[Image] Scudder Gold Fund Profile
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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.
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Fund Profile
February 1, 1998
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1. What Is The Fund's Objective?
Scudder Gold Fund seeks maximum return consistent with investing in a
portfolio of gold-related equity securities and gold.
2. What Does The Fund Invest In?
The Fund invests primarily (normally at least 65% of total assets) in
(a) common stock, preferred stock, and debt securities convertible or
exchangeable into common stock of U.S. and foreign companies primarily
engaged in the exploration, mining, fabrication, processing or
distribution of gold, (b) gold bullion, and (c) gold coins.
The remaining 35% of the Fund's assets may be invested in any precious
metals other than gold; in equity securities of companies engaged in
activities primarily relating to precious metals and minerals other
than gold; in investment-grade debt securities (rated Baa or higher by
Moody's Investors Service, Inc. or BBB by Standard & Poor's, or their
equivalent) of companies engaged in activities relating to gold or
other precious metals and minerals; warrants; and in certain debt
securities, a portion of the return on which is indexed to the price
of precious metals. The Fund may also invest up to 25% of its assets
in wholly-owned subsidiaries of Scudder Mutual Funds, Inc., which
invest in gold, silver, platinum and palladium bullion and in gold and
silver coins. In addition, with respect to 30% of its assets, the Fund
may make short sales against the box.
When making investments in securities related to gold and other
precious metals, the adviser considers a variety of factors including:
the ore quality of metals mined by a company, the company's mining,
processing and fabricating costs and techniques, and quantity of
unmined reserves. Bullion and coins in which the Fund invests will be
bought from and sold to institutions such as U.S. and foreign banks,
regulated U.S. commodities exchanges, exchanges affiliated with a
regulated U.S. stock exchange, and dealers who are members of, or
affiliated with, a regulated U.S. commodities exchange and who are
qualified to provide an accepted certification of purity. The adviser
believes investments in bullion and coins can serve to moderate
fluctuations in the value of the Fund's shares. The Fund generally
invests in equity securities of established companies listed on U.S.
or foreign securities exchanges but may also invest in securities
traded over-the-counter.
3. What Are The Risks Of Investing In The Fund?
Investors in the Fund should be able to accept above-average risk.
Investments in precious metals and in precious metals-related
securities and companies involve a relatively high degree of risk.
Prices of gold and other precious metals may fluctuate markedly over
time and can be influenced by a variety of factors including changes
in inflation, investment speculation, metal sales by governments or
central banks, changes in industrial and commercial demand, and any
governmental restrictions on private ownership of gold or other
precious metals.
The Fund "concentrates" (for purposes of the Investment Company Act of
1940) its assets in securities related to gold bullion and coins,
which means that at least 25% of its assets will be invested in these
holdings at all times. As a result, the Fund may be subject to greater
market fluctuation than a fund which has securities representing a
broader range of investment alternatives. Also, the absence of a
trading market for illiquid or restricted investments in which the
Fund may invest can make it difficult to ascertain a market value for
such securities.
A substantial part of the Fund's assets is generally invested outside
of the United States. Foreign securities in which the Fund may invest
often have less publicly available information and are subject to
different regulations than domestic securities. Political events,
changes in the perceived creditworthiness of issuers, higher brokerage
costs, fluctuating national interest rates, foreign taxes and
movements in foreign currencies will affect the value of the fund's
holdings which determine the Fund's share price. Movements of the
stock markets or in the types of securities held in the Fund will
affect the Fund's share price. You incur principal risk because your
shares, when sold, may be worth more or less than what you paid for
them.
Because it is non-diversified, the Fund may invest in a smaller number
of issuers, which will subject it to greater market and credit risks
than a diversified fund.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking long-term
capital growth and:
o plan to hold your investment for the long-term (at least 5 years
or more),
o can tolerate fluctuation in share price,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks associated with gold-related investments.
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 Gold 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
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 June 30, 1997.
Investment management fee 1.00%
12b-1 fees None
0.60%
Other expenses ------
1.60%
Total Fund operating expenses ====
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
$16 $50 $87 $190
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.
* Includes expenses of a wholly-owned subsidiary of Scudder Mutual
Funds, Inc., the capital of which is limited to 25% of the Fund's
assets.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it commenced
operations on September 2, 1988, assuming reinvestment of all
distributions. Performance is historical and is no guarantee of future
results. Total return and principal value will fluctuate.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA:
1989 -11.83%
1990 - 2.71
1991 - 3.33
1992 - 6.89
1993 31.99
1994 6.35
1995 7.50
1996 32.11
1997 -40.84
The Fund's Average Annual Total Return
for the period ended December 31, 1997
One Year -40.84%
Five Years 5.48%
Life of Fund 0.69%
7. Who Manages The Fund?
The Fund's investment adviser is Scudder Kemper Investments, Inc., one
of the nation's most experienced investment management firms. The Fund
is managed by a team of Scudder Kemper investment professionals who
each play an important role in the Fund's management process.
Lead Portfolio Manager Clay L. Hoes assumed responsibility for the
Fund's day-to-day management in 1997. Mr. Hoes joined Scudder Kemper
as a mining equity research analyst and portfolio manager before
becoming the lead portfolio manager in 1997. Prior to joining Scudder,
Mr. Hoes had nine years of metals and mining experience in the
investment industry. For the past five years he has worked as an
equity research analyst in natural resources and as an equity research
analyst in metals and mining.
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 telephone, fax, or mail.
10. When Are Distributions Made?
The Fund typically makes dividends and capital gains distributions, if
any, in December. You may elect to receive distributions in cash or
have them reinvested in additional shares of the Fund.
Generally, dividends from net investment income are taxable to
shareholders as ordinary income whether received in cash or additional
shares. Long-term capital gains distributions, if any, are taxable as
long-term capital gains 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.
Shareholders may be able to claim a credit or deduction on their
income tax returns for their pro rata portion of qualified taxes paid
by the Fund to foreign countries.
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
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[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.
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