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INVESTORS FUND SERIES
Kemper Money Market Portfolio
Kemper Total Return Portfolio
Kemper High Yield Portfolio
Kemper Growth Portfolio
Kemper Government Securities Portfolio
Kemper International Portfolio
Kemper Small Cap Growth Portfolio
Kemper Investment Grade Bond Portfolio
Kemper Value Portfolio
Kemper Small Cap Value Portfolio
Kemper Value+Growth Portfolio
Kemper Horizon 20+ Portfolio
Kemper Horizon 10+ Portfolio
Kemper Horizon 5 Portfolio
Kemper Blue Chip Portfolio
Kemper Global Income Portfolio
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1997
INVESTMENT MANAGEMENT
Zurich Insurance Company ("Zurich") has entered into a definitive agreement
with Scudder, Stevens & Clark, Inc. ("Scudder") pursuant to which Zurich will
acquire approximately 70% of Scudder. Upon completion of the transaction,
Scudder will change its name to Scudder Kemper Investments, Inc. ("SKI"), and
Zurich Kemper Investments, Inc. ("ZKI") will be operated either as a subsidiary
of SKI or as part of SKI. Consummation of the transaction is subject to a number
of contingencies. Because the transaction would constitute an assignment of the
Fund's investment management agreements with ZKI and its affiliate, Dreman Value
Advisors, Inc. ("DVA") under the Investment Company Act of 1940, it is
anticipated that ZKI would seek approval of new agreements by the Fund's board
and shareholders. If the contingencies are timely met, the transaction is
expected to close in the fourth quarter of 1997. Zurich will own 69.5% of SKI
and senior employees of SKI will hold the remaining 30.5%. SKI will be
headquartered in New York City and the chief executive officer of SKI will be
Edmond D. Villani, Scudder's president and chief executive officer. Mr. Villani
will also join Zurich's Corporate Executive Board. A transition team comprised
of representatives from ZKI, Zurich, and Scudder has been formed to make
recommendations regarding combining the operations of Scudder and ZKI.
With respect to the Kemper Small Cap Value Portfolio, Thomas H. Forester
and Steven T. Stokes have been the portfolio co-managers of the Kemper Small Cap
Value Portfolio since July, 1997. Mr. Forester has lead responsibility for the
management of the Portfolio. He joined DVA, the investment manager for the
Kemper Small Cap Value Portfolio, in May 1997. Prior to joining DVA, he served
as a senior portfolio manager of an unaffiliated investment management firm from
1995 to 1997. For the three years prior to 1995, he was a portfolio manager of
another investment management firm. He received his undergraduate degree at the
University of Colorado and an M.B.A. in finance from Northwestern University. He
is a chartered financial analyst. Mr. Stokes joined DVA in April, 1996 and is
currently a managing director of DVA. Prior to joining DVA, he served as a
portfolio manager and financial analyst of an unaffiliated investment management
firm from 1986 to 1996. Mr. Stokes received a B.S. degree in Finance from State
University of New York at New Paltz. He is a chartered financial analyst.
CAPITAL STRUCTURE AND GENERAL INFORMATION
The Fund added the "Kemper" brand name to the name of each Portfolio, as
shown above.
July 30, 1997
IFS-1B (7/97) (LOGO)printed on recycled paper
