
While the Fund invests in stocks included in the S&P 500 Index, it is not an
index fund, it may own companies not included in the index, and its results will
likely differ from the index. Selecting blue chip stocks is the primary decision
in building the investment portfolio.

In pursuit of the Fund's goal, American Express Financial Corporation (AEFC),
the Fund's investment manager, chooses equity investments by:

o Identifying companies with:

o attractive valuations,

o financial strength,

o strong, sustainable earnings growth, and

o improving growth dynamics.

o Buying a diversified portfolio of securities.

o Buying equity securities not included in the S&P 500 Index if those
securities meet the standards described above.

In evaluating whether to sell a security, AEFC considers, among other factors,
whether:

o The security is overvalued relative to alternative investments.

o Political, economic, or other events could affect the company's
performance.

o Potential losses can be minimized (i.e., in a market down-turn).

o A more attractive opportunity exists.

o The company or the security continues to meet the other standards described
above.

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

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3p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

PRINCIPAL RISKS

This Fund is designed for investors with above-average risk tolerance. Please
remember that with any mutual fund investment you may lose money. Principal
risks associated with an investment in the Fund include:

Market Risk

Issuer Risk

Style Risk

Market Risk

The market may drop and you may lose money. Market risk may affect a single
issuer, sector of the economy, industry, or the market as a whole. The market
value of all securities may move up and down, sometimes rapidly and
unpredictably.

Issuer Risk

The risk that an issuer, or the value of its stocks or bonds, will perform
poorly. Poor performance may be caused by poor management decisions, competitive
pressures, breakthroughs in technology, reliance on suppliers, labor problems or
shortages, corporate restructurings, fraudulent disclosures or other factors.

Style Risk

The objective of the Fund is to provide shareholders with a long-term return
exceeding that of the U.S. stock market. Currently, the S&P 500 Index is the
market index used to measure total return of the U.S. stock market. However,
unlike the unmanaged index, the Fund's performance is affected by factors such
as the size of the Fund's portfolio, transaction costs, management fees and
expenses, brokerage commissions and fees, the extent and timing of cash flows in
and out of the Fund, stock selection, sector weightings, and other such factors.
As a result, once these factors are accounted for, the Fund may under-perform
the market index.

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4p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

PAST PERFORMANCE

The following bar chart and table indicate the risks and variability of
investing in the Fund by showing:

o how the Fund's performance has varied for each full calendar year shown on
the chart below, and

o how the Fund's average annual total returns compare to recognized indexes.

How the Fund has performed in the past does not indicate how the Fund will
perform in the future.

CLASS A PERFORMANCE
(based on calendar years)

40%
35% +36.57%
30%
25% +26.18%
20% +21.43% +22.91% +20.42%
15% +12.15% -17.03%
10%
5%
0% +1.27%
-5%
- -10% -11.52%
- -15%
- -20% -22.77%
- -25%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

During the period shown in the bar chart, the highest return for a calendar
quarter was +20.14% (quarter ending December 1998) and the lowest return for a
calendar quarter was -18.02% (quarter ending September 2002).

The 5.75% sales charge applicable to Class A shares of the Fund is not reflected
in the bar chart; if reflected, returns would be lower than those shown. The
performance of Class B, Class C and Class Y may vary from that shown above
because of differences in sales charges and fees.

The Fund's Class A year to date return as of Dec. 31, 2002 was -22.77%.

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5p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Average Annual Total Returns (as of Dec. 31, 2002)

Since Since
1 year 5 years 10 years inception (B&Y) inception (C)
Blue Chip Advantage:
Class A

Return before taxes -27.22% -4.58% +6.52% N/A N/A
Return after taxes on distributions -27.35% -5.76% +4.09% N/A N/A
Return after taxes on distributions
and sale of fund shares -16.71% -3.50% +4.49% N/A N/A
Class B
Return before taxes -26.47% -4.34% N/A +5.70%(a) N/A
Class C
Return before taxes -23.47% N/A N/A N/A -20.26%(c)
Class Y
Return before taxes -22.61% -3.31% N/A +6.66%(a) N/A
S&P 500 Index -22.10% -0.59% +9.34% +9.33%(b) -17.06%(d)
Lipper Large-Cap Core Funds Index -21.23% -0.74% +8.04% +8.05%(b) -17.18%(d)

(a) Inception date was March 20, 1995.

(b) Measurement period started April 1, 1995.

(d) Measurement period started July 1, 2000.

Before-Tax Returns

This table shows total returns from hypothetical investments in Class A, Class
B, Class C and Class Y shares of the Fund. These returns are compared to the
indexes shown for the same periods. The performance of different classes varies
because of differences in sales charges and fees. Past performance for Class Y
for the periods prior to March 20, 1995 may be calculated based on the
performance of Class A, adjusted to reflect differences in sales charges,
although not for other differences in expenses.

After-Tax Returns

After-tax returns are shown only for Class A shares. After-tax returns for the
other classes will vary. After-tax returns are calculated using the highest
historical individual federal marginal income tax rate and do not reflect the
impact of state and local taxes. Actual after-tax returns will depend on your
tax situation and most likely will differ from the returns shown in the table.
If you hold your shares in a tax-deferred account, such as a 401(k) plan or an
IRA, the after-tax returns do not apply to you since you will not incur taxes
until you begin to withdraw from your account.

