SCUDDER
January 1, 1996
Dear Scudder Investor,
Since January 1, 1995, Scudder Massachusetts Tax Free Fund's investment adviser,
Scudder, Stevens & Clark, Inc., has maintained the Fund's total operating
expenses at 0.75% of daily net assets. Effective immediately, the Fund will
incur full operating expenses and fees. For the fiscal year ended March 31,
1995, actual expenses would have equaled 0.77% if total operating expenses had
not been maintained. The prospectus language on the reverse side shows the
effect of this change.
Please contact a Scudder Investor Relations representative at 1-800-225-2470
between 8 a.m. and 8 p.m., eastern time, Monday through Friday, should you have
any questions about this or any other Scudder fund.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and is not part of the prospectus
supplement on the reverse side.
(over please)
<PAGE>
Scudder Massachusetts Tax Free Fund
Supplement to Prospectus
Dated August 1, 1995
How to compare a Scudder pure no-load(TM) fund
This information is designed to help you understand the various costs and
expenses of investing in Scudder Massachusetts Tax Free Fund (the "Fund"). By
reviewing this table and those in other mutual funds' prospectuses, you can
compare the Fund's fees and expenses with those of other funds. With Scudder's
pure no-load(TM) funds, you pay no commissions to purchase or redeem shares, or
to exchange from one fund to another. As a result, all of your investment goes
to work for you.
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) 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 for the fiscal year ended March 31, 1995.
Investment management fee 0.60%**
12b-1 fees NONE
Other expenses 0.17%
-----
Total Fund operating expenses 0.77%**
=====
Example
Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its net
investment income to shareholders. (As noted above, the Fund has no redemption
fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$8 $25 $43 $95
See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" 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.
* You may redeem by writing or calling the Fund. If you wish to receive your
redemption proceeds via wire, there is a $5 wire service fee. For
additional information, please refer to "Transaction information--Redeeming
shares."
** The Adviser waived a portion of its fee so that the Fund's total operating
expenses did not exceed: 0.25% of average daily net assets from April 1,
1994 to July 31, 1994, 0.50% from August 1, 1994 to December 31, 1994, and
0.75% from January 1, 1995 to December 31, 1995. The above table shows what
the fees and expenses would have been if the Adviser had not agreed to
waive a portion of its fee. Actual expenses for the fiscal year ended March
31, 1995, with waiver, equaled 0.75% of average daily net assets.
January 1, 1996 PS50/105-2A-125
MIS12PS
SFD12SU1
