KEMPER CASH RESERVES FUND
SUPPLEMENT TO PROSPECTUS
DATED FEBRUARY 1, 1999
CLASS I SHARES
The fund currently offers four classes of shares to provide investors with
different purchasing options. These are Class A, Class B and Class C shares,
which are described in the prospectus, and Class I shares, which are described
in the prospectus as supplemented hereby. When placing purchase orders,
investors must specify for which class of shares they are ordering.
Class I shares are available for purchase exclusively by the following
categories of institutional investors: (1) tax-exempt retirement plans (Profit
Sharing, 401(k), Money Purchase Pension and Defined Benefit Plans) of Scudder
Kemper Investments, Inc. ("Scudder Kemper") and its affiliates and rollover
accounts from those plans; (2) the following investment advisory clients of
Scudder Kemper and its investment advisory affiliates that invest at least $1
million in a fund: unaffiliated benefit plans, such as qualified retirement
plans (other than individual retirement accounts and self-directed retirement
plans); unaffiliated banks and insurance companies purchasing for their own
accounts; and endowment funds of unaffiliated non-profit organizations; (3)
investment-only accounts for large qualified plans, with at least $50 million in
total plan assets or at least 1000 participants; (4) trust and fiduciary
accounts of trust companies and bank trust departments providing fee based
advisory services that invest at least $1 million in a fund on behalf of each
trust; and (5) policy holders under Zurich-American Insurance Group's collateral
investment program investing at least $200,000 in a fund; and (6) investment
companies managed by Scudder Kemper that invest primarily in other investment
companies.
Class I shares currently are available for purchase only from Kemper
Distributors, Inc., principal underwriter for the fund, and, in the case of
category 4 above, selected dealers authorized by Kemper Distributors, Inc. Share
certificates are not available for Class I shares.
The primary distinctions among the classes of shares lie in their initial and
contingent deferred sales charge schedules and in their ongoing expenses,
including asset-based sales charges in the form of Rule 12b-1 distribution fees.
Class I shares are offered at net asset value without an initial sales charge
and are not subject to a contingent deferred sales charge or a Rule 12b-1
distribution fee. Also, there is no administrative services fee charged to Class
I shares. As a result of the relatively lower expenses for Class I shares, the
level of income dividends per share (as a percentage of net asset value) and,
therefore, the overall investment return, typically will be higher for Class I
shares than for Class A, Class B and Class C shares.
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The following information supplements the indicated sections of the prospectus.
Fee and expense information
The following information is designed to help you understand the costs of
investing in Class I shares of the fund. Each class of shares has a different
set of transaction fees, which will vary based on the length of time you hold
shares in the fund and the amount of your investment.
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Shareholder fees: Fees paid directly from your investment.
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Maximum Sales Charge (Load) Imposed on Purchases None
(as a % of offering price)
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Maximum Deferred Sales Charge (Load) (as a % of None
redemption proceeds)
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Maximum Sales Charge (Load) Imposed On None
Reinvested Dividends/ Distributions
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Redemption Fee None
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Exchange Fee None
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Annual fund operating expenses: Expenses that are deducted from fund assets.
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Management Fee 0.40
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Distribution (12b-1) Fees None
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Other expenses* 0.22
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Total Annual Fund Operating Expenses* 0.62
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* Estimated for the current fiscal year, since no Class I shares have been
issued as of the fund's fiscal year end.
Example
This example is to help you compare the cost of investing in Class I shares of
the fund with the cost of investing in other mutual funds.
This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The example
is hypothetical: actual fund expenses and return vary from year to year, and may
be higher or lower than those shown.
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Fees and expenses if you sold shares after:
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1 Year $68
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3 Years $214
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5 Years $373
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10 Years $835
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FINANCIAL HIGHLIGHTS
No financial information is presented for Class I shares since no Class I shares
have been issued as of the fund's fiscal year end.
SPECIAL FEATURES
Shareholders of the fund's Class I shares may exchange their shares for (i)
shares of Zurich Money Funds--Zurich Money Market Fund if the shareholders of
Class I shares have purchased shares because they are participants in tax-exempt
retirement plans of Scudder Kemper and its affiliates and (ii) Class I shares of
any other "Kemper Fund" listed in the prospectus. Conversely, shareholders of
Zurich Money Funds--Zurich Money Market Fund who have purchased shares because
they are participants in tax-exempt retirement plans of Scudder Kemper and its
affiliates may exchange their shares for Class I shares of "Kemper Funds" to the
extent that they are available through their plan. Exchanges will be made at the
relative net asset values of the shares. Exchanges are subject to the
limitations set forth in the prospectus.
February 1, 1999
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