The Return After Taxes on Distributions for a period may be the same as the
Return Before Taxes for the same period if there are no distributions or if the
distributions are small. The Return After Taxes on Distributions and Sale of
Fund Shares for a period may be greater than the Return Before Taxes for the
same period if there was a tax loss realized on sale of Fund shares. The benefit
of the tax loss (since it can be used to offset other gains) may result in a
higher return.

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6p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

For purposes of this calculation we assumed:

o the maximum sales charge for Class A shares,

o sales at the end of the period and deduction of the applicable
contingent deferred sales charge (CDSC) for Class B shares,

o no sales charge for Class C shares,

o no sales charge for Class Y shares, and

o no adjustments for taxes paid by an investor on the reinvested
income and capital gains.

Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of common
stocks, is frequently used as a general measure of market performance. The index
reflects reinvestment of all distributions and changes in market prices, but
excludes brokerage commissions or other fees.

The Lipper Large-Cap Core Funds Index, published by Lipper Inc., includes the 30
largest funds that are generally similar to the Fund, although some funds in the
index may have somewhat different investment policies or objectives.

FEES AND EXPENSES

Fund investors pay various expenses. The table below describes the fees and
expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)

Class A Class B Class C Class Y
Maximum sales charge (load) imposed on purchases(a)

(as a percentage of offering price) 5.75%(b) none none none

Maximum deferred sales charge (load) imposed on sales
(as a percentage of offering price at time of purchase) none 5% 1%(c) none

Annual Fund operating expenses (expenses that are deducted from Fund
assets)

As a percentage of average daily net assets: Class A Class B Class C Class Y

Management fees(d) 0.45% 0.45% 0.45% 0.45%
Distribution (12b-1) fees 0.25% 1.00% 1.00% 0.00%
Other expenses(e) 0.30% 0.32% 0.34% 0.37%
Total 1.00% 1.77% 1.79% 0.82%

(a) This charge may be reduced depending on the value of your total investments
in American Express mutual funds. See "Sales Charges."

(b) For Class A purchases over $500,000 on which the sales charge is waived, a
1% sales charge applies if you sell your shares less than one year after
purchase.

(d) Includes the impact of a performance incentive adjustment fee that decreased
the management fee by 0.02% for the most recent fiscal year.

(e) Other expenses include an administrative services fee, a shareholder
services fee for Class Y, a transfer agency fee and other nonadvisory
expenses.

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7p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Example

This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds.

Assume you invest $10,000 and the Fund earns a 5% annual return. The operating
expenses remain the same each year. If you hold your shares until the end of the
years shown, your costs would be:

1 year 3 years 5 years 10 years
Class A(a) $671 $875 $1,097 $1,734
Class B(b) $580 $857 $1,060 $1,885(d)
Class B(c) $180 $557 $ 960 $1,885(d)
Class C $182 $564 $ 971 $2,110
Class Y $ 84 $262 $ 456 $1,018

(a) Includes a 5.75% sales charge.

(b) Assumes you sold your Class B shares at the end of the period and incurred
the applicable CDSC.

(d) Based on conversion of Class B shares to Class A shares in the ninth year of
ownership.

This example does not represent actual expenses, past or future. Actual expenses
may be higher or lower than those shown.

INVESTMENT MANAGER

James M. Johnson Jr., portfolio manager, joined AEFC in 1994 as an equity
quantitative analyst. He began managing portfolios for American Express Asset
Management in 1996. He is portfolio manager of Total Return Portfolio and AXP
Variable Portfolio - Blue Chip Advantage Fund. He also serves as co-portfolio
manager of AXP Small Company Index Fund, AXP S&P 500 Index Fund, AXP Mid Cap
Index Fund, and AXP Variable Portfolio - S&P 500 Index Fund.

The Fund pays AEFC a fee for managing its assets. Under the Investment
Management Services Agreement, the fee for the most recent fiscal year was 0.45%
of the Fund's average daily net assets, including an adjustment under the terms
of a performance incentive arrangement. The maximum monthly adjustment (increase
or decrease) will be 0.12% of the Fund's average net assets on an annual basis.
Under the agreement, the Fund also pays taxes, brokerage commissions, and
nonadvisory expenses. AEFC or an affiliate may make payments from its own
resources, which include profits from management fees paid by the Fund, to
compensate broker-dealers or other persons for providing distribution
assistance. AEFC, located at 200 AXP Financial Center, Minneapolis, Minnesota
55474, is a wholly-owned subsidiary of American Express Company, a financial
services company with headquarters at American Express Tower, World Financial
Center, New York, New York 10285.

The Fund operates under an order from the Securities and Exchange Commission
that permits AEFC, subject to the approval of the Board of Directors, to appoint
a subadviser or change the terms of a subadvisory agreement for the Fund without
first obtaining shareholder approval. The order permits the Fund to add or
change unaffiliated subadvisers or the fees paid to subadvisers from time to
time without the expense and delays associated with obtaining shareholder
approval of the change.

