Scudder Fund, Inc.
Managed Cash Fund
Managed Federal Securities Fund
Managed Government Securities Fund
Supplement to Prospectus
Dated May 1, 1996
The Board of Directors has approved a new time at which the net asset value per
share for each of Managed Cash Fund, Managed Federal Securities Fund and Managed
Government Securities Fund is calculated. The Board also approved extended
trading deadlines for those Funds. Each Fund's net asset value will be
determined as of, and purchase, exchange and redemption orders will be accepted
until, the close of regular trading on the New York Stock Exchange (the
"Exchange") (normally 4:00 eastern time) on each day during which the Exchange
is open for trading.
The following reflects these changes and replaces, for these Funds only,
portions of the Funds' combined prospectus. Please note that all time
designations refer to eastern time and assume the close of regular trading at
4:00 p.m.
Distribution and Performance Information
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First Paragraph under Dividends and Capital Gains Distributions:
The Company declares dividends on the outstanding shares of each Fund from each
Fund's net investment income at the close of each business day to shareholders
of record at 4:00 p.m. on the day of declaration. Realized capital gains and
losses (other than long-term capital gains) may be taken into account in
determining the daily distribution. Shares purchased will begin earning
dividends on the day the purchase order is executed and shares redeemed will
earn dividends through the previous day. Net investment income for a Saturday,
Sunday or holiday will be declared as a dividend on the previous business day to
shareholders of record at 4:00 p.m. on that day.
Transaction Information
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Third paragraph under Purchasing Shares
Orders for shares of a Fund will become effective when an investor's bank wire
order or check is converted into federal funds (monies credited to the
Custodian's account with its registered Federal Reserve Bank). If payment is
transmitted by the Federal Reserve Wire System, the order will become effective
upon receipt. Orders will be executed at 4:00 p.m. on the same day if a bank
wire or check is converted to federal funds by 4:00 p.m. or a federal funds wire
is received by 4:00 p.m. In addition, if investors known to the Company notify
the Company by 4:00 p.m. that they intend to wire federal funds to purchase
shares of a Fund on any business day and if monies are received in time to be
invested, orders will be executed at the net asset value per share determined at
4:00 p.m. the same day. Wire transmissions may, however, be subject to delays of
several hours, in which event the effectiveness of the order will be delayed.
Payments transmitted by a bank wire other than the Federal Reserve Wire System
may take longer to be converted into federal funds.
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Fifth Paragraph under Redemption by Expedited Redemption Service:
Proceeds of Expedited Redemptions of $1,000 or more will be wired to the
shareholder's bank indicated in the Purchase Application. If an Expedited
Redemption request for the Funds is received by the Transfer Agent by 4:00 p.m.
on a day the Company and the Custodian are open for business, the redemption
will be executed at the net asset value calculated at 4:00 p.m. and proceeds
will normally start transmission that same day if such redemption can be
accomplished in time to meet the Federal Reserve Wire System's schedule. A check
for proceeds of less than $1,000 will be mailed to the shareholder's address of
record. In the case of investments in a Fund that have been effected through
banks and other institutions that have entered into special arrangements with
the Company, the full amount of the redemption proceeds will be transmitted by
wire.
First Paragraph under Share Price as well as "Share Price" in the Summary on
Page 4:
Net asset value per share for each Fund is determined by Scudder Fund Accounting
Corporation on each day the Exchange is open for trading. The net asset value
per share of each Fund is determined at 4:00 p.m. The net asset value per share
of each Fund is computed by dividing the value of the total assets of the Fund,
less all liabilities, by the total number of outstanding shares of the Fund.
September 3, 1996
