[Image] Scudder New York Tax Free Money Fund Profile
- ---------------------------------------------------------------------------
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.
----------------------------------------------------------------------
Fund Profile
February 1, 1998
----------------------------------------------------------------------
1. What Is The Fund's Objective?
Scudder New York Tax Free Money Fund seeks stability of capital and
the maintenance of a constant net asset value of $1.00 per share,
while providing New York taxpayers income exempt from New York state
and New York City personal income taxes and regular federal income
tax.
2. What Does The Fund Invest In?
The Fund invests in municipal securities including municipal bonds,
municipal notes and variable rate demand instruments of issuers
located in New York and other qualifying issuers (including Puerto
Rico, the U.S. Virgin Islands and Guam). Under normal market
conditions, the Fund will have at least 80% of its net assets invested
in New York municipal securities. All of the Fund's investments are
high quality, have a remaining maturity of 397 calendar days or less
and are considered to have minimal credit risk by the Fund's
investment adviser, Scudder Kemper Investments, Inc. The weighted
average effective maturity of the Fund's portfolio is 90 days or less.
Generally, the Fund may purchase only securities which are rated, or
issued by an issuer rated, within the two highest quality ratings of
two or more of the following rating agencies: Moody's Investors
Service, Inc. (Aaa and Aa, MIG-1 and MIG-2, and P1 and P2), Standard &
Poor's (AAA and AA, SP1+ and SP1, A1+ and A1 and A2) and Fitch
Investors Service, Inc. (AAA and AA, F1+, F1 and F2). The Fund may
invest in these securities to the extent permitted by Rule 2a-7 of the
Investment Company Act of 1940. Where only one rating agency has rated
a security (or its issuer), the Fund may purchase that security as
long as it falls within the categories described above. Where a
security (or its issuer) is unrated, the Fund may purchase that
security if, in the judgment of the adviser, it is comparable in
quality to securities described above.
For temporary defensive purposes, the Fund may invest more than 20% of
net assets in taxable securities. 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 seeks to eliminate principal risk. However, the Fund is more
susceptible to factors adversely affecting issuers of New York
municipal securities. The Fund is concentrated in securities issued by
New York governments and related entities. Changes in the financial
condition or market assessment of the financial condition of these
entities could have a significant adverse impact on the Fund.
Consequently, an investment in the Fund may be riskier than an
investment in a money market fund that does not concentrate in
securities issued by, or within, a single state. There is also a
possibility the rating of a security held by the Fund may be
downgraded after it is purchased. This decrease in rating may be the
result of the inability of the state of New York or any of its local
government entities to meet its financial obligations. The Fund's
share price is not insured or guaranteed, 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.
In addition, because it is non-diversified, the Fund may invest in a
smaller number of issuers, which will subject it to greater market and
credit risk than a diversified fund.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking safety of
principal as well as double tax-free income -- exempt from both New
York state and New York City personal income tax and regular federal
income tax. Depending on your tax bracket and individual situation,
you may earn a higher after-tax return from the Fund than from
comparable investments that pay income subject to both New York state
and New York City personal income tax and regular federal income tax.
Before investing, you should compare the Fund's yield to the after-tax
yield you would receive from a comparable investment paying taxable
income.
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 New York Tax Free Money Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses (after expense maintenance) --
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Figures below are for the fiscal year ended March 31, 1997,
during which Scudder maintained the total annualized expenses of the
Fund at 0.60% of average daily net assets. Had Scudder not done so,
total operating expenses would have amounted to 0.85%, including
0.50% for management fees. Scudder will continue this expense
maintenance until July 31, 1998.
Investment management fee (after waiver) 0.25%
12b-1 fees None
Other expenses 0.35%
------
Total Fund operating expenses (after waiver) 0.60%
====
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
$6 $19 $33 $75
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.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed over the past ten years,
assuming reinvestment of all distributions. On December 31, 1997, the
Fund's seven-day yield was 3.42%. 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: 1988 4.40%
1989 5.44
1990 4.99
1991 3.76
1992 2.52
1993 1.75
1994 2.24
1995 3.22
1996 2.86
1997 3.07
The Fund's Average Annual Total Return
for the period ended December 31, 1997
One Year 3.07%
Five Years 2.63%
Ten Years 3.42%
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 Kemper Investments, Inc., one
of the nation's most experienced investment management funds. The Fund
is managed by a team of Scudder Kemper investment professionals who
each play an important role in the Fund's management process.
Frank J. Rachwalski, Jr., Lead Portfolio Manager, joined the Fund in
1998 and is responsible for the Fund's day-to-day operations and
overall investment strategy, Mr. Rachwalski joined Zurich Kemper in
1973 and has more than 20 years of experience managing money market
portfolios.
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,
except that shareholders may open an account with at least $1,000 if
an automatic investment plan of $100/month is established. Scudder
retirement plans and certain other accounts have similar or lower
minimum share balance requirements. A shareholder who maintains a
nonfiduciary account balance of less than $2,500 without establishing
an automatic investment plan, will be assessed an annual fee of
$10.00, payable to the Fund. Retirement accounts and certain other
accounts will not be assessed the $10.00 charge. 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 derived from interest on New York municipal securities
are not subject to New York state or New York City personal income
taxes or to regular federal income taxes, except for the possible
applicability of the federal alternative minimum tax. For federal
income tax purposes, a portion of the Fund's income may be taxable to
shareholders as ordinary income. Long-term capital gain distributions,
if any, are taxable as long-term capital gains for federal, New York
state and New York City personal income tax purposes, regardless of
the length of time shareholders have owned their 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
----------------------------------------------------------------------
[Image]Scudder Kemper 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.
----------------------------------------------------------------------
Contact Scudder