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8p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

OTHER SECURITIES AND INVESTMENT STRATEGIES

The Fund may invest in other securities and may employ other investment
strategies that are not principal investment strategies. The Fund's policies
permit investment in other instruments such as money market securities.
Additionally, the Fund may utilize derivative instruments (such as futures,
options and forward contracts) to produce incremental earnings, to hedge
existing positions, and to increase flexibility. Even though the Fund's policies
permit the use of derivatives in this manner, the portfolio manager is not
required to use derivatives.

For more information on strategies and holdings, see the Fund's Statement of
Additional Information (SAI) and its annual and semiannual reports.

Buying and Selling Shares

VALUING FUND SHARES

The public offering price for Class A is the net asset value (NAV) adjusted for
the sales charge. For Class B, Class C and Class Y, it is the NAV.

The NAV is the value of a single Fund share. The NAV usually changes daily, and
is calculated at the close of business of the New York Stock Exchange, normally
3 p.m. Central Time (CT), each business day (any day the New York Stock Exchange
is open).

Fund shares may be purchased through various third-party organizations,
including 401(k) plans, banks, brokers and investment advisers. Where authorized
by the Fund, orders will be priced at the NAV next computed after receipt by the
organization or their selected agent.

The Fund's investments are valued based on market quotations, or where market
quotations are not readily available, based on methods selected in good faith by
the board. If the Fund's investment policies permit it to invest in securities
that are listed on foreign stock exchanges that trade on weekends or other days
when the Fund does not price its shares, the value of the Fund's underlying
investments may change on days when you could not buy or sell shares of the
Fund. Please see the SAI for further information.

INVESTMENT OPTIONS

1. Class A shares are sold to the public with a sales charge at the time of
purchase and an annual distribution (12b-1) fee of 0.25%.

2. Class B shares are sold to the public with a contingent deferred sales
charge (CDSC) and an annual distribution fee of 1.00%.

3. Class C shares are sold to the public without a sales charge at the time of
purchase and with an annual distribution fee of 1.00% (may be subject to a
CDSC).

4. Class Y shares are sold to qualifying institutional investors without a
sales charge or distribution fee. Please see the SAI for information on
eligibility to purchase Class Y shares.

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9p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Investment options summary

The Fund offers four different classes of shares. There are differences among
the fees and expenses for each class. Not everyone is eligible to buy every
class. After determining which classes you are eligible to buy, decide which
class best suits your needs. Your financial advisor can help you with this
decision.

The following table shows the key features of each class:

Class A Class B Class C Class Y
- --------------- ---------------- -------------- --------------- ----------------
Availability Available to Available to Available to Limited to
all investors. all all investors. qualifying
investors. institutional
investors.
- --------------- ---------------- -------------- --------------- ----------------
Initial Sales Yes. Payable No. Entire No. Entire No. Entire
Charge at time of purchase purchase purchase price
purchase. price is price is is invested in
Lower sales invested in invested in shares of the
charge for shares of shares of the Fund.
larger the Fund. Fund.
investments.
- --------------- ---------------- -------------- --------------- ----------------
Deferred Sales On purchases Maximum 5% 1% CDSC None.
Charge over $500,000, CDSC during applies if
1% CDSC the first you sell your
applies if you year shares less
sell your decreasing than one year
shares less to 0% after after
than one year six years. purchase.
after purchase.
- --------------- ---------------- -------------- --------------- ----------------
Distribution Yes.* 0.25% Yes.* 1.00% Yes.* 1.00% Yes. 0.10%
and/or
Shareholder
Service Fee
- --------------- ---------------- -------------- --------------- ----------------
Conversion to N/A Yes, No. No.
Class A automatically
in ninth
calendar
year of
ownership.
- --------------- ---------------- -------------- --------------- ----------------

* The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act
of 1940 that allows it to pay distribution and servicing-related expenses
for the sale of Class A, Class B and Class C shares. Because these fees are
paid out of the Fund's assets on an on-going basis, the fees may cost
long-term shareholders more than paying other types of sales charges imposed
by some mutual funds.

Should you purchase Class A, Class B or Class C shares?

If your investments in American Express mutual funds total $250,000 or more,
Class A shares may be the better option because the sales charge is reduced for
larger purchases. If you qualify for a waiver of the sales charge, Class A
shares will be the best option.

If you invest less than $250,000, consider how long you plan to hold your
shares. Class B shares have a higher annual distribution fee than Class A shares
and a CDSC for six years. Class B shares convert to Class A shares in the ninth
calendar year of ownership. Class B shares purchased through reinvested
dividends and distributions also will convert to Class A shares in the same
proportion as the other Class B shares.

Class C shares also have a higher annual distribution fee than Class A shares.
Class C shares have no sales charge if you hold the shares for one year or
longer. Unlike Class B shares, Class C shares do not convert to Class A. As a
result, you will pay a 1% distribution fee for as long as you hold Class C
shares. If you choose a deferred sales charge option (Class B or Class C),
generally you should consider Class B shares if you intend to hold your shares
for more than six years. Consider Class C shares if you intend to hold your
shares less than six years. To help you determine what investment is best for
you, consult your financial advisor.

