KEMPER EQUITY FUNDS/VALUE STYLE
SUPPLEMENT TO PROSPECTUS
DATED FEBRUARY 1, 1999
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KEMPER SMALL CAP VALUE FUND
KEMPER U.S. GROWTH AND INCOME FUND
The following text supplements information in the section entitled "Principal
Strategies and Investments" with respect to Kemper Small Cap Value Fund:
Although the fund does not presently intend to do so, it may invest up to 20% of
its total assets in foreign securities.
The following text supplements information in the section entitled "Additional
risk" with respect to Kemper Small Cap Value Fund:
Foreign Investing. Investing in foreign securities, and to a greater extent
emerging markets, involves risks in addition to those associated with investing
in securities in the U.S. To the extent that investments are denominated in
foreign currencies, adverse changes in the values of foreign currencies may have
a significant negative effect on any returns from these investments. Investing
in foreign securities exposes the fund to an increased risk of political and
economic instability.
Other risks of investing in foreign securities include: limited information,
higher brokerage costs, different accounting standards and thinner trading
markets as compared to U.S. markets.
The following text replaces information in the section entitled "Fee and expense
information" with respect to Kemper U.S. Growth and Income Fund:
Subject to the qualification described below, Scudder Kemper Investments, Inc.
has agreed to temporarily reimburse certain operating expenses to the extent
necessary to limit the fund's "Total Annual Fund Operating Expenses" of Class A
shares to 1.36%, Class B to 2.01% and Class C to 1.99%; provided, however,
transfer agency fees and related out-of-pocket expenses will not be subject to
this reimbursement. Therefore, if transfer agency fees and related out-of-pocket
expenses were to exceed the limits upon Total Operating Expenses for a
particular class during the period of the reimbursement (contrary to current
estimates), such expenses would be charged to the class in the actual amount
incurred and Total Annual Fund Operating Expenses for the class would exceed the
limits described above during the period. This arrangement may be discontinued
at any time. However, the investment manager has agreed to waive 0.15% of its
management fee until September 30, 1999. As a result, for the fiscal year ended
September 30, 1998, "Total
February 22, 1999
DRE-1D
505806
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Annual Fund Operating Expenses" were reduced by 1.23%, 1.48%, and 1.26% for
Class A, Class B, and Class C and actual total annual fund operating expenses
were 1.36% for Class A, 2.01% for Class B and 1.99% for Class C. The information
contained in the above table and the example below reflect the expenses of the
fund without taking into account any applicable fee waivers and/or
reimbursements.
The following text supplements information in the section entitled "Investment
Manager":
For Kemper U.S. Growth and Income Fund, the investment manager has agreed to
waive 0.15% of its management fee until September 30, 1999.
Steven T. Stokes is the Lead Portfolio Manager of Kemper Small Cap Value Fund.
Please consult the prospectus for information concerning the portfolio managers.
