CASH EQUIVALENT FUND
Money Market Portfolio
Government Securities Portfolio
Tax-Exempt Portfolio
SUPPLEMENT TO STATEMENT OF ADDITIONAL
INFORMATION DATED NOVEMBER 30, 1998
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The following disclosure supplements the disclosure in the "Special Features --
Exchange Privilege" section of the Statement of Additional Information.
Effective June 1, 1999, in addition to the current limits on exchanges of shares
with a value over $1,000,000, shares of a Kemper Fund with a value of $1,000,000
or less (except Kemper Cash Reserves Fund) acquired by exchange from another
Kemper Fund, or from a Money Market Fund, may not be exchanged thereafter until
they have been owned for 15 days if, in the investment manager's judgement, the
exchange activity may have an adverse effect on the fund. In particular, a
pattern of exchanges that coincides with a "market timing" strategy may be
disruptive to the Kemper Fund and therefore may be subject to the 15-Day Hold
Policy.
April 26, 1999