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10p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

PURCHASING SHARES

To purchase shares through an American Express Brokerage Account or entities
other than American Express Financial Advisors Inc., please refer to the
American Express Brokerage Web site or consult your selling agent. The following
section explains how you can purchase shares from American Express Financial
Advisors (the Distributor).

If you do not have a mutual fund account, you need to establish one. Your
financial advisor will help you fill out and submit an application. Once your
account is set up, you can choose among several convenient ways to invest.

When you purchase shares for a new or existing account, your order will be
priced at the next NAV calculated after your order is accepted by the Fund. If
your application does not specify which class of shares you are purchasing, we
will assume you are investing in Class A shares.

Important: When you open an account, you must provide your correct Taxpayer
Identification Number (TIN), which is either your Social Security or Employer
Identification number.

If you do not provide and certify the correct TIN, you could be subject to
backup withholding of 30% of taxable distributions and proceeds from certain
sales and exchanges. You also could be subject to further penalties, such as:

o a $50 penalty for each failure to supply your correct TIN,

o a civil penalty of $500 if you make a false statement that
results in no backup withholding, and

o criminal penalties for falsifying information.

You also could be subject to backup withholding, if the IRS notifies us to do
so, because you failed to report required interest or dividends on your tax
return.

How to determine the correct TIN

For this type of account: Use the Social Security or Employer
Identification number of:
- ------------------------------------ ----------------------------------------
Individual or joint account The individual or one of the owners
listed on the joint account
- ------------------------------------ ----------------------------------------
Custodian account of a minor The minor
(Uniform Gifts/Transfers to Minors
Act)
- ------------------------------------ ----------------------------------------
A revocable living trust The grantor-trustee (the person who puts
the money into the trust)
- ------------------------------------ ----------------------------------------
An irrevocable trust, pension The legal entity (not the personal
trust or estate representative or trustee, unless no
legal entity is designated in the
account title)
- ------------------------------------ ----------------------------------------
Sole proprietorship The owner
- ------------------------------------ ----------------------------------------
Partnership The partnership
- ------------------------------------ ----------------------------------------
Corporate The corporation
- ------------------------------------ ----------------------------------------
Association, club or tax-exempt The organization
organization
- ------------------------------------ ----------------------------------------

For details on TIN requirements, contact your financial advisor to obtain a copy
of federal Form W-9, "Request for Taxpayer Identification Number and
Certification." You also may obtain the form on the Internet at (www.irs.gov).

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11p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Three ways to invest

1 By mail

Once your account has been established, send your check with the account number
on it to:

American Express Funds
70200 AXP Financial Center
Minneapolis, MN 55474

Minimum amounts

Initial investment: $2,000
Additional investments: $100
Account balances: $300
Qualified accounts: none

If your account balance falls below $300, you will be asked to increase it to
$300 or establish a scheduled investment plan. If you do not do so within 30
days, your shares can be sold and the proceeds mailed to you.

2 By scheduled investment plan

Contact your financial advisor for assistance in setting up one of the following
scheduled plans:

o automatic payroll deduction,

o bank authorization,

o direct deposit of Social Security check, or

o other plan approved by the Fund.

Minimum amounts
Initial investment: $100
Additional investments: $50 per payment for qualified accounts;
$100 per payment for nonqualified accounts
Account balances: none (on a scheduled investment plan with
monthly payments)

If your account balance is below $2,000, you must make payments at least
monthly.

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12p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

3 By wire or electronic funds transfer

If you have an established account, you may wire money to:

Wells Fargo Bank Minnesota, N.A.
Minneapolis, MN 55479
Routing Transit No. 091000019

Give these instructions:

Credit American Express Financial Advisors Account #0000030015 for personal
account # (your account number) for (your name). Please be sure to include all
10 digits of the American Express Financial Advisors account number, including
the zeros.

If this information is not included, the order may be rejected, and all money
received by the Fund, less any costs the Fund or American Express Client Service
Corporation (AECSC) incurs, will be returned promptly.

Minimum amounts
Each wire investment: $1,000

TRANSACTIONS THROUGH AMERICAN EXPRESS BROKERAGE OR THIRD PARTIES

You may buy or sell shares through American Express Brokerage, certain 401(k)
plans, banks, broker-dealers, financial advisors or other investment
professionals. These organizations may charge you a fee for this service and may
have different policies. Some policy differences may include different minimum
investment amounts, exchange privileges, fund choices and cutoff times for
investments. The Fund and the Distributor are not responsible for the failure of
one of these organizations to carry out its obligations to its customers. Some
organizations may receive compensation from the Distributor or its affiliates
for shareholder recordkeeping and similar services. Where authorized by the
Fund, some organizations may designate selected agents to accept purchase or
sale orders on the Fund's behalf. To buy or sell shares through American Express
Brokerage or third parties or to determine if there are policy differences,
please consult the American Express Brokerage Web site or your selling agent.
For other pertinent information related to buying or selling shares, please
refer to the appropriate section in the prospectus.

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13p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

SALES CHARGES

Class A -- initial sales charge alternative

When you purchase Class A shares, you pay a sales charge as shown in the
following table:

Sales charge as percentage of:
Total market value Public offering price* Net amount invested
Up to $49,999 5.75% 6.10%
$50,000-$99,999 4.75 4.99
$100,000-$249,999 3.75 3.90
$250,000-$499,999 2.50 2.56
$500,000-$999,999 2.00** 2.04**
$1,000,000 or more 0.00 0.00

* Offering price includes the sales charge.

