[Image] Scudder Tax Free Money Fund Profile
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
January 1, 1997
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1. What Are The Fund's Objectives?
Scudder Tax Free Money Fund seeks to provide income exempt from
regular federal income tax and stability of principal. In pursuit of
its objectives the Fund seeks to maintain a $1.00 share price.
2. What Does The Fund Invest In?
At least 80% of the Fund's assets will be invested in short-term
municipal securities. The Fund expects normally to invest 100% of its
portfolio assets in municipal securities which include municipal
notes, short-term municipal bonds, variable rate demand instruments
and tax-exempt commercial paper. All of the Fund's investments are
high quality, have a remaining maturity of 397 calendar days or less
and have minimal credit risk as determined by Scudder, Stevens &
Clark, Inc. The Fund maintains a dollar-weighted average effective
maturity of 90 days or less.
The Fund may purchase securities which are rated, or issued by an
issuer rated, within the two highest quality rating categories of two
or more of the following rating agencies: Moody's Investors Service,
Inc. (Aaa and Aa, MIG1 and MIG2, and P1), Standard & Poor's (AAA and
AA, SP1+ and SP1, A1+ and A1) and Fitch Investors Service, Inc. (AAA
and AA, F1 and F2), or their equivalent. However, the Fund may also
invest its assets in municipal securities rated, or issued by an
issuer rated, P2 by Moody's, A2 by S&P, or F2 by Fitch, to the extent
permitted by Rule 2a-7 of the Investment Company Act of 1940, as
amended.
For temporary defensive purposes, the Fund may invest more than 20% of
its assets in cash and cash equivalents and in taxable securities with
remaining maturities of 397 calendar days or less.
The Fund may invest more than 25% of its assets in industrial
development or other private activity bonds. The Fund may also invest
up to 20% of its assets in securities subject to the alternative
minimum tax.
3. What Are The Risks Of Investing In The Fund?
The Fund's share price is not insured or guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able
to maintain a stable net asset value of $1.00 per share. The Fund's
yield may vary from day to day.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking income at
today's tax-free money market rates while enjoying stability of
principal. Its objectives make the Fund an appropriate investment for
a wide range of goals and for investors with short- or long-term
financial needs.
5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may incur, directly
or indirectly, by investing in a mutual fund. These types of expenses,
as they relate to Scudder Tax Free Money Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses --
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Until April 30, 1997, Scudder has agreed to waive a portion
of its fee to the extent necessary so that the total annualized
expenses of the Fund do not exceed 0.65% of average daily net
assets. The table below shows what the fees and expenses would have
been if Scudder had agreed to waive a portion of its fees for the
fiscal year ended December 31, 1995. Actual total operating expenses
for the fiscal year ended December 31, 1995 were 0.75%, including
0.50% for management fees.
Investment management fee (after waiver) 0.40%
12b-1 fees None
Other expenses 0.25%
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Total Fund operating expenses 0.65%
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Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years 5 Years 10 Years
$7 $21 $36 $81
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above remain the
same each year. This example should not be considered a representation
of past or future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than those shown.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed over the past 10 years,
assuming reinvestment of all distributions. On December 31, 1996, the
Fund's seven day yield was 3.30%. For the Fund's current yield, call
1-800-343-2890. Performance is historical and may not be indicative of
future results.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE: Total Returns for years ended December 31:
BAR CHART DATA:
1987 4.03%
1988 4.73
1989 5.82
1990 5.44
1991 4.20
1992 2.54
1993 1.86
1994 2.26
1995 3.27
1996 2.91
The Fund's Average Annual One Year Five Years Ten Years
Total Return for the period ------------------------------------
ended December 31, 1996 2.91% 2.57% 3.70%
If the adviser had not maintained the Fund's expenses, the average
annual total return for the one year, five year and ten year periods
would have been lower.
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals who each play an important role in the Fund's
management process.
Lead Portfolio Manager K. Sue Cote, joined Scudder in 1983, and
assumed responsibility for the Fund's investment strategy and
operations in 1986. Donald C. Carleton, Portfolio Manager, has been a
portfolio manager at Scudder since he joined the firm in 1983.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500
($1,000 for IRAs), except that shareholders may open a regular account
with a minimum of $1,000 if an investment program of at least
$100/month is established. A shareholder with a non-fiduciary account
who maintains an account balance of less than $2,500 without
establishing an investment program, may be assessed an annual fee of
$10.00, payable to the Fund. You may also exchange Fund shares free of
charge within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by check, telephone, fax, or mail.
10. When Are Distributions Made?
Dividends are declared daily and distributed monthly. Capital gains
distributions, if any, will be made in November or December. You may
elect to receive distributions in cash or have them reinvested in
additional shares of the Fund.
Distributions of tax-exempt income are not subject to federal income
taxes, except for the possible applicability of the alternative
minimum tax. However, distributions may be subject to state and local
income taxes. A portion of the Fund's income, including income from
repurchase agreements, gains from options, and market discount bonds,
may be taxable to shareholders as ordinary income. Long-term capital
gains distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income. Distributions of tax-exempt income are
taken into consideration in computing the portion, if any, of Social
Security and railroad retirement benefits subject to federal and, in
some cases, state taxes.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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