Scudder
Development
Fund
Fund Profile
April 1, 1996
<PAGE>
SCUDDER DEVELOPMENT FUND
1. What Is The Fund's Objective?
Scudder Development Fund seeks long-term growth of
capital.
----------------------------------------------------------
2. What Does The Fund Invest In?
The Fund invests in equity securities, including common
stocks and convertible securities, of relatively small or
little-known companies, commonly referred to as emerging
growth companies. Scudder believes these companies may
provide above-average earnings growth potential and/or may
receive greater market recognition. Both factors are
believed to offer significant opportunity for capital
appreciation. To help reduce risk, the Fund allocates its
investments among many companies and industries.
The Fund generally emphasizes investments in U.S.
companies, although it may invest in foreign securities
that meet the same criteria as the Fund's domestic
holdings.
----------------------------------------------------------
3. What Are The Risks Of Investing In The Fund?
Emerging growth companies entail higher risk due to their
smaller size, relative age, limited product lines,
distribution channels, and financial and managerial
resources. Further, there is typically less publicly
available information for smaller companies. Their
securities are often traded over-the-counter and thus the
prices of these securities are often more volatile.
In addition, Scudder Development Fund is managed as an
aggressive stock fund. Movements of the stock market will
affect the Fund's share price, which is likely to vary
from day to day. The value of your investment may decline
as a result of declines in the overall stock market or in
the types of securities held in the Fund's portfolio.
----------------------------------------------------------
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking
long-term growth of capital and:
o plan to hold your investment for the longer term (at
least 5 years or more),
o can tolerate share price volatility with little or no
current income,
o have or plan to have other investments for the benefit
of diversification, and
o understand the risks of investing in emerging growth
companies.
<PAGE>
5. What Are The Fund's Expenses And Fees?
<TABLE>
<CAPTION>
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
Development Fund, are:
<S> <C>
Shareholder transaction expenses --
Expenses charged directly to your account for various
transactions.
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, 1995.
Investment management fee 0.99%
12b-1 fees None
Other expenses 0.33%
----
Total Fund operating expenses 1.32%
====
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
------ ------- ------- --------
$13 $42 $72 $159
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. Please note that there is a $5 service fee if
you request redemption proceeds via wire.
</TABLE>
<PAGE>
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed over the past
10 years, assuming reinvestment of all distributions.
Performance is historical and may not be indicative of
future results. Total return and principal value will
fluctuate.
BAR CHART TITLE: Total returns for years ended December 31:
CHART DATA: 1986 7.79%
1987 -1.42
1988 11.06
1989 23.21
1990 1.48
1991 71.83
1992 -1.82
1993 8.84
1994 -5.34
1995 50.67
The Fund's Average Annual Total Return for the period
ended March 31, 1996
One Year 49.39%
Five Years 16.78%
Ten Years 13.78%
----------------------------------------------------------
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark,
Inc., a leading provider of U.S. and international
investment management for clients throughout the world.
----------------------------------------------------------
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 only $1,000. Thereafter, additional
investments may be made for as little as $100. 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 any dividends or 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.
<PAGE>
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, Perspectives
o regular, informative reports about the performance of your Fund
Scudder wants you to make informed investment decisions. This Fund Profile
contains key information about Scudder Development Fund. More details appear in
the Fund's accompanying prospectus. Please read it carefully before you invest.
If you have any questions, please call 1-800-225-2470.