** The sales charge will be waived until further notice.

The sales charge on Class A shares may be lower than 5.75%, based on the
combined market value of:

o your current investment in this Fund,

o your previous investment in this Fund, and

o investments you and your primary household group have made in
other American Express mutual funds that have a sales charge.
(The primary household group consists of accounts in any
ownership for spouses or domestic partners and their unmarried
children under 21. For purposes of this policy, domestic
partners are individuals who maintain a shared primary residence
and have joint property or other insurable interests.) AXP
Tax-Free Money Fund and Class A shares of AXP Cash Management
Fund do not have sales charges.

Other Class A sales charge policies

o IRA purchases or other employee benefit plan purchases made through a
payroll deduction plan or through a plan sponsored by an employer,
association of employers, employee organization or other similar group, may
be added together to reduce sales charges for all shares purchased through
that plan, and

o if you intend to invest more than $50,000 over a period of 13 months, you
can reduce the sales charges in Class A by filing a letter of intent. If
purchasing shares in a brokerage account or through a third party, you must
request the reduced sales charge when you buy shares. For more details,
please contact your financial advisor or see the SAI.

Waivers of the sales charge for Class A shares

Sales charges do not apply to:

o current or retired board members, officers or employees of the Fund or AEFC
or its subsidiaries, their spouses or domestic partners, children and
parents.

o current or retired American Express financial advisors, employees of
financial advisors, their spouses or domestic partners, children and
parents.

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14p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

o registered representatives and other employees of brokers, dealers or other
financial institutions having a sales agreement with the Distributor,
including their spouses, domestic partners, children and parents.

o investors who have a business relationship with a newly
associated financial advisor who joined the Distributor from
another investment firm provided that (1) the purchase is made
within six months of the advisor's appointment date with the
Distributor, (2) the purchase is made with proceeds of shares
sold that were sponsored by the financial advisor's previous
broker-dealer, and (3) the proceeds are the result of a sale of
an equal or greater value where a sales load was assessed.

o qualified employee benefit plans offering participants daily access to
American Express mutual funds. Eligibility must be determined in advance.
For assistance, please contact your financial advisor. Participants in
certain qualified plans where the initial sales charge is waived may be
subject to a deferred sales charge of up to 4%.

o shareholders who have at least $1 million in American Express mutual funds.
Until further notice, the sales charge does not apply to shareholders who
have at least $500,000 in American Express mutual funds. If the investment
is sold less than one year after purchase, a CDSC of 1% will be charged.
During that year, the CDSC will be waived only in the circumstances
described for waivers for Class B and Class C shares.

o purchases made within 90 days after a sale of shares (up to the amount
sold):

o of American Express mutual funds in a qualified plan subject to a
deferred sales charge, or

o in a qualified plan or account where American Express Trust Company
has a recordkeeping, trustee, investment management, or investment
servicing relationship.

Send the Fund a written request along with your payment, indicating the
date and the amount of the sale.

o purchases made:

o with dividend or capital gain distributions from this Fund or from the
same class of another American Express mutual fund,

o through or under a wrap fee product or other investment product
sponsored by the Distributor or another authorized broker-dealer,
investment advisor, bank or investment professional,

o within the University of Texas System ORP,

o within a segregated separate account offered by Nationwide Life
Insurance Company or Nationwide Life and Annuity Insurance Company,

o within the University of Massachusetts After-Tax Savings Program, or

o through or under a subsidiary of AEFC offering Personal Trust
Services' Asset-Based pricing alternative.

o shareholders whose original purchase was in a Strategist fund merged into
an American Express fund in 2000.

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15p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Class B and Class C -- contingent deferred sales charge (CDSC) alternative

For Class B, the CDSC is based on the sale amount and the number of calendar
years -- including the year of purchase -- between purchase and sale. The
following table shows how CDSC percentages on sales decline after a purchase:

If the sale is made during the: The CDSC percentage rate is:
First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%

For Class C, a 1% CDSC is charged if you sell your shares less than one year
after purchase.

For both Class B and Class C, if the amount you are selling causes the value of
your investment to fall below the cost of the shares you have purchased, the
CDSC is based on the lower of the cost of those shares purchased or market
value. Because the CDSC is imposed only on sales that reduce your total purchase
payments, you never have to pay a CDSC on any amount that represents
appreciation in the value of your shares, income earned by your shares, or
capital gains.

In addition, the CDSC on your sale, if any, will be based on your oldest
purchase payment. The CDSC on the next amount sold will be based on the next
oldest purchase payment.

Example

Assume you had invested $10,000 in Class B shares and that your investment had
appreciated in value to $12,000 after 3 1/2 years, including reinvested
dividends and capital gain distributions. You could sell up to $2,000 worth of
shares without paying a CDSC ($12,000 current value less $10,000 purchase
amount). If you sold $2,500 worth of shares, the CDSC would apply to the $500
representing part of your original purchase price. The CDSC rate would be 3%
because the sale was made during the fourth year after the purchase.

Waivers of the sales charge for Class B and Class C shares

The CDSC will be waived on sales of shares:

o in the event of the shareholder's death,

o held in trust for an employee benefit plan, or

o held in IRAs or certain qualified plans if American Express Trust Company
is the custodian, such as Keogh plans, tax-sheltered custodial accounts or
corporate pension plans, provided that the shareholder is:

o at least 59 1/2 years old AND

o taking a retirement distribution (if the sale is part of a transfer to
an IRA or qualified plan, or a custodian-to-custodian transfer, the
CDSC will not be waived) OR

o selling under an approved substantially equal periodic payment
arrangement.

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16p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

EXCHANGING/SELLING SHARES

Exchanges

You can exchange your Fund shares at no charge for shares of the same class of
any other publicly offered American Express mutual fund. Exchanges into AXP
Tax-Free Money Fund may only be made from Class A shares. For complete
information on the other fund, including fees and expenses, read that fund's
prospectus carefully. Your exchange will be priced at the next NAV calculated
after we receive your transaction request in good order.

The Fund does not permit market-timing. Do not invest in the Fund if you are a
market timer.

Excessive trading (market-timing) or other abusive short-term trading practices
may disrupt portfolio management strategies, harm performance and increase fund
expenses.

To prevent abuse or adverse effects on the Fund and its shareholders, AECSC and
the Fund reserve the right to reject any purchase orders, including exchanges,
limit the amount, modify or discontinue the exchange privilege, or charge a fee
to any investor we believe has a history of abusive trading or whose trading, in
our judgement has been disruptive to the Fund. For example, we may exercise
these rights if exchanges are too numerous or too large.

Other exchange policies:

o Exchanges must be made into the same class of shares of the new fund.

o If your exchange creates a new account, it must satisfy the minimum
investment amount for new purchases.

o Once we receive your exchange request, you cannot cancel it.

o Shares of the new fund may not be used on the same day for another
exchange.

o If your shares are pledged as collateral, the exchange will be delayed
until AECSC receives written approval from the secured party.

Selling Shares

You can sell your shares at any time. The payment will be mailed within seven
days after accepting your request.

When you sell shares, the amount you receive may be more or less than the amount
you invested. Your sale price will be the next NAV calculated after your request
is accepted by the Fund, minus any applicable CDSC.

You can change your mind after requesting a sale and use all or part of the
proceeds to purchase new shares in the same account from which you sold. If you
reinvest in Class A, you will purchase the new shares at NAV rather than the
offering price on the date of a new purchase. If you reinvest in Class B or
Class C, any CDSC you paid on the amount you are reinvesting also will be
reinvested. To take advantage of this option, send a written request within 90
days of the date your sale request was received and include your account number.
This privilege may be limited or withdrawn at any time and may have tax
consequences.

The Fund reserves the right to redeem in kind.

For more details and a description of other sales policies, please see the SAI.

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17p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

To sell or exchange shares held through an American Express Brokerage Account or
with entities other than American Express Financial Advisors, please consult
your selling agent. The following section explains how you can exchange or sell
shares held with American Express Financial Advisors.

Requests to sell shares of the Fund are not allowed within 30 days of a
telephoned-in address change.

Important: If you request a sale of shares you recently purchased by a check or
money order that is not guaranteed, the Fund will wait for your check to clear.
It may take up to 10 days from the date of purchase before payment is made.
Payment may be made earlier if your bank provides evidence satisfactory to the
Fund and AECSC that your check has cleared.

Two ways to request an exchange or sale of shares

1 By letter

Include in your letter:

o the name of the fund(s),

o the class of shares to be exchanged or sold,

o your mutual fund account number(s) (for exchanges, both funds must be
registered in the same ownership),

o your Social Security number or Employer Identification number,

o the dollar amount or number of shares you want to exchange or
sell,

o signature(s) of registered account owner(s) (All signatures may
be required. Contact AECSC for more information.),

o for sales, indicate how you want your money delivered to you, and

o any paper certificates of shares you hold.

Regular or express mail:
American Express Funds
70100 AXP Financial Center
Minneapolis, MN 55474

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18p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

2 By telephone

American Express Client Service Corporation
Telephone Transaction Service
(800) 437-3133

o The Fund and AECSC will use reasonable procedures to confirm authenticity
of telephone exchange or sale requests.

o Telephone exchange and sale privileges automatically apply to all accounts
except custodial, corporate or qualified retirement accounts. You may
request that these privileges NOT apply by writing AECSC. Each registered
owner must sign the request.

o Acting on your instructions, your financial advisor may conduct telephone
transactions on your behalf.

o Telephone privileges may be modified or discontinued at any time.

Minimum sale amount: $100

Maximum sale amount: $100,000

Four ways to receive payment when you sell shares

1 By regular or express mail

o Mailed to the address on record.

o Payable to names listed on the account.

o The express mail delivery charges you pay will vary depending on the
courier you select.

2 By electronic funds transfer (EFT or ACH)

o Minimum redemption: $100.

o Funds are deposited electronically into your bank account.

o No charge.

o Bank account must be in the same ownership as the American Express mutual
fund account.

o Allow two to five business days from request to deposit.

o Pre-authorization required. For instructions, contact your financial
advisor or AECSC.

3 By wire

o Minimum redemption: $1,000.

o Funds are wired electronically into your bank account.

o Applicable wire charges will vary depending on service provided.

o Bank account must be in the same ownership as the American Express mutual
fund account.

o Allow one to two business days from request to deposit for domestic wires.

o Pre-authorization required. For instructions, contact your financial
advisor or AECSC.

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19p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

4 By scheduled payout plan

o Minimum payment: $50.

o Contact your financial advisor or AECSC to set up regular payments on a
monthly, bimonthly, quarterly, semiannual or annual basis.

o Purchasing new shares while under a payout plan may be disadvantageous
because of the sales charges.

Distributions and Taxes

As a shareholder you are entitled to your share of the Fund's net income and net
gains. The Fund distributes dividends and capital gains to qualify as a
regulated investment company and to avoid paying corporate income and excise
taxes.

DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS

The Fund's net investment income is distributed to you as dividends. Capital
gains are realized when a security is sold for a higher price than was paid for
it. Each realized capital gain or loss is long-term or short-term depending on
the length of time the Fund held the security. Realized capital gains and losses
offset each other. The Fund offsets any net realized capital gains by any
available capital loss carryovers. Net short-term capital gains are included in
net investment income. Net realized long-term capital gains, if any, are
distributed by the end of the calendar year as capital gain distributions.

REINVESTMENTS

Dividends and capital gain distributions are automatically reinvested in
additional shares in the same class of the Fund, unless:

o you request distributions in cash, or

o you direct the Fund to invest your distributions in the same class of any
publicly offered American Express mutual fund for which you have previously
opened an account.

We reinvest the distributions for you at the next calculated NAV after the
distribution is paid.

If you choose cash distributions, you will receive cash only for distributions
declared after your request has been processed.

TAXES

Distributions are subject to federal income tax and may be subject to state and
local taxes in the year they are declared. You must report distributions on your
tax returns, even if they are reinvested in additional shares.

If you buy shares shortly before the record date of a distribution, you may pay
taxes on money earned by the Fund before you were a shareholder. You will pay
the full pre-distribution price for the shares, then receive a portion of your
investment back as a distribution, which may be taxable.

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20p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

For tax purposes, an exchange is considered a sale and purchase, and may result
in a gain or loss. A sale is a taxable transaction. If you sell shares for less
than their cost, the difference is a capital loss. If you sell shares for more
than their cost, the difference is a capital gain. Your gain may be short term
(for shares held for one year or less) or long term (for shares held for more
than one year).

If you buy Class A shares and within 91 days exchange into another fund, you may
not include the sales charge in your calculation of tax gain or loss on the sale
of the first fund you purchased. The sales charge may be included in the
calculation of your tax gain or loss on a subsequent sale of the second fund you
purchased.

Selling shares held in an IRA or qualified retirement account may subject you to
federal taxes, penalties and reporting requirements. Please consult your tax
advisor.

Important: This information is a brief and selective summary of some of the tax
rules that apply to this Fund. Because tax matters are highly individual and
complex, you should consult a qualified tax advisor.

Financial Highlights

Class A
Per share income and capital changes(a)
Fiscal period ended Jan. 31, 2003 2002 2001 2000 1999

Net asset value, beginning of period $ 7.94 $ 9.92 $11.80 $11.88 $ 9.49
Income from investment operations:
Net investment income (loss) .04 .03 .05 .03 .06
Net gains (losses) (both realized and unrealized) (1.92) (1.95) (.76) 1.11 2.55
Total from investment operations (1.88) (1.92) (.71) 1.14 2.61
Less distributions:
Dividends from net investment income (.03) (.04) (.04) (.03) (.06)
Distributions from realized gains -- (.02) (1.13) (1.19) (.16)
Total distributions (.03) (.06) (1.17) (1.22) (.22)
Net asset value, end of period $ 6.03 $ 7.94 $ 9.92 $11.80 $11.88

Ratios/supplemental data
Net assets, end of period (in millions) $852 $1,533 $2,247 $2,455 $1,863
Ratio of expenses to average daily net assets(c) 1.00% .89% .85% .83% .73%
Ratio of net investment income (loss) to average daily net assets .61% .54% .50% .40% .69%
Portfolio turnover rate (excluding short-term securities) 104% 135% 140% 81% 105%
Total return(e) (23.70%) (19.38%) (5.34%) 9.30% 27.71%

See accompanying notes to financial highlights.

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21p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Class B
Per share income and capital changes(a)
Fiscal period ended Jan. 31, 2003 2002 2001 2000 1999

Net asset value, beginning of period $ 7.76 $ 9.72 $11.63 $11.79 $ 9.43
Income from investment operations:
Net investment income (loss) -- -- -- -- --
Net gains (losses) (both realized and unrealized) (1.89) (1.94) (.78) 1.03 2.52
Total from investment operations (1.89) (1.94) (.78) 1.03 2.52
Less distributions:
Dividends from net investment income -- -- -- -- --
Distributions from realized gains -- (.02) (1.13) (1.19) (.16)
Total distributions -- (.02) (1.13) (1.19) (.16)
Net asset value, end of period $ 5.87 $ 7.76 $ 9.72 $11.63 $11.79
Ratios/supplemental data

Net assets, end of period (in millions) $568 $1,047 $1,530 $1,588 $1,109
Ratio of expenses to average daily net assets(c) 1.77% 1.65% 1.60% 1.59% 1.49%
Ratio of net investment income (loss) to average daily net assets (.16%) (.22%) (.25%) (.36%) (.07%)
Portfolio turnover rate (excluding short-term securities) 104% 135% 140% 81% 105%
Total return(e) (24.36%) (19.98%) (6.01%) 8.45% 26.75%

Class C
Per share income and capital changes(a)
Fiscal period ended Jan. 31, 2003 2002 2001(b)

Net asset value, beginning of period $ 7.74 $ 9.70 $11.99
Income from investment operations:
Net investment income (loss) -- -- .03
Net gains (losses) (both realized and unrealized) (1.88) (1.94) (1.16)
Total from investment operations (1.88) (1.94) (1.13)
Less distributions:
Dividends from net investment income -- -- (.03)
Distributions from realized gains -- (.02) (1.13)
Total distributions -- (.02) (1.16)
Net asset value, end of period $ 5.86 $ 7.74 $ 9.70

Ratios/supplemental data
Net assets, end of period (in millions) $4 $5 $4
Ratio of expenses to average daily net assets(c) 1.79% 1.67% 1.60%(d)
Ratio of net investment income (loss) to average daily net assets (.16%) (.26%) .04%(d)
Portfolio turnover rate (excluding short-term securities) 104% 135% 140%
Total return(e) (24.29%) (19.98%) (8.79%)(f)

See accompanying notes to financial highlights.

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22p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

Class Y
Per share income and capital changes(a)
Fiscal period ended Jan. 31, 2003 2002 2001 2000 1999

Net asset value, beginning of period $ 7.96 $ 9.94 $11.81 $11.89 $ 9.50
Income from investment operations:
Net investment income (loss) .05 .04 .06 .04 .07
Net gains (losses) (both realized and unrealized) (1.93) (1.95) (.75) 1.11 2.55
Total from investment operations (1.88) (1.91) (.69) 1.15 2.62
Less distributions:
Dividends from net investment income (.04) (.05) (.05) (.04) (.07)
Distributions from realized gains -- (.02) (1.13) (1.19) (.16)
Total distributions (.04) (.07) (1.18) (1.23) (.23)
Net asset value, end of period $ 6.04 $ 7.96 $ 9.94 $11.81 $11.89

Ratios/supplemental data
Net assets, end of period (in millions) $124 $291 $362 $369 $323
Ratio of expenses to average daily net assets(c) .82% .72% .68% .69% .66%
Ratio of net investment income (loss) to average daily net assets .76% .70% .67% .54% .77%
Portfolio turnover rate (excluding short-term securities) 104% 135% 140% 81% 105%
Total return(e) (23.63%) (19.23%) (5.16%) 9.44% 27.82%

Notes to financial highlights

(a) For a share outstanding throughout the period. Rounded to the nearest cent.

(b) Inception date was June 26, 2000.

(d) Adjusted to an annual basis.

(e) Total return does not reflect payment of a sales charge.

(f) Not annualized.

The information in these tables has been audited by KPMG LLP, independent
auditors. The independent auditors' report and additional information about the
performance of the Fund are contained in the Fund's annual report which, if not
included with this prospectus, may be obtained without charge.

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23p -- AXP BLUE CHIP ADVANTAGE FUND -- 2003 PROSPECTUS

This Fund, along with the other American Express mutual funds, is distributed by
American Express Financial Advisors Inc. and can be purchased from an American
Express financial advisor or from other authorized broker-dealers or third
parties. The Funds can be found under the "Amer Express" banner in most mutual
fund quotations.

Additional information about the Fund and its investments is available in the
Fund's Statement of Additional Information (SAI), annual and semiannual reports
to shareholders. In the Fund's annual report, you will find a discussion of
market conditions and investment strategies that significantly affected the Fund
during its last fiscal year. The SAI is incorporated by reference in this
prospectus. For a free copy of the SAI, the annual report or the semiannual
report, contact your selling agent or American Express Client Service
Corporation.

American Express Funds
70100 AXP Financial Center
Minneapolis, MN 55474
(800) 862-7919
TTY: (800) 846-4852
Web site address:
americanexpress.com

You may review and copy information about the Fund, including the SAI, at the
Securities and Exchange Commission's (Commission) Public Reference Room in
Washington, D.C. (for information about the public reference room call
1-202-942-8090). Reports and other information about the Fund are available on
the EDGAR Database on the Commission's Internet site at (http://www.sec.gov).
Copies of this information may be obtained, after paying a duplicating fee, by
electronic request at the following E-mail address: publicinfo@sec.gov, or by
writing to the Public Reference Section of the Commission, Washington, D.C.
20549-0102.

Investment Company Act File #811-5897

Ticker Symbol
Class A: IBLUX Class B:IDBCX
Class C: AXACX Class Y:IBCYX

S-6025-99 V (4/03